Singapore has always been a magnet for brands to test the waters before expanding throughout the Asia Pacific region, so it’s no surprise that Seijo Ishii, a high-end Japanese supermarket chain, has chosen it as the location of its first overseas pop-up. Founded in Tokyo in 1927, Seijo Ishii is known for selling a wide variety of local and overseas goods, as well as ready-to-eat meals. It operates approximately 200 stores in Japan and is gearing up to list on the Tokyo Stock Exchange. It
It’s also testing the waters overseas with the launch of a pop-up store at the Isetan Scotts Supermarket in Singapore. Trading from 4-17 November, the pop-up offers 42 items that have been selected from over 10,000 products in the retailer’s inventory.
Overseas expansion
“Singapore has the highest economic growth potential among Asian countries, and the national character of accepting diversity makes it the best country to promote test marketing for Seijo Ishii’s overseas expansion,” Masafumi Hayafuji, executive officer of Seijo Ishii, told Inside Retail.
He explained that this national character is very similar to the national character in Japan, where the population has adopted various cultures from both the East and the West.
“In Japan, our homemade side dishes such as Singapore-style laksa, Singapore-style fried rice vermicelli and Singapore-style soy sauce chicken noodles have won awards in the grand prizes for bento and side dishes,” he added.
Hayafuji said that many of the Singaporean dishes that were created had been developed with the support of the Singapore Tourism Board and the Singapore Ambassador to Japan (H.E. Mr. Peter Tan) in promoting the three Singapore Fairs (in 2016, 2019, and 2021).
“Our artisans have visited Singapore and learned directly from the Ambassador to Japan to recreate the authentic taste, which has been highly appreciated by our customers,” he stated.
Over the years, Seijo Ishii has built relationships with key Singaporean figures and institutions, and has developed a deep understanding of Singaporean culture, which was a major factor in opening its very first pop-up store in the market.
“We will test whether we can be successful overseas with this pop-up store, and if there is even a slight lead, we will still consider it,” he said.
However, in order for Seijo Ishii to achieve sustainable growth, he believes it is necessary to expand its store network in Japan while at the same time exploring the possibility of overseas expansion.
“In fact, we believe that Asia-Pacific could be considered as a target for such expansion, as well as Europe and the United States,” he noted.
The year so far
According to Hayafuji, Seijo Ishii aims to provide customers with highly original food products based on its management philosophy of “creating a prosperous society with a focus on food”.
Hayafuji explained that the company has developed a variety of store formats on roads, station buildings and commercial facilities to bring the brand to customers with original and homemade products that make use of its high-end product development capabilities.
According to him, continuing from the previous quarter, sales in Japan of perishable foods such as fruits, meat, and fresh fish, as well as groceries and confectionery, remained sluggish mainly at large street-front stores, due to the restrictive measures put in place during the Covid-19 pandemic.
“On the other hand, homemade prepared foods manufactured in our own central kitchen performed well due to the development of various measures taken by us and the strengthening of public relations activities,” he said.
Seijo Ishii started operating out of a new central kitchen in July, and is working to strengthen the development of its homemade products and increase the ratio of in-house manufacturing.
“We will continue to strive to improve the brand power of Seijo Ishii as an information-distributing manufacturer and retailer by continuously developing valuable products and promoting attractive sales promotions and public relations activities,” he said.
A refresher course
In addition to producing prepared foods, breads and desserts in its central kitchen, Seijo Ishii also develops original recipes, as well as importing food and wine from all around the world.
It places a strong emphasis on developing products in-house, and has created its own logistics technologies that give it the flexibility to open small stores from 30 sqm to over 600 sqm in a variety of locations.
But the company not only operates stores, it also has a wholesale and restaurant business, making it uniquely diversified for a supermarket.
Hayafuji believes the brand’s uniqueness lies in its ability to manage everything from product development to sales in-house.
“This is not something that can be imitated overnight. Added values such as deliciousness, ease of purchase, and hospitality, cannot be found anywhere else, and that’s the reason why people return to Seijo Ishii again and again,” he noted.
Seijo, Tokyo, where Seijo Ishii was founded, is home to corporate executives, scholars, literary figures, movie stars and other cultural figures, and the company makes it a point to listen to their feedback.
“Our customers are deeply particular about food, and we carefully select delicious foods from Japan and all over the world. We develop our own unique line-up of products as well, and we are a store that is nurtured by our customers,” he said.
Target markets
Seijo Ishii approaches marketing its products to customers in different ways depending on their age.
“In Japan, Generation X has a high level of trust and preference for television, so our strategy is to increase the level of trust in our products and promote them by sending out information from a media perspective through PR activities to them,” Hayafuji said.
Meanwhile, Generation Y, also known as the millennial generation, values the online media element. Because this demographic is more sensitive to “things” rather than “goods,” the company does not try to promote all of its products, but rather create “special experiences” by promoting seasonal items and experience based promotions through seasonal fairs.
“Since Generation Z is also a smartphone-native generation, we believe that disseminating information through social networking will be effective. The company aims to communicate to a wide range of consumers and we consciously change the information distribution channel for each generation,” he stated.
The road ahead
While most brands, retailers and marketers are worried about the current state of affairs surrounding a looming global recession, inflationary pressures and supply chain bottlenecks, Hayafuji is quietly confident that the company is positioned to weather this perfect storm.
“Seijo Ishii’s unique system of operations, which includes searching, planning, developing, manufacturing, storing, transporting, selling, disseminating information, wholesaling, and providing food and beverage services, allows the company to respond flexibly under any circumstances,” he said.
He cited a recent example pertaining to cheese. The company used to source cheese that was manufactured in countries such as Italy and France. But prevailing global uncertainties compelled the company to turn inward.
“Seijo Ishii’s procurement capabilities, abundant distribution options, and in-house processing technology enabled us to provide cheese to customers at relatively stable prices,” he added.