1. Grow Your E-Commerce Sales to Japan

2. 2
Today’s Agenda
Rakuten: Who we are
E-Commerce in Japan
About Rakuten Ichiba & Case Study
How You Can Sell With Us
1
2
3
4

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Rakuten: Who We Are

4. 4
 Founded : February 7, 1997
 IPO : April 19, 2000 (Jasdaq Stock Exchange)
 Chairman & CEO : Hiroshi Mikitani
• The First Office : Atago in Tokyo, Japan
• Employees : 6 (at the service launch)
• Business : Rakuten Ichiba (online mall)
Company Profile

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 Office : Crimson House (Tokyo, Japan)
 Employees : 12,288 (as of June 30, 2015)
 Market cap : JPY 2.97 trillion (US$ 25.0bn), as of July 21, 2015
 Businesses : Rakuten Ichiba (e-commerce), Rakuten Travel, Rakuten Securities, Rakuten Card,
Rakuten Bank, Kobo, Viki, Viber, Ebates etc.
Company Profile

6. 6
Japan
Content/
E-books
Overseas
E-Commerce
106M 64M45M
Viber
711M
Japan: Rakuten Membership as of December 2015
Overseas E-commerce: Total IDs of Rakuten’s e-commerce outside Japan as of June 2015 (excluding Play.com)
Viber: Unique IDs as of December 2015
Content/ Ebooks: Sum of Viki’s MAU and IDs of Rakuten Kobo as of June 2015
Rakuten Membership

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Rakuten’s services in various sectors
Shopping
Payment
Credit Card
Banking
Brokerage
Insurance
Transportation
Sports
Mobile
Reading
Video
Travel
R
Rakuten Ecosystem

8. 8
E-Commerce in Japan

9. 3,2%
4.4%
3.9%
3,4%
2,8%
The Transition of Japanese E-Commerce’s B-to-C Market（2010～2014）
Source: Ministry of Economy, Trade and Industry 平成26 年度我が国経済社会の情報化・サービス化に係る基盤整備（電子商取引に関する市場調査）
報告書
0
2
4
6
8
10
12
14
2011
8.5
2010
7.8
Ecommerce market size (trillion JPY)
9.5
2012
11.2
12.8
2013 2014
Ecommerce ratio
Ecommerce market size
(trillion JPY)
The Japanese E-Commerce Market

10. 10
4th
largest global
e-commerce market
100
Million Internet users
82.8%
Internet Penetration
Rank Country
Market Size
(Billions $)
1 China 562.66
2 US 349.06
3 UK 93.89
4 Japan 79.33
5 Germany 73.46
6 France 42.62
7 South Korea 36.76
8 Canada 28.77
9 Russia 20.3
10 Brazil 18.8
Japan’s is the 4th Largest E-Commerce Market (2015)
http://www.statista.com/statistics/377624/leading-countries-retail-e-commerce-sales/
E-Commerce Market Comparison by Country

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Source: Fuji Keizai: Current Condition and future of Mail-Order and E-Commerce Business 2014-2015 Market Version
26%
37% 40%
24% 27%
35%
15%
17%
14%
5%
7%
26%
8%
5%
5%
8%
6%
2%
6%
Overall Apparel
2%
Beauty/pe
rsonal care
Yahoo!
楽天
Amazon
Electronics
3%
Food Household
Goods
Health
foods/medicine
Japanese E-Commerce: Market Share by Category

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②Market Place①Branded Site
• Control branding
• Design flexibility
• Customer relationships
• Product platform
• Traffic
• Demand generation
E-Commerce Options in Japan

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About Rakuten Ichiba

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Rakuten Ichiba
Share in Japan
26.8%
GMS Ratio
from mobile
54.2%
# of Merchants
44,201
as of Dec 2015
GMS domestic EC
YoY
+10.9%
We are Japan’s #1 Online Shopping Mall
What is Rakuten Ichiba?

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We have a B2B2C marketplace model:
- Rakuten does not do direct sales of its own goods.
- Rakuten Ichiba provides a shop centric environment
- Participating merchants have no limits placed on getting direct access to customers.
Our Business Model

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Dynamic and synergetic shopping mall with various types of merchants
Our Approach

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Your Own Branded Store
The advantages of Rakuten is that you will have 100% control over page design to differentiate
with other brands, and to market your brand.

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International Brands on Rakuten

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Rakuten will assign each merchant an account manager (“E-Commerce Consultant”) to
provide regular feedback on store performance and make recommendations to
continually improve month-over-month sales.
Merchant’s e-
Commerce
manager, director,
etc.
• Business requirements
• Strategic objectives
• Branding
• Japan market knowledge
• Store design suggestions
• Merchandising guidance
• Performance feedback
• Conversion improvement recommendations
• Marketing strategies
• Promotional guidance
Rakuten’s
E-Commerce
Consultant
Our Support Staff

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Ongoing Support

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Case Study: Otterbox
“We perceived Rakuten before
joining as not only the leading
online marketplace channel for
business in Japan but also that
the platform allows you to have
a branded page to
communicate on brand rather
solely on product.”
Patrick Waller
Director, APAC Marketing and
eCommerce

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How Otterbox improved with
Freddie the ECC
Case Study: Otterbox
Driving Traffic
- Increase organic leads by setting an “entrance product”
- Planned and executed revision of pricing, SEM, and encouraging
customer reviews.
- Organic leads increased by 4 times by having search results appear on
the 1st page
Increasing Conversion Rate
Freddie asked around and gained information about what type of
information the customers would like to see on Otterbox’s store. He also
researched what competitors have been doing and advised Otterbox on
points to improve.

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What customers will see when they search “Otterbox” comparison with
other merchants from the search results
Case Study: Otterbox
- Regular use of advertisements to drive traffic
- Thorough SEO to maintain top search results
- Customer reviews, Super Points incentive, free shipping

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ProductEvents/AdsMarketing
Strategies for Improving Sales
• R-Mail (mail magazine)
• Press release
• Affiliate
• Customer reviews
• Super Points incentive
• Improving quality of page design
• Including “recommendations”
• Advertisements, SEO
• Events such as Rakuten Super SALE,
Shopping Marathons
• Rakuten Super DEAL
• Follow the Japanese calendar for
seasonal events/sales
• Sample/trial sets
• Product branding
• Prepare “entrance product”
• Secure stock
• Gift wrapping

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How you can sell with us

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Direct purchase of foreign goods from overseas companies, retailers,
manufacturers and others by an individual for the purpose of personal use.
・ International Mail
・ International courier service
Delivery Methods
・custom duty
・consumption tax
・a customs clearance fee
Note: The customs value of goods for
personal use is “Retail price x 0.6”
Customs Fees
For goods at a total customs value of 10,000 yen or less will be exempted
from taxation of customs duty and consumption tax.
9,999.9 ÷0.6 = 16,666
For total Cost below 16,666, tax will be exempted
Reference: Japan Customs （http://www.customs.go.jp/）
What is Private Import?

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1 Overseas
Brand
Service
Partners
Japanese
Customers
Fully Branded Store
Marketing
Local Order Management
Customer Support
& Returns
Logistics/ Fulfillment
Overseas
Company
Brand Feed
Promotions
Purchase
Customer Service
Shipping Customs duty
Traffic &Demand
Cross-Border Sales Model: Service Partner Support

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Steps to Opening a Rakuten Store
①Speak with a Rakuten consultant
Speak with one of Rakuten consultants based in Rakuten U.S.A.’s San Mateo
office. They can help you with any questions that you have about Rakuten, and
introducing you to service partners.
E-mail & phone calls
Speak with one or more of our service partners to explore the services that they
offer. Find a service partner that is right for you. Rakuten can always help by
joining the conversations during this step.
Once the merchant has signed a contract with the service partner, the service
partner will then proceed to take Rakuten’s screening.
E-mail & phone calls
Submit necessary documents
④Account Open on Rakuten
Service partner will begin setting up and designing the storefront.
Service partner will begin store set-up
②Speak with a service partner
③Sign with a service partner  Rakuten screening
Grand Opening Day!
Mid-Late
May
LateAprilEarly-MidApril

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What should you do next?
Would you like to learn about more specific examples of merchants on
Rakuten?
Are you interested in speaking with a service partner?
Still at an exploratory stage but would like to start exploring different
opportunities?
Any questions?
Contact us!
We would be happy to get in touch with you.
Reid Wegner: reid.wegner@rakuten.com