Dentsu Digital Launches 'LOCAL ZOOM', a Service Utilizing AI to Derive Overseas Market Insights and Support Strategy Formulation for Companies' Global Expansion

Dentsu Digital Inc. (Headquarters: Minato-ku, Tokyo; President and Representative Director: Ko Takimoto; hereinafter 'Dentsu Digital') announces the launch today of 'LOCAL ZOOM'*1, a service that analyzes public data such as SNS and product reviews using AI to support strategy formulation based on market and customer insights when expanding overseas. In recent years, against the backdrop of a shrinking domestic market and proactive overseas expansion by companies, the importance of rapidly and accurately understanding local business customs and diversifying consumer needs in global expansion has increased. However, traditional overseas market research faced challenges such as not only requiring significant cost and time but also failing to fully capture local lifestyles and detailed pain points. Under these circumstances, to enhance their international competitiveness, companies are required to quickly identify market characteristics and trends from vast amounts of public data and to form a data-driven strategy optimized for the local area. Leveraging our extensive track record in global projects, knowledge of overseas markets, and advanced AI analysis technology, this service provides end-to-end support for companies considering overseas entry or expansion, from target selection and positioning construction to persona refinement. Without the need for travel, it grasps local lifestyles and consumer insights, enabling the localization of strategies such as identifying optimal markets and narrowing down candidate markets before full-scale research. [Key Points of this Service] 1. Product Market Analysis: Large-scale product review analysis and identification of market differentiators using AI In the product categories where a company wishes to enter the market, AI collects and high-speed analyzes large-scale product review data from global and local EC sites. It visualizes the strengths of the company and its competitors using a proprietary review analysis model. This identifies region-specific needs that are difficult to see from numerical data alone, as well as insights into the company's existing products, supporting the formulation of differentiation strategies in market entry. 2. Customer Analysis: SNS image and post analysis using AI - Refinement of consumer personas By analyzing posted images and texts on SNS using AI, it visualizes the trends of local consumers, extracting horizontally the usage scenes of the relevant product, the target user's fashion, living environment, and jointly used items. It materializes the persona of potential customers to be approached, allowing reflection in creative and communication strategies. 3. Support for Formulating Market Priorities through Expert Supervision and Data Comparison Members of the in-house organization 'Dentsu Digital Global Center'*2, who are well-versed in local markets, scrutinize the analysis results based on their extensive knowledge to ensure the validity of the interpretation. Furthermore, by providing a framework that allows easy comparative analysis of market scale and competitive situations among candidate countries, it accelerates intuitive-free selection of priority markets and optimal positioning construction in each market. Moving forward, Dentsu Digital will continue to support the efficiency and sophistication of operations through the development of proprietary AI solutions, while also supporting strategy formulation based on deep cross-border customer understanding, contributing to the sustainable business growth of clients in the global market. *1: Retrievable data varies depending on the product category and market. *2: Dentsu Digital established a new digital x global specialist group 'Dentsu Digital Global Center' (Announced January 18, 2024) https://www.dentsudigital.co.jp/news/release/management/2024-0118-000132 The Dentsu Group in Japan promotes a unique AI strategy 'AI For Growth' that contributes to the growth of clients and society by multiplying 'Human Intelligence' and 'AI Intelligence'. For more on AI For Growth, please check the following webpage: https://www.dentsu.co.jp/labo/ai_for_growth/ https://www.dentsudigital.co.jp/ Dentsu Digital is one of Japan's largest comprehensive digital firms. With the purpose 'Move hearts, create value, and change the way the world is,' we realize all kinds of transformations by comprehensively utilizing creativity and technology closely tailored to consumers. As a client's business growth partner, by creating new value together, we will bring 'transformation' to the economy and society