Creating the Lifestyles of the Future
Tokyu Land Corporation Interview
In Plug and Play Japan, 18 companies in Fintech, Insurtech, Mobility and the IoT industry participate as partners to run our Accelerator Program together.
This time, we interviewed Tokyu Land Corporation. They have been participating as an elite partner since the inception of Plug and Play Japan, and they explain the background of establishing the co-working space “Plug and Play Shibuya” and their efforts and priorities for innovation.
Saori: Tokyu helped establish Plug and Play Shibuya as a part of the “SHIBUYA Startup 100” initiative which makes Shibuya the start of our cooperation. You also have been making efforts to create a Japanese startup ecosystem together with Plug and Play Japan! Why did you decide to cooperate with us rather than other accelerators?
So: As Tokyu Land Corporation, we want startups to gather in Shibuya and this location the creative base for the next era in Japan. When Plug and Play was considering where would be suitable for their Japan office, Shibuya was an obvious choice due to the young talent that gathers here. Our desire to make Shibuya a place to promote Japanese startups and Plug and Play’s objectives aligned perfectly. This is how we decided to participate as a partner, and create a coworking space as a base for Plug and Play Japan’s accelerator program.
Yuki: Although a venture boom has been happening in Japan in recent years, Silicon Valley has always lead the world in the creation of ecosystems with advanced activities. Some have said that Japan is 3–5 years behind in the development of technology like IoT and smart homes. I think that by collaborating with Plug and Play, we can get in touch of Silicon Valley’s startups and the latest tech innovations.
Saori: Regarding open innovation, what fields are you currently looking at?
So: In Plug and Play Japan, we participate in all fields (Fintech, Insurtech, Mobility and IoT) but in each field, we are seeking collaboration with startups, platforms, and services linked to our real estate business.
Yuki: As Tokyu Real Estate Holdings, we would like to establish ourselves as a developer who can propose new ways to engage in people’s lifestyles such as how to spend holidays, work environments, and so on. We would like to build know-how to help us commercialize lifestyle proposals in collaboration with startups. Beyond the framework of our real estate business, we think that it is one of our roles to create the cities of the future and comfortable spaces for people. As an example, we would like to take on an active role in the city and eventually revitalize Japanese society by creating places where startups gather and grow, like Plug and Play Shibuya.
Saori: In Plug and Play Shibuya, various events are held here besides Plug and Play Japan’s. From the viewpoint of collaborating with startups, what kind of efforts are being made by Tokyu to utilize the co-working space?
So: I think a characteristic of co-working spaces compared to an ordinary office is the mobility of personnel. People use this place not only as a member but also as visitors, event organizers, and participants. In order to maximize the utility of this place and create productive encounters, we hold various events and sometimes involve external companies / organizations. We even use the kitchen space for the community events and meetups! To support startups, in cooperation with Tokyo Metropolitan Government, Shibuya Satellite Center of Tokyo One Stop Center was established within the co-working space. Entrepreneurs can consult with experts about legal procedures (registration, labor, taxes, etc.) free of charge. We would like to improve this environment and services further to support startups!
Yuki: We want to make the co-working space a creative place that inspires people who visit. Plug and Play Shibuya is used for events for employees to exchange ideas and to move towards innovation. Usually, not all employees are involved in open innovation, so it is an exciting opportunity for them to come to a coworking space and see the way the startups are working. Plug and Play Shibuya plays a neutral role in mediating large corporate companies and startups in terms of collaboration. We want to spread the idea that “open innovation should be done on equal footing,” by encouraging large companies to hold meetings at our co-working space rather than asking the start-up to come to their office. Plug and Play Shibuya is an ideal place to encourage people to think about how big companies and startups can build resources in tandem.
Saori: I think you have met many domestic and overseas startups through the Plug and Play Japan program, but what kind of startups do you want to collaborate with in the future?
