< Company Study > The Japanese Largest Internet Mall Cozy Mizoguchi [email_address]  / +81-80-1205-8448 RAKUTEN is 1 of th...
1 Basic Business Concept:  MATCHING  Business Tenant Shops   =  Consumers *Numbers of Shops opened  *Numbers of Unique Use...
2 Basic Business Model:  Commission  Revenue Tenant Shops   ⇒  RAKUTEN Business Concept <2>  *to pay  46%  for opening Sho...
3 Basic Business Approach: Traditional “Order Taker” Sales Business Concept <3>  to directly approach to each users + deli...
Web tools can realize “Virtual” direct communication between  Shops = Consumers Business Concept <4>  < RAKUTEN > INFO com...
4 Business Strategy: Horizontal x Vertical business developments  ⇒  Strategically expanding RAKUTEN business arena  x  en...
Cozy Mizoguchi all rights reserved / 20100310 Vertical Horizontal < High Profits / High Growth arena  > < Area where RAKUT...
Vertical  business activities by their subsidiaries with 09 results ・ RAKUTEN KC ・ e-Bank ・ RAKUTEN Credit ・ Fusion Commun...
Business Tactics / Performance, etc 1 Personalization 2 Group Synergy 4 Points Program 3 SNS, Blog, etc Members Acquisitio...
1 Global EC biz < sales potentials; big  > 1  JV with  BAIDU ・ Build up #1 Chinese search company, enabling to be ready fo...
Benchmark Expanding their fields more from July, 2011 when Digital Terrestrial Broadcasting will be launched in Japan. ⇒  ...
RAKUTEN Finance Condition in FY2009 Cozy Mizoguchi all rights reserved / 20100310 Calculated based on 2009 Financial Index...
Upcoming SlideShare
Loading in...5
×

The Biggest Internet Mall / EC In Japan

3,895

Published on

The number 1 internet shopping mall in Japan, is RAKUTEN.
Why they could successfully realized internet business model?
I' ve compiled basis of their business appraoch based on my actual experiences in Japanese net business arena for more than 10 years.

Published in: Business
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,895
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "The Biggest Internet Mall / EC In Japan"

