Gearing ratio of 1.8x is manageable and lower than its closest peers' average of 4.3x. That is to say, anyone with a smartphone can access all of these services. Sign up today for an additional $10 bonus. We believe the fundamental value of the internet is fairness. The company has established a strong brand as a result of its success. The specific associations include Japan Ryokan Association, Japan Hotel Association, and Japan City Hotel Association. We strive for the promotion of a society free from discrimination, harassment, child labor, and forced labor. Moreover, it offers a phone line for the reporting of such goods. BustedTees. Making the IT system a built-in part of operations brings the following competitive advantages: (1) speed (with regard to systems development and improvements); (2) cost; and (3) flexibility. *7 Comparison of number of new account openings from 2018 to 2020 for major online brokers in Japan. This book. The company reduces risk through its strong vetting of potential merchants. Mikitani proved his doubters wrong when the company became a huge success, generating revenues of 25 million by the end of its first year. (This excludes the mortgage loan business, as the current industry practice is to require hard-copy documentation.). Top 100 Digital . For example, it becomes possible to design services that precisely meet customer needs and to create new high-quality services in a very short time. Among the total number of MNO subscribers, the ratio of new subscribers switching over from other mobile carriers (MNP) is increasing. To help each of us succeed, Rakuten Group has established the Five Principles for Success. *8 Excludes mortgage loan group credit life insurance. As an example of a tie-up with the service of a non-financial Group member, there is Viber's money transfer system, which uses the Group's Viber messaging app. His goal was motivated by an encounter with mail-order shopping he ordered Japanese noodles from a local retailer and his purchase arrived by mail. The same year the firm went public and got listed on what is now known as the JASDAQ. This gives employees the chance to speak directly with customers. This is one of Rakuten Bank's strengths that other banks cannot imitate. . The impact of the banking industry is clearly visible. The FinTech segment recorded 153,153 million yen in revenue, an increase of +8.1% YoY, while segment profit stood at 22,524 million yen, a +6.0% YoY increase. Mailchimp promises to solve one of the biggest pain points of business owners: to send better emails. Usage of this electronic settlement service accrues Rakuten points. Rakuten is a tech company that offers electronic commerce solutions in Japan and internationally The company operates in three Segments such as internet services Financial services and others. Excludes some tax-exempt businesses, includes consumption tax. Japan Net Bank was created jointly by Sakura Bank, which is currently Sumitomo Mitsui Banking Corporation (SMBC), Fujitsu Ltd., and Nippon Life Insurance Company (Nihon Seimei). Also, over 20 million members have a Rakuten credit card, and they use their Rakuten credit card monthly. These moves enabled it to become a dominant player in the B2C and B2B space. By leveraging the Rakuten Ecosystem, centered on membership, data and its points loyalty program, Rakuten Group is promoting cross-use between services and increasing customer retention, as well as minimizing risks through the diversification of businesses and maximizing the added value of synergy generated between businesses. The bank then formed a capital and business tie-up with Rakuten, Inc. in August 2008. It provides eCommerce consultants who give vendors guidance on how to increase sales and solve everyday challenges. A value proposition is a declarative statement that explains why a customer should purchase your product or service. In Q4 FY2021, the number of payroll accounts increased +55.4% YoY, the number of transactions increased +17.4% YoY, and more customers are using Rakuten Bank as their main bank account for daily life.Rakuten Securities surpassed seven million general securities customer accounts in December 2021, an increase of two million accounts over the last year, when the number of accounts surpassed five million. Finally, the bank implements this campaign. . In July 2021, Rakuten Bank became the first online bank in Japan to reach 11 million accounts. Rakuten Bank is an online bank. The company has found the online marketplace business model to be the most profitable for them. The bank's sales staff inquire about the issues facing management, and then provide a tailor-made service that utilizes IT technology, which is Rakuten Bank's strength. Topics