Report on a media business site tour sponsored by the Corporate Communications Department

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24-hour live TV shopping broadcasting studio

The studio houses multiple sets, so that live programs can be broadcast in seamless succession

Staff members led by the producer hard at work on a program, aiming for a “sold out” result

Located near the Sumida River in Chuo-ku is a building which literally never stops: it too operates 24 hours a day, 365 days a year. A group of publishers and newspaper journalists visited the shopping channel studio, where the live, around-the-clock TV broadcasts originate. At the studio a presenter, known as the “cast,” sometimes joined by guests, speaks enthusiastically about various products and their uses, development, specifications and price. For example, if the product is an item of clothing, a producer in the sub-control room speaks directly to the presenter via the presenter’s headset, instructing him or her to “show the lining.” Upon receiving the instruction, the presenter immediately responds by saying, “Let’s have a look at the lining,” and a camera zooms in.

The camera work is also controlled remotely from the sub-control room, making it highly efficient. In addition, the original request “to see the lining” was received by phone call from a viewer who was watching the program. The live TV shopping program introduces one product over a 30- to 60-minute period, during which time purchase orders are simultaneously taken from viewers.


The hours between around 11:00 pm and 1:00 am, when the calls come thickest and fastest, is the most exciting time at the call center

Call center staff members work hard. When they need a break, they go to the staff lounge, which looks as if it belongs in a resort hotel

The next visit was to the call center which responds to the viewer orders and inquiries. This place also operates 24 hours a day, 365 days a year. The spacious 380-seat room where the telephone operators respond to calls is a spectacular sight. By design, the center is located in the heart of the city to ensure it attracts and keeps the best and the brightest staff to provide the kind of high quality customer service the center prides itself on. Customer data is kept and analyzed for use in creating proposals for new product development. In addition, Jupiter Shop Channel aims to improve the quality of the complaint handling process and to ensure overall customer satisfaction. Reflecting this, the call center—the front line of the customer interface—is called the Customer Care Department. On June 27, the Company announced that as a result of its hard work its operations had been pronounced compliant with International Standard ISO 10002, a first for the retail distribution industry.

Outline

Dates:
July 25 and August 7, 2008

Participants:
A total of seven people from five newspapers and publishing companies

Purpose:
To give media representatives a better understanding of Sumitomo Group’s unique operations and its integrated corporate strength and the synergies it produces by providing them with the opportunity to take a first-hand look at some business sites.

Main Activities:
Observation of a live broadcast at the Jupiter Shop Channel studio and sub-control room and visit to the shopping channel’s 24-hour call center. Visit to one of the largest logistics centers in the Tokyo metropolitan area. Meetings and interviews with related personnel.

Brief Explanation

Shop Channel

A TV shopping channel run by Jupiter Shop Channel Co., Ltd., a majority stake of which is owned by Sumitomo. The most notable feature of the channel is its 24-hour, 365-day live broadcast. Currently about 22 million households across the nation (about 40 percent of all households in Japan) are wired to view the channel. The channel does especially well in women’s cosmetics and fashion and home appliances, and has introduced several mega-hit products including the Dyson cyclone vacuum cleaner and the Joba horseback-riding fitness machine.

Akanehama Logistics Center

One of the logistics centers owned by Sumisho Global Logistics Co., Ltd (SGL). SGL provides high-value-added logistics services and is capable of servicing the TV and e-commerce shopping industries, both of which require high-mix low-volume shipping, as well as low-mix high-volume industries. SGL also handles brand name retail logistics, where special attention to detail is required, along with retail chain logistics. The company is equipped with advanced facilities and has established efficient and accurate logistics systems. The Securitization before Development Scheme, which utilizes outside investor capital from the beginning stages of development, was utilized for the center’s construction, and Sumitomo Corp’s Construction & Real Estate Division was in charge of the related operations including financial arrangements, construction management and SPC asset management.

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