metaflo mobilejapan

Copyright © 2007, MetaFlo Marketing KK.

Mobile Japan: How the Japanese Sell and Buy through their mobile phones

Presented by: Anthony Torres (MetaFlo Marketing KK, JAPAN)

Copyright © 2007, MetaFlo Marketing KK.2

1. Introducing MetaFlo Marketing

• Based in Nagoya, Japan

• Established in 2005

• Affiliate Marketing Specialist

• Lead generation

• Management/Consulting

• Own media properties

• Bilingual Support


2. The Japanese mobile LandscapeAlmost everyone has a web enabled phone.

98 MM Total subscribers in Japan (51.3 MM support 3G) 86 MM phones in Japan are web enabled (88% of market) Versus 31.4 MM mobile Internet users in U.S.

And they are using it in diverse ways..

Heavy mobile email usage. Texting (SMS) is not as popular as U.S./Europe Java applet downloads for games, music file downloads Web site traffic; shopping, news, auctions, dating, ticketing, banking

Why is Japan so far ahead?

Early adoption. DoCoMo started Imode in 1999, currently 56% market share Standards – Imode started with cHTML not WAP. Easy to make mobile sites in cHTML. Th

e other two national carriers, followed with support of cHTML. Services – Initial concept was “Personal Concierge”, free services and content. Population Density – Payback was faster for carriers due to smaller outlay of network costs

due to dense population.


3. Japanese mobile standards

• Mobile phone transmission standards have gone from 1G, 2G, 2.5G and are now in the 3G era.

• 1G = analog voice-only service, 2G = digital digital voice and data ,2.5G = faster transmission over 2G networks.

• 1G started in the 1980’s, 2G came on strongly in the 1990’s and in 2001, DoCoMo started the first 3G network.

• In Japan, over half of the mobile phones users are using 3G.

• The most significant feature of 3G mobile technology is that it supports greater numbers of voice and data customers — especially in urban areas — and higher data rates at lower incremental cost than 2G.

• 3G allows for transmission of 384 kbit/s for mobile systems and 2 Mb/s for stationary systems

• In the future – 3.9G Coming soon!

• NTT DoCoMo is conducting R&D on 4G, with the aim of introducing it from 2010 onward. Designed performance ratings are 1 Gbps in motion at low speed and 100 Mbps at high speed.


4. Japanese mobile carriers


5. Mobile surpasses PC use in Japan

PC Internet Users Mobile Internet Users

User only of cellular phone, PHS, and portable terminal (Data: IAC Ministry)

4,980

5,722

6,1646,416

6,601

2,5042,794

4,484

5,825

6,923

657

1,061

1,453 1,511

1,921

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2001 2002 2003 2004 2005

(10

thou

san

d)

In 2005, the number of

mobile internet users exceeded PC

users.


6. Top mobile sites in Japan


7. Mobile Site: MobaGame TownTop Page My Page

Games

Search tools

Profile page Friends

Diary

Clothes

Mini mail

Male/Female Male Female


8. Typical online shop: ShopJapan mobile Landing page Details page Customer data

inputSend user confirmation phone

Receive email, click link

Confirm order details

Thank you page

Cross Sell

Email page

to friend


9. Mobile expenditures

Mobile Market

Breakdown

Mobile eCommerce Breakdown

Mobile eCommerce- purchases,

subscriptions, services

Contents- downloads to phone,

ring tones, screen savers

Usage of next generation

electronic cash enabled phones

(Felica) on the rise

34.4 54.196.9

154.280.993

118.3

164.6

423.8

44.1

88.6

050

100150200250300350400450

2002 2003 2004 2005

(billio

n ye

n)

Mono Service Transaction

179.3 213.3 260.3 315.0119.3

170.9259.3

407.4

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

2002 2003 2004 2005

(billio

n ye

n)

Mobile contents market Mobile commerce market

Merchandise Services Transactions


10. What are the Japanese buying?

50.4

37.7

36.6

29.3

24.7

23.3

19.2

15.6

13.7

13.0

12.7

5.5

5.2

4.5

3.3

0.5

51.9

33.0

33.2

28.3

21.2

22.6

24.7

16.4

13.7

11.1

12.4

5.4

5.5

5.2

3.2

0.6

0.0 10.0 20.0 30.0 40.0 50.0 60.0

clothes, accessories, fashion

books, magazines

CD, video, DVD

cosmetics, hair care

home furnishings

seasonal gifts

medical supply, health food

event tickets

hotels, lodging

home appliances

airline and railway tickets

PC hardware

gifts and flowers

PC software

others

uncertainty

2006/ 10 N=795 2005/ 9 N=651

1. Clothing/Fashion

2. Books

3. CD/DVD

PC Software ranks 14th

Most Popular Mobile Purchases


11. How Japanese use mobile: QR Code

QR (Quick Response) a matrix code (or two-dimensional bar code) created by Japanese corporation Denso-Wave in 1994


12. Affiliate Point media: RealAffiliate

Affiliate program that directs mobile user from internet to store

1) User receives points for making reservations to visit the store via the affiliated point site

2) Upon completion of purchase at the store, the user is awarded additional points via the ICReader using the Felica enabled handset

ＰＣ　 point site

Mobile point site

ＶＣAffiliate

QR Code or Email Access

User receives points for making reservation

Reservation and purchase are confirmed by affiliatePoints are awarded to user via the point site

Banner Access

User visits store

ＶＣAffiliate

After purchase, user zaps IC Reader w/

handset

WebTo function confirms sale and points

User receives additional points

based on purchase

ValueCommerce Collaborative Project with NTTDoCoMo


13. TV drives mobile traffic

• Infomercial shows icons for PC and Mobile access

• URL is the same, device is auto detected and re-directed


14. Mobile retail trends


15. Mobile payment methods: Wallet Phones

• Edy, Felica, and SUICA are smartcards that have been integrated into mobile phones in Japan

• Suica is a rechargeable contactless smartcard used as a fare card on train lines in Japan.It is also increasingly being accepted as a form of electronic money for purchases at stores and kiosks within train stations

• FeliCa is a contactless RFID smartcard system by Sony, primarily used in electronic money cards

• Edy provided by bitWallet, Inc. in Japan is a prepaid rechargeable contactless smart card. It uses Sony's FeliCa technology.

A customer pays using her cell phone.

Charging up the phone Pay your train/subway fare.


16. Mobile advertising trends

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

2005 2006 2007 2008 2009 2010

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

China eCommerce Korea eCommerce Japan eCommerce

China Online ad revenues Korea Online ad revenues Japan Online ad revenues

eCo

mm

erce

U

S$

Mill

ion

sO

nlin

e Ad

s U

S$ M

illion

s


17. Mobile affiliate marketing

• Over 48 networks servicing mobile space

• 3 new networks per month

• Top Networks

•Pocket Affiliate

•Smart-C

•Moba8

•ValueCommerce


18. Mobile matters to PC software

• 86 Million Mobile Internet users

• 76 Million PC Internet Users

88% of Mobile Internet users

have a PC connected to the Internet!


19. PC software sales on Mobile

• QR codes + point media partners drive limited trail downloads

• Customer mobile accessible accounts (upgrade info, newsletters & incentives via mobile)

• Create content rich mobile sites to drive software product sales

Use mobile channel to drive PC downloads


20. Mobile Future

• 4G 1 Gbps

• Application downloads directly to mobile phones

• Continued drop in packet charges will lead to more time spend on mobile devices


Q&A Session

metaflo mobilejapan

Business

mobile japan

mobile user

mobile systems

mobile sites

g mobile technology

japanese mobile carriers

mobile phones users

japanese use mobile