Capsule vending machines are popular because it is convenient, the variety in the product line is rich, with low prices and accessible at any time of the day. This is because customers need only to insert a coin to quickly get small items and satisfy impulse buying desires, while high frequency in product updates brings freshness in the shopping experience.
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One of the key benefits is that capsule vending machines represent convenience on another level, therefore making shopping much easier for consumers. Life in the cities today is fast-moving; time is highly fragmented, and shopping needs arise most of the time when one has short breaks. Capsule machines serve this modern urge for immediate access. There is no need for the consumer to get into a long decision-making process or even deal with personnel at the store. They simply insert a coin in the machine, turn the knob, and instantly get an item, small as it may be. Instant purchases in this shopping experience mean that the intuition and suitability of operation for various age groups make things so easy for the consumers.
It’s just this high level of convenience that promotes capsule machines to high-traffic areas like subway stations, entrances to shopping malls, and amusement parks. In Japan, capsule vending machines have become one part of the unique urban cultural features. In international cities like Tokyo, capsule machines line up streets so people can quickly satisfy their needs in busy daily routines. More than 90% of users of capsule machines are satisfied with the convenience of shopping in this way, and in transportation hubs and shopping malls, the machines in hot locations can realize sales as high as 5,000 yen per day, fully reflecting the consumer appeal brought about by this simple and straightforward purchasing process.
The capsule machine system is relatively easy to operate, with low maintenance costs and an inbuilt automatic restocking detection system. It will automatically notify operators to restock the machine, minimizing the need for manual maintenance. While this enhances the customer experience, capsule machines can become one of the most efficient business models with maximum profit potential at a minimal operating cost. Thus, they can become one of the ideal retail solutions that will bestow businesses and stores situated in high-traffic areas with endless opportunities.
Wide Variety
Another big attraction of capsule vending machines is in the variety of product choices. Besides the toys, keychains, anime character models, and several small tools-also a bunch of limited edition collectibles-the product line far outdoes that of more ‘normal’ vending machines. Products in capsule machines are replaced regularly by season, holiday, or market demand for the sake of satisfying curiosity and exploratory desires of consumers. The abundant variety of products just makes shopping far more enjoyable, giving consumers the chance to be surprised with every purchase.
In a relatively well-developed capsule machine industry, more than 1,000 types of themed capsule products are launched every year in Japan and South Korea to attract consumers of all kinds. The great variety makes the capsule machine an irreplaceable shopping channel for different consumer groups, such as anime fans and collectors, and this diversity in itself lends an irreplaceable appeal to capsule machines. Especially in fan-driven economies, capsule machines have become an important platform for fan activities. The limited edition capsule products launched by Disney and anime company Ghibli attract many tourists and locals alike. Many people would make repeated purchases in order to get a specific style within a series.
Compact Size
Its compact design allows the automat capsule to be installed in highly populated areas with heavy traffic flow while offering a very small footprint. That is, machines can be placed on subway platforms, shopping mall corridors, and the entrances of convenience stores. This type of compact design cuts the costs of renting space and also allows an operator to deploy many more machines in different highly populated areas to maximize the use of space.
In cities as densely populated as Tokyo, capsule-vending machines can fit almost in every corner. They show up beside escalators in subway stations, in front of shops on busy commercial streets, and at the entrance of supermarkets; all this significantly improves space utilization. The flexible layout can also enable the operator to dynamically adjust the location according to the flow of pedestrians, making the distribution of machines more flexible to optimize profitability. In some special highly populated places, such as subway stations, one capsule machine can also achieve sales as high as 10,000 yen every day. Comparatively speaking, traditional stores spent a lot of money running the capsule machines while the latter enjoyed very high flexibility with a low operating cost hence becoming advantageous in highly populated areas and reducing the cost of personnel and venues linked to cost-effective retailing.
Since these machines only require regular restocking and maintenance, operators do not need to invest much manpower into them, which further reduces their operational cost. Due to such a compact and easy-to-manage design, the capsule machine is highly efficient in retail. With manpower costs increasing in today’s world, its most important feature of low manpower cost is gaining wide applicability in metropolitan environments.
