Why Web3 Communities Gather in a Declining Shopping Street: 5 Core Principles of Local Entrepreneurship Built Over 15 Years in Hokancho, Okayama

Utilizing the Regional Revitalization Squad DAO solution by ALYAWm Inc. (Headquarters: Sapporo City, CEO: Hiroaki Hatanaka), a company promoting regional revitalization through NFTs, a DAO Management Study Session was held for relocated members of the Regional Revitalization Squad.

In this study session, Takuya Kitajima, CEO of KAMP Inc., who has been involved in regional business for over 15 years based in Okayama City's Hokancho Shopping Street, was invited as a lecturer. He shared practical knowledge gained from expanding businesses multifaceted through a "one new business a year" style—from launching a guesthouse/cafe-bar in a declining shopping street at the station's west exit, to planning outdoor music festivals, developing craft gin, and executing a "World ID" utilization project in a Web3 x shopping street context.

What is the DAO Management Study Session?

The Regional Revitalization Squad's missions and environments vary greatly by municipality, often described as "work with no single correct answer." However, on the ground across the country, there exists a wealth of reproducible learning—practical knowledge, failure insights, and methods of human interaction that cannot be measured by numbers.

ALYAWm Inc. conducts these study sessions with the goal of "transforming the individual experiences of each squad member into transversal learning, rather than letting them end with the individual."

By having squad members who are producing results on the ground and practitioners who have sustained long-term regional businesses speak themselves, the sessions create practical, reality-based learning environments for newly appointed members or those currently facing obstacles.

Themes of the DAO Management Study Session

This study session is characterized by focusing on the "process leading to results," rather than just sharing know-how, including:

- Clarifying the missions demanded by municipalities - The behind-the-scenes of daily, steady activities - How to build trust with local residents and town halls - Practical examples of SNS dissemination and creating a related population - Things that didn't go well and current challenges

It is designed so that squad members can participate while thinking, "How can I apply this to my own region?"

This Time's Theme

"15 Years Based in Hokancho Shopping Street, Okayama City — Practical Knowledge for Sustaining Business in the Region" by Mr. Kitajima.

In this session, Mr. Kitajima, who is active based in the Hokancho Shopping Street, explained his 15-year journey and specific examples, from opening a guesthouse to his latest Web3 project, covering:

- The origin design of perceiving a declining shopping street as "easier to act in precisely because there is nothing" - Specific communication techniques for building trust with local residents - The mindset of designing businesses using region-specific resources without bringing in "urban success models" - The behind-the-scenes of the "World ID" utilization project realized in a Web3 x Shopping Street context - A business model that maintains a 60% win rate through small businesses launching "one new business a year"

Particular attention was drawn to his stance of "not bringing urban success models as-is to rural areas" and "designing businesses starting from the region's unique people, resources, and culture," as well as how he has built up trust doing this for 15 years.

Practical Example 1: "Easier Because There Is Nothing" — Contrarian Origin Design Choosing a Declining Shopping Street

The base Mr. Kitajima chose was not the front exit of Okayama Station, but the "Hokancho Shopping Street" on the declining west side. At the time, shops were sparse, and the area was aging. It was a location most entrepreneurs would avoid.

However, Mr. Kitajima saw it not as a negative because there were no people, but rather as "easier to act in precisely because there is nothing," choosing this place as his starting point.

Now, 15 years after the launch, more people feel that "Hokancho is more interesting" than the east exit (the front of Okayama) and are opening shops there, with new stores increasing even this year. The starting point of "wanting to change a declining shopping street" has grown into a business that has changed the flow of the region.

Practical Example 2: Building Trust Starts with "Drinking and Snack Bars"

In advancing business in the region, what Mr. Kitajima values most is building trust.

Rather than relying solely on administrative introductions, he reaches local key persons by frequenting local snack bars and pubs.

By immersing himself in the community to the level where "the snack bar mama spreads the word for me, saying 'that young man is not a bad guy'," or "falling into a ditch while drunk and getting invited to a BBQ at someone's house," he connects with people he couldn't meet through administrative channels alone.

Furthermore, Mr. Kitajima notes that by maintaining a long-term perspective of nurturing relationships over 3, 5, or 10 years, and continuously engaging in volunteer activities such as serving on the shopping street board, one finally earns a voice in the region.

Practical Example 3: Designing Business with Region-Specific Resources, Not "Urban Success Models"

What Mr. Kitajima is most particular about when doing business in rural areas is "not bringing urban business models as-is to the regions."

"A success story is a success story in that specific place, and it doesn't apply elsewhere."

Instead of flooding rural areas with cookie-cutter facilities or events, he is thorough about assembling plans with flexible thinking, starting from the unique people, resources, and culture of that region.

For example, craft gin development began with meeting a local brewery that owned a still. Thinking, "If they have a still making whiskey, maybe they'll let us borrow it?" they took on the challenge of making delicious gin themselves. As a result of repeated research involving bartenders and brewers, it grew into a product sold at the souvenir corner of Okayama Station. He says that encounters with designers also expanded through this manufacturing process.

Practical Example 4: Bringing "Foreign Investor Funds to the Region" via Web3 x Shopping Street — World ID Project

The "World Hokancho Shopping Street Project," implemented until March 2025, was a demonstration project that introduced the World system, operated by an OpenAI-affiliated foundation, into the shopping street to link foreign investors' funds to consumption in the area.

Prior to this project, Mr. Kitajima spent one to two years holding study sessions for local shop owners. They learned everything from setting up crypto wallets before moving to the actual implementation.

In line with Mr. Kitajima's policy of "They know it exists, but they don't understand the content. It is important to implement it after they understand," the project resulted in money dropping into the region, shop sales increasing, and the initiative being appreciated by the shopping street.

This is a case where the accumulation of continuously creating touchpoints between the region and Web3, such as the NFT x AR exhibition "Neo Hokancho Shopping Street" involving the CNP holder community, paid off.

Practical Example 5: Small Business with "One New Business a Year, 60% Win Rate"

Mr. Kitajima's business style is to launch one new business a year while mitigating risks. His win rate is about 60%. By continuously trying small things, including failures, he overcame the COVID-19 pandemic.

Examples of ongoing businesses:

- Developing and selling craft gin with a local brewery - Planning and managing Taiwan-Japan cultural exchange events (scheduled for October in FY2026) - Advertising partnerships utilizing the shopping street as a test marketing venue - Working as an instructor for regional development through art in Okayama Prefecture (continued for 4 years)

He spoke about developing Win-Win relationships, noting, "If you use the shopping street, you can test things with zero advertising costs. In return, we design mechanisms that also benefit the shops."