Message from the Chairman

Far Eastern Department Stores Chairman
Douglas Tong Hsu

Resilience is the capability for the enterprise to respond to pressure and turn crisis into opportunities. Resilient corporations can quickly respond to external shocks, reduce impact, and deliver substantial recoveries. To build up resilience there are several guidelines, firstly to “strengthen risk management,” secondly to “eliminate the weak and retain the strong,” adjusting operating units not in line with company strategies, thirdly to “collaborate and empower,” maintaining steady operations with business partners, and fourthly to “adopt science and technology” so as to elevate operating efficiency and innovating business model. Lastly is to “engage in ESG endeavors,” achieve balance between growth, profit, and ESG, and create maximum value.

Top 3 Most Innovative Department Store in the World

Committed to seeking innovation and change, Far Eastern Department Stores (FEDS), facing with the changing operating environment and consumption generation, has always been dedicated to creating the appeal of innovative department store and promote the transformation of its operating model. In terms of digital operations, experience, and management-wise, the Company continues to provide innovative services to the consumers, allowing the consumers to have enjoyable shopping experiences. In 2023, it was Taiwan’s first department store to be awarded by the Intercontinental Group of Department Stores as “The Most Innovative Department Store in the World”.

Reaching Net-Zero Emissions in 2050

At COP 28, global business leaders call on governments to invest in renewable energy and power networks, suggest companies to set up SBTi (Science-Based Targets Initiatives,) engage with suppliers and customers to reduce emissions, and increase investments in energy efficiency, and carbon reduction. They also urge enterprises and governments to accelerate Net-Zero emissions, to benefit society, public health, and global economy. Along with global Net-Zero trend, energy transition is key to reshape competitions of future industries. Enterprises should actively plan for responsive projects to expedite green energy construction and carbon reduction actions.

Initiate AI Artificial Intelligence Transformation

AI technologies have been advancing rapidly and brought significant impact on business developments. Corporation should embrace digital mindset, adopt AI and other digital technologies, and develop skills to manage change to respond to the challenges while dealing with new science and technology. Several major tasks are required to initiate AI transformation. First, need to seek for more data sources and elevate analytical ability; second, establish modular and flexible IT structure, effectively deploy AI solutions; third, incorporate AI into working processes to become part of daily operations; fourth, establish AI governance and leadership to ensure relevant application is in compliance with regulations; fifth, collaborate with partners of business ecosystem to jointly promote the innovation and developments of AI.

Accelerate Talent Cultivation and Retention

Talent is key for corporation’s sustainable growth. Enterprise needs to accelerate its talent cultivation to ensure that each level has sufficient and adequate talents to maintain smooth operations of the organization and elevate corporation’s competitive edge. Internally the company should strengthen communications, establish trust, provide growing and learning opportunities, give colleagues proper support and feedback to steadily retain talents. Also to focus on designing a complete mechanism of talent cultivation and retention, build up outstanding talent team for the company’s long-term business developments, attract and retain excellent talents to grow with the corporation.

Global CEO survey states, 3 out of 4 CEOs indicates their companies are facing tremendous disruptions, 75% of them worry that their companies are adapting too slow, moreover 98% of CEOs expect to change their business models in next 3 years. Just as former Chairman and CEO of GE, Jack Welch states: “Change before you have to.” Facing with dynamic changing future, enterprises must be well prepared, accelerate to promote reform, and drive for the corporation’s sustainable growth.