02.11.17 Overseas Sales Strategy, E-Commerce Company Ken Kayama - - PowerPoint PPT Presentation

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02.11.17 Overseas Sales Strategy, E-Commerce Company Ken Kayama - - PowerPoint PPT Presentation

Apr 10, 2023 405 likes •929 views

02.11.17 Overseas Sales Strategy, E-Commerce Company Ken Kayama Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakutens Cross

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02.11.17 Overseas Sales Strategy, E-Commerce Company Ken Kayama

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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Joined Rakuten in 2013. Consulted with over 2000 companies to open a shop in Rakuten Ichiba marketplace. My mission is to provide sales channel for overseas sellers to expand their global sales and provide more product variety for Rakuten users for more happiness! Ken Kayama, Overseas Sales Strategy Group Assistant Manager

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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Estonia Japan

7,877 km & 7 hours difference

Land Population # of Prefecture

127 million people 377,915 km2 (almost same as Finland)

Major Cities

47 prefectures Tokyo, Osaka, Nagoya

Ethnic Group

95.8% Japanese

Literacy

< 99%

English Literacy

35th in the world

Source: Bloomsburg exchange rate. 30.10,2017

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Source: http://ecodb.net/country/JP/

Major Industry Automobiles, electronic equipment, machine tools, steel, non-ferrous metals, marine products, chemicals, textile products GDP Composition Ratio Primary Sector (Agriculture, Forestry and Fisheries) 1.1% Secondary Sector (includes mining and electricity) 25.6% Third Sector (communication, financial, retail-related services) 73.2% Export Item Automobiles and parts:19.9%, Steel: 5.4%, Semiconductor 5.1% Major Export Countries US: 18.5%, China: 18.1%, Korea: 7.9% Import Item Crude oil and petroleum: 20.9%, liquefied natural gas 8.7%, food products 8.0% Major Import Countries China 21.7%, Americas 8.4%, and Australia 6.1% GDP (nominal) Per Capita

€4.31 trillion €34,129

Exchange Rate Unemployment Rate

€1 = ¥132.15 2.8%

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Rank Country Market Size (Billion €) 1 China 380 2 US 273 3 UK 73

4 Japan 65

5 Germany 57 6 France 34 7 South Korea 30 8 Canada 22 9 Russia 16 10 Brazil 15

4th largest global e-commerce market 100 Million Internet users 82.8% Internet Penetration

Source: http://www.statista.com/statistics/377624/leading-countries-retail-e-commerce-sales/ Exchange Rates: $1= €0.89 (as of May 31th, 2017)

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Source: Sources: eMarketer, Japan Ministry of Economy, Trade and Industry, B2C Sale Exchange Rates: $1= €0.89 (as of May 31th, 2017)

EC Ratio in %

62.6 68.0 76.5 93.7 102.9 110.7 121.7 2.84% 3.17% 3.40% 3.85% 4.37% 4.75% 5.43% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 2010 2011 2012 2013 2014 2015 2016 EC Market Size EC Ratio € Billion

CAGR = 11.7%

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Japan vs US E-Commerce Penetration Rates (%) GAP= Potential

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Source: Criteo, Inc. Mobile commerce report http://www.criteo.com/media/5333/criteo-mobilecommercereport-h12016-us.pdf

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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12 "Reference: ：PayPal and Ipsos,”PayPal Cross-Border Consumer Research 2015”"

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➢ Don’t just translate English product descriptions – localize! ➢ Use high quality images / video. ➢ Make sure content is optimized for mobile. ➢ Leverage user generated content. ➢ Weights and dimensions in metric units. ➢ Apparel sizing conventions vary by country.

99% of population speak Japanese almost exclusively Over 60% of orders are from mobile devices

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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1997: Company was founded by Hiroshi Mikitani and 5 members. Rakuten Ichiba: Began with only 13 shops

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Establishment: Feb, 1997 Office : Crimson House (Tokyo, Japan) Employees : 14,134 (as of Dec 31, 2016) Market cap : 2 billion USD (as of Dec 31, 2016) Businesses : Rakuten Ichiba (e-commerce) and approximately 70 other businesses

20th Year Anniversary

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1997 13 Merchants 2004 Sports Business E-commerce platform 1997

POINT

2004 Loyalty Program 2010 Credit Cards 2010 Global Expansion Partnerships 2017

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Save

1% off the purchase

Digital Currency

1RSP = ¥1

Exchange

Exchange to e-money and mileage

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Available at Thousands of Offline Stores Use! Save!

