How Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025

How Team Người Việc Won SupremeTech’s AI Hackathon 2025 with AI-Assisted Development and Agile Thinking

24 hours. 10 teams. Countless lines of code. One team claimed the spotlight and took half of the 100 million VND prize pool. SupremeTech’s first-ever AI Hackathon was more than just a competition, it was a test of endurance, creativity, and teamwork. For one intense day and night, our participants pushed the limits of AI-assisted development, turning raw ideas into functioning prototypes under extreme time pressure. Among them, three teams rose above the rest. Their solutions not only showcased strong technical execution but also revealed how AI hackathon use cases can bring real business value in areas such as customer experience, automation, and data-driven decision-making. These top three use cases highlight the future potential of AI and the passion of SupremeTech’s people to turn vision into reality. Brought home the Top Prize - Team Người Việc stood out for their sharp strategy and teamwork. Their winning project solved a familiar yet complex issue in the tourism industry: managing group travel efficiently while ensuring every participant enjoys a seamless experience. Presented in clear business logic, executed with agile methodology, and powered by AI-assisted development, their solution proved that innovation thrives when technology meets human insight. Introducing the Team: Small but Strong Team Người Việc brought together a crew of four: Hung Dinh, Huy Nguyen, and Dung Nguyen as front-end engineers, and Khanh Nguyen as the business analyst. While other teams had five members, this smaller team turned their size into strength. With Khanh shaping the business logic and user journey, and the three engineers transforming those ideas into a functional product, they created a strong link between business insight and technical execution. Each member brought a distinct perspective: one focused on monetization and business value, another on operational flow, and others on technical quality and user experience. Together, they created a strong team that has both business insight and technical execution. Khanh shared that: “Everyone respected each other’s opinions. We weren’t chasing perfection, we were building something real, something that worked”. The Challenge: Turning Hot and Heavy Topic into Opportunity When the AI Hackathon began, the participating teams didn’t get to choose their challenge. Each team drew a topic randomly from a pool of three, and fate handed team Người Việc a challenge that was both broad and complex: Destination and Experience Management System for Tourism. Instead of seeing it as an obstacle, the team saw great potential in this topic: “It’s actually very close to what SupremeTech does,” one member shared. “Tourism and service coordination are among the industries where our clients face similar pain points. If developed further, this could even become a real product for the company”. For most teams, tackling something this wide in just 24 hours would be overwhelming. But for Người Việc, it became the perfect opportunity to combine business logic, agile thinking, and AI-assisted development into a single solution. Dũng, one of the front-end engineers shared: “We didn’t see it as just a travel problem. It’s a coordination problem that every company faces because of too many people, too little time, and too many things to track.” The Idea: Transforming Tourism Coordination with AI Manual planning and coordination often create time-consuming processes, lack of feedback, and fragmented communication across travel agencies, corporate HR departments, and trip participants. To solve this, Người Việc envisioned an end-to-end platform that connects all stakeholders, from travel agencies and corporate planners to event organizers and trip participants.The system enables users to: Create and customize travel itinerariesConnect directly with travel agencies through a marketplace modelTrack schedules via QR codeProvide instant feedback during the trip. In short, it bridges the gap between demand and supply in hospitality, creating a more transparent, interactive, and seamless travel experience. The Process: From Brainstorming to AI-Assisted Development What set Người Việc apart was their strategic mindset before touching a single line of code. Instead of rushing to use AI tools right-away, the team began with a face-to-face brainstorming session, mapping out what a real group trip looks like from start to finish: from planning and agency communication to real-time updates and user feedback. To validate their ideas, they even called friends working in hospitality to understand pain points from the field such as: how agencies handle client requests, where information gets lost, and what travelers actually expect. Only