of discussion include: (1) the customer needs that would be met by making improvements to existing services or developing new services; (2) the development processes and the costs involved in developing IT systems for new services and the upgrading of existing services; (3) the challenges associated with such improvements and development projects; and (4) marketing activities that would enable the bank to recoup investments made for the development of new services and the upgrading of existing services. Why Rakuten is an ICG Certified Case Study 2 Context Rakuten business model Global market (peers and substitutes) 3 Detailed Description Rakuten value proposition 3 Relevant Media Media coverage and relevant quotes Case studies and detailed interviews 4 Marketing Collateral and Brochure ware Embracing new thinking, Segment income was 107.5 billion yen, 2.7 times higher than FY2020.Domestic e-commerce gross merchandise sales (GMS)*2 for FY2021 exceeded five trillion yen, up +10.4% YoY. *2 Domestic e-commerce GMS = Combined transaction amount for Rakuten Ichiba, Rakuten Travel (GTV on checkout basis), Rakuten Books, Rakuten Books network, Rakuten Kobo (domestic), golf business, Rakuten Fashion, Rakuten Dream businesses, Rakuten Beauty, Rakuten Delivery, Rakuten 24 and other first-party daily necessities shops, auto business, Rakuma, Rakuten Rebates, Rakuten Seiyu Netsuper, cross border trading, etc. . Revenue for the Mobile segment rose to 51,462 million yen, an increase of +17.0% YoY, but segment losses reached 99,686 million yen, compared to 53,825 million yen in the same period in the previous year. There are only two kinds of people in the world: Rakuten Shugi (Rakuten Basic Principles). With enough determination and effortby being a Get Things Done personyou can achieve anything. Rakuten Bank's cost advantage is what makes possible its competitive interest rates, fees and commissions that are advantageous to the customer, and its robust rewards program. Rakuten Bank's sales staff will visit the corporate customer's office or factory, and speak directly with the executives. Examples include Japan Net Bank, which has obtained a standard banking license. Domestic e-commerce GMS continued to see major growth in Q2 FY2021, achieving double-digit growth of +12.2% YoY even when compared to the sharp increase in GMS in the same period of last year that was driven by stay-at-home consumption demand amid the COVID-19 pandemic. Rakutens customer relationship with merchants is primarily of a personal assistance nature; the company offers various forms of personalized support. Step 2 - Segmentation, Targeting & Positioning Decisions. Rakuten Travel, which experienced a decline in reservations due to the significant impact of stay-at-home trends in Q2 FY2020, successfully increased GMS YoY by implementing initiatives including those aimed at promoting safe travel. The population coverage ratio is calculated based on the number of the approximately 500 meter zones used in the national census which have area coverage of more than 50%. If you already possess a Rakuten ID, it is possible to use that same ID when opening a Rakuten Bank account. How do leading retailers create value for their customers? Transaction Fees Revenue generated from the commission Rakuten charges for each purchase transaction that occurs on the site. And help build communities in which people can pursue their dreams and live in happiness. 1. The more people we can empower, the more completely we will fulfill this mission. Based on the customer data, it is sometimes possible to discover the customers' latent, unmet needs for some products or services. Rakuten Bank offers the following services: Deposits (yen & foreign currencies); financing (credit card loans, mortgage loans, educational loans); bank deposit transfers, remittance services (credit cards, debit cards, prepaid cards, money transfers, etc. Accomplish in one month what it takes other companies a year to do, because we can only win by being many times faster than our competitors. In this way, the bank is able to provide those services most desired by customers as well as swift service and competitive low fees. In addition, as new customer acquisition is progressing steadily, the revenue contribution from user mobile fees is gradually increasing in line with the end of the one-year-free campaign, and future improvements in revenue are expected. JD.com has grown to become China's leading online retailer through its ability to simplify shopping experience for everyday consumer. Like Rakuten Bank, the "Rakuten Ichiba" marketplace (a large internet shopping mall) is a member of the Rakuten Group. We firmly oppose those who threaten public safety and civil order. Money Bridge, the service linking Rakuten Securities and Rakuten Bank accounts, surpassed three million accounts and four trillion yen in total balance of deposits in December 2021.In the Insurance business, annualized insurance premiums of new policies increased steadily in FY2021, with new sales of life insurance increasing +15.8% YoY*8 and new sales of general insurance increasing +26.8% YoY*9. Rakutens mission is to empower people and society through the Internet. Rakuten is an organization composed of true professionals. Rakuten Bank charges 300,000 yen (US$2,884.62). When circumstances change, we adjust our plans so that we still accomplish our goals. While interest on deposits increased due to the growth in the number of accounts, Rakuten Bank achieved growth in revenue and profit by greatly increasing service transaction revenue due to an increased number of transactions. By working with local communities and nurturing a robust corporate culture enabling each member of our diverse team to perform at their best, the Rakuten Group is committed to boosting corporate value and contributing to progress in society. In 2000 he established Rakuten University, a program designed to train vendors on how to run their business online. In particular, personnel transfers are assigned taking into account the development of the individual's potential. Research by Rakuten Bank. Meanwhile, system development costs are kept at a minimum by making IT systems development an in-house function. Search Rakuten. Get on promotion fasstrack and increase tour lifetime salary. This five-letter word has been overused and abused . Rakuten Bank has been able to access the strong customer base of all the other companies under the Rakuten Group's umbrella. Trading at a discount to its 3- year P/BV plus decent dividend yield, RCE is indeed an interesting value proposition. Rakuten Bank has continued to follow these same strategies for acquiring new customers. (*3) It was designed to improve customer convenience and increase new customer acquisition. Points can also be obtained when customers use the Rakuten credit card or its Edy electronic money at physical locations. In the Insurance business, in addition to strong performance of online sales, new contract acquisitions are steadily increasing for both life and non-life insurance services as some face-to-face sales have recovered from pandemic-driven limitations. The pace of new bank account openings has accelerated since reaching 10 million accounts in January 2021, and in July 2021, Rakuten Bank became the first online bank in Japan to surpass 11 million accounts. Value Proposition. Rakuten Bank's value chain is designed to enable the bank to develop superior banking services, offer them at a lower fee, and seamlessly provide a wide variety of services, taking full advantage of synergies with other Rakuten Group companies. Empowering people to realize their hopes and dreams, . Customers can log into the Rakuten Bank app without a login password by using fingerprint authentication. Japan Net Bank plans to change its name to PayPay Bank in April 2021.). The Rakuten Group possesses internet marketing-related know-how that is based on data. Although the online services are more convenient for customers, the amount such banks charge for their online services is not that much different from their normal fees. * This report was written by Professor Emi Osono of Hitsubashi University Business School, based on: (1) the materials submitted by the winner for Porter Prize screening purposes; (2) interviews conducted by the Porter Prize Organizing Committee; and (3) publicly available information. With this name change, Rakuten aimed to make clear the bank's positioning as a member of the Rakuten Group and emphasize the superior customer convenience that the bank can provide by taking advantage of synergies with other Rakuten Group companies. Thus, the bank offers its mortgage loan customers the option of a web meeting. We work to increase transparency by actively communicating with our shareholders and society at large, as well as by disclosing company information in a timely and appropriate manner. To fulfill our role as a Global Innovation Company, we are committed to maximizing both corporate and shareholder value. Taking these key performance indicators into account, the bank revises its marketing plans and reviews its strategies. Source: Rakuten Research - 13 Feb 2020 For example, the new customer acquisition cost is controlled by taking into consideration the customer lifetime value (CLV). *2 Comparison of average monthly active users during April to June 2020 versus April to June 2021. Consequently, Rakuten Bank can efficiently reach prospective new customers by leveraging the services of Group companies. With regard to Rakuten Bank's practice of cross-selling banking services to customers, the customer data in the bank's possession (including the customer's attributes, service usage history, and history of online transactions), is divided into segments, taking into account each customer's preferences (gleaned from all types of customer data held by other Rakuten Group companies). One point equals JPY 1 that can be used for another purchase or travel reservations. For customers, the usability of these points represents significant value. #1416 - MARKET VALUE #81. Rakuten Card outperformed the industry, maintaining a high growth rate while total industry GTV growth was sluggish due to the pandemic.In January 2022, Rakuten Bank surpassed 12 million customer accounts, the largest number among online banks in Japan*6, and its total balance of deposits (non-consolidated) surpassed seven trillion yen as of the end of December 2021. Established in May 2017, Rakuten Trade is Malaysia's only fully digital equity brokerage . The percentage of contracts from Mobile Number Portability (MNP) transfers and those migrating from the MVNO business which tend to have high data consumption and low churn rates continues to increase. In addition, the bank is able to minimize its new customer acquisition cost. Understand your costs and benefits. ), 2020 20th Porter Prize Winner Online Banking Industry. Additionally, new subscribers. 1. (*2) Rakuten, Inc.'s news release, "Notification that Rakuten has changed the name of its subsidiary (eBank Bank), Jan. 21, 2010, https://corp.rakuten.co.jp/news/press/2010/0121_01.html, accessed on Nov. 25, 2020. In addition, 35% of Rakuten Mobile subscribers who had not previously used a Rakuten service began using Rakuten Ichiba within one year of signing up for the mobile service. Rakuten Group is committed to conducting business with honesty, sincerity and dignity. (This amount comes to US$2,884.62, at 104 yen/US$.) Rakuten Group Q2 FY2021 Financial Results Highlights. "We don't need to spend billions of U.S. dollars acquiring you know, I call it maybe a . Examples of strong value propositions. It's worth signing up to Rakuten TV simply to access this gratis stuff, and you'll easily find enough to while away a weekend or two. However, the fact that Rakuten Bank can build its own system in-house is unique. In April 2021, Rakuten issued approximately 320 billion yen in perpetual subordinated notes denominated in US dollars and euros (with an interest deferral clause) in order to diversify financing methods, expand its investor base and further enhance financial soundness. He reasoned that the convenience of the exchange would appeal to many consumers, which would probably encourage them to try Internet shopping in large numbers. Travel coupons became available in September 2021 as thank-you gifts through Japans Hometown Tax program. These requests are either made in compliance with banking laws, or are the requirements of supervisory authorities. This achievement was followed by many major milestones. Only when we work together can this diversity become an important source of strength. Rakuten Bank's value proposition is to offer customers "more convenient services and lower fees." Shoppers on JD.com can access a wide variety of . Relative to the end of March 2026 (FY2025) target for 96% 4G population coverage outlined in the fourth generation mobile communications system (4G) special base station deployment plan (1.7 GHz) approved in April 2018 by the Japanese Ministry of Internal Affairs and Communications (MIC), Rakuten Mobile achieved this target approximately four years ahead of schedule.The Mobile segment recorded revenue of 227.5 billion yen in FY2021, a significant increase of +31.9% YoY. Di. Hosting Fees Revenue generated from monthly fixed fees charged to merchants for the privilege of having their products/services hosted on the site. Overall Performance In FY2021, the Rakuten Group recorded revenue growth in all three segments: Internet Services, FinTech and Mobile. Some banks will charge customers 2% of the loan amount as an administrative fee. The bank also signed an agency agreement with Rakuten Life Insurance in March 2013, and Rakuten General Insurance in April 2019. Rakuten Bank, however, charged a flat rate of 300,000 yen (excluding tax) on home loans in November 2020. Its proposition also caters to small businesses, providing them with tools to help them accomplish their business objectives. Rakuten Group FY2021 and Q4 FY2021 Financial Results Highlights. Rakuten Groups mission is to contribute to society by creating value through innovation and entrepreneurship. Succession was