Decoded Fashion was founded in 2012 as a place where fashion and technology intersect. The summit hosts a startup competition to discover global startups that will bring a breath of fresh air to the fashion and retail industries. Last month, Isetan Mitsukoshi partnered with Decoded Fashion Tokyo, Asia's first, to host the "ISETAN CHALLENGE" startup competition.

■Five unique startups made it through the first round of judging

The competition saw the finalists selected through pitches and Q&A sessions in front of judges and an audience.

The competition required participants to propose solutions to the following three challenges facing Isetan Mitsukoshi. Participants were given three challenges:

- What ideas can be developed to create an in-store experience for future customers and increase engagement?

- How can data be used to provide customers with a richer in-store experience?

- What are your ideas for in-store customization or product development using innovative and pioneering technology?

Three international teams and two Japanese teams were selected from approximately 40 domestic and international applicants to propose solutions to this challenge. The finalists were selected through pitches and a Q&A session in front of the judges and audience.

The judges were Hiroshi Onishi, Representative Director of Isetan Mitsukoshi Holdings; Tatsuya Kitagawa, Special Assignment Officer for the Secretariat; Jun Kitada, President of Condé Nast Japan; Masafumi Suzuki, Editor-in-Chief of GQ JAPAN; and Mariko Nishimura, Co-Founder and CEO of Heartcatch.

The first company to appear was "BLUEFOX TARGET." They offer a service that detects Wi-Fi signals emitted by mobile phones and sends information to customers visiting their stores. They can analyze this data in real time, such as browser search history, to issue personalized coupons and display appropriate advertisements on digital signage. According to the company, an experiment in which a restaurant in the United States changed its menu display based on customer preferences was well-received. This function can also be used to obtain data on the level of customer service provided by store sales staff, and the effectiveness of a display window can be measured based on data on the number of people stopping by.

Next up was ELECTROLOOM. The company's 3D printer, ELECTROLOOM, is a device that uses input design data to create clothes on the spot through 3D printing. If this manufacturing method becomes a reality, it will enable textiles that do not require spinning, twisting, or weaving, and is a unique idea that will fundamentally change the clothing manufacturing process. Since finished products can be produced on demand, there is no inventory risk. The company is still in the experimental stage, and they said they plan to start with simple patterns like scarves and socks, and in the future, they hope to enable custom clothing designs.

ABEJA, a participant from Japan, gave a presentation on a solution that collects real-time in-store behavior data and uses it to promote sales.
One of the current challenges facing retail stores is the appropriate allocation of staff. To address this issue, the company uses video analysis and heat mapping technology to estimate customer behavior in-store, including age and gender. This allows the company to identify the products most frequently picked up and suggest the optimal timing for sales staff to intervene, leading to sales promotions. The company is also exploring the potential of innovative services, such as combining POS and CRM data with facial recognition technology to identify customers and process payments.

"INSECT MICRO AGENCY" proposed a solution that uses digital signage to add a more entertaining element to in-store shopping. By likening a visit to a store to a trip, the company offers an experience such as a glimpse into a Paris store on a high-resolution screen installed in the Shinjuku store. The idea is inspired by Doraemon's "Anywhere Door," a familiar name to Japanese people. The company is considering not only digital communication but also connecting the sales floor with customers.

The last company to appear is "MemoMi," a service that provides the world's first virtual fitting platform. Customers spin around in front of a large, mirror-like screen, capturing a 360-degree image. Using this data, they can try on different colors and designs without actually changing. They can also share the images of their try-on with friends and family on social media. Stores can collect data on customer trends, such as which items are most popular. Because it's cloud-based, a customer can revisit an item they tried on in Tokyo in Kyoto, for example. The system is currently being implemented in several Neiman Marcus stores in the United States. Initially, the plan was to select one company from these five, but the judges were delighted to discover that all of the proposals were so interesting that it was impossible to narrow it down to one. In the end, three companies were given the opportunity to present at Isetan Mitsukoshi. Memomi was selected as the top choice, as it was deemed the most innovative in terms of the theme of "in-store customer experience." In response to the award, Liz Basselaar, founder of Decoded Fashion, commented, "In the US, stores and shopping malls are constantly trying to figure out how to attract customers to their stores. But in Japan, stores are beautiful, exciting places where customers enjoy visiting. MemoMi will enhance the appeal of stores through technology."

Second place went to Electroloom. The judges praised its innovative approach to clothing production using 3D printing, praising it for stimulating imagination. Third place winner Abeja was selected because cameras, already ubiquitous, will undoubtedly revolutionize department stores.

Improving in-store appeal is a key focus for retailers. It will be exciting to see what solutions and innovations technology will provide to achieve this. It's particularly interesting that a fashion store, which is just beginning to embrace retail tech, is a partner in this competition.

The three companies mentioned above will be given the opportunity to exhibit and present their solutions at the Irodori Festival, which will be held at Isetan Shinjuku from August 26th. All of the winners' solutions promise to take a step further and create a new shopping experience. This technology will be presented at Isetan Shinjuku until September 1st. We encourage you to visit the store and experience it for yourself.