Yuki: Looking at the group as a whole, the range of businesses that we conduct is vast; things like retail, welfare substitution, fitness etc. We have a high affinity for startups that can expand our business practices and productivity without narrowing down products and services of any one business. Especially ones that have digital services or platforms, and are building a unique ecosystem. We carried out a PoC with GINKAN, Inc., which we met through Plug and Play Japan’s Batch 1 program from June to September, using their gourmet SNS “SynchroLife” in our Tokyu Plaza Ginza. The collaboration with GINKAN matched our portfolio as they have a platforms to strengthen the attractiveness of the facilities owned by our company. For the startup, they want to try out their own service and test its effectiveness, and we want to raise sales of our facilities, so we can say that it has been a win-win collaboration. We hope to increase traffic and to create new, exciting experiences there.
So: We are paying attention to startups that have interests in the Shibuya area, such as being based here, or using this location to experiment with new things. We plan to collaborate with startups so together we can boost Shibuya!
Saori: Are there any difficulties when collaborating with startups? Also, what is being done to address improvement?
Yuki: The more they grow as a company, the more likely it is they focus on existing businesses that can grow sales most efficiently. As the economy is boosting toward 2020, the year of Olympic Games, it is important to have a curiosity in innovation. Tokyu Land Corporation believes that challenging the status quo is in our DNA, and so we created various new businesses such as Tokyu Hands (retail store), fitness facilities, businesses in airports (rental office), campus villages for students and so on. In order to evoke this DNA, we are spreading the word of innovation through events that any group employees can attend. We invite a startup’s CEO, to whom our company funded or did business with, to pitch and try to inspire employees with the venture spirit and have them learn the struggles that the CEO encountered before they had to innovate.
Saori: What progress did you have throughout Batch 1?
So: Like the PoC with GINKAN, it was a great “take” for us that we could experiment using our facilities. In addition, we are in many discussions about PoCs with startups, and we are happy that we now have a network to potentially conduct business with them.
Yuki: I felt it was very good the outcome of those 3 months prior to EXPO. Also, it is useful that there is now a community where large corporate companies can come and share their concerns. I felt that the bottlenecks of problems are more or less the same. It was useful for me to attend VC mentoring for startups; I learned the necessary checkpoints to work with startups.
Saori: What do you expect for the Batch 2, which starts in the end of November?
So: We wish to encounter startup with which we can carry out a PoC. Our company’s feature is that we are to be able to provide a facility/place to experiment a startups’ products or services. I would like to appeal this feature more for startups to realize that they can use our facilities to test their business. It will be interesting if we could do PoC using a whole city, not only at a single facility. In addition, we would also like to collaborate with overseas startups that we can meet using Plug and Play’s platform.
Yuki: In the limited period of 3 months, I think that we can complete the negotiations leading to PoCs first, and then we would like to move on to actual collaboration for commercialization. We hope startups will be interested in collaborating with us using our facilities and proposing new business opportunities for us as well.
(From the left)
So Wanatanbe (Deputy Manager, Town Management and Startup Promotion Group, Business Strategy Department, Urban Business Unit, Tokyu Land Corporation)
So joined Tokyu Land Corporation in October 2006. After joining the company, he took charge of real estate fund business for 4 and a half years, including dispatching to Tokyu Land Capital Management Inc. After then, he moved to the building business headquarters, and was in charge mainly of new compound development projects for 7 years. Since January 2018, he is in charge of co-creation projects related to startups, mainly in Shibuya, and town planning related businesses at Town Management and Startup Promotion Group.
Yuki Otsuka (Assistant Manager, Corporate Planning Department / Corporate Strategy Group, Tokyu Fudosan Holdings Corporation)
Yuki joined Tokyu Land Corporation in 2007. After engaging in the development, operation and sales of luxury membership golf course in the resort business division, he moved to marketing department and was responsible for CRM strategy and new business planning to strengthen group management. This fiscal year, he was transferred to the group management planning department to promote open innovation. SME diagnostician certified.
Plug and Play Japan holds three month programs to support matching between startups and promote innovation of large companies.
Please feel free to contact us for if you have any questions or inquiries regarding participation in the program!