after this discovery phase, the team moved into design and development. They first created clear user stories and workflows on their own, then applied story-based prompting by feeding those stories into ChatGPT and Copilot to generate database schemas, API endpoints, and code snippets. This structured use of AI helped them align technical output with business logic and speed up development. Their approach became a model of how AI-assisted development and agile methodology can complement each other, keeping logic clear while boosting speed. Their mantra throughout the process was simple yet powerful: Think first, then use AI smartly. This mindset kept their workflow focused, turning AI into a productivity multiplier instead of a shortcut, and became a highlight in their AI hackathon journey.Without a QC member, the team stayed flexible and shared responsibilities across roles. Each member could take on multiple tasks when needed, but they still kept a clear structure in how they worked. The PTL and BA stepped in as real users, testing features and giving feedback from a user’s point of view. After defining their user roles and business logic, Team Người Việc translated their ideas into a working prototype. Their platform acts as a bridge between corporate planners and travel agencies, creating a space where requests, itineraries, and feedback flow seamlessly in real time. The system’s core features included: Trip creation and customization: HR or operation teams can build itineraries, adjust timelines, and submit requests tailored to their needs.Agency collaboration: Travel agencies receive those requests, update details, and negotiate directly through the platform, no more back-and-forth emails or lost messages.Participant tracking: Each trip generates a public QR code, allowing members to follow updates, view schedules, and send instant feedback during the journey.Transparency and engagement: The platform closes the communication loop, giving every stakeholder a clearer view of the process. With these key flows completed, the team delivered a functional MVP, a product with clean logic, smooth handoffs between roles, and enough structure to be reused or scaled for other industries. Modern Tech Stack Built for AI-Driven Innovation To bring their concept to life within 24 hours, Team Người Việc designed a tech stack that was modern, lightweight, and AI-friendly. Every layer from frontend to deployment was chosen to balance speed, scalability, and maintainability. Frontend Layer: Fast and Built for Clarity The team developed the user interface using Next.js 15 to handle both page rendering and API routes. Combined with TypeScript, it provided type safety and consistency across all modules, reducing human errors in the rush of development. For styling and components, they used Tailwind CSS and shadcn/ui, which allowed them to quickly create a clean, responsive design without spending time reinventing basic UI elements. Despite the tight schedule, the frontend still delivered a cohesive experience from trip creation to QR-based tracking, proving that with the right stack, agility doesn’t mean sacrificing structure. Backend Layer: Structured Logic and Data Flow Behind the interface, the team used Prisma ORM to manage the database layer. Its schema-first approach, paired with TypeScript integration, helped them maintain data consistency while iterating rapidly. The backend services were also written in Next.js, utilizing server functions to keep everything unified and easy to deploy. This setup gave the team clear control over their data models and allowed them to focus on the business logic, ensuring that trip creation, feedback collection, and participant interactions all flowed smoothly without manual handling. Infrastructure & Deployment: Stability under Pressure To keep their development-to-demo pipeline fast and reliable, Người Việc deployed their system on AWS using Dokploy - a self-hosted CI/CD solution that automates Docker-based deployments. This environment allowed them to push code, test changes, and release updates seamlessly without dependency conflicts. By using Docker containers, they replicated production conditions from the start, ensuring that the MVP remained stable and demo-ready throughout the hackathon. The setup was simple enough for rapid iteration yet robust enough to be scaled for real client use. AI Tools: A Smarter, Not Faster, Way to Build AI played a key role in the team’s workflow but only after the foundation was set.ChatGPT acted as their assistant for ideation and logic design, helping refine user stories, define acceptance criteria, and clarify user flows. Meanwhile, GitHub Copilot served as their pair programmer, generating clean snippets, suggesting improvements, and handling repetitive coding tasks. Instead of using AI as a shortcut, Người Việc used it as an accelerator by integrating it at the right moments to enhance productivity while keeping control of direction and logic. >>> Read more related articles: AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025How Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025 Judges’ Feedbacks Business Perspective From a business perspective, the judges saw Team Người Việc as a perfect example of practicality and vision. Their solution showed how AI-driven development can address real client needs, especially in industries like travel and hospitality. However, the judges also provided constructive feedback for future improvement. While the idea covered a broad scope from sales to operations, they suggested narrowing the focus to one specific stage in the travel management cycle. By doing so, the solution could achieve higher feasibility and faster adoption in real-world scenarios. The judges also encouraged documenting the team’s AI-assisted project management workflow as a reference for future AI hackathon journeys within SupremeTech. The final presentation showcased all the best qualities of their teamwork. The judges highlighted Người Việc’s clear storytelling, strong time management, and smooth demo delivery that effectively illustrated how their system worked. The team’s confident, structured presentation left a lasting impression and perfectly captured the spirit of SupremeTech’s AI Hackathon. Technical and Engineering Perspective From a technical point of view, the judges recognized Người Việc as a team that combined strong engineering skill with thoughtful use of modern tools. They developed their product on a well-defined code base with clear development standards, following a structured flow from analysis and design to implementation, which is remarkable under the time pressure of a 24-hour hackathon. The highlight of their approach was the story-based prompting technique, which kept the project’s logic coherent from start to finish. By crafting prompts around user stories rather than isolated tasks, the team ensured that every AI-generated piece of code served a real business purpose. This balance between automation and human reasoning became one of the defining features of their success. Teamwork: Staying Calm When Things Went Wrong No hackathon story is complete without chaos and Người Việc had their moment too. Just before the final presentation, disaster happened: the team’s slide suddenly became inaccessible because their shared drive was locked by the judges. With only minutes left, they borrowed a laptop, rebuilt the slides from scratch, and walked onto the stage calm and composed delivering a confident demo that looked effortless to the audience. The team recalled “After 22 hours of coding, what stayed with us wasn’t exhaustion. It was that moment when everyone looked at each other and said: We'll make it work, no matter what.” Voices from the Winners For Team Người Việc, winning the hackathon was not just about the prize, it was about learning how humans and AI can truly collaborate. Reflecting on the experience, Dũng shared: “We realized that AI isn’t just a tool, it’s a real teammate, if you know how to ‘talk’ to it. Each team used AI differently: some for brainstorming, some for UI design, others for presentation. But the prompts we gave were never the same, and that’s why the results were so different. AI only shows its real power when people know how to guide it.” As winners, the team also offered advice for those who will join future hackathons: “Prepare everything you can beforehand: boilerplate code, deployment setup, tools, and your fighting spirit. Once the event starts, every minute counts. And above all, trust your team” Conclusion Team Người Việc proved that real innovation is not only about technology, but about people working together with purpose. By combining business insight, teamwork, and the smart use of AI, they turned a difficult 24-hour challenge into a real achievement. For SupremeTech, this victory is more than just a competition result. It’s a reminder that the future of development starts with clear thinking, strong teamwork, and the courage to explore new ways of building with AI. Appendix: 1. How the Team Applied AI Throughout the Project StageApproachAI Application/ Tools UsedAnalysis & DesignThe whole team brainstormed together, role-playing as real users to map out workflows and features.No AI used — this was the most human-driven stage focused on critical thinking.User Story writingConverted rough ideas into logical workflows, defined goals, and acceptance criteria.ChatGPT acted as a virtual BA, turning brainstorm notes into professional User Stories and Acceptance Criteria.Coding (User Story Based)Developers implemented each User Story while communicating directly with the AI assistant for suggestions and refactoring.GitHub Copilot served as a coding partner, reading stories, suggesting code, refining syntax, and accelerating implementation.Testing & ReleaseThe PTL and BA acted as real users to test the product, identify bugs, and refine the UX before release.No AI used — manual testing for real-user validation. 2. Team Tech Stack LayerTech StackFrontend & Backend (Fullstack)Next.js 15 (App Router)UI Libraryshadcn/ui + TailwindCSSAI AssistantChatGPT + GitHub CopilotInfra / DeployAWS + Dokploy 📩 Read more articles about us here: SupremeTech’s Blog

