What does it truly take to compete in Tokyo’s luxury fashion and beauty retail scene?
Long has Tokyo been known as one of the world’s best destinations for fashion. The city’s eclectic mix of high-end boutiques, cutting-edge streetwear and traditional craftsmanship has always made the Japanese capital a major fashion hub, drawing brands and enthusiasts from around the globe. Shopping in Tokyo is also not like any other. From the sheer number of brands and styles that are available for the most discerning clientele to the plethora of areas dedicated to what can be considered the best form of cardio, Tokyo is definitely a must-visit for anyone who enjoys fashion and the thrills of shopping.
The weak Japanese yen has also fueled tourist influx and shopping frenzy in Japan. Pre-pandemic, one U.S. dollar could buy 112 yen. In May of this year, it plunged to a 34-year low at 160 yen. With 3 million visitors in just March of this year, Japan is looking to welcome more travelers with increased spending power and a desire to get more bang for their buck. The weaker yen is also keeping the Japanese from traveling overseas, ensuring localized spending.
Some may argue that the city doesn’t need more retail spaces, especially with the ubiquity of online shopping among the younger generation. However, the opening of Azabudai Hills has proven that to attract the right clientele, retail spaces should evolve from being merely places of consumption.
“What we offer is the experience,” said Mori Building’s Managing Officer for Commercial Facilities, Koichi Kurihara. He admits that their selection process has been pretty strict, focusing on which brands—both Japanese and international—will contribute to the vision.
“The physical stores in the future would not just merely be a place to sell products, but they will be based towards creating experiences,” Kurihara explained. “They provide the experiential distribution and a place to create a good community. For example, a store could turn into a school, event venue, or even a theater to strengthen that engagement with customers. These are things online stores cannot provide. So we wanted to focus on and facilitate this kind of factor.”
And Tokyo is already living that future. At Azabudai Hills, luxury fashion houses like Hermes and Dior, jewelry brand Cartier, and perfume house Officine Universelle Buly enjoy having the space to host their clients properly. “We have them in pavilions where they can develop their own façades and an outdoor terrace for each one which is not meant to be part of the shop floor but a community space.”
Pavilions allow for space so that brands can create exclusive experiences for their customers.
In a megalopolis where sprawling spaces are scarce, Kurihara says this made them quite the attractive choice. “These terraces have been used for exclusive events, where these fashion and beauty brands can provide unique experiences to their clientele,” Kurihara added.
Italian fashion brands Bottega Veneta and Bvlgari are also set to open this year within the 8.1-hectare complex that’s filled with modern architecture and lush greenery. Hospitality company Aman has also opened Janu Tokyo in Azabudai Hills—the only hotel in the complex—which has an expansive spa and a ground floor retail space for its own brand of skincare.
Engaging A Community
While the complex does have a residential area, Azabudai Hills has been enjoying visitors who come for their retail experiences. Keeping them engaged is something the team behind it is passionate about. “We do this in all properties,” Kurihara explained as he pointed to the other mixed developments they have built on a map of Tokyo, including the popular Roppongi Hills. “We host different events like art exhibitions, fashion events, and seasonal festivals involving residents, those who work within the development, and visitors. Even those from neighboring communities get involved.”
Although their focus is on real life experiences, the team does not shy away from technology. Three years ago, Mori Building also launched The Hills App. “It’s our tool to connect the customers to the stores and to us,” he shared. Point collection systems are huge in Japan when it comes to gaining customer loyalty, but this particular app also acts as a concierge, making restaurant reservations and sourcing tickets for the famed Mori Art Museum and observation deck Tokyo City View.
Urban Development Done Right
Entering Azabudai Hills feels rather Utopian, with its harmonious blend of nature and modernity. Its well-heeled and well-dressed crowd adds to the exclusivity of the space without feeling snobby. Everything about it is intentional. From the design to what’s available, everything is aimed at creating a serene and engaging environment that makes you want to stay longer. There’s even a temple within the complex.
While fashion and beauty do take centerstage, Azabudai Hills is also home to a well-stocked … [+]
A constant, lovely breeze in between the pavilions brings you from one store to the next, from the classic silhouettes at Dior to browsing for something shiny at Cartier. In Tokyo, everything feels a little extra, especially when it comes to service and experiences. So it’s no doubt that creating new retail spaces has also become more complex.
“We wanted to create a place where people can not only shop but also relax and enjoy their time,” Kurihara noted. “But what people often get astonished by is that it actually took us over 35 years to develop this whole complex.”
It took time to convince over 300 landlords in the area not to give up their land but work with the developer. “We asked them: Well, why don’t we develop the new town together?”
This collaborative approach to urban redevelopment has yielded a result that balances modernity with community needs. Unlike many gentrification projects that displace existing residents and businesses, this one is integrated to uplift the local community. Mori Building has always been guided by its home’s friendly competition with other cities on the Global Power City Index.
Shopping with a Utopian feel.
London and New York rank higher than Tokyo, which is followed by Paris and Singapore. “Our approach is that it’s about the competition amongst cities,” Kurihara said. “Once the capability or the power of a city declines, company power declines as well. If Tokyo declines, then the Japan declines.” This, he adds, is the reason why they have always focused on high quality development that’s not just about globally-known fashion houses.
“Tokyo’s power as a city depends on Tokyo. We are happy to work with small businesses or it could be some kind of established and really old store in Azabujuban or anywhere,” Kurihara said. “We wouldn’t question their scale as long as they have great potential to increase the attraction or the power of Tokyo—we’re happy to work with them.”