Mobile Japan: How the Japanese Sell and Buy through their mobile phones Presented by: Anthony Torres (MetaFlo Marketing KK, JAPAN)
1. Introducing MetaFlo Marketing
Based in Nagoya, Japan
Established in 2005
Affiliate Marketing Specialist
Own media properties
Almost everyone has a web enabled phone.
98 MM Total subscribers in Japan (51.3 MM support 3G)
86 MM phones in Japan are web enabled (88% of market)
Versus 31.4 MM mobile Internet users in U.S.
And they are using it in diverse ways..
Heavy mobile email usage. Texting (SMS) is not as popular as U.S./Europe
Java applet downloads for games, music file downloads
Web site traffic; shopping, news, auctions, dating, ticketing, banking
Why is Japan so far ahead?
Early adoption. DoCoMo started Imode in 1999, currently 56% market share
Standards – Imode started with cHTML not WAP. Easy to make mobile sites in cHTML. The other two national carriers, followed with support of cHTML.
Services – Initial concept was “Personal Concierge”, free services and content.
Population Density – Payback was faster for carriers due to smaller outlay of network costs due to dense population.
2. The Japanese mobile Landscape
3. Japanese mobile standards
Mobile phone transmission standards have gone from 1G, 2G, 2.5G and are now in the 3G era.
1G = analog voice-only service, 2G = digital digital voice and data ,2.5G = faster transmission over 2G networks.
1G started in the 1980’s, 2G came on strongly in the 1990’s and in 2001, DoCoMo started the first 3G network.
In Japan, over half of the mobile phones users are using 3G .
The most significant feature of 3G mobile technology is that it supports greater numbers of voice and data customers — especially in urban areas — and higher data rates at lower incremental cost than 2G.
3G allows for transmission of 384 kbit/s for mobile systems and 2 Mb/s for stationary systems
In the future – 3.9G Coming soon!
NTT DoCoMo is conducting R&D on 4G, with the aim of introducing it from 2010 onward . Designed performance ratings are 1 Gbps in motion at low speed and 100 Mbps at high speed.
4. Japanese mobile carriers
5. Mobile surpasses PC use in Japan In 2005, the number of mobile internet users exceeded PC users. PC Internet Users Mobile Internet Users User only of cellular phone, PHS, and portable terminal (Data: IAC Ministry) 4,980 5,722 6,164 6,416 6,601 2,504 2,794 4,484 5,825 6,923 657 1,061 1,453 1,511 1,921 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2001 2002 2003 2004 2005 (10thousand)
6. Top mobile sites in Japan
7. Mobile Site: MobaGame Town Top Page My Page Games Search tools Profile page Friends Diary Clothes Mini mail Male/Female Male Female
8. Typical online shop: ShopJapan mobile Cross Sell Email page to friend Thank you page Confirm order details Receive email, click link Send user confirmation phone Customer data input Details page Landing page
9. Mobile expenditures Mobile Market Breakdown Mobile eCommerce Breakdown Mobile eCommerce- purchases, subscriptions, services Contents- downloads to phone, ring tones, screen savers Usage of next generation electronic cash enabled phones (Felica) on the rise Merchandise Services Transactions
10. What are the Japanese buying?
PC Software ranks 14th
Most Popular Mobile Purchases
11. How Japanese use mobile: QR Code QR (Quick Response) a matrix code (or two-dimensional bar code) created by Japanese corporation Denso-Wave in 1994
12. Affiliate Point media: RealAffiliate Affiliate program that directs mobile user from internet to store 1) User receives points for making reservations to visit the store via the affiliated point site 2) Upon completion of purchase at the store, the user is awarded additional points via the ICReader using the Felica enabled handset ＰＣ point site Mobile point site QR Code or Email Access User receives points for making reservation Reservation and purchase are confirmed by affiliate Points are awarded to user via the point site Banner Access User visits store After purchase, user zaps IC Reader w/ handset WebTo function confirms sale and points User receives additional points based on purchase ValueCommerce Collaborative Project with NTTDoCoMo ＶＣ Affiliate ＶＣ Affiliate
13. TV drives mobile traffic
Infomercial shows icons for PC and Mobile access
URL is the same, device is auto detected and re-directed
14. Mobile retail trends
15. Mobile payment methods: Wallet Phones
Edy , Felica, and SUICA are smartcards that have been integrated into mobile phones in Japan
Suica is a rechargeable contactless smartcard used as a fare card on train lines in Japan.It is also increasingly being accepted as a form of electronic money for purchases at stores and kiosks within train stations
FeliCa is a contactless RFID smartcard system by Sony, primarily used in electronic money cards
Edy provided by bitWallet, Inc. in Japan is a prepaid rechargeable contactless smart card. It uses Sony's FeliCa technology.
A customer pays using her cell phone. Charging up the phone Pay your train/subway fare.
16. Mobile advertising trends eCommerce US$ Millions Online Ads US$ Millions
17. Mobile affiliate marketing
Over 48 networks servicing mobile space
3 new networks per month
18. Mobile matters to PC software
86 Million Mobile Internet users
76 Million PC Internet Users
88% of Mobile Internet users have a PC connected to the Internet!
19. PC software sales on Mobile
QR codes + point media partners drive limited trail downloads
Customer mobile accessible accounts (upgrade info, newsletters & incentives via mobile)
Create content rich mobile sites to drive software product sales
Use mobile channel to drive PC downloads
20. Mobile Future
4G 1 Gbps
Application downloads directly to mobile phones
Continued drop in packet charges will lead to more time spend on mobile devices