AI-Assisted Ecommerce Solution Wins Third Place at SupremeTech AI Hackathon 2025

SupremeTech’s first-ever AI Hackathon was more than just a competition. It was a thrilling test of creativity, focus, and endurance. For 22 hours, teams of passionate innovators raced against time to turn bold ideas into working prototypes that could bring real business value through AI. Among them was team Người Lào, whose project tackled one of the most relevant challenges in modern retail: building an omnichannel e-commerce and loyalty platform supported by AI. The goal was to create a system that connects online shopping, personalized loyalty programs, and in-store interactions into one seamless customer journey.What made Người Lào stand out was their business-driven mindset. Instead of treating the task as a purely technical challenge, they saw it as an opportunity to transform how Vietnamese cosmetic retailers connect with their customers. Their answer was ViEC Beauty, an innovative AI-powered e-commerce solution built on Zalo Mini App, turning a familiar local platform into a powerful tool for digital commerce. Meet The Team Team Người Lào was formed with the simple spirit of having fun, staying friendly, and learning together. Everyone joined with an open mind, ready to give their best once the challenge began. The team brought together members from different backgrounds, covering all key roles in a real project from infrastructure and front-end to back-end, business analysis, and quality control.Phuoc Pham, the team leader, believed great teamwork mattered more than perfect technical skills. What he looked for were people who knew their strengths and were willing to give their all. With that mindset, Người Lào grew into a team built on trust, respect, and laughter, values that ultimately became their greatest strength. When a Familiar Task Became the Toughest Challenge At first, the assignment sounded simple: create a multi-channel e-commerce and loyalty platform for retail stores. Building e-commerce systems was something most members already did in their daily work. But soon they realized that creating a typical shopping app would not stand out. To impress the judges, they needed something fresh, a solution with clear business impact and technical creativity. In just 22 hours, with five members and the support of AI tools, Người Lào had to deliver a product that was practical, scalable, and market-ready. Finding a Small Idea with Big Impact After a few brainstorming sessions, they decided to focus on a small but meaningful niche: the Vietnamese cosmetic retail market. This idea came from observing how many small cosmetic shops in Vietnam were struggling to keep up with the digital shift. While big players like Shopee and TikTok Shop dominate online sales, a large number of small cosmetic stores still lack proper digital tools to compete. These stores serve a loyal base of middle-aged customers who have strong purchasing power but are often left behind in the rush of digital transformation. They do not need complex apps or flashy platforms. What they need is something simple, familiar, and trustworthy. Người Lào identified three major problems these small retailers face: Losing connection with middle-aged customers who prefer personal interaction but no longer visit the store as often.Lack of customer insights makes it hard for shop owners to understand shopping habits or preferences.Being overshadowed by large e-commerce platforms, which are slowly taking over their loyal customer base. With those challenges in mind, Người Lào saw an opportunity to make a real difference. Instead of competing with big platforms, they wanted to empower small retailers with a digital tool that feels local, personal, and easy to use.That was when the idea of building an AI-powered e-commerce solution on Zalo Mini App, namely ViEC Beauty, was born. ViEC Beauty is a platform that could bring e-commerce and loyalty features right into the ecosystem that Vietnamese users already trust and use every day. It was a smart move that combined business empathy, technical creativity, and a clear understanding of the local market. From Idea to Prototype in 24 Hours Once the idea was clear, the real race began. With only 24 hours to bring ViEC Beauty to life, Người Lào jumped straight into action. The plan was simple: divide roles