ST Corporation's Challenge: Redefining Mature Brands Through "Data Science x AI x Human Resources" [Brand Summit Spring 2026 Event Report]

ST Corporation boasts an overwhelming market share in the insect repellent market. However, due to changes in lifestyle, the custom of "changing clothes seasonally" has become less common, and the market is facing a contraction that could be described as "demand evaporation."

To overcome this situation, the company decided to rethink its business by combining "data science, AI, and people."

On March 12, 2026, at the "Brand Summit Spring 2026" event held in Hiroshima, which covers the current state of marketing, Hiroshi Kozuki, President and CEO of ST Corporation, and Yoshiaki Hirao, President and CEO of XICA, took the stage. In line with the event's theme, "Data with Insight - Integrating data-driven approaches with an understanding of human emotions to enhance brand value by deciphering 'emotional dynamics'," they revealed ST's process of redefining brand value by deciphering the deep psychology of consumers through data science and AI.

This report will introduce the contents of the sessions held on the day.

*Titles are as of the time of the event.

The importance of "context" in determining the success or failure of AI utilization

At the beginning of the session, Hirao issued the following warning about the current state of AI utilization.

"Simply training an AI with public data or your own company's data will result in very mediocre output. Especially in a rapidly changing market, it will only produce average recommendations that lack differentiation (Hirao)."

What Hirao emphasized was,The importance of incorporating a unique context.This concept, also known as the "semantic layer" (a "translation layer" that redefines complex data structures in business terms), involves first using data science to unravel the mechanisms of the market and the company itself, then incorporating those results as context, and finally allowing the AI ​​to think. Only after going through this process can the AI ​​derive unique, "core" recommendations that surpass human intelligence.

The transformation scenario for "Mushuda" derived from data science x AI

So, what specific context should be prepared? Hirao suggests that, as a preliminary step before allowing AI to think,Unraveling the mechanisms in the four areas of "market, customers, marketing investment, and the company itself."He explained that it was essential.

Simply "qualitative" factors such as market changes and customer insightsSimply pursuing the goal does not guarantee the effectiveness of the strategy.Factors related to "quantity," such as media advertising volume.However, optimizing investments becomes possible only after understanding how they contribute to actual sales. Furthermore, no matter how excellent the strategy presented by AI, action will not be taken if there are obstacles to its implementation at the operational level or within the organization. That is why,Our company's organizational dynamics (organizational mechanism)Unraveling all of this and creating a situation where the entire company can take the next step with confidence is key to moving the strategy forward.

The insect repellent "Mushuda" has established an overwhelming presence as the No. 1 product in Japan. However, at the same time, it is facing a shrinking market due to changing lifestyles and a declining population, and it felt that simply following conventional methods would no longer be effective in the changing market. Therefore, in order to overcome this situation, a thorough analysis using data science was conducted, and the results are as follows.

・Market MechanismThe true cause of the market contraction was identified through time-series analysis. It was found that the reason for the slump is not a decline in purchase rates, but rather a decline in "usage rates," indicating a continuous outflow of users from the market.

・Customer MechanismBased on insights extracted through group interviews, we designed keywords to collect approximately 130 million posts from social media and conducted topic modeling analysis. This visualized the fact that the need for insect repellents has changed from the event-based "changing of clothes for the season" to "daily clothing care" in modern times.

・Marketing investment mechanismUsing Marketing Mix Modeling (MMM), we compared ROAS for each media outlet to determine the optimal budget allocation and advertising patterns. Furthermore, using Consumer Mix Modeling (CMM), we identified Key Success Factors (KSFs) for switching customers from competitors to our company, categorized into "KSFs to be strictly adhered to" and "KSFs to be invested in."

・Our internal mechanism:We conducted surveys in each department to investigate the current state of the organization. We identified that "past success stories" and "concerns about resource shortages" were hindering growth. This led to the development of a transformation scenario that should be adopted as a shared understanding throughout the company.

As a result of inputting these contexts into the AI,New insights that go beyond the current trend.Hirao stated that this was achieved. If AI were used without incorporating a unique mechanism, the brand value presented would remain within existing frameworks, such as "guardian of clothing." However, the AI, which was trained to understand market dynamics, the deep psychology of customers, and even organizational challenges, presented a groundbreaking concept that went beyond the single function of insect repellent: "closet conditioner."

Furthermore, these analysis results go beyond the realm of insecticides,The company has integrated its diverse assets, such as deodorizers, air fresheners, and dehumidifiers, into a strategy that maximizes synergies.It was said that this happened.

Mr. Kozuki of ST Corporation reflects on the impact of these analyses as follows:

"We also believed that we needed some kind of new value beyond just pest control. By using data science and AI..."The value we should provide has been clearly redefined.This has made it clearer how we can combine our existing product lines and what new approaches we should take (Mr. Kozuki)."

To make this redefinition a highly effective strategy, we have formulated a concrete medium-term business transformation plan. The core of the strategy is to gradually "expand" the customer base and the value offered while protecting existing customers. This scenario aims to mitigate the decline in sales due to the shrinking demand for pest control products, while also seeking a medium-term sales recovery with a new concept.

In terms of product strategy, the current lineup was reviewed, and additional strategies were considered. In addition to improving the existing "Mushuda" series, a new category that did not exist before was created. Product ideas that would inherit the company's DNA while generating discontinuous growth were generated by AI.

This strategic approach aligns with on-the-ground initiatives. Starting in September 2025, the company launched the "NOTE series," which integrates insect-repellent, deodorizing, and moisture-absorbing functions, under the slogan "Let's get started, S.T. Closet." Mr. Kozuki expressed confidence in this initiative, stating, "We are confident that there is enormous potential for us in solving closet-related issues such as insect damage, odor, and humidity by combining different products."

Ultimately, it is "people" who take the helm.

To conclude the session, both speakers reaffirmed the role of humans in the age of AI.

As AI capabilities improve and the era approaches in which many tasks will be automated, it is all the more important for people to hone their willpower, hypotheses, and decision-making abilities. Mr. Kozuki offers the following perspective:

"AI suggestions will evolve, but ultimately,The 'will' to support our customers in a meaningful way.. Also,How to form a hypothesis"That's also important. Sometimes my own hypotheses are completely different from those of the AI, but in those cases, I just need to try to prove my own hypothesis first. Using AI will dramatically increase the speed of verification. I want to repeat the challenge at 10 times the speed and change the brand and the market (Mr. Kozuki)."

Hirao also stated, "AI can offer new insights precisely because it has data from past challenges." He added, "AI can show brands the path they should take next, but..."Ultimately, the decision is made by 'people'.He concluded by saying, "And the courage to take that first step is what will create the future of the brand."

When mature brands appropriately utilize data science and AI, it goes beyond mere efficiency improvements and becomes a driving force for updating the very raison d'être of the company. However, taking that first step towards that destination ultimately depends on human "will."