presented at CLSA's 2015 Japan Forum this presentation discusses how mobile phones have become a integral part of the shopping experience for people of all ages. the notion of the "fifth sense" was introduced by McCann's Truth about Youth research in 2011to explain how people have adopted their smart phone as an integral part of how they sense the world. in fact it has become an important sensory addition for many aspects of life.

1. JAPAN’S FIFTH SENSE

2. When we asked 16-24
year olds which of a
list 20+ items they
were most unwilling to
give up the top two
were their nose and
their phone … asked
to make a further
choice 53% opted
for phone over nose
When we asked housewives to
choose between possessions
forever over half said they would
give up their engagement ring
rather than their phone

3. CHECKTHEWEATHER ….
NOT TOMORROW’S …
THEWEATHERR INTHE NEXT TWO HOURS
WHAT DOESTHE TYPICAL JAPANESE HOUSEWIFE USE HER
PHONE FOR 5.4TIMES A DAY … EVERYDAY ?
3

4. WE ALL KNOWTHAT PHONES ARE NOW
THE ANSWERTO EVERYTHING
4

5. IN REALITY WE FIND IT HARDTO IMAGINE LIFE ..
SHOPPING …WITHOUT A PHONE IN HAND
5

6. 6
Source:We Are Social,“ Digital, Social and Mobile in 2015”

7. LINEWILL BRINGTHEIR UNIQUE SENSIBILITYTO
SHOPPING
7
LINE MALL offers ease, an
all image search possibility
Line is offering delivery
services
http://bit.ly/1BwFWVH

8. THE NUMBERS OF SINGLE HOUSEHOLDS GROW ..
AS DOTHEIR SAVING RATES
出店：「家計の金融行動に関する世論調査（平成20年）」
Household with more
than 2 people
Single household

9. E-SHOPPING IS BEING AIDED WITH NEW
DELIVERY IDEAS
Rakuten now has annonymous lockers in Tokyo where you can
have your stuff send to: http://bit.ly/15NfDlr
9

10. PRODUCTS FOR 1TO 2 PEOPLE HOUSEHOLDS
ARETHE BIG HITS
Hot-pot soup for one person
“Nabe-cube” from Ajinomoto
Sales reached 2 billion yen in
the first year of launch
7-11 PB Seven Premium
Dish washing machine
“Puchi-shokusen” from Panasonic
Sales in the first three months of
launch were 1.6 times of projection
Popular among DINKS and seniors

11. GEORGIA “MY FAVORITE CAFÉ”VENDING MACHINE
11
After you select a "café owner" of
your choice and register a vending
machine that you regularly visit, the
app becomes a hotline between
you and a café owner in the
vending machine.

12. 12
CONSUMPTIONTAX AND PRICE RISES CUT EXPECTED
SPENDING
McCann Fukkatsu Research 2014

13. 13
SHOPPING IS MINIMISED, LUXURY IS HESITANT
McCann Fukkatsu Research 2014

14. 14

15. 15
McCann Fukkatsu Research 2014

16. YOUNG ALONE
MOTHERS SENIORS
FREEDOM
Want to free oneself to move forward
Take responsibility to act without
restriction by an organization.
Feel unforced but have tense for failure
as I know that along with freedom comes
responsibility.
I feel great and responsible for
everything at the same time.
Make my own choice from many options.
It makes me feel responsible for my
choice.
I have a variety of choices.
The more responsibility or risk I have,
the more freedom I feel. Be prepared for the risk to act according
to my judgment.
It’s unconstraint and my decision, but
that’s what I am responsible for.

17. People expect
that individuals will
also have increasingly
better lives 5 years and
10 years from now
And…

18. 56
65
70
57
65
67
58
65
69
Present 5 years later 10 years later
2011 2012 2014
PEOPLE EXPECTTHEIR LIVESTO BE BETTER IN 5YEARS
If you are to rate your daily life now, 5 years from now, and 10
years from now, what ratings would you give out of 100?
McCann Fukkatsu Research 2014

19. 19

20. “FREEDOM”
Regardless of age,“FREEDOM” means seeking
real “Quality of Life” in accordance with individual
value-sets.
“Live life to the full”
Respecting self as an individual,“FREEDOM”
provides experience/affirmation of one’s self being
able to appreciate good things life can offer.
And that comes with responsibility and efforts of
self and it has to be sustainable.

