This document discusses the empowerment philosophy and growth of Rakuten, a Japanese e-commerce company. It outlines Rakuten's origins in 1997 with 5 employees and its growth to over 10,000 employees and a market capitalization of $17 billion by 2013. The document also summarizes Rakuten's core e-commerce strategy of building a membership-based internet business and its efforts to support merchants through technology and consulting services.

1. THE EMPOWERMENT COMPANY
September 2013
Masatada Kobayashi
Co-founder, Rakuten, Inc.

2. “OPTIMISTIC”
Rakuten (楽天)
楽 - “Happy”
天 - “Heaven”

3. Our Philosophy has always been the same…
Empowerment!

4. Founded
February
1997 5 Employees
IPO
April 2000
1st office:
Atago in Tokyo
(Jasdaq)

5. Rakuten
Tower
Rakuten
2013
Market cap: US $17BN
Over 10,000 employees

6. R$250 Billion
Target
R$28 BN

7. Source: Fuji Keizai
(100%)
(80%)
(60%)
(40%)
(20%)
(0%)
15 BN Reais
25%
48%
28%
59%
Apparel Electronics,
PCs
Books,
Software
Beauty
& Other
Household
goods
Food Health
food,
cosmetics
15 11 7 6 6 3
34%
19%
19%
Others
Amazon
Rakuten
Strong presence across e-commerce categories

8. Percentage based on 2009～11 average
17%
Nintendo Wii
sales
16%
PlayStation 3
sales
12%
Nintendo DS
sales

9. 41,628
Number of
merchants

10. Number of
products
142,742,298

11. Collectively, we can
compete against “Giants”

12. Rakuten Today

13. Rewriting the Rules
of E-commerce

14. Core Strategy:
Membership
Business on
the Internet
Unique convergence of
Internet Services with
Membership Business
+
Internet
Service
Membership
Business

15. E-Commerce
Credit
Card
Banking
Securities Telecom
Travel
E-Money Digital Goods
Portal &
Content
Rakuten
Ecosystem
In Japan
Database
Loyalty
Program
Log-In

16. Growth in Crossover Users
Rate Rakuten members use
more than two services
* Purchasing ratio of Rakuten members who have utilized other Rakuten services during the past 12 months of the listed month.
Applicable services are limited to those which can earn Rakuten Super Points (excl. Securities)

17. Rakuten
E-commerce Model

18. Shopping is
Entertainment!

19. Most
E-commerce
Models

20. Our Philosophy has always been the same...
Empowerment!

21. 21
Comparison of approaches
Competitor A Model
Limits access to merchants
Controls relationship to customers
Controls customer data
Rakuten Model
Encourages social commerce
Encourages engagement with customers
Shares customer data with merchants

22. A Unified Brand of
“Live” Merchants

23. The Rakuten Shopping Experience

24. R-Storefront
R-Backoffice
R-Datatool
R-Mail
“R”-Technology
RMS (Rakuten Merchant Server)
enables merchants to build
dynamic online shops from Day 1

25. 1.0
Not taking
courses
Taking
courses
Average Monthly Sales
Per Merchant
“DREAM” Monthly
Publication for
Merchants
Interviews with shop
owners
3.6
Rakuten University & DREAM Magazine

26. SmartDeviceAdoption
iPad
App for ranking of top 100 best-
selling items in Rakuten Ichiba
in each category
iPhone
Ichiba’s App for iPhone
since Feb. 2011
Android
Ichiba’s App for Android
since Apr. 2011
Three different display sizes

27. 25%
30%
35%
40%
45%
Rakuten Ichiba 2013 GMS
Forecast for Mobile & Tablets
2013
FEB APR JUN AUG OCT DEC
Within 2013
Over 42％

28. Support
Strategy
E-commerce
Consultants
(ECC)

29. MerchantSuccessStories
Incredible speed
of selection
update
This shop succeeded by selling seasonable
first fashion with rich information and
communication

30. MerchantxECC- SuccessStories
Katia had no experience
with e-commerce and retail
before starting Rakuten.
Katia succeeded by maximizing her
commerce experience cooperating with her
EC consultant.

31. ECC Video

32. ECC Case Study: Long Page and CVR
(conversion rate)
5.1%0.4%

35. Let’s make shopping
more interesting !!