“New Retail” Trend

in Japanese Commerce Market

Mitch Takahashi

Rakuten, Inc.

Introduction

No.1 Commerce platform in Japan

Leading Fintech company in Japan

Mitch Takahashi

Vice General Manager

Cross Border Trading Business

Rakuten, Inc.

Joined Rakuten in 2014, as a Principal at CEO

Office, working closely with the founder for several

strategic initiatives,

Assigned to a business manager of Cross Border

Business in 2015, which is a rapidly-growing field in

E-Commerce business.

Has been leading the team since then, which is

based in Tokyo, Shanghai, Hong Kong, and Taipei

to drive the growth of cross-border business.

15,000 staffs in 29 countries and regions

$100 billion global gross transaction value

1.2 billion membership across world

Three key words describing characteristic trend in Japan

Engaged

Unified

Borderless

How to create and enhance eco-system around

membership program to engage customer more in

platform and services

How to realize optimized customer experience by

seamlessly unifying variety of online and offline touch

point and communication channel

How to make it possible for global consumers to be

accessible to unique products from brands all over

the world

“Engaged” – creating eco-system around platform

“Engaged”

Create and enhance eco-system around membership program

to engage customer more in platform and services

► Variety of services provided on a platform

► Eco-system with membership formed around platform

► Enabled by OS, social media, messaging, or reward program

“Engaged” – Rakuten Eco-system leveraging Rakuten Super Point

Rakuten Super Points (RSP) - Innovative loyalty program• Innovative Point-back system for Rakuten global ecosystem

• The more use Rakuten services, the more RSP earned

• Over 1 trillion RSP (=JPY) has been issued already

Can be used as currency outside of Rakuten services

Strong weapon to engage Rakuten members

Eco-system is expanding outside of Japan

“Engaged” – increasing number of touch points with consumers

Sending points to friends

Investment by points

Earn Points Use Points for Payment More Usage of Points

RSP earned every time

using Rakuten service

…and over 70 services

RSP can be used as currency

both online and offline payment

Rakuten Pay over 1.2 million stores

“Engaged” – increasing number of touch points with consumers

Over 100 million membership in Japan

No.1 used Credit Card over 7.5 trillion JPY

over 1.2 million offline payment point

70.5% of service cross-use ratio

“Engaged” – increasing number of touch points with consumers

Through strong point-based program

provide by Rakuten,

Rakuten members show more loyalty

and engagement

Increasing # of cross-use of Rakuten

services

Increased LTV of a member

E-commerce

Life & Leisure

Sports &

Culture

Card &

Payment

Communications

Financial

services

“Unified” – individualized customer experience enabled by big data

“Unified”

How to realize optimized customer experience by seamlessly unifying

variety of online and offline touch point and communication channel

► Consumer always connected via multiple smart devices

► Service touch points everywhere in consumers’ life

► Optimized and individualized communication with power of data

Unified Branding Consumer Marketing

ONLINE purchase data

OFFLINE purchase data

ID

“Rakuten Marketing Platform” provides one-stop solution ranging from pre-analysis to execution and

refinement of marketing initiatives, leveraging all the online and offline data with single ID of Rakuten

Online AD solution

Omni Commerce Solution

Brand Gateway

Influencer Marketing

Unified Branding Consumer Marketing

Real price point combined with

Rakuten ID data available

for brand and execution

Real time tracking of customer

picking up mobile orders

Unified experience in shopping, communication, and delivery

In the shopping experience of consumer, we’re building seamless and visible supply chain all the

way from warehouse and customers destination.

Advanced Fulfillment

SolutionDelivery Evolvement

Integrated

Notification

Delivery & Pick-up

Options

“Borderless” – crossing border for universal shopping experience

“Borderless”

How to make it possible for global consumers to be accessible

to unique products from brands all over the world

► Advancing infrastructure on payment and logistics

► Connected commerce platforms with collaborative relationship

► Localized brand marketing capability for brands

Cross Border E-Commerce in Rakuten – From Japan To Global Consumer

2012 2018

x8 growth

in 6 years

Global Marketplaces

Cross Border Flagship Store

Global Logistics Service

Rapidly growing, driven by stronger demand for unique Japanese products

Expanding Rakuten Eco-system toward Asian and Global Markets

Rakuten building a strong

Eco-system in Taiwan

Shopping JAPANESE products is

One of the core value Rakuten provides