This series interviews and reports on venture companies seeking innovation by applying ever-evolving IT technology to the fashion industry. In the third installment, we look at the online select shop "All About Style Store" and the gift specialty site "COCOMO."

"Style Store" is an online select shop selling approximately 10,000 carefully selected lifestyle items handpicked by a diverse group of discerning shoppers. The gift shopping site "COCOMO" is renowned for its unique services, such as gift appraisals, that make choosing a perfect gift fun. We spoke with Masaki Shimizu, operator of these two sites, about their unique business model and future plans.

--What inspired the launch of "Style Store" and "COCOMO"?

At the time, shopping malls were at their peak, and online stores attracted customers by offering slightly lower prices. To avoid getting caught up in the price wars and because there were no online stores with clear concepts, we launched "Style Store" and "COCOMO," which select and sell only "special items." Initially, we tried to sell products by suggesting styles like in a magazine, but while it attracted a lot of traffic, it didn't translate into sales. So we decided to shine a spotlight on "products." It was at that time that we came up with the idea of showcasing the background of the products, such as by showing photos of the makers and behind-the-scenes stories about their production, and using stories to highlight the quality of the products.

--What are the buyers like?
All of our buyers come from brick-and-mortar stores, and most of us have been with the company since its inception. One buyer, who joined the company in 2006, was attracted to our business model, which didn't emphasize price, during a period of business expansion. First, she diligently searched for makers online, in magazines, and at exhibitions. According to her, creators who create products that sell are well-balanced creators who not only have original designs but also a good business sense. As a unique strategy, we seek out makers who create high-quality products but don't yet have a sales channel, thereby creating a unique product lineup.

--What are the advantages of online shopping?
We receive direct feedback from customers. Style Store actively utilizes the feature, allowing customers to write product reviews. People searching for quality products also want to help others, and many customers love the makers and want to support them, resulting in a large number of reviews. We use these reviews to create original products and pre-sale items, differentiating ourselves from major online malls with larger product lineups.

For example, the wallet from m+, a leather goods brand I use myself, was improved based on customer reviews. While many people tend to replace their wallets frequently, this wallet's unique specifications have led to a high repeat purchase rate.

--What are the challenges unique to online shopping?
Attracting customers is key in e-commerce, but increasing repeat customer numbers for online shops can be more difficult than for brick-and-mortar stores. Internet users are generally fickle. With brick-and-mortar stores, customers may become repeat customers because the store is nearby or they often visit the same town, but this is not the case online. Therefore, customers need to be motivated to shop at that store. We're trying to increase repeat customers by offering services that require membership, such as e-mail newsletters and member sales.
Starting an online shop is easy, but there are many rivals and the competition is fierce. That's why we need unique ideas.
--What are your future plans?
Japan is still in a recession, but I believe that giving gifts to others will continue to require a certain amount of investment and thought, just as it has in the past. As a business owner, President Tetsuya Ebata of All About Co., Ltd. seems to give gifts often, and he seems to be paying close attention to gift demand.
We want to offer gifts that both givers and receivers can enjoy. We also aim to create a shop that makes customers think, "I come here to find all the great things." In October 2012, COCOMO launched a service that allows customers to choose not only the product but also the packaging, and even add a custom message to create a gift. This service is now available online without having to go to a store. We hope to continue expanding the possibilities of online shops.