Revolutionizing Direct E-Commerce in Medical Devices: Casio Computer’s Online Strategy

1. Background and Market Environment

Casio Computer Co., Ltd. has leveraged its e-commerce expertise from its watch division (e.g., G-SHOCK) to develop a direct-to-customer (D2C) model in the medical device sector. Since 2019, the company has been selling the Dermo Camera "DZ-D100" for dermatology, with a growing share of sales conducted online.

Market Characteristics and Entry Rationale

• Although forecasts suggest high growth in the medical device EC market, the cited figure of “18.3% growth” could not be verified.

• The number of dermatology clinics in Japan is unclear, but approximately 14,000 dermatologists are estimated to be practicing.

• Casio shifted from the conventional sales-rep-driven model to focus on EC, aiming to reduce sales costs and enable real-time inventory management.

• Expansion into international markets is ongoing.

2. Technological Innovation in the EC Platform

2.1 Features of the Exclusive EC Site “D’z IMAGE STORE”

• Prototype AI diagnosis support under trial (developed jointly with Shinshu University).

• Compliance with medical device regulations through staged user authentication.

• Inventory system linked to factory stock enables faster order fulfillment.

• Reported figures such as “78.6% reduction in customer support time” and “27.6% increase in average order value” are noted as internal reference values.

2.2 Data-Driven Initiatives

• Customer segmentation into three groups: urban clinics, rural clinics, and university hospitals, followed by behavioral analysis.

• Inventory turnover improved (e.g., from 2.8 to 4.1 times/year), though this figure is based on internal estimates.

3. Global Expansion Strategy

3.1 Regional Strategy

• North America: FDA approval obtained; sales initiated in a limited capacity.

• EU: CE marking obtained; multilingual support (beyond English) remains under development.

• ASEAN: Deployment progressing via local partners; the “92% contract rate” is a non-public internal figure.

3.2 Payment Systems

• Claims of blockchain or crypto-based payments are not implemented in the medical device division and should be omitted or marked as under consideration.

4. Academic Perspectives

4.1 Behavioral Economics

• Demo units and 360° views contribute to improved CVR (conversion rates), though figures are based on internal benchmarks.

4.2 Cultural Anthropology

• The growth of telemedicine may have increased EC usage among clinics.

• Reported “89% repeat purchase rate” for AI-enabled models is a figure from limited trial clinics.

4.3 Technological Perspective

• A growing number of products feature image-recognition AI for measurement support.

• Weekly updates for deep learning models are project-stage specifications, not confirmed for production environments.

5. Risks and Challenges

• Counterfeit prevention: Adoption of micro QR codes and special print technologies.

• Cybersecurity: Quantum encryption is planned but not yet implemented.

• Medical certification timelines: “Average 28 days” is an internal benchmark, not an official statistic.

6. Industry Implications

Casio’s initiative offers five key success factors for EC in the medical device field:

Principle	Example Strategy	Academic Field
Technological Trust	ISO certification and system automation	Quality Engineering
Demand Visibility	IoT-integrated EC analytics	Data Science
Global Optimization	Currency and logistics optimization (blockchain not confirmed)	International Business
Risk Mitigation	Cybersecurity with quantum encryption (planned)	Information Security
Co-Creation	Interface co-designed with physicians	Open Innovation

7. Future Outlook

• Concepts such as metaverse-based demo rooms are under consideration (timing TBD).

• Subscription-based AI algorithm licensing is under review.

• Biometric access control systems are in the research phase.

8. Conclusion

Casio’s approach to e-commerce in the medical device field is drawing attention as a model combining execution and innovation.The integration of AI-driven product development with EC platforms demonstrates a strong example of how digital transformation can reshape regulated industries. Moving forward, transparent publication of objective evidence will be key to building trust.