"The Capital of Knowledge"

I recently read a short book "The Capital of Knowledge". The author is Masuda Muneaki, the founder of Tsutaya Bookstore. He introduced in detail the background of founding Tsutaya Bookstore, the business philosophy of Tsutaya Bookstore, etc.

Let’s share some of the author’s core views:

1. The Capital of Knowledge

Let’s talk about the title of the book first. I just got the book and the name is quite novel. What is intellectual capital? Simply put, it is the ability to propose and design. For example, store clerks with industry experience and personnel with aesthetic and planning abilities "have the ability to realize the concepts and ideas in their minds and present them in front of customers."

Masuda Muneaki divides the social consumption change process into three stages:

In the first stage, because of the extreme scarcity of goods, as long as they are goods, they can be sold.

The second stage: the stage of proliferation of goods. The center of value lies in the place where goods are selected, that is, the platform. Being able to provide a more effective platform can create greater customer value.

The third stage: the platform proliferation stage, the center of value lies in the proposal power, that is, design. (That is, making choices for customers)

The author believes that Japan is currently in the third stage. Therefore, the author proposes the concept of "proposal power". What is proposal power? Those who can perceive the products and services that customers need and make proposals will create greater customer value in the third stage and gain an advantage in the competition.

The so-called proposal is meaningful only after it is actually visualized and presented in front of the customer. "Proposal" here can be understood as "design". Therefore, the author repeatedly mentioned in the book that "Only designers can survive, and all companies in the future will be composed of designers. Companies that cannot do this will not be successful in the future business world." ?Students, is it an instant? I feel that my future is very bright.

2. Only stores operated by online companies can qualify for survival

Advantages of online stores:

Not constrained by space, products can form a long tail Effectively, maintenance costs can be reduced and prices can be lowered.

Advantages of physical stores:

Physical stores can serve as link points for customers. The advantage of immediacy is that although many things can be purchased online, fresh food that needs to be cooked immediately cannot be ordered online every time. Another advantage is directness. You can intuitively feel the more comprehensive experience of the product, which is something that online stores cannot provide.

Masuda Muneaki divides customers’ shopping demands into three types: immediacy, directness and comfort, which correspond to the three retail formats.

Convenience stores take immediacy to the extreme. You can buy what you need near your home 24 hours a day, 365 days a year.

Convenience stores clearly embody immediacy. It's a large shopping mall. Attract customers with the power generated by the overwhelming product capacity, and reflect the value of its existence through a large and comprehensive supply;

And comfort is also the differentiated innovation of Tsutaya Bookstore. Design the retail store into a comfortable space scene to make the purchase process of goods pleasant, where consumers can relax leisurely. This is the core concept of Tsutaya Bookstore: a proposer of lifestyle.

Masuda Muneaki believes, “Combining the advantages and disadvantages of online and offline stores, using the large amount of information processed through the Internet and low-cost inventory as weapons, we can develop plans for physical stores that serve as points of contact with customers. This creates customer value that our competitors do not have.”

Therefore, he said that in the future, physical retail stores may only be able to survive "stores operated by online companies."

CCC has rich planning capabilities in both online and physical aspects.

When you see this, do you feel that our campus store, T00 series, and Ali Health stores have a bright future?

3. Universal point service "T Points"

Masuda Muneaki launched the cross-industry universal point service "T Points", using high-quality users of bookstores as a resource, and Many department stores and supermarkets are connected, forming the largest retail user group in Japan. It currently has more than 50 million members, that is, one in every six Japanese is a Tsutaya member.

By analyzing the user's points system, a more accurate and three-dimensional user portrait can be obtained.

The reason why we do this is to provide more accurate one-to-one user "proposals". Only by understanding users' ideas and grasping their needs can proposals be effective.

In addition to the above points, the author also puts forward his own understanding of freedom, attitude towards life, etc. Overall, it’s a little book worth reading, and I recommend it with four stars.

Introduction to Tsutaya Bookstore:

Founded in 1983, Tsutaya Bookstore created a chain bookstore model integrating "books, records, and videos" and became a great success. The "Book & Cafe" model launched in partnership with Starbucks in 2003 is also very popular. In 2011, in order to break through the Internet siege, Tsutaya Bookstore reconstructed the bookstore space, integrating coffee, food, parent-child, culture and sports, and slow life, positioning itself as a "lifestyle proposer" and winning with rich offline experience and high-quality services. As of the end of 2016, Tsutaya Bookstore has opened 1,459 stores in Japan, making it the largest bookstore chain in Japan.

Picture of Tsutaya Bookstore: