Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

<ul>
<li>MIC data provides further support that regulatory pressure was successful in driving down industry prices with 40mn users on discount plans that are among the cheapest globally</li>
<li>That has led to ¥230-250bn in service revenue erosion for both FY21 and FY22e but evidence of a solid win for regulators reassures that further action isn't needed</li>
<li>Handset pricing is on the rise as 5G proliferates, which is good news for incumbents that can lock users in through instalment payment plans</li>
</ul>


MIC data provides further support that regulatory pressure was successful in driving down industry prices with 40mn users on discount plans that are among the cheapest globally
That has led to ¥230-250bn in service revenue erosion for both FY21 and FY22e but evidence of a solid win for regulators reassures that further action isn't needed
Handset pricing is on the rise as 5G proliferates, which is good news for incumbents that can lock users in through instalment payment plans


Japan Telecoms - Update from Regulators’ Competition Working Group

<ul>
<li>Japanese Internet companies are testing lows from the 2020 tech selloff whilst Rakuten stands out for reaching levels last seen in 2010</li>
<li>Z Holdings is at a two-year low but has fallen the same distance from its recent high (-53%) </li>
<li>Both face robust competition from Amazon, which has doubled its eCommerce GMV in Japan over the last four years (Rakuten +60%, core Z Holdings +47%)</li>
</ul>


Japanese Internet companies are testing lows from the 2020 tech selloff whilst Rakuten stands out for reaching levels last seen in 2010
Z Holdings is at a two-year low but has fallen the same distance from its recent high (-53%) 
Both face robust competition from Amazon, which has doubled its eCommerce GMV in Japan over the last four years (Rakuten +60%, core Z Holdings +47%)


Japan Internet - Fresh Lows for Many with Rakuten the Lowest Since 2010

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>Amazon Japan continues to lead in online merchandise sales, with GTVs rising faster than Rakuten in 2021 and far ahead of Z Holdings. </li>
<li>Nevertheless both the domestic incumbents are fighting hard to overcome their weaknesses and use their strengths in mobile networks, loyalty points and cashless payments to win share.</li>
<li>Rakuten is also now making it possible to consolidate orders from multiple merchants and plans to open this service to any online merchant – a game changer for online platforms. </li>
</ul>


Amazon Japan continues to lead in online merchandise sales, with GTVs rising faster than Rakuten in 2021 and far ahead of Z Holdings. 
Nevertheless both the domestic incumbents are fighting hard to overcome their weaknesses and use their strengths in mobile networks, loyalty points and cashless payments to win share.
Rakuten is also now making it possible to consolidate orders from multiple merchants and plans to open this service to any online merchant – a game changer for online platforms. 


Japan E-Commerce Wars Intensify Among the Big 3 Online Platforms

<ul>
<li>As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at convenience stores.</li>
<li>The CVS sector was one of the hardest hit by the pandemic but with a network of 56,000 stores, there is an opportunity to use these stores as supply points.</li>
<li>CVS need to engage with delivery services given the growing number of firms creating their own dark store networks which compete with local supermarkets and CVS.</li>
</ul>


As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at convenience stores.
The CVS sector was one of the hardest hit by the pandemic but with a network of 56,000 stores, there is an opportunity to use these stores as supply points.
CVS need to engage with delivery services given the growing number of firms creating their own dark store networks which compete with local supermarkets and CVS.


Quick Commerce and Unmanned Stores Challenge Japanese Convenience Retailing

Equity Bottom-Up

<ul>
<li>Qoo10 has crossed the ¥300 billion GTV threshold, triggering designation as a Specified Digital Platform under Japanese law</li>
<li>This confirms the online mall's graduation from niche Korean beauty store to mainstream e-commerce platform, becoming Ebay's main Japanese operator.</li>
<li>Qoo10 now has 28 million members and a 30%-plus share of Japan’s online beauty market but is also expanding across other categories.</li>
</ul>


Qoo10 has crossed the ¥300 billion GTV threshold, triggering designation as a Specified Digital Platform under Japanese law
This confirms the online mall's graduation from niche Korean beauty store to mainstream e-commerce platform, becoming Ebay's main Japanese operator.
Qoo10 now has 28 million members and a 30%-plus share of Japan’s online beauty market but is also expanding across other categories.


Ebay's Qoo10 Hits ¥300 Billion GTVs in Japan

Japan

Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which including "Rakuten Card" and "Rakuten Bank". Rakuten Group also provides digital content services including electronic book services.

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Rakuten (4755 JP)

Japan Telecoms - Update from Regulators’ Competition Working Group

Further evidence that price reductions have met expectations as regulator working group prepares its final report on the competition. NTT remains...

Kirk Boodry

Japan Internet - Fresh Lows for Many with Rakuten the Lowest Since 2010

Tech sector weakness amplifies concerns on competition for Rakuten and Z Holdings. Both are down 50%+ from recent highs with Rakuten at levels last...

Kirk Boodry

Japan E-Commerce Wars Intensify Among the Big 3 Online Platforms

The intensity of competition between the big 3 in e-commerce (Amazon, Rakuten, Z Holdings) means that all are investing heavily. Amazon leads but...

Michael Causton

Quick Commerce and Unmanned Stores Challenge Japanese Convenience Retailing

As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at...

Michael Causton

Ebay's Qoo10 Hits ¥300 Billion GTVs in Japan

Qoo10 surpasses ¥300 billion in GTV, named Specified Digital Platform in Japan, solidifying its transition from niche to mainstream e-commerce...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Telecoms - Update from Regulators’ Competition Working Group

Further evidence that price reductions have met expectations as regulator working group prepares its final report on the competition. NTT remains...

Kirk Boodry

Japan Internet - Fresh Lows for Many with Rakuten the Lowest Since 2010

Tech sector weakness amplifies concerns on competition for Rakuten and Z Holdings. Both are down 50%+ from recent highs with Rakuten at levels last...

Kirk Boodry

Japan E-Commerce Wars Intensify Among the Big 3 Online Platforms

The intensity of competition between the big 3 in e-commerce (Amazon, Rakuten, Z Holdings) means that all are investing heavily. Amazon leads but...

Michael Causton

Quick Commerce and Unmanned Stores Challenge Japanese Convenience Retailing

As we have been tracking in recent months, the market for rapid home delivery of FMCG and food is hotting up, with much of the action at...

Michael Causton

Ebay's Qoo10 Hits ¥300 Billion GTVs in Japan

​Qoo10 surpasses ¥300 billion in GTV, named Specified Digital Platform in Japan, solidifying its transition from niche to mainstream e-commerce...

Michael Causton

Qoo10 surpasses ¥300 billion in GTV, named Specified Digital Platform in Japan, solidifying its transition from niche to mainstream e-commerce...