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Future Insight: Mobile Commerce in Japan

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Content Preview
  1. Future Insight: Mobile Commerce in Japan Mobile Copenhagen 2009 June 16, 2009 Christopher Billich
  2. What I will talk about in the next 30 minutes
  3. Why the Mobile Web is huge in Japan Some interesting Statistics Mobile Shopping via Browser Mobile Shopping via NFC
  4. What I won’t talk about
  5. daddytypes.com
  6. I work for a company called
  7. based
  8. somewhere around here nasa.gov
  9. The Shameless Advertising Part which works for companies like
  10. The Shameless Advertising Part
  11. The Shameless Advertising Part Who all want to know One Thing:
  12. The Shameless Advertising Part “How can we apply what already works in Japan in our mobile market?”
  13. “Wheel” [(h)w ?l] circular object rotating on an axle need not reinvent
  14. Why look for answers in Japan?
  15. “It’s when a technology becomes normal, then ubiquitous, and finally so pervasive it’s invisible, that the really profound changes happen [...].”
  16. 108 million mobile subscribers
  17. 9 in 10 use the Mobile Web
  18. ...and they use it lots Mobile Web Usage Frequency, 16-24 year-old users “At least daily”: 90% “More than an hour daily”: 61% 24% 22% 15% 16% 13% 4% 3% >3 hrs 2-3 hrs 1-2 hrs 30 min-1 hr Daily, <30 min Less than daily I don’t Source: In?nita, April 2008
  19. Why that is istockphoto.com
  20. Operators: benevolent dictators
  21. High-Spec Handsets
  22. No device fragmentation
  23. Unwalled Gardens
  24. Revenue share favoring content providers istockphoto.com
  25. Content Provider Revenue Share 30-50% Carrier X 70% Android 70% iPhone 70% Nokia 90%
  26. 0 ,- - ¥ Messaging is (almost) free istockphoto.com
  27. ...yet extremely rich: 10,000 characters Mobile PC Multiple Links Emoticons Attachments
  28. Almost everyoneon 3G 4 in 5 of them on 3G
  29. 40% of mobile data users on data ?at rate plans istockphoto.com
  30. The Low Entry Barrier Gym Membership Pricing Model
  31. The Secret Sauce Key differences to other markets Same cost for Flat rate data User Experience Level >90% 3G on- and off- with “free” penetration deck access messaging Operators Operators Operator-Handset Maker control All handsets pay handset Relationship Level handset SIM-locked makers makers Operator Operator Business Model Email, not revenue (Open) Level SMS share favors standards CPs Regulatory/Government Competition on network technologies Level No spectrum license costs
  32. Market Volume 3.06 Mobile Commerce and Auctions (US$ billion) 1.79 Auctions Transactions Services Goods 6.23 1.85 1.55 1.34 1.30 1.23 3.39 1.11 9.17 1.12 2.71 0.89 1.93 1.65 4.44 2.58 3.29 1.54 2005 2006 2007 2008 2011 Source: Mobile Content Forum (2005-2007), In?nita (2008 est.; 2011 est.)
  33. Mobile Commerce User Behavior Usage and Usage Intention Active Usage Very interested Interested 4% Undecided Not really interested De?nitely not interested 29% Don’t know 34% 1% 4% 17% 11% Source: impress R&D, 2008 (Mobile Internet Users, N=3,178)
  34. Mobile Commerce User Behavior Usage by Demographic Male Users Female Users No Yes 62 64 64 64 63 71 71 69 74 79 82 91 92 38 36 36 36 37 29 30 31 26 21 18 9 8 Total 10s 20ies 30ies 40ies 50ies 60ies 10s 20ies 30ies 40ies 50ies 60ies Source: impress R&D, 2008 (Mobile Internet Users, N=3,178), in %
  35. Mobile Commerce User Behavior Preference Criteria Trustworthiness 63.1 Ease of purchase 60.3 Loading speed 59.9 Convenience 54.8 Ease of reaching products page 49.4 Ease of comparing products 41.0 Degree of information detail 33.3 Quality of product search 27.9 Design 22.8 Ease of registration 22.4 Source: IMJ Mobile, 2008 (Active Mobile Shopping Users, N=312), in%, multiple answers
  36. Mobile Commerce User Behavior Payment Preferences Cash on Delivery 65.0 Credit Card 49.4 Pay at Convenience Store 36.1 Bank Transfer 22.6 Postal Transfer 20.5 via Mobile Phone Bill 6.3 Source: impress R&D, 2006 (Active Mobile Shopping Users, N=795), in%, multiple answers
  37. Mobile Commerce User Behavior Product Categories Fashion 39.5 Books, Magazines 35.7 CD, DVD 30.3 Cosmetics 22.4 Foods 20.6 Travel, Accomodation 14.8 Furniture, Design Goods 13.7 Health Goods 13.4 PC-related 12.4 Games 11.4 Source: impress R&D, 2008 (Active Mobile Shopping Users, N=927) in%, multiple answers
  38. Mobile Commerce User Behavior Spend per Year (in US$) up to 29 30-49 50-99 5% 1% 12% 100-299 9% 300-499 500-999 1,000-2,999 3,000-4,999 11% 15% 5,000+ 24% 20% Source: impress R&D, 2008 (Active Mobile Shopping Users, N=927)
  39. Mobile Commerce User Behavior Usage Frequency Not at all Once a year 2-4 times/yr. 10% 5-9 times/yr. 2% 16% 10-19 times/yr. More than 20 times 8% Don’t know 11% 17% 37% Source: impress R&D, 2008 (Active Mobile Users, N=927)
  40. Mobile Commerce User Behavior Average Spend per Year by Reference Group (in US$) 2007 2008 411 205 89 103 77 81 Mobile Users Mobile Data Users Mobile Shoppers Sources: impress R&D, 2008/2007; Mobile Content Forum 2007; In?nita 2008 (est.); includes Auctions
  41. Product Recognition Camera! ER Search
  42. Product Recognition Camera! ER Search
  43. Operator/Retailer Collaboration au Shopping
  44. Shopping for Labor Otetsudai Networks
  45. Luxury Goods meet Manga on Mobile Louie Vuitton
  46. Love Soap and Runway Shows Girlswalker/Tokyo Girls Collection
  47. Mobile TV with Built-in Shopping 1seg
  48. Mobile NFC Enabled: 73% Usage: 18% Source: impress R&D, September 2008 Base: All Respondents, N= 3,178 (2008)
  49. Payment (Prepaid & Credit)
  50. Coupons/CRM
  51. Flight Check-in
  52. : “Lifestyle Infrastructure”
  53. a.k.a.
  54. Glued to the screen 24/7.
  55. The second-best screen to be glued to:
  56. Check out www.in?nita.tv (it’s completely free)
  57. Thank you! billich@in?nita.co.jp

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