Message from the Chairman
Far Eastern Department Stores Chairman
Douglas Tong Hsu
The retail landscape is changing at a rapid pace, particularly in light of the rise of e-commerce and shifting consumer preferences. Physical retailers must reevaluate their strategies, embrace digital transformation, and make effective use of data analytics to deliver services that are both practical and tailored to consumer needs. “Enhancing the customer experience” should be viewed as a core competitive advantage and a key strategy for standing out in a highly competitive market. Furthermore, as consumers place increasing importance on sustainability, accelerating the transition toward sustainable practices will be essential for the robust and long-term development of the retail industry.
Sustainability Excellence Recognized as Retailer of the Year – National Level
Far Eastern Department Stores remains dedicated to ESG and sustainable development, earning 32 awards in 2024 for its outstanding performance. Notably, it received the “Retailer of the Year – National Level” award from the Federation of Asia-Pacific Retailers Associations (FAPRA), following its 2019 win for “Best Corporate Social Responsibility.” It is the only department store in Taiwan to have received both top honors from FAPRA, highlighting its leadership in the Asia-Pacific retail sector.
Low-Carbon Economy Addressing Dual Challenges of Carbon Fees and Energy Costs
Taiwan has demonstrated its commitment to achieving net-zero emissions by announcing the introduction of a carbon fee starting in 2026. Initially targeting high-emission manufacturers, the scheme will gradually expand to include the service sector, with carbon fees increasing in phases. At the same time, the Executive Yuan has unveiled an energy transition plan aiming to raise the share of renewable energy to 30% by 2030. Large electricity consumers will be required to generate or purchase green energy or install energy storage systems. As energy costs are expected to rise, businesses should prepare proactive strategies for transitioning to a low-carbon model.
AI Empowerment Enhancing Customer Experience through Digital Convenience
AI technologies are redefining how the retail industry operates. By analyzing customer data and utilizing personalized recommendation systems, retailers can significantly enhance the shopping experience, offering tailored services that meet individual preferences. The adoption of chatbots and self-checkout counters further improves service efficiency, enabling a more seamless and convenient customer journey. As consumer behaviors continue to evolve, retailers must rapidly embrace digital transformation to meet growing demands for personalization and real-time service. Doing so is essential not only to retain customer loyalty but also to maintain a competitive market position.
Talent Management Cultivating Future Human Capital
To drive continuous innovation and growth, companies must develop a systematic talent management model that balances both quality and quantity. At the leadership level, this involves promoting internal talent and attracting external professionals aligned with future needs. At the management level, the focus is on developing versatile skills such as strategic thinking and organizational management. At the operational level, the goal is to enhance individual expertise and overall workforce quality.
In a complex and rapidly changing world, businesses must innovate or risk falling behind. Far Eastern Department Stores continues to invest in the future, aligning its sustainability strategies with environmental shifts. The company actively drives transformation in areas such as AI applications, net-zero transformation, organizational restructuring, and talent development, building momentum for growth and laying a strong foundation for sustainable operations.
As retail anthropologist Paco Underhill once said: “Retail is no longer just about selling products; it’s about creating experiences.” In the future of retail, Far Eastern Department Stores must continually innovate and adapt to a dynamic environment. By leveraging AI technology, promoting experiential retail, and implementing sustainable practices, the company aims to remain resilient in a rapidly changing market while delivering more valuable customer experiences.