On November 4th, I hosted an onstage conversation with Davide Sesia—Executive Vice President and Director of Sogo & Seibu, and author—for a joint event of the American, Canadian, and Australia–New Zealand Chambers of Commerce. Below are my key takeaways:
- Luxury is what you need after all your needs have been met.
- Luxury in Japan has remained fundamentally consistent for thirty years. Luxury becomes relevant only once all other needs are satisfied.
- Western luxury is rooted in individualism; Japanese luxury is rooted in belonging. A strong, coherent brand identity can speak to both motivations.
- Luxury is a multi-sensory experience—visual, olfactory, auditory, and tactile—extending far beyond the product itself.
- The buying experience is inseparable from the value. Luxury customers buy from people who reflect their own aspirations, which is why sales associates wear items that embody the brand.
- Human interaction and rapport remain central to luxury sales. Pure e-commerce rarely succeeds at the highest end of the market for this reason.
- Shopping for luxury is entertainment. Hence cafés in stores, brand-hosted travel and social events, and other experiential elements.
- Digital can enhance, not replace, the physical. Smart in-store digital integration—sometimes called phygital—can elevate the experience.
- Japanese department stores are vertically structured versions of traditional horizontal shopping streets.
- The department store model in Japan remains relevant in 2025, but must evolve. Priorities include brand exclusivity, precise performance standards, prioritizing the most profitable clientele, and even invitation-only floors—new territory for Japan.
- Rethinking the store layout matters. For example: placing top-performing brands on the third floor, paired with cafés and strong sightlines to street activity, creating a more holistic and compelling journey.
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