Investments in Digital Transformations

SDGs:

  • GOOD HEALTH AND WELL-BEING

    3

  • GENDER EQUALITY

    5

  • DECENT WORK AND ECONOMIC GROWTH

    8

  • RESPONSIBLE CONSUMPTION AND PRODUCTION

    12

  • PARTNERSHIPS FOR THE GOALS

    17

Digital Customer Experience

With the emergence of phones, tablets, laptops, etc., we now live in an era where people own multiple devices. SKM not only hopes to provide customers with a safe and relaxing shopping environment, but is also dedicated to integrating online and offline resources, developing diverse marketing tools, providing guided shopping services through mobile applications, and offering online shopping and other digital services through digital internet technologies. Our goal is to deliver convenient services that cater to our customer's individual needs and establish a stronger presence in their lives, enabling them to enjoy high-quality shopping experiences anytime and anywhere.
 

Digital Transformation Evolves Further: Creating More Diverse Service Experiences

Highlight I: SKM Media-First retail media brand operated by a department store in Asia.

Building on a solid foundation of a strong fashion image, high-value members, and robust online and offline platforms, SKM launched SKM Media in June 2023, becoming the first retail media brand operated by a department store in Asia. SKM Media focuses on delivering professional content by utilizing precise data analytics, O2O marketing tools, advertising system development, and modular data applications. Integrated with the SKM APP, the official website, and social media platforms, SKM Media proactively sends messages during festive periods to members most likely to interact with the brand, thereby increasing foot traffic and boosting sales.

Highlight II: Social Friends to Membership Conversion Plan - Optimization of LINE Friend Membership Mechanism

SKM, with the largest membership base in Taiwan, boasting 4.06 million members and 84% of its revenue generated from SKM members, recognizes that recruiting members across various age groups is key to generating more revenue. To this end, SKM not only collaborates with its subsidiaries and external business partners to recruit new members but also integrates payment tools and social media platforms to directly upgrade social media users to SKM members. By leveraging the SKM APP, official website, and social platforms, the company disseminates attractive membership incentives.   In 2024, SKM further optimized its efforts by launching a membership recruitment channel on its official website. Combined recruitment through LINE and the website brought in a total of 137,000 new digital members. Looking ahead, SKM will continue to enhance the program and design recruitment activities tailored to effective incentives for customers in different regions. The goal is to leverage the Customer Data Platform (CDP) and Marketing Automation (MA) tools to nurture each new member into a potential key customer segment in the future.

Evolving Management Systems Deliver Outstanding
& In-depth Membership Services

Highlight I: SEO Deployment – Boosting Organic Traffic and Strengthening Brand Influence

Through a comprehensive Search Engine Optimization (SEO) strategy, SKM not only reduces reliance on paid advertising but also enhances the brand’s visibility on search engines, driving stable and high-quality organic traffic. In 2024, user numbers grew by 8.4% compared to the previous year, and sessions increased by 2.9% year-over-year.
 

Highlight II:  Breakthrough in SKM Online Website and Official Website Marketing Tools

The forerunner to SKM Online was Beauty Stage, an e-commerce platform specializing in makeup and cosmetics. When the COVID-19 pandemic broke out in Taiwan in 2021 and offline sales were severely impacted, SKM decided to take a bold leap, completing a full system upgrade in just 14 days. In the six months after launch, revenue grew sevenfold compared to pre-transformation levels, successfully driving growth despite the challenging environment.

In addition to using targeted advertising and personalized recommendations to predict products or events customers may prefer, SKM also launched a Celebrity Boutique function on the official website, where KOLs from different fields can curate and sell products. This brings the celebrity product-promotion trend into the department store sector and also generates more traffic for our official website.  After upgrades to marketing tools and functions on our official website, we welcomed 13.88 million unique visitors in 2024, marking a 25.2% increase compared to the same period in 2023.

Highlight III: Electronic Business Operations System

With retail channels embracing digital transformation, we are entering a new era of smart retail. To adapt to these market changes, we are optimizing our existing digital B2C platform and digitalizing manual and paper-based business operations. This transition not only reduces paper consumption but also significantly enhances SKM's work efficiency, reduces human errors, and facilitates internal communication and management, ultimately enabling us to provide customers with high-quality services.

Innovative Digital Shopping Experience

Highlight I: Digital Member Management

To align with modern digitalization trends, reduce the risk of infection during the pandemic, promote paperless operations, and free up more human resources for other core business activities, SKM stopped issuing physical membership cards in July 2022. Customers can now complete online identity verification and apply for membership cards through ID, mobile phone, or video verification. The company continues to encourage physical cardholders to bind their cards to the SKM App, eliminating the inconvenience of carrying multiple cards while reducing resource waste and carbon emissions.

Highlight II: Expansion of the SKM Points Ecosystem and Launch of “Bank Points Exchange”

The new SKM Points system strengthens member loyalty and fosters a “points circulation economy” from point issuance to redemption. Looking ahead, SKM plans to enable members to accumulate points through participation in corporate sustainability initiatives, which can be redeemed for sustainable products. The“Bank Points Exchange”service was launched in 2024 to provide additional ways for members to earn points. In its first year, SKM partnered with Taishin Bank, generating 10.8 million points, with 1,471 members participating in exchanges and attracting 117 new members. More bank partnerships are planned for 2025. 

Highlight III: Implementation of AI-Powered On-Site Search to Enhance Shopping

In 2024, we further enhanced application results by introducing AI intelligent tagging technology to gain deeper insights into consumer intent. Using Natural Language Processing (NLP) to analyze product text information, AI applies behavioral and product feature tags to product pages, simultaneously improving website experience and enriching product information. Finally, an AI-based automatic classification model categorizes these tags and maps them back to users.
 

Highlight IV: SKM Data Empowerment through MarTech System Implementation Plan

To enhance member engagement, strengthen both online and offline performance, and realize retail media monetization, SKM introduced MarTech tools (CDP and MA) in 2023. Leveraging the customer lifecycle and shopping journey as the starting point, SKM built a one-stop data platform to collect and manage information such as member profiles, purchase records, and advertising interactions. This enables in-depth data analysis and the delivery of personalized, real-time, and continuous marketing messages. By integrating with SKM Pay and SKM Points, we further enrich the member experience and strengthen customer loyalty. Working in synergy with SKM Media, we connect with customers through a diverse range of channels, proactively sharing shopping information during key seasonal events and holidays.

After implementing the MarTech system in 2024, the average monthly digital interaction increased by 190,000 users, and average monthly revenue grew by NT$190 million.  In 2025, there are plans to further deepen the use of CDP and MA across branches, advancing the organization's digital transformation and continuously boosting overall sales performance.
 


Highlight V: Self-Checkout Machines in Supermarkets 


As consumers increasingly seek convenience and efficiency in their shopping experiences, long queues during supermarket checkout periods often affect customer satisfaction. To enhance the shopping experience and optimize the checkout process, this project introduced self-checkout machines that integrate smart technology and cloud systems. The initiative aims to save labor costs, shorten checkout times, improve the effectiveness of promotional campaigns, foster closer customer relationships, and create a better shopping environment.