Tsutaya%20.vs.%20Rakuten

1
Tsutaya .vs. Rakuten

• M-Commerce Leveraging Retail Sales through the
  Mobile PlatformMay Su Aung msaung_at_iuj.ac.jp
• Bryan Copeland bcpld_at_iuj.ac.jp

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TSUTAYA Profile
Corporate Headquarters Tokyo
Established (TOL - 1999)
Employees/TOL 100
Subscribers/TOL 18.55 million
Wireless technology i-Mode Movie Mail, TOL (mobile) LinkShare
Parent company Culture Convenience Club Ltd (CCC includes Tsutaya and TOL)

• Net Sales 3,043 million Ordinary Income 579
  million Net Income 436 million TOL
  Tsutaya Online Estimated, year ended
  March-to-March, 2006 fiscal year based on 1
  132.06

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Approach to Mobility

• How does Tsutaya do it?
• In 1994, CCC built a sizeable customer database
• Maintain a dynamic, always-on picture of
  individual entertainment tastes and preferences
  and personalize product offerings by combining
  data with mobility via i-Mode service.
• How does it all work for the consumer?
• TOL, Tsutayas wireless i-Mode site, email
  consumer whenever the next release of the brand
  which consumer bought last time is available (or
  notify about clearance sales)

Case Study -- Tsutaya, a Tokyo Video Store, Goes
Mobile http//www.cioinsight.com/c/a/Past-News/C
ase-Study-Tsutaya-a-Tokyo-Video-Store-Goes-Mobile/
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Business Strategy

• Store Development Strategy Bringing the
  3000-Store Vision to Reality
• The market radius for its retail locations a 10
  minute customer destination
• They envision the potential to develop and open
  3,000 stores in Japan by assuming that one
  TSUTAYA location exists for every 40,000
  citizens.

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Enhanced IT to Support Store Operations

• The CCC has developed a number of information
  technologies (IT)
• To support operations, including the (AMS)
• To analyze daily and hourly product movement at
  each store
• To execute rental product orders at franchise
  headquarters on behalf of franchisees.
• The CCC connected all stores to franchise
  headquarters with a knowledge-sharing system
  called TSUTAYA NAVI, an IT platform for creating
  sharing insights to support the resolution of
  store operating concerns.

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Clicks Mortar (C M)

• To generate synergies between physical TSUTAYA
  in-store services and the Internet entertainment
  portal (TOL).
• Provide a Marketing function TSUTAYA online,
  retail customers and TSUTAYA stores are directly
  connected via Internet.
• This connection, both pinpointed and immediate,
  provides a marketing function that other
  companies do not possess.

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Monthly Sales Membership
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Member Growth(Customer Acquisition Strategy)

• 60 of 19-year-olds in Japan are "active Tsutaya
  members

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Market Share (FY2005)

• Share in parentheses Unit billion yen

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RAKUTEN Profile
Corporate Headquarters Roppongi Hills, Tokyo
Year founded 1997 (RA - 2003)
Employees/RA 200
Subscribers/RA 17.3 Million
Wireless technology i-Mode (DoCoMo partnership)EZWeb, Yahoo!Rakuten Auctions, Portal shops
Parent company Independent
Net Sales 33,636 million Ordinary Income
6,937 million Net Income 3,731 million
ALL Raktuen Divisions ALL Rakuten
Divisions Estimated, year ended March-to-March,
2006 fiscal year based on 1 132.06
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Rakuten Mobile Strategy

• Eyeing mobile auction market
• Partnership with NTT DoCoMo on Rakuoku
• Spin-off of Rakuten Auctions on the Mobile
• DoCoMo has a 40 stake (4.2 billion ?)

Case Analysis Rakuten Ichiba
http//www.slideshare.net/icestorm/case-analysis-r
akuten-ichiba-presentation
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Rakuten Mobile Storefront
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Rakuten Financial Highlights

• Travel Bookings via Mobile Phone

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Rakuten Business Model
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Rakuten Operating Margin
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Rakuten Mobile Future

• Pushing Rakuten Auctions on the Mobile
• Tie-up talks with Tokyo Broadcasting Systems,
  Inc. (TBS) Internet TV negotiations
• M-commerce, focused on
• Recommendation technology
• Captivating Contents
• Product-placements
• Ad Relevancy
• Increased Auction traffic/sales