clearly, trust each other’s strengths, and move fast. Hieu Vo, the dev lead, took charge of integrations and overall coordination. Anh Duong focused on building the back end with Laravel and setting up the admin site. Hieu Cao worked on the front end of the Zalo Mini App. At the same time, Huong Nguyen took on both the Business Analyst and Quality Control roles to ensure everything aligned with the initial vision. Meanwhile, Phuoc Pham, the team leader, acted as the bridge connecting everyone - reviewing ideas, making key decisions, and preparing the final presentation slides. With all the key roles covered, the team had a 360-degree view of the project, from technical implementation to business logic and user experience. They spent the first ten hours coding with AI Copilot and documenting the workflow. It was intense but exciting until the team hit a wall. The AI started producing conflicting UI components due to unclear process design in the initial prompts. What was supposed to save time ended up creating bugs that needed hours to fix. But instead of getting frustrated, the team stayed calm, laughed it off, and worked together to debug and refine the product until everything clicked into place. When the final hour arrived, they had a fully working Zalo Mini App—not perfect, but functional, meaningful, and proudly built within a single sleepless day. The Product: Core Features That Matter ViEC Beauty, an AI-powered e-commerce solution built within the Zalo ecosystem, offered small beauty retailers an accessible and familiar way to sell online and engage customers. Core App Features Product Catalog: An easy-to-browse collection of beauty products directly inside Zalo.Basic Loyalty Point System: Customers earn and redeem points to encourage repeat purchases.Admin Dashboard Prototype: A simple dashboard for store owners to manage products, orders, and sales.Zalo Integration Setup: Allows stores to send personalized notifications, skincare reminders, and promotions through the Zalo Official Account. Super Admin System A more advanced panel included: Real-time data analytics for instant business insightsInventory management to track stock levelsCRM tools to maintain relationships and engagementCampaign and promotion management to run and measure marketing activities Even though some features like Group Orders and AI Skin Analysis were still in ideation, ViEC Beauty already demonstrated how a simple, focused solution could bring AI-powered value to small businesses. Tech Stack The team built ViEC Beauty with React and Zalo SDK for the front end, Laravel for the back end, MySQL for the database, and EC2 cloud infrastructure for hosting. They chose familiar and reliable technologies to move fast and deliver results within 24 hours, prioritizing execution over complexity. >>> Read more related articles: SupremeTech’s AI Hackathon 2025: A blend of Product-Focused Spirit and AI-assisted DevelopmentHow Human Intelligence and AI Capabilities Can Redefine Software Development | Featuring The 1st Runner-Up of SupremeTech AI Hackathon 2025 Judges’ Feedback The judges praised Người Lào’s strategic focus on a niche market and their decision to build on the Zalo Mini App, calling it a practical and high-potential approach. They noted that while the product targeted small beauty retailers, a limited market segment, it had strong potential for real-world implementation. They recommended expanding ViEC Beauty into a multi-store SaaS platform, adding community-driven features, and integrating AI more deeply for personalization and competitiveness. On the technical side, the judges commended the team’s clear planning, fast execution, and AI integration. They encouraged the team to make AI applications more visible and explore scalability for larger projects. Overall, Người Lào left a strong impression with a well-executed prototype and a clear vision for future growth. Teamwork Memorable Moments For Phuoc Pham, the leader, the biggest lesson was simple: strong determination makes anything possible. He learned to stay focused, manage effort wisely, and balance ambition with practicality so the team could deliver on time. To him, the real strength of Người Lào came from teamwork, from every member understanding their own strengths and supporting one another toward a shared goal. Huong Nguyen shared that the hackathon was an unforgettable experience, a test of creativity, patience, and collaboration. From ideation to final delivery, every member gave their best and learned how to manage time, communicate, and step outside their comfort zones. Winning third place was a proud moment, but for the team, the valid reward was the experience itself, learning, laughing, and building something meaningful together. Conclusion For Người Lào, the SupremeTech AI Hackathon 2025 was more than a contest. It was a journey of