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Cross-use Rate that Rakuten members use more than two services

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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Annual Transaction

€24 Billion in 2016* 44,453 merchants

  • n Rakuten Ichiba

*Gross Merchandise Sales of overall domestic EC

87.5 Million people

Log into Rakuten every 3 months

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B2B2C

(Largest GMS in Japan; Exclusive Merchant Support System)

Products, not merchants

(Commodity items, pure price competition) C2C + B2C (Auction-style, free shops attract small/casual merchants)

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More than 50% of Ecommerce Transaction Take Place in One of The 3 Major Players

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*Mobile GMS ratio = Ichiba Mobile GMS / Total Ichiba GMS (includes feature phones, smartphones, and tablets)

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Brands and retailers can control their own storefront, product pages, and customer experiences within the marketplace

Major Global E-commerce Competitors

VS

Rakuten Product Centric Shop Centric

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Amazon Rakuten

Pricing Branding

Tell your customers what makes your products so special! Commodity items, pure price competition

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Own Branded Web Site

  • Strong Membership & point program
  • Localized to the domestic customers
  • Support from EC Consultant
  • Well known sales campaigns
  • Payment info is already saved

Benefit

Online Shopping Mall

  • Hard to drive traffic at first
  • Customers can’t find the page
  • Difficult to do market research
  • No support from local team
  • Hesitant to register credit card info

Concern

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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Taking out barriers such as language, operation, and payment expanded cross boarder trading from overseas merchants to Japan.

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  • Performance feedback and

improvement consulting

  • Marketing strategies
  • Promotional guidance

Sales Consultant

  • Japan market knowledge
  • Account setup advice
  • Store design suggestions
  • Merchandising guidance

E-Commerce Consultant

Opening a Merchant Account Ongoing Account Management

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One example of Rakuten Sponsored Campaign (no fees to merchants)

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Intro to Japanese EC market Preferences and behavior of Japanese consumers Rakuten Group Introduction Rakuten Ichiba (marketplace) Introduction Overview of Rakuten’s Cross Boarder Program How to Onboard (fees and steps)

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Reference: Japan Customs (http://www.customs.go.jp/)

Around €125

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YES NO

Non-Japanese Company Operated by service partner Shipping: Cross-boarder & domestic Operated by Japanese entity Shipping: Domestic Japanese Legal Entity

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Cross Boarder

Overseas Seller Rakuten Inc. JP Customer ✓ Customer Service ✓ Store Operation ✓ Handle Payment ✓ Shipping ✓ Buyer ✓ Importer ✓ Market place ✓ Service provider

Order Data

Service Partner

Item Data

Private Import

Responsibility

Purchase Data Money Transfer Page Creation Oversea Warehouse

Support from Rakuten

Shipping Information

Customer Support

Payment

Sign up for Rakuten Ichiba

Money Transfer

Products are sent to the customer from oversea warehouse.

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Fees are negotiable with each of the service partners. The fees listed below are all basic fees for your reference only. For further details on their services and exact costs, please feel free to directly contact the service partners. Please ask your Rakuten representative for the service partners’ contact information.

Initial Cost contract 300,000JPY

(less than 30 items)

1,600,000JPY 250,000JPY 5,000USD Page Setup Fee Running Cost Monthly 100,000 JPY 450,000JPY 70,000JPY None 2,000～ 5,000USD Commission 7%～12% 3% 7～15% 15% ～ 35% 10～15% Optional Fees Translation 15JPY / word ask JPY8/word Photoshoot 10,000JPY ask ask Customer support ask 200,000JPY Included in commission

2,235 EUR 11,924 EUR 1,863 EUR 745 EUR 3,353 EUR 521 EUR

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90% of new shops choose either Standard or Beginners Plan

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  • ¥50,000：Monthly Cost （payable every six months)
  • ¥3,000：Credit Card Payment (payable every month)

Fixed Cost：¥53,000

  • 4%～2%：Sales Margin (via mobile +0.5%)
  • 0.1%：Insurance fee
  • 1%：Rakuten Super Point fee
  • 2.65％～3.6％：Payment fee
  • Credit Card
  • Rakuten MultiPay
  • Rakuten Bank
  • 1.3％ Affiliate (If purchased via affiliate)

Monthly Variable Cost：8.7％～

  • r 10％～(Affiliate Included) - (payable every month)
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  • ¥19,500：Monthly Cost （payable once a year)
  • ¥3,000：Credit Card Payment (payable every month)

Fixed Cost：¥22,500

  • 6.5%～3.5%：Sales Margin (via mobile +0.5%)
  • 0.1%：Insurance fee
  • 1%：Rakuten Super Point fee
  • 2.65％～3.6％：Payment fee
  • Credit Card
  • Rakuten MultiPay
  • Rakuten Bank
  • 1.3％ Affiliate (If purchased via affiliate)

Monthly Variable Cost：12.5％～

  • r 9.5％～(Affiliate Included) - (payable every month)
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Standard Plan Beginners Plan Choose Standard if your monthly sales target is > ¥1.3 million

Cost Sales

Check List (mutually exclusive)  # of SKU > 20,000  Total memory for images > 5GB  Monthly Sales Target > ¥1.3 million Items to Consider for Choosing Shop Plan

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Discovery

Discuss your business requirements and sales

  • bjectives with our oversea dedicated team!

Application & Screening

After you send the application Rakuten will approve and send you account info.

Shop Page Creation

Rakuten can also introduce 3rd parties who are experts on creating Japanese webstore.

Open Screening

Rakuten will review if your store is ready to open.

Launch Your Rakuten Store

Start Selling on Rakuten!

About 2 weeks About 3-4 weeks 2-3 Business Days

1 2 3 4 5

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