Affordable Prices
Product prices for the items sold through capsule vending machines are very consumer-friendly, ranging mostly from 100 to 500 yen. Consumers can easily purchase without giving much thought to it, a price very suitable for teenagers, students, and tourists. Thus, such relatively cheap pricing diminishes barriers to making decisions while increasing repeat purchases. Amidst growing valuations of a “more for less” shopping mindset, the price advantage of capsule machines is indeed very attractive.
These are the reasons almost 75% of capsule machine users choose these machines for their relatively inexpensive prices, mostly attracting young teens and students who like buying small items at low costs and paying a certain amount to enjoy small items. In capsule machine products, pricing not only decreases the psychological threshold of consumption but also increases the excitement and collectibility with various themes and product designs. Some even sell uniquely designed little items in capsule machines that, with their low prices and novelty designs, attract many consumers to buy again and again.
Capsule machines are especially popular among tourists, as they often sell small items or souvenirs with local characteristics, which are part of the tourist economy. The extremely low price and novelty of this experience make capsule machine items ideal for “souvenirs”. In popular tourist cities like Kyoto and Tokyo, many capsule vending machines are dedicated to selling locally-themed items catering to the tourists’ demand for “good value and affordable” souvenirs. Such an impulse-buying mode enables the consumers to make rapid purchase decisions in a short period of time, hence increasing sales.
Novelty Appeal
But one of the real highlights of capsule vending machines is a kind of “novelty appeal” for their products, quite apart from anything to do with traditional retail models. With capsule machines, the products are much more uniquely designed and constantly changing, with limited editions or special themes that make them mysterious and attractive. Each time consumers insert a coin, it becomes somewhat of an unpredictable thing. This “blind box effect” adds anticipation and excitement to capsule machines, which make them one device that meets shopping needs and is entertaining.
This novelty appeals to many young people, especially those who like collecting. Japanese capsule machine culture includes many items related to anime and movies. Each of these series may have their hidden style, offering collectors a very different experience in shopping. Japanese capsule machine brand BANDAI often launches a limited-edition character toy with popular anime, releasing products not only with rich details in design but also with collectible value. Many consumers even make repeated purchases in order to collect the set of products and satisfy the desire to collect.
About 60% of the users who use capsule machines make repeated purchases in the hope of completing a set. This novelty and surprise brought about by the capsule machine enhance the desire to purchase consumer goods. The Capsule machine has acted as an important platform for many brand and intellectual property promotions. Brands such as Coca-Cola and Hello Kitty have also launched special items via capsule machines, making this a watched event for loyal fans of the brands. To the consumer, the capsule machine is more than just a shopping channel-it’s a fun-filled experience full of surprises. This special consumer experience enables capsule machines to enjoy lasting appeal in the retail market.
24/7 Availability
Unlike traditional stores that open only during their hours of operation, capsule vending machines can operate without human intervention and, therefore, are always available to consumers day and night. With such convenience, night and holiday shopping becomes highly accessible. Consumers can enjoy fun shopping from the capsule machine at any time, regardless of daytime or nighttime. This model of continuous operation not only stretches the sales time but also greatly increases consumption opportunities.
Other than the sales on the day-shift market, nearly 30% of sales come from nighttime sales in places like Tokyo subway stations, shopping malls, and tourist spots. In areas with active nightlife, where there is a high concentration of dining and entertainment facilities or transportation hubs, the 24/7 availability of capsule machines tends to the needs of shoppers in the nighttime economy and contributes to a nighttime economy. In this model of a 24-hour operation, the merchant does not need to invest extra labor costs in night shifts but can have stable income. Especially in places like airports and train stations with continuous passenger flow, the 24/7 availability of capsule machines turns them into a source of entertainment and consumption for consumers waiting in transit.
Capsule automatic vending machines are not for satisfying daily consumption demand but also for raising operational efficiency in 24-hour sales, hence with higher competitiveness in the market. According to research, if the location of a capsule automatic vending machine is in a region with heavy night traffic-for instance, along commercial streets or tourist areas-nighttime sales can reach 20% of the day’s total. 24/7 operation not only prolongs the operational hours of any merchant but also saves money on operations for the merchant. It is a low-cost and high-return retail format.