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Internet Retailing in Japan

Japan internet retailing market: 9% CAGR growth forecast between 2012-17

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2014-02-18 11:01:01 - Internet Retailing in Japan - a new market research report on

Rakuten Inc leads the Japan internet retailing market with a 26% value share in 2012. Rakuten Inc has established its status in the e-commerce industry and its sales posted a CAGR of 16% over the review period. In 2012, Rakuten Inc launched an e-book, Kobo, to gain access to the digital content market. Additionally, Rakuten Inc invested in social networking site venture, Pinterest, to promote Rakuten sales with a combination of SNS viral marketing. In July 2012, Rakuten Inc also started to sell groceries and deliver to consumers´ homes. Delivery staff wear uniforms bearing the Rakuten logo as the company aimed to increase awareness among consumers.

Value sales of internet retailing grew by 11% in 2012. With high penetration of the



internet in Japan, the industry experienced continuous double-digit growth over the past 10 years. According to the Ministry of Internal Affairs and Communications, 88.9% of mobile phone users in their 20s´ reported internet usage and it is common to surf online with mobile phones especially among young consumers. Additionally, the Japan Electronics and Information Technology Industries Association reported that growth in sales of smartphones exceeded 50% from January to March in 2012 and this was the first time in the history of the mobile phone that such a quarterly result had been recorded. With technological improvements in portable media, including smartphones and tablets, the spread of internet retailing among consumers accelerated.

Value sales of internet retailing are expected to post a CAGR of 9% over the forecast period. According to the Ministry of Economy, Trade and Industry, 80% of online shopping is conducted via computers while 20% is through mobile devices. With the continued popularity of smartphones and tablet devices, the ratio of online shopping through mobile devices is anticipated to increase. Additionally, 44% of transactions are paid by credit card, followed by other payment methods such as bank cheque. As Japan has various forms of electronic money in use at store-based outlets, new forms of online payment are expected to emerge over the forecast period.

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