This document provides an overview of the Japanese ICT market and strategy considerations for Asian startups. Some key points: - Japan has an aging population and economically mature market seeking new solutions. Mobile penetration exceeds 100% and e-commerce is growing. Popular sites include Rakuten, Yahoo Japan, and gaming/social networks. - The startup ecosystem includes incubators, angels, and growth funding. Successful ventures have addressed jobs, gaming/apps, and B2B services. Offshore development in countries like Thailand and China is also common. - For Asian startups, opportunities exist in healthcare/aged services, high-quality differentiated products, and addressing Japan's inflexible companies. B2C is

1. Japanese ICT Market
and Strategy of Asian
Market for Startups!
07th Feb 2013
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2. Japan overview / Basic indicator
Population
GDP
PPP
Population : 127M
Japan
127,619,200
6,125,842
35,578
male
female
Thailand
67,444,960
367,875
10,204
1)
Aging
-­‐
Healthcare
service
-­‐
Service
for
Aged
person
Japan
2)
Economically
mature
-­‐
Something
different
Similar
Problem
-­‐
High
quality
-­‐
Higher
request
3）
Inflexibility
of
Companies
Thailand

3. Local
Economy
of
Japan
Dubai
≒
Shiga
Pref.
(Local
District)

4. Japan overview / Location
Looking for Local Area more !!
Nagoya : Toyota, many !
manufacturing
Sendai : Revival support by Gov.
Tokyo : Metropolitan
Kyoto : Some international companies
Osaka : Second large city, medicine
Kobe : P&G, big port
Hakata : Try to international
Naha : IT Park, Data Centre

5. Japan overview / General Indicator
Income
:
Monthly
around
70k
THB
(Graduated
Univ,
First
year)
Not
big
gap
(Large
Middle
Class)
compared
to
other
countries
Credit
Card
Penetra;on
:
310%
But
sRll
lower
usage
than
other
developed
countries
e-­‐commerce
rate
(online/offline)
=
around
3%
(2011)
-­‐
Travel
:
around
6%
-­‐
House
hold
goods,
Electrical
goods
:
4%
-­‐
Fashion,
accessory
:
around
1%
-­‐>
Korea
10%
Source
:
Ministry
of
Economy
and
others

6. Japan Shopping (e-commerce) site PV Ranking
0" 500,000,000" 1,000,000,000" 1,500,000,000" 2,000,000,000" 2,500,000,000" 3,000,000,000" 3,500,000,000"
Rakuten"Ichiba"
Amazon"
Yahoo!"Shopping"
Rakuten"Travel"
Zozo"Resort"
Hot"Pepper"
Kakaku.com"
Rakuten
Ichiba
Market
Place
type
Moving
to
Market
Place
type
Yahoo!
Shopping
hcp://shopping.yahoo.co.jp/

7. Still “Yahoo! Japan” is top portal site in Japan
Korean
Top
Naver
China
Baidu
Design,
Colorful
&
harmony,
Portal
(List)
0" 2,000,000,000" 4,000,000,000" 6,000,000,000" 8,000,000,000" 10,000,000,000"
Yahoo!"Japan"
Google"Japan"
Facebook"

8. Top Travel site “Rakuten Travel”
Hotel,
Air,
Train
(ParRal),
Bus,
Local
&
Oversea,
Package
tour…

9. Success of Zozotown.com / Fashion EC
Typical
e-­‐commerce
site
has
a
lot
of
Text
explanaRon
To
use
Social
Buying
funcRon
and
more
hcp://zozo.jp/

10. Some Success examples Korean service in Japan
More
natural
and
visible

11. Other popular sites
Kakaku.com
Comparison
of
goods
to
e-­‐commerce
shop
Hotpepper.jp
Restaurant
etc..
and
Coupon
Free
Paper

12. Delivery system & Payment
Sagawa
Yamato
Charge' Direct
Delivery
to
users
Others'
6%'
9%' To
get
signature
by
users
Convinience'
Store'
9%' Credit'Card'
45%'
Bank'Transfer'
15%'
Cash'on'delivery'
16%'
Payment
Gateway
Service
Payment
Method

13. Convenience Store in Japan
Bank,
Payment,
Delivery
and
more.
They
are
providing
many
services
0" 2000" 4000" 6000" 8000" 10000" 12000" 14000" 16000"
Seven"Eleven"
Lawson"
FamilyMart"
Circle"K"
Mini"Stop"

14. E-money share in Japan
Suica
:
25.5%
(Rail
company)
Nanaco
:
25.4%
(Seven-­‐Eleven)
WAON
:
24.2%
(Big
Mall)
Rakuten-­‐Edy
:
15.8%
(Rakuten)
PASMO
:
8.0%
(Rail
company)

15. Japan overview / Mobile and ICT Indicator
Mobile
Penetra;on
:
More
than
100%
3G PenetraRon
around
100%,
LTE
becomes
popular
Smartphone
Penetra;on
:
Around
40%
Android
:
iOS
=
7:3
Flat
rate
:
around
1300
THB
-­‐
/
Total
2000
THB
-­‐
Internet
Penetra;on
:
around
80%
ADSL
:
650
THB
-­‐
/
50Mbps
-­‐
OpRcal
:
800
THB-­‐
/
100Mbps
-­‐
Mobile
:
700
THB
-­‐
/
40Mbps
-­‐