teamwork, creativity, and discovery. In just 24 hours, they turned an idea into a working Zalo Mini App that blended business insight, AI innovation, and human collaboration. Their story proved that success is not just about winning but about learning how to move fast, stay focused, and create with purpose. ViEC Beauty started as a hackathon project, but it carries the potential to grow into something much bigger for Vietnam’s beauty retail industry. Team Phuoc Pham T. - Senior Infra EngineerHieu Vo H. - Senior BE EngineerDuong Nguyen V. A. - BE EngineerHieu Cao K. - FE EngineerHuong Nguyen T.T. - Quality Control Engineer  Tech Stack Frontend: React, Zalo SDKBackend: LaravelDatabase: MySQLInfrastructure: EC2, Cloud 📩 Read more articles about us here: SupremeTech’s Blog

The Story of a Business Analyst – My Journey into The Field

 "You don’t need an IT background to become a Business Analyst — as long as you have passion, perseverance, and a willingness to learn." Hi, I’m Quỳnh Anh, currently working as a Business Analyst (BA) at SupremeTech. If someone had told me a few years ago that “you might end up working in the tech industry,” I probably would’ve laughed and shaken my head — because I studied at the University of Foreign Language Studies – University of Danang, which has nothing to do with IT. And yet, somehow, fate led me to the BA role — something I had never even heard of before, but have now come to truly enjoy and feel connected to every single day. Here’s my “beginner’s journey” — from having zero knowledge to finding my path in the fascinating world of technology. First steps into the IT world Back then, I had no idea what a BA was. I only vaguely knew it was something “related to IT.” Through a friend’s recommendation, I joined a basic training course at a software company to explore the field. That course introduced me to my very first concepts of business processes, programming, databases, and MySQL. Everything felt new — sometimes even overwhelming — but incredibly exciting. Still, when the course ended, one question lingered in my mind: “What does a BA actually do every day? And how are these lessons applied in real projects?” That question stayed with me — until I got the chance to intern at SupremeTech. Internship – Where my Business Analyst journey became clearer Thanks to a collaboration program between SupremeTech and my university, I was accepted as a BA Intern. That became the first turning point that allowed me to truly “touch” the profession. Although I wasn’t directly involved in client projects, every day during my internship opened new doors for me: Learning how to listen and communicate with clients to truly understand their needs.Getting familiar with common Japanese IT terms used in the workplace.Writing clear and concise business documents.And most importantly, understanding how a non-IT person can effectively communicate and collaborate with technical teams. The seniors in my team were always patient, sharing not just knowledge but real project experiences. Thanks to their support, I no longer felt intimidated — instead, I grew more curious and passionate about becoming a BA. Read more articles: When Technology Meets a Pioneering SpiritSparking the Fire, Spreading the Passion From intern to Full-time Business Analyst My internship eventually ended, but my journey with SupremeTech didn’t stop there. With a proactive mindset and eagerness to learn, I was offered a full-time position — and that’s when my real BA journey began. This time, it wasn’t about lessons or training sessions anymore, but about real work: Analyzing business requirements with clients.Writing detailed documentation for developers.Reviewing and validating requirements to ensure the product meets business goals.Communicating constantly in an Agile environment — where things move faster than you expect. Of course, it wasn’t always smooth. There were days I felt overwhelmed, confused by technical discussions, or unsure how to convey ideas clearly to the dev team. But thanks to the solid foundation from my internship and the support of my teammates, I learned to stand firm and keep moving forward. What being a Business Analyst means to me For me, being a Business Analyst is a journey without a finish line — there’s always something new to learn, new people to connect with, and new problems to solve. If you’re curious about this career, my advice is: “Don’t be afraid to start, no matter what background you come from. Keep your curiosity alive and never stop learning — you’ll eventually find your own path.” I’m deeply grateful to SupremeTech for giving me the chance to begin, to make mistakes, to grow, and to become who I am today. And if you’re curious about the BA world, stay tuned for our ‘The Story of a BA’ series — because who knows, you might just see a bit of yourself in the stories to come.

