Business Model

Introducing the 'Rakuten Ecosystem'
- a globally pioneering business model

The Rakuten Ecosystem, which is formed by various services offered by Rakuten Group, is a one-of-a-kind member-based business model that connects Rakuten services through the Rakuten Super Points reward system.

Rakuten members receive a Rakuten ID upon registration that is common to various Rakuten services, which all utilize Rakuten Super Points to reward loyal users and encourage the patronage of other Rakuten Group services. Furthermore, Rakuten's convenient settlement services, such as Rakuten Card credit card and e-money service Rakuten Edy create a perfect mix of online and offline services.

The Rakuten Ecosystem and our membership database form the foundation of our business, but it also offers our members fun and convenient online shopping and service experiences. The synergies generated by the Rakuten Ecosystem multiply day-by-day and will continue to expand Rakuten Group Gross Transaction Volume and life-time value per member into the future.

Business Model

Details about Rakuten's Companies are as follows

Business Model

1. Rakuten Ichiba Business Model - Globally Unique

Rakuten Ichiba, Japan's largest Internet shopping mall, is a B2B2C (Business to Business to Consumer) business model where merchants located in different regions can come together to from an online virtual shopping mall. The main profit sources are fixed fees from merchants and fees based on each transaction and other services. Rakuten Ichiba offers a proprietary system called RMS (Rakuten Merchant Server) which is a development platform for running shops on the Internet through Rakuten Ichiba, and e-commerce consultants (ECCs) who are dedicated staff offering consulting services with a mission to help merchants overcome challenges and grow their sales.

Other e-commerce sites are more product centric, and emphasize efficiency and passive interaction with consumers, but at Rakuten Ichiba the merchants themselves design their own sites and can show the originality of their stores, and can directly engage users through e-mail and SNS (Social Networking Services), resulting in a more pleasing shopping experience. This is an attractive feature to bring in users, compared with other e-commerce sites.

1. Rakuten Ichiba Business Model - Globally Unique

Details about Rakuten Ichiba are as follows

2. High Value Added 'Rakuten Super Points'

Rakuten Super Points is the most popular loyalty points program in Japan. Points can be earned through shopping and various other services in the Rakuten Group's ecosystem. For shopping, consumers are granted 1 point per JPY 100 of purchases, and we often offer 2x or 3x points campaigns or more. 1 point is equivalent to JPY 1 for the next purchase, or it can be used for travel and commissions for financial services.

Details about Points Program are as follows

Point of the Year 2014

Rank Company Score
1 Rakuten 147
1 JAL 147
3 ANA 126
4 T-POINT 92
5 JCB Card 87

Adapted from 'Point Tanken Club' point service portal site, 'Point of the Year 2014' survey results.

3. Fusion of the Internet and Offline: Rakuten Card and Rakuten Edy

Rakuten Card credit card and Rakuten Edy e-money can also be used offline at various locations, and Rakuten points can be earned. Since Rakuten Super Points can be used on the Internet for shopping, travel reservations, and other services, this fusion of online and offline produces a highly convenient settlement tool. Rakuten's services are not just spreading through the Internet, but offline too.

3. Fusion of the Internet and Real World. Rakuten Card and Rakuten Edy

Details about Rakuten Points Merchant Service are as follows(Japanese only)

4. A Globally Expanding Ecosystem with Rakuten Marketplace Model

The Rakuten Group has been accelerating its advancement overseas, with its various businesses and services such as e-commerce and eBooks & eReading.

4. Global Development: Aiming to become the world's number 1 Internet services company

With our vision for Rakuten as a Global Innovation Company, we will continue to build on the learnings we have gained through our unique business model in Japan and successes in countries and regions around the world, strengthening a global management structure to drive synergies throughout the organization and expanding the Rakuten Ecosystem globally.

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