The Web, Social Games And Mobile In Japan

Japan’s Web, Mobile & Gaming  Markets  By Serkan Toto, PhD  Twi?er: @serkantoto  

About Me • Tokyo‐based web, mobile and gaming    industry consultant • Advisor for startups in Japan and the US    • Japan correspondent for TechCrunch.com   • Personal website: www.serkantoto.com   

Agenda I: Japan’s Internet II: Japan’s Mobile Market III: Japan’s Social Gaming Market 

I: Japan’s Internet  

Asia Boasts World‘s Biggest Web PopulaNon 

Asia‘s Web, Including Japan, To Explode By 2015   Source: Cisco, June 2011 

Japan’s Internet  • Search Engines • E‐Commerce • Social Networks 

Japan‘s No. 1 Web Site: Yahoo Japan 

Japan‘s No. 1 Search Engine: Yahoo Japan   Source: Nielsen Online Japan, April 2010 (PC access) 

Key Facts: Search In Japan • Yahoo partners with Google for backend • Yahoo Japan is not only search: aucNons,  shopping, mail, games, (social networking?) • Mobile: No. 1 is Goo (NTT Docomo), but both  KDDI and SoBank use Yahoo/Google search 

Size Of Japan‘s E‐Commerce Market  • In 2008: $76 billion (B2C, up 13.9% from  2007), according to METI   Source for graph: Nielsen, 2008 

M‐Commerce Is Big   Source: Japans Ministry of Internal Aﬀairs and CommunicaGons 

World‘s 2nd Highest Online Spend  • $6,688 per year (roughly 2x Korea)  • Popular online purchase items:   – airline Nckets and other travel‐related items  – clothes  – books  – music downloads    Source: VISA ecommerce Consumer Monitor, 2009 

PotenNal For Future Growth   Source: Nielsen, 2010 

Japan‘s No. 1 E‐Commerce Site: Rakuten 

Rakuten Is SNll Growing • 37,000 merchants • 71 million members in Q1/11 (+10% y‐o‐y) • 76 million items listed in July 2011 (roughly 2x  more than in July 2009), from apples to trucks  

Rakuten Isn‘t Amazon Japan • Online shopping mall „Rakuten Ichiba“ • Rakuten Travel • Portal and media Business • Credit card business • E‐Banking • SecuriNes • E‐Money • Sports  • TelecommunicaNon 

Amazon Japan is Big, But Rakuten Is Bigger • EsNmate: Amazon Japan racks up 10% of  Amazon proper‘s sales and income • Large investments in Japan as of late  (distribuNon centers, for example) 

Rakuten‘s Next Goal: World DominaNon  • USA (Buy.com, Linkshare)  • China (Baidu)  • Asia: South Korea, Taiwan, Thailand,  Indonesia, Malaysia, the Philippines, India  • Europe: Luxembourg, Germany, UK  • South America: Brazil  • End goal: an integrated cross‐border e‐ commerce planorm  

Japan‘s Unique Social Networking Landscape  • Basic structure: real social graph vs. virtual  social graph vs. mixed social graph • 3 homegrown social networks with roughly 25  million users each:  – Mixi (real/“Japan‘s Facebook“)  – GREE (virtual/mobile social gaming)  – Mobage (virtual/mobile social gaming) 

Facebook Japan Has Long Way To Go  • Facebook members in Japan: 3.6 million (roughly  3.5% of web populaNon) (real idenNNes)  • Facebook penetraNon in the US: 68%   Source: Socialbakers 

Twi?er Is Already There  • EsNmate: Roughly 18 million Twi?er users in  Japan aer 3/11 earthquake (mixed idenNNes)  • Japan is Twi?er country, also for businesses   Source: Internet Watch/Agile Media Network 2011 

II: Japan’s Mobile Market  

Japan: World‘s Most Advanced Mobile NaNon • 7th largest mobile user base in the world (107 million)   • 100% 3G penetraNon (ﬁrst 3G networks in 2001 by NTT)     Source: Wikipedia 

Hotbed For Mobile InnovaNon • World‘s ﬁrst mobile web system in 1999   • Full PC web browsing on cell phones   • First app planorm created in 2001   • QR codes   • Online billing and payment   • Oﬄine payments through cell phones (e‐wallet)   • First 3G networks   • Cell phone novels   • Mobile digital TV   • Mobile health terminal   • HD video recording   • e‐book funcNon   • Mobile social gaming   • Commuter pass in public transportaNon   • Waterproof or solar‐powered cell phones   • IntegraNon with home electronics   