  1. 1. < Company Study > The Japanese Largest Internet Mall Cozy Mizoguchi [email_address] / +81-80-1205-8448 RAKUTEN is 1 of the most successful internet conglomerate, starting from internet shopping mall. This is brief analysis why RAKUTEN could success?
  2. 2. 1 Basic Business Concept: MATCHING Business Tenant Shops = Consumers *Numbers of Shops opened *Numbers of Unique User on RAKUTEN = 31,831 shops @ RAKUTEN = 8,540,000 users Why so many shops have Why so many consumers opened on RAKUTEN? tend to use @ RAKUTEN? **Local Shops to be tough for **Consumers to be easier for expanding business by themselves, finding out “niche” kind of items, less knowledge of Internet. + getting them via Internet. Business Concept <1> Cozy Mizoguchi all rights reserved / 20100310
  3. 3. 2 Basic Business Model: Commission Revenue Tenant Shops ⇒ RAKUTEN Business Concept <2> *to pay 46% for opening Shop + margin up to gross sales *to provide effective / useful opportunity / scheme to reach to potential consumers 3 Business Approach: Traditional “Order Taker” Sales to directly approach to customers via maximizing state-of-the arts web tools , but those approach is exactly similar with “Traditional” type of sales tactics / activity ⇒ Personalization : Accurate users profiling based on user’ preferences, behavior, etc  ⇒ Leveraging “words of mouth” effectively via SNS, Blogs, for expanding awareness, etc Cozy Mizoguchi all rights reserved / 20100310
  4. 4. 3 Basic Business Approach: Traditional “Order Taker” Sales Business Concept <3> to directly approach to each users + delivery ordered liquors ,etc, enabling to collect each of users’ actual profiles. enabled ordering liquors without “Specifics” based on the relationships built upon direct / close communication with bottle shop people Built luxurious exterior type of buildings, encouraging consumers to visit & buy items, Enjoyed “shopping activity” @ stylish department-stores, but less intimate relationships w/ each other Established useful business opportunity to reach users even living outside of trading zone via web + users’ profile / data. Enabled searching for “Wants” commodity due to helpful recommendation, + getting them @ home.  < Long time ago > < Just recently / currently > < RAKUTEN > SHOPS came to users Users went to shops INFO comes to USERS, SHOPS knows USERS Cozy Mizoguchi all rights reserved / 20100310
  5. 5. Web tools can realize “Virtual” direct communication between Shops = Consumers Business Concept <4> < RAKUTEN > INFO comes to USERS, SHOPS knows USERS SHOPS came to users Cozy Mizoguchi all rights reserved / 20100310
  6. 6. 4 Business Strategy: Horizontal x Vertical business developments ⇒ Strategically expanding RAKUTEN business arena x enhancing wide array of items / services 5 Basic Solution / Business Expansion: M&A   ⇒ Tactically pursuing M&A methods 6 Business Promotion: Sports / Athletes activities, etc   ⇒ Usefully leveraging their own professional baseball / soccer teams + RAKUTEN CEO Mr. Mikitani appearing on various media Business Concept<5> < 2009 business performance > *units; billion / % to compared with last year - Gross Sales: 298.2   +19.4% - Operational Profits: 56.6   +20.1% - Pretax Profits: 54.8   +23.3% - EBITDA78.4   +17.5%   - Net Profits: 53.5 Cozy Mizoguchi all rights reserved / 20100310
  7. 7. Cozy Mizoguchi all rights reserved / 20100310 Vertical Horizontal < High Profits / High Growth arena > < Area where RAKUTEN is fully developing > Credit card biz Bank biz Travel biz < Marketing oriented business arena > Securities biz Portal / Media Pro sports biz < Area RAKUTEN is focusing on local Japanese + building up local procurements > Asia US / EU E C biz Japanese ・ Contents server:500Tbyte ・ DB server:75Tbyte ・ Driving Private Cloud Business Strategy / Frame Actively entering into net-related fields by leveraging EC business Developing global business activities by leveraging EC business model
  8. 8. Vertical business activities by their subsidiaries with 09 results ・ RAKUTEN KC ・ e-Bank ・ RAKUTEN Credit ・ Fusion Communications -sales 57,698 -profits 3,312 -sales 30,301 -profits 2,418 -sales 23,549 -profits 4,463 -sales 115,002 -profits 36,222 -sales 19,320 -profits 8,801 -sales 44,017 -profits 1,526 -sales 8,360 -profits -617 -Sales 298,252 -Profits 56,649 ( units ; million ) Cozy Mizoguchi all rights reserved / 20100310 < High Profits / High Growth arena > Credit card biz Bank biz Travel biz < Marketing oriented business arena > Securities biz Portal / Media Pro sports biz E C biz ・ RAKUTEN Securities ・ RAKUTEN ・ RAKUTEN Auction ・ RAKUTEN Travel ・ RAKUTEN Research ・ Tohoku RAKUTEN Golden Eagles
  9. 9. Business Tactics / Performance, etc 1 Personalization 2 Group Synergy 4 Points Program 3 SNS, Blog, etc Members Acquisition / Retention ⇒ Realizing Cross Selling - RAKUTEN members 38,400,000 - RAKUTEN Shops 31,831 - Unique Users 8,540,000 - Cross usages 40.7% Cozy Mizoguchi all rights reserved / 20100310
  10. 10. 1 Global EC biz < sales potentials; big > 1 JV with BAIDU ・ Build up #1 Chinese search company, enabling to be ready for full scale business developments in China. ・ to Launch late 2010 / Investment amounts; 4.3 billion 2 Started EC in Taiwan, Thailand 2 Exports Biz ・ Exporting some posted items on Japanese RAKUTEN to overseas customers, especially Japanese residents 3 Imports Biz ・ Coordinating personal import biz via US subsidiary LinkShare, icn ・ Open the page for Drugstoe.com, FragranceNet.com to Japanese customers ・ RAKUTEN to define 2010 as the “ 1 st year deployment in global markets” Cozy Mizoguchi all rights reserved / 20100310 Horizontal business activities in Global fields < sales potentials; small > < Area where RAKUTEN is fully developing > < Area RAKUTEN is focusing on local Japanese + building up local procurements > Asia US / EU Japanese
  11. 11. Benchmark Expanding their fields more from July, 2011 when Digital Terrestrial Broadcasting will be launched in Japan. ⇒ All households can access to Internet via Remote Control. TV will have huge potentials to become a centric tool. What we can learn from RAKUTEN: < basis > Knows Customers, Understands Trends, and Communicates Customers as mush as possible, but smoothly, repeatedly. Cozy Mizoguchi all rights reserved / 20100310 Benchmark / Future potential Potential
  12. 12. RAKUTEN Finance Condition in FY2009 Cozy Mizoguchi all rights reserved / 20100310 Calculated based on 2009 Financial Index posted on RAKUTEN official sites. 18.05% 8) Labor's Share   76.51% 7) Added Value / Gross Margin on Sales   360,942,963 6) Capital Intensity of Labor   4,005,745 5) Capital-Intensive Indicator   10,989,741 4) Marin generated per 1 employee   46,822,323 3) Labor Productivity   8,449,118 2) Payroll per 1 employee   110,679,000,000 1) Added Value / Gross Margin PRODUCTIBITY 23.48% 6) Gross Costs on Sales     3.04% 5) Return on Capital Employed   24.50% 4) ROE   17.96% 3) Profits Margin on Sales   18.40% 2) Recurring Profit Margin   18.99% 1) Operating Profit on Sales PROFITABILITY 66,413,000,000 1) Cash Flow CASH FLOW 0.17 1) Total Assets Turnover EFFICIENCY 0.94 8) Inventories Turnover   2.23 7) Receivables Turnover   5.38 6)A ccounts R eceivable C ollection P eriod   704.70% 5) Debt Ratio   12.45% 4) Capitol Ratios   62.82% 3) Fixed Assets to Fixed Liability Ratio   111.87% 2) Fixed Ratio   110.75% 1) Current Ratio SAFETY

×