Osaka retail belts use 100-yen campaigns to woo shoppers

The Daily Yomiuri | Thu Sep 2 2010

Singapore, September 2, 2010

Merchants in the Kansai region have taken a hint from successful 100-yen (S$1.60) shops and are offering featured products for 100 yen on certain days.

So far, 11 shopping arcades in Osaka have tried the approach, and each saw foot traffic double or triple. But, faced with tough competition from large shopping malls in the suburbs, arcade merchants noted that they will need much more than a boost from 100-yen campaigns to survive.

Known as Osaka’s kitchen, the Kuromon Shopping Mall in Chuo Ward held a one-day 100-yen campaign on a Saturday in late July. It attracted so many people that, at one fish store, boiled hamo (Japanese conger eel) sold out in 10 minutes.

The arcade also offered people discount coupons, which were valid for a month, hoping shoppers would return on another day.

Ikomaekimae shopping arcade in Ikoma, Nara Prefecture, was the first in the Kansai region to try 100-yen campaigns, in 2008.

In Osaka, the Senbayashi shopping arcade in Asahi Ward, was the first to use the campaigns, in April, after which 10 other arcades followed suit.

Among unusual products offered by the arcades were a limited number of apartments whose first month’s rent was 100 yen, and 100-yen tickets to matchmaking parties.

An additional 18 shopping arcades plan to hold 100-yen events.

A survey conducted by the Osaka Chamber of Commerce and Industry of four shopping arcades showed foot traffic rose 2.4 times on average with those campaigns, with 90 per cent of shops saying they had new customers.

Sixty per cent of stores said sales jumped during the events, and 30 per cent saw people buying products other than those sold for 100 yen.

The campaigns have also reportedly enhanced cooperation among neighbouring shopping arcades.

However, others remain cautious, saying attracting and keeping fickle customers is no easy task.

“This is not a cure-all. We won’t be able to offer surprises indefinitely,” said deputy chief Shigeaki Tsutsumi of the Osaka chamber’s small-business promotion division.