Vibrant Mobile Market • Hardware sector controlled by  – Sharp (market leader with 25% market share)  – Panasonic  – Fujitsu‐Toshiba  – NEC‐Casio  – Kyocera • 3 main carriers  – NTT Docomo (market leader with 55 million users)  – KDDI au  – SoBank Mobile 

Japan‘s Mobile Galapagos Is Doomed  • GREE CEO Yoshikazu Tanaka: „By 2015, feature  phones in Japan will vanish.“  • iPhone and Android to dominate in future   Source: The Nikkei / MM Research InsGtute 

III: Japan’s Social Gaming Market  

Size Of Japan‘s Social Gaming Market • Annual sales of DeNA and GREE combined  reach around $2 billion (ads included) • Different sources offer different numbers:  – Japan‘s CommunicaNons Ministry:   $1 billion in 2009  – Market research firm Seed Planning:  $1.46 billion in 2010 (+49.3% in 2011) 

Size Of Japan‘s Social Gaming Market • Yano Research: $406 million in 2009, $900  million in 2010, $1.4 billion in 2011: 

Highly Fragmented And Unique Industry Structure • Hundreds of social applicaNon providers • Two dominant companies double as planorm  and game providers: GREE and DeNA  („Facebook and Zynga in one“) • Social gaming in Japan is mobile (except for  Yahoo Mobage on the PC) • Rekoo only really successful foreign player 

DeNA: InternaNonalizaNon • DeNA‘s 3‐market approach with Mobage for  Smartphone:  – Japan  – China  – Rest of the world • Aggressive M&A:  – Ngmoco $403 million  – Aurora Feint, Gameview Studios, Astro Ape, etc. • Failed twice on a global level:  – MiniNaNon  – Mobamingle 

GREE: InternaNonalizaNon • More cauNous approach • US oﬃce in January 2011 • Partnerships:  – South East Asia: mig33  – China: Tencent • Only one sizeable acquisiNon abroad so far  (Openfeint for $104 million) • 75 million users? 

Thank you for listening!  

Contact InformaNon TwiRer: h?p://twi?er.com/serkantoto LinkedIn: h?p://linkedin.com/in/serkantoto Facebook: h?p://www.facebook.com/stoto Email: totoserkan AT gmail.com 

Picture Credits  • Slide : h?p://www.penn‐olson.com/2011/06/02/asia‐cisco‐internet‐traﬃc •  h?p://www.google.com/url?sa=t&source=web&cd=4&ved=0CC4QFjAD&url=h?p%3A%2F %2Fhk.nielsen.com%2Fdocuments%2FQ12010OnlineShoppingTrendsReport.pdf&rct=j&q=nielsen %20online%20shoppers%20as%20a%20%25%20of%20internet %20populaNon&ei=ypL0Taq5IYzWvQPZxpXiBg&usg=AFQjCNHQvo6oSCKqVYZB7QIsDi7J98kCJw&sig2=c5RQ lKU4u7u8W94Qe1vUQw&cad=rja • h?p://www.visa‐asia.com/ap/sea/mediacenter/pressrelease/NR_SGP_291009.shtml#Note1 • Japan’s endangered phone species: h?p://e.nikkei.com/e/ac/tnw/Nni20110606IS3GALAK.htm 

http://asiajin.com	796
http://paper.li	155
http://www.serkantoto.com	122
http://us-w1.rockmelt.com	37
http://benjaminlq.posterous.com	25
http://twitter.com	15
http://techne.dailysocial.net	15
http://nuevospowerpoints.blogspot.com	7
http://a0.twimg.com	4
http://www.onlydoo.com	3
http://tube.deldig.com	2
http://www.iweb34.com	1
http://translate.google.com	1
http://mundo-powerpoints.blogspot.com	1
http://feeds.feedburner.com	1
http://posterous.com	1
http://translate.googleusercontent.com	1

The Web, Social Games And Mobile In Japan

by Dr. Serkan Toto on Aug 18, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

17 Embeds 1,187

Statistics

The Web, Social Games And Mobile In Japan — Presentation Transcript