#Japan #Aizuwakamatsu #Aizu General Holdings #iSIN #Subscription App

The Transformation of Aizu General Holdings

Aizuwakamatsu, located in Fukushima Prefecture, is known for its severe winter conditions. In this challenging environment, a local energy company, Aizu General Holdings, has successfully evolved beyond its traditional operations into a modern IT-driven enterprise. They launched a subscription service linked to their app, which has recently exceeded 20,000 members. What factors contributed to the community's acceptance of this initiative, and how has the company's approach shifted to meet modern demands?

The Story of Aizu General Holdings

Founded in 1955, Aizu General Holdings started its journey as a seafood trading company. Over the years, it diversified into various sectors, including petroleum, vehicle inspection, and energy services, along with fitness and dining. Now, celebrating its 70th anniversary, the company plays a crucial role in supporting local infrastructure, especially during heavy snowfalls expected in January and February 2025, by consistently supplying fuel and oil products.

With a decline in car ownership, the energy sector has faced challenges. Companies like Aizu General are now required to establish non-fuel-related business activities to thrive. To adapt, the company launched a dedicated team known as the Business Creation Planning Group, led by Deputy General Manager Nobuaki Yatsu, to revitalize their offerings.

The App's Evolution

The app, which was officially released in April 2022 under Yatsu's guidance, initially aimed to digitalize membership cards previously distributed in paper format. By providing user-friendly coupon offerings, the company attracted users steadily. Within two and a half years, around half of the company's market audience—approximately 65,000—signed up for the app. Most notably, the subscription service drew an impressive 20,000 members.

Why Launch an App Amidst Industry Challenges?

In a declining energy market, Aizu General Holdings recognized its unique position within lifestyle sectors like fitness and dining throughout Tohoku, particularly in Fukushima, Yamagata, and Ibaraki. Yatsu asserts that the firm aims to sharpen and dynamize its strengths further by maximizing synergies within its group.

To build a robust subscription service, they collaborated with iTAN, a Tokyo-based company specializing in app development and digital transformation solutions, seeking flexibility, cost-effectiveness, and innovative ideas that would resonate well with the local user base.

Elements Behind Subscription Success

Two primary factors contributed to the successful implementation of the subscription model:

1. Store-Level Engagement: Due to a predominance of self-service stations with limited staff, the management encouraged positive staff interaction with customers about the app. As staff became more enthusiastic about promoting the app, the number of subscription users increased significantly from monthly improvements of 2-3 times.

2. Simple Benefits and Payment Mechanisms: To convert app users into subscribers, the team focused on providing appealing benefits that clearly surpassed the promotional costs. Furthermore, they streamlined payment methods on the app to lower the psychological barriers for users. Utilizing card payments facilitated easier initial and recurring payments, which contributed to user growth.

Despite initial doubts regarding their partnership with iTAN, Aizu General Holdings found that iTAN’s agility and collaborative spirit provided invaluable support. The strength of the partnership transformed into an integral collaboration for future app developments and expansions.

Future Directions

Looking ahead, Aizu General aims to enhance data utilization and support their growing workforce with skilled individuals in planning and implementation. They strive to create a foundational framework that includes rich data from both online and offline interactions to better engage users.

Additionally, the company is exploring innovative service offerings, such as the recently launched washing subscription plan, which allows members to access car wash services at an economical monthly rate. This addition, along with future enhancements in functionality and rewards, continues to keep users engaged.

Through resilience amid disasters, heavy snowfalls, and industry upheavals, Aizu General Holdings is committed to continuous transformation from Aizuwakamatsu. As they build a reputation for innovation, the company remains a beacon of new value creation in the region.

Company Overview

Aizu General Holdings operates several subsidiaries, including General Energy Co., General Auto Co., and General Fitness Co. With a focus on fostering the region's economy, the company remains dedicated to leveraging technology and creativity to empower local communities.

• - Established: October 10, 1955
• - CEO: Hiroshi Meguro
• - Employees: 376 (as of 2020)
• - Aizu General Holdings Website