Inside Japan’s Point-Based Loyalty Culture: The Power of Point Networks and the Rise of Custom Programs

In our article The History of Point Culture in Japan and What Businesses Can Learn From It, we got a chance to explore how loyalty programs in Japan evolved from humble stamp cards to mobile-first systems, and how the habit of collecting points became a part of everyday life. This follow-up takes the story further. Today, Japan’s loyalty economy is powered by two major forces. On one side, nationwide networks such as Rakuten, d POINT, and the newly merged T-Point/V-Point dominate at massive scale, influencing where people shop, how they pay, and even how they invest.  On the other, retail giants and luxury brands are increasingly building their own custom loyalty programs to secure financial control, protect their brand identity, and design experiences tailored to their customers. Together, these trends reveal why loyalty in Japan is not just a marketing tactic, but a strategy to shape the future of retail. The Dominance of Major Point Networks When it comes to loyalty points in Japan, the scale is impressive. Some programs have grown so large that they function almost like economies of their own, shaping where people shop, how they pay, and even how they invest. This success is deeply tied to Japanese consumer culture. According to the World Bank, households in Japan collectively hold savings worth more than USD 1.3 trillion. With this cautious mindset, loyalty programs resonate strongly because they speak to the instinct to save, while still delivering the little thrill of getting something “extra” from everyday spending. The numbers highlight just how powerful this model has become. In 2023 alone, Japanese companies issued more than ¥2.65 trillion worth of reward points, a figure that continues to rise. For payment providers and retailers, these points are far more than giveaways. They are strategic tools to lock customers into ecosystems: once you start collecting Rakuten Points or d POINTs, you are more likely to keep shopping, paying, and even investing within that network. In fact, points are even crossing into finance. Rakuten Securities now allows members to use Super Points to buy stocks. For many younger consumers, this lowers the barrier to investing turning spare points from online shopping into their very first financial assets. It’s a clever way to both reward loyalty and build new habits for the future. By 2024, a handful of nationwide programs dominate the loyalty landscape: Rakuten Points (59.3% of consumers), T-Point (48.3%), Ponta (40.5%), d POINT (38.9%), and PayPay Points (38.1%).  One of the most significant shifts came in 2022, when T-Point and V-Point announced a merger, creating one of the largest loyalty networks in Japan. This consolidation was more than just two brands joining forces, it was a sign of how competitive the loyalty market has become. By combining their strengths, the new program ranked among the country’s top five ecosystems, with the scale to challenge even Rakuten and d POINT. For consumers, it meant broader usability of points across more merchants; for businesses, it highlighted the reality that loyalty is no longer optional, but a key battleground for customer engagement. For consumers, this makes everyday life easier. For businesses, it creates pressure: join one of the big networks or risk being left out. Together, these point economies demonstrate how loyalty has evolved from a simple perk into one of the most powerful forces in Japanese retail. Custom Point-Based Loyalty Programs Trend Led by Japan’s Giant Retailers and Luxury Brands Alongside these giant loyalty networks, another trend is emerging: the rise of custom loyalty programs. Retail groups, department stores, and lifestyle brands are increasingly building their own systems instead of joining national coalitions. AEON has expanded WAON Points across its malls and supermarkets, Don Quijote uses its own Majica card, and FamilyMart now pushes FamiPay rather than relying on T-Point. In the department store sector, Isetan Mitsukoshi runs MI Points with VIP tiers, while Daimaru Matsuzakaya offers an app-based membership program that doubles customer spending compared to non-members. Even lifestyle brands are using loyalty to reinforce their identity. MUJI, for example, runs its MUJI Passport app, which rewards shoppers with points for purchases, grants birthday perks, and offers early access to events or new collections. The app integrates seamlessly across MUJI’s online and physical stores, while its clean design reflects MUJI’s minimalist brand philosophy. It shows how custom programs can be more than just a tool for discounts, they can strengthen the relationship between brand and customer by staying true to the company’s values. >>> Read more related articles:  Restaurant Mobile Ordering App: Transform or Lag behind the CompetitionHow Loyalty Apps Can Improve Customer Lifetime Value (CLV) Why Luxury Brands Are Creating Their Own Loyalty Financial Control & Profitability One of the biggest reasons luxury brands and retailers choose to run their own point systems is financial. Large national networks charge brands based on user activity, meaning the more customers use points, the more the brand pays out in fees. On top of that, when points issued by third-party systems expire, the unclaimed value is recognized as profit for the operator of that network, not for the brand. By creating their own loyalty system, brands can keep this financial upside in-house, turning expired points