16. Japan Mobile Scene
KDDI%
Docomo%
So'bank%
Mobile
Operator
Share
Smartphone
Shipment
more
than
70%
Docomo
doesn’t
have
iOS
and
push
Android
**
Mobile
Gaming
are
used
country
side
more

17. au Smartpath
Free
apps
DL
Storage
Coupon
Point
Security
Constant
fee
124
THB
/
month
AddiRonal
Contents

18. Incubation activities of Mobile Operators
Incuba;on
Program
&
Funding
Docomo
InnovaRon
Ventures
KDDI
Open
InnovaRon
fund
Fund
size
:
Around
100M
USD
Fund
size
:
Around
50M
USD
One
of
top
media
(TV
etc)
company
fund
Around
15M
USD
Social,
Smartphone
apps,
New
media
tech
hcp://www.fujimediahd.co.jp/

19. Popular IT company List
Mobile
Gaming
Social
Ec-­‐comparison
Mobile,
Internet,
Publishing
Gaming
Social
Gaming
Ads,
Portal,
commerce
Gaming
Ads
and
service
Gaming
Commerce,
Stock

20. Japan Information Service Oversea business
export
Import
Many
ICT
companies
are
struggle
of
oversea
business.
COLLABORATION
more
Source
:
Ministry
of
Economy
and
others

21. Japan advertising companies
Total
adver;sing
companies
Online
/
Digital
/
Agencies

22. Some Unique Service in Japan
Anonymous
bulleRn
board
system
Video
service
with
comments
hcp://www.2ch.net/
hcp://www.nicovideo.jp/

23. Japanese Startup Ecosystem (Not all! There are many others!)
Angels
Some
Angels
Media
Seed
IncubaRon
Early
Growth
Later
Event
* Not Including all related org/companies

24. Some success Japanese Startups/Ventures examples
hcp://crowdworks.jp/
hcp://www.oisix.com/
(Went
to
public)
hcp://gu3.co.jp/
(Go
to
IPO)
hcp://o.omiai-­‐jp.com/

25. In my Opinion for Japan Startups….
1)
BtoC
and
CtoC
are
a
licle
difficult
except
“Job
Market”
In
short,
have
good
MoneRzaRon
model
or
not
2)
Social
Gaming
/
Smartphone
apps
are
a
licle
down
3)
BtoB
services
are
becer
posiRon
Y-­‐com,
500
Startups,
Rocket
Internet
are…
More
focus
on
MoneRzaRon,
More
GlocalizaRon
(See
market)

26. Offshore !
development

27. Japan Offshore Development except Thailand
China
China
is
sRll
big
bad
higher
labor
cost
Bangladesh
Offshore
dev.
India
Taiwan
Training
Gaming
design,
Smartphone
apps
Sri
Lanka
Philippine
Offshore
dev
BPO
and
English
based
Offshore
dev.
Myanmar
Vietnam
Offshore
development
Offshore
Dev.
(tech)
Indonesia
Offshore
development
Singapore
Cinema
industries
Head
Quarter,
First
step

28. Vietnam and Philippine Development / BPO
Vietnam
Accenture
in
Philippine
US
tends
to
develop
in
Philippine
(BPO)
because
of
English
On
the
other
hand,
High
Tech
to
East
Europe,
Russia

29. Thailand Offshore / Collaboration
Design
and
CreaRve
CollaboraRon
to
Thailand
and
Myanmar
Japanese
residents

30. Oversea!
Market!
!
Similar to JP!
Korea and TWN

31. Korean Market
Kakao
Shock!
By
Gaming
90
%
PenetraRon
Smartphone
70%,
Android
90%
Trading
Card
Gaming
from
Japan
Japan
is
Line
and
Buy
Stumps
Tech
Media

32. Korean Market tends to have huge Platform
e-­‐commerce
two
giant
Plauorm
hcp://www.cafe24.com/
hcp://www.makeshop.co.kr/

33. Korean some service in SEA
hcp://www.vingle.net/
hcp://www.wishtrend.net/

34. Korean / Japan Promotion Differences
Korea
Japan
LisRng
ads
Blog
are
effecRve
Ads
are
sRll
effecRve
More
focus
on
CommuniRes
More
focus
on
Reviewing
site
Naver
Cafe
etc..
AppBank,
Other
higher
PV
site

35. Taiwan Market
e-­‐commerce,
Gaming
are
main
Startups
Tech
Media
hcp://www.inside.com.tw/
hcp://techorange.com/
Similar
Service
iCook
CookPad

36. Taiwan Service in SEA
Cubie
Messenger
hcp://cubie.com/
Taiwan
and
Korea
service
tends
to
more
social,
community,
matching
and
DaRng
compared
to
Japan
service

37. Outbound Business

38. Outbound Business of Thailand
Top
Manufacturing
points
in
SEA
BtoB
Marketplace
of
Manufacturing
Tourism,
Restaurant,
foods
Delivery,
Search
and
more
Real
estate
Business
Market
Place,
InformaRon
Medical
Care
Medical
tourism,
Database
Focus
on
strength
points

39. Collaboration!
Japan
ICT
companies
are
lack
of
experiences
in
Oversea
market
Economic
Mature,
so
many
service,
business
model
are
exisRng
CollaboraRon
to
Thailand
and
SEA
market!
To
develop
new
Thailand
ICT
market
with!

40. Supporting of your Global Reach
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