Magazines Archives - 2009 November

Rakuten continues overseas expansion
Story 14 - Ecommerce

Japanese online shopping group, Rakuten Inc, revealed in August in an interview with local media that it plans to expand in overseas markets, said its president and CEO, Hiroshi Mikitani.

“Given that Internet outlets generally offer lower prices than their brickand- mortar counterparts, they are less vulnerable to economic volatility. The number of vendors and the total value of sales on our websites have been rising, indicating that consumer behaviour is changing,” Mikitani said, adding that
increased online sales, which “tend to lead directly to improved profit margins” is an added boost for online businesses.

Rakuten’s operations in Taiwan, which started in 2008 as the first foreign operations for the online mall, is also growing at an increasing pace, he added.

“The market is only about one-fourth the size of Japan’s, and there is a lot of room for expansion.
In the long run, we want to raise the ratio of overseas sales to 50% or more of our total online

The group is also looking to expand in Asia, “then into the US”, said Mikitani.

“We plan to expand into 27 foreign markets. The development of a multiplelanguage system for Internet shopping was completed in September, and that enabled us to go into a new market in only a few months after deciding to do so, making us fully prepared for our global push. One idea is to make items
offered by US retailers through our local service also available to shoppers in Japan. If we connect the online malls of different countries, our customers will be able to enjoy shopping across borders,”

Mikitani maintained. The retail chief added that China and India also ranks high on the expansion list, and the group is currently conducting market research.

In the first six months till June this year, the company said its consolidated operating income soared by 28% from the same period last year, to ¥23.4 billion (US$256 million). The group’s net sales for its e-commerce sector grew 21% compared with last year and Mikitani projected that the group will achieve a
pre-tax profit of ¥100 billion in 2013.

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2009 Nov Stories:

Is the global economic recovery already on ... ? - Part 2: Probably yes; and it won’t be business
as usual for Asian retailers ...

14th APRCE drives home retailers’ role in the economy

Asia-Pacific retailers celebrate resilience at Retail Asia’s award and gala dinner

Retail Asia Roundtable – greeting a new generation of consumers

Ambiente 2010 undergoes complete restructure

Hong Kong International Stationery Fair expands

Singapore to host inaugural expo on traditional medicine

Philippine retail industry’s new credo: ‘Be kind to the environment’

GCH Retail targets a ‘jolly green’ Giant

Snapshots of ‘green’malls in Singapore

Asian shoppers focus on value buys, says study

MRCB Land to transform KL Sentral Park into a smart urban centre

Study: Retailers need to lead the way in food safety

Rakuten continues overseas expansion

Goldsoft joins MRCA, gears up for local and overseas expansion

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