into pure profit and avoiding ongoing external charges. Ownership of Customer Data & Identity When a retailer runs its own loyalty program, it gets direct access to data: what customers buy, when, where, how often. More than that, it can design the “feel” of the loyalty experience, how it looks in the app, what kinds of rewards are offered, and how membership levels are structured. For many brands, preserving this identity is crucial. Customers don’t just want generic points; they want rewards and interactions that feel part of that specific brand’s atmosphere. Customizable Rewards & Campaign Flexibility This is perhaps the most important reason why brands want to have a private system. This gives brands the ability to customize how points are earned and redeemed in line with their marketing strategy. They can run x2 or x3 point multipliers during exclusive campaigns, convert points into vouchers for specific products, or target promotions to selected customer segments. This kind of precision is nearly impossible with third-party networks, where point accrual and redemption rules are standardized. For luxury brands, that flexibility is key, which allows them to design campaigns that not only drive sales but also strengthen their brand story and exclusivity. Financial Comparison: Networks (Coalition) vs. Custom (Own) Loyalty Programs TopicGiant Loyalty NetworksCustom Loyalty AppExpired PointsWhen points expire, the value usually stays with the coalition operator, not the brand.The brand keeps all the value from expired points as pure profit.Market ScaleCoalitions dominate because of large networks (e.g. T-Point, Rakuten). Brands may feel forced to join for reach.Own programs are smaller but allow full value capture and closer customer ties.Customer Data OwnershipLimited: coalition networks keep most customer data, and brands only see summary reports.Full: brand knows exactly who buys, what, when, and where, enabling stronger personalization.Profit ImpactSome profits are lost to fees and expired points that go to the coalition.All upside stays with the brand, improving long-term profit. Challenges of Building Custom Loyalty App Of course, building a custom loyalty program is not without trade-offs. Unlike joining a nationwide network, brands must shoulder the responsibility themselves. That means investing in the right technology, maintaining a seamless user experience across online and offline channels, ensuring data security, managing the costs of rewards, and keeping members engaged through ongoing campaigns. This is where the right technology partner makes all the difference. At SupremeTech, we’ve worked with Japanese retailers and service providers to design loyalty ecosystems that are both scalable and brand-authentic. From integrating mobile wallets and e-commerce platforms to building real-time data pipelines that unify customer behavior, our teams help brands modernize without losing their unique identity. A good example is where we developed a custom Shopify app to streamline our client loyalty data pipeline across offline POS, e-commerce, and mobile. By connecting these touchpoints, the client could finally unlock a “single source of truth” about customer engagement enabling smarter campaigns, cleaner data, and ultimately stronger loyalty outcomes. (You can read the full case study here: Shopify Custom App to Streamline Loyalty Data Pipeline) The lesson is clear: technology should amplify tradition, not replace it. With the right architecture and an experienced partner, brands can turn the century-old Japanese habit of point collecting into a modern, data-driven loyalty engine that is ready for the future. What Businesses Can Learn from Japan’s Loyalty Culture The first lesson is to make the process effortless. In surveys, over 87% of Japanese point collectors said their ideal is to earn loyalty points rewards without realizing it. The best programs don’t force customers to jump through hoops. Instead, they tie points automatically to common actions like mobile payments, train rides, or even buying lunch at a convenience store. The second lesson is to build ecosystems, not stand-alone programs. Rakuten, Docomo, and PayPay succeed because they integrate points across multiple industries shopping, banking, telecom, travel. Each service feeds into the same pool of rewards, creating a closed loop where leaving the ecosystem means losing value. This is what keeps customers engaged long-term. For businesses abroad, the takeaway is clear: don’t treat loyalty points as just another promotion. Treat them as part of your customer’s lifestyle. When loyalty points rewards are seamless, practical, and connected, they stop being an incentive and start becoming a habit. Conclusion: More than Just Points The story of Japan’s point based loyalty programs shows that loyalty is built transaction by transaction, habit by habit, until it becomes part of daily life. For businesses, it’s a reminder that the strongest rewards programs are not those that simply give discounts, but those that create ecosystems, engage emotions, and embed themselves into routines. At SupremeTech, we help businesses take on that challenge building custom apps, integrating e-commerce and designing real-time data pipelines that make loyalty seamless and scalable. Just as Japan has shown, loyalty done right is more than just a promotion. It’s a tradition transformed into a digital advantage. 📩 Read more articles about us here: https://www.supremetech.vn/blog/  ☎️Contact us to see how we can support your loyalty app strategy.