ITOCHU Announces Start of Collaboration with the PPIH Group in Retail Media

Expanding Advertisement and Sales Promotion by Crossing Media and Data Owned by FamilyMart, Don Quijote, and Others as well as Collaborating Across Retailers Toward the Birth of One of Japan's Largest Retail Media Networks

April 28, 2023

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that a memorandum on retail media collaboration has been signed with Pan Pacific International Holdings Corporation (headquartered in Meguro-ku, Tokyo; Naoki Yoshida, President & CEO; hereinafter "PPIH"), KaibaLab Corporation (headquartered in Meguro-ku, Tokyo; Takeshi Moritani, President & CEO; hereinafter "KaibaLab"), FamilyMart Co., Ltd. (headquartered in Minato-ku, Tokyo; Kensuke Hosomi, Representative Director and President; hereinafter "FamilyMart"), and Data One Corp. (headquartered in Chiyoda-ku, Tokyo; Hidetoshi Ota, President; hereinafter "Data One").

1. Background to Memorandum on Collaboration

Digital transformation (DX) developments in recent years has brought attention to retail media that uses data that retail businesses obtain from their physical stores to advertise online in accordance with consumer needs. In the United States, which is leading the way in retail media, digital sales promotion is being enhanced and new profitability is being explored in advertisements; for example, major retailers creating services that verify everything from online advertisements adapted to consumers to purchase results on the basis of the purchasing data they possess. The US retail media market size was about 4.0 trillion yen (about USD31 billion) in 2021 and is predicted to continue growing at an average of 23% per year, expanding to about 7.2 trillion yen (about USD55 billion) in 2024.*1
Cooperating with ITOCHU subsidiary FamilyMart and Date One, which works with digital advertising, ITOCHU aims to create a new retail media business that adheres closely to the lifestyle flows of consumers. By utilizing the data and the points of direct contact with customers of the about 16,500 FamilyMart stores, we will enable better store experiences for customers as well as develop data-based digital advertising and signage advertising.
Moreover, the PPIH Group aims to create an advertising business that leverages the data of its app members and its points of direct contact with consumers along purchasing flows. It also seeks to continuously meet changing consumer needs and improve customer experiences by collaborating with manufacturers.
As the two groups' directions have aligned in recent times, ITOCHU and the PPIH Group have signed a memorandum on collaboration that aims to accelerate the two groups' retail media businesses by linking their respective data and media.

  • *1From Insider Intelligence Inc., "US Digital Retail Media Ad Spending," 2022

2. Collaboration Contents

Based on purchasing data mainly from FamilyMart and one of the biggest sets of member data in Japan mainly from NTT Docomo, Data One has helped effectivize the digital marketing of manufacturers and other advertisers by running online advertisements optimized for consumers while measuring purchases and other effects, using licensed advertisement IDs (hereinafter "ad IDs"). Now, the data of FamilyMart, Data One, and the PPIH Group will be crossed to create Japan's largest retail media network, consisting of more than 30 million ad IDs as the "data volume" of member data sets and 100,000 items as the "data range" that represents products subject to the purchasing data.
By widening the scope for monitoring purchases by customers in stores and increasing our understanding of those customers, the collaboration will be able to provide information that better matches their interests and preferences as well as allow manufacturers and other advertisers to advertise more effectively.
Moreover, in addition to crossing the data, the collaboration will link Japan's largest signage network run by FamilyMart and the store signage that PPIH is planning to launch, making it possible to verify advertisement synergy and develop new advertisement products. By combining online ads, which are digital points of contact, with signage ads and the like in physical stores, it becomes possible to advertise more effectively, following the lifestyle flows of consumers not only when they are at stores but also before and after their visits.
Centering on this partnership with the PPIH Group, the ITOCHU Group aims to promote further collaboration and create new retail media.

Corporate Profile of ITOCHU

Established December 1, 1949
Representative Masahiro Okafuji, Chairman & Chief Executive Officer
Headquarters 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo 107-8077, Japan
Main Business ITOCHU is involved in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

Corporate Profile of Pan Pacific International Holdings Corporation

Established September 5, 1980
Representative Naoki Yoshida, President & CEO
Address 2-19-10 Aobadai, Meguro-ku, Tokyo
Main Business Group business planning and management through ownership of shares in Don Quijote, UNY, and other group companies, commissioning of subsidiary management tasks, real estate management, etc.

Corporate Profile of KaibaLab Corporation

Established October 7, 2019
Representative Takeshi Moritani, President & CEO
Address 2-19-10 Aobadai, Meguro-ku, Tokyo
Main Business PPIH subsidiary. Surveys, research, and advice relating to technology use in the retail field. Services relating to information collection, processing, and provision. Engages in market surveys, market analysis, advertisement surveys and other research, various marketing-related work, consulting, etc.
Website (Japanese)

Corporate Profile of FamilyMart Co., Ltd.

Established September 1, 1981
Representative Kensuke Hosomi, Representative Director and President
Headquarters 3-1-21 Shibaura, Minato-ku, Tokyo
Business Activities Franchise system-based convenience store business
Number of Stores 24,523 (16,517 in Japan, 8,006 overseas; as of end of March 2023)

Corporate Profile of Data One Corp.

Established October 27, 2020
Representative Hidetoshi Ota, President
Headquarters 17 Floor, Kasumigaseki Building, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo
Business Activities Digital advertising distribution business and advertising agency business utilizing data possessed by retailers
Investment ratio IFP Inc.: 55%
(ITOCHU: 55%, FamilyMart: 45% investments, respectively),
NTT Docomo: 40%, CyberAgent: 5%
Website (Japanese)