21. McCann Fukkatsu Research 2014

22. IN SUCH AN ECONOMY E-COMMERCE AND
“MAKE DO” LIVES BECOME BIG BUSINESS
22
Most Popular Flea Market App in Japan: Mercari
Over 10 million downloads
Users post over 10,000 items each day and there are over1
million listings
#2 Popular Flea Market App: Fril

23. THE GOAL SHOULD BE :
ACHIEVE A GOOD BALANCE BETWEEN
“SAVING MONEY” AND “SAVINGTROUBLES”
23
Show no coupon “Catalina”
Seamlessly linked with information
of the membership card from the
store. Possible to enjoy discount
and gain points for the purchase
of a pre-selected item without
showing the coupon on the app
screen.

24. UNIFY “REAL” AND “VIRTUAL”
24
Tokyu Hands seamless connection of
online and brick-and-mortar
Shows real-time “sales status in the store”,
and “availability of the product in the
store”.
Shoppers can view their purchase history
from both the online store and the brick-
and-mortar store.
Common point system.

25. MUJI PASSPORT
25
https://www.youtube.com/watch?v=QxvAr4l_P
00&feature=player_embedded
Earn MUJI Miles and shopping
points from both store visits and
purchases.
The point system will lead to
coupons, discounts and special
promotions that can be redeemed
in store and online.
Additional features give MUJI-
heads the ability to search a
specific store’s stock, gain birthday
awards and share updates through
the major social network platforms.

26. 26
McCann Fukkatsu Research 2014

27. LAWSON MART Opens Feb 2014
Fashion Lifestyle Magazine for men 50s
and 60s (Senior version of LEON)
Starting September 2014
PC lessons at home
electronics retailerYAMADA
AND BRANDS STRIVETO MEETTHE AGING SOCIETY

29. 29
McCann Fukkatsu Research 2014

30. 30
McCann Real Mothers Research 2014

31. 31
IMPULSING BUYING AND “GOINGWITHTHE FLOW”
ARE ONTHE RISE
McCann Real Mothers Research 2014

32. 32
McCann Real Mothers Research 2014

33. 33
McCann Real Mothers Research 2014

34. MOBILE MAKES SHOPPING EASIER
34
McCann Real Mothers Research 2014

35. 35
McCann Real Mothers Research 2014

36. 36

37. 37

38. 38

39. 39

40. 40

41. Consumers have the mindset that “they are taking control” while
looking for “new discoveries” and “excitement of finding something
serendipitous”.
41
are inspired while they are shopping66%
worry they’ll discover fewer new things
if companies always show them
exactly what they’re looking for
57%
Source：McCann Truth about Shopping 2014
INTHE DATA-DRIVEN WORLD, SHOPPING EXPERIENCE
TENDSTO BECOME DULL AND ROUTINE.

42. THE PROBLEM : SERENDIPITY AND EXPERIENCE
42

43. PIONEERING SERENDIPITY
DON QUIJOTE
“cramming products onto
shelves and piling them to
ceiling”
At times, one might feel “the
pile might collapse” or “I don’t
know what’s up there”, but
there is a joy to unexpectedly
discover a terrific bargain, just
like a treasure hunting.
43

44. NEWCOMERS IN SERENDIPITOUS SHOPPING:
INTERNATIONAL IMPORTED SUNDRIES STORES
IN OMOTESANDO
“At a glance, you may be puzzled at
how you could use these items lined
up in the store.”
In fact, 10 % of all items are always
comprised of products called “What is
this” items.
They aim to bring customers back to
their stores, assuming “once
customers touch, discover and get
surprised by our products, they come
back even if there is not something
they are looking for in the store“.
44

45. HOT STOCK OF SERENDIPITOUS SHOPPING:
KALDI
A chain of imported food specialty
stores where one can taste a cup of
coffee and find reasonably-priced,
unique imported foods.
45

46. VIRTUAL SHOPPING IS AVITAL PART OFTHE
SHOP/DECIDE/PURCHASE MIX
46
“Urban Research”
Possible to virtually fittings
A single terminal allows trial from
fitting to purchase.
They are aiming to develop this
into an unmanned, interactive
clothing shop in the future.

47. 47

49. 38% OF TEENS ADMIT TO
USING THEIR MOBILE
WHILE ON THE PHONE
AND I AM GUESSING SO
DO MOST OFYOU
McCannTruth aboutYouth

50. 50
For more stories about people, brands
and media davidcmccaughan@gmail.com