completed of Rakutens logistics business to JP Rakuten Logistics, Inc., a new joint venture established by Rakuten and Japan Post. Choose resume template and create your resume. The Five Principles for Success are designed to keep each of us on track, to ensure we make continuous progress toward our ultimate goals. You needtohave JavaScript enabledin your browser toaccess thefull functionality and content of this website.To do so, please follow the instructions. The following are the four main strategic themes at Rakuten Bank: (1) Swiftly expanding Rakuten Bank's customer base by leveraging the Rakuten Group's customer base to accurately identify prospective new customers and offer them a variety of customized services that precisely meet their needs. Find your dream job. That said, there is a personal assistance component in the form of e-mail support. In addition, many net retailers and brick-and-mortar stores will accept Rakuten points as payment. Rakuten Bank then designs products and services that would appeal to each of these various segments. New subscribers due to cross-selling between Rakuten Group insurance companies increased 14-fold since the Comprehensive Insurance Center launched two years ago, contributing to improved financial results. All employees are welcome to participate. At the forefront of a rapidly evolving world, Rakuten Group is continually expanding its operations into new fields. For this reason, Rakuten Bank has formed alliance agreements with other ATM operators, enabling customers to use the ATM networks of megabanks, convenience stores, and Japan Post Bank. *8 Shopping e-commerce GMS = Total GMS of Rakuten Ichiba + First Party (Rakuten Fashion, Books, Rakuten 24 and other direct daily necessities shops, Rakuten Seiyu Netsuper) + Open EC (Rebates, Rakuten Pay online payments) + Rakuma. The two components it consists of are the Brand Concepts and Five Principles for Success.Additionally, we include here the Rakuten Group Code of Ethics that we observe. We believe that the only way for a business to grow over the long term is to contribute to the world so significantly that people can't imagine life without it. info: Masayuki previously served as Executive Vice President of Rakuten. Overall PerformanceIn FY2021, the Rakuten Group recorded revenue growth in all three segments: Internet Services, FinTech and Mobile. Skyrocket your resume, interview performance, and salary negotiation skills. Moreover, all of the financial companies in the Rakuten Group have formed tie-ups as agency service providers for the bank: Rakuten Securities, Inc. and Rakuten Life Insurance Co., Ltd. in 2016; Rakuten General Insurance Co., Ltd. and Rakuten Card Co., Ltd. in 2019. ); the deposit and withdrawal of money (at affiliated ATMs); asset management apps (Money Support); and payments for Takurakuji and BIG lottery tickets, Toto (J-league soccer pools), and public race tracks, etc. As a result, both revenue and profit increased YoY due to additional contributions from strong online sales and the successful implementation of cost reduction measures. However, customers need to make withdrawals from their accounts. Revenue for the Internet Services segment was 237,868 million yen, a +17.9% YoY increase, while segment profit was 17,347 million yen, compared to a loss of 1,309 million yen recorded in the same period of the previous fiscal year. The Bank's Kantan Furikomi or Easy Deposit settlement service enables customers to send money using Merumane (Mail Money), Facebook Pay, or Viber's money transfer service. This is a major point that sets the bank apart from its competitors. We believe that the means of pursuing a mission are as important as the ends. By the end of that year, Rakuten had 6,000 merchants on hand. Sign up today for an additional $10 bonus. The priority of such banks is to provide a broad lineup of products that will satisfy the customers' diverse needs. Value is a word that has nearly lost its meaning. Mailchimp. The bank's value proposition is to provide its internet-using customers with "more convenient services and lower fees." Measures to improve customer convenience, such as the successful introduction of a common free shipping threshold for participating merchants on the internet shopping mall Rakuten Ichiba, have been successful, leading to an increase in customer loyalty for Rakuten Ichiba and other services. We face intense competition. Next, the bank develops a sales campaign that will have maximum appeal for the specific segment in question. Succession was completed of Rakutens logistics business to JP Rakuten Logistics, Inc., a new joint venture established by Rakuten and Japan Post. Rakuten plans to allocate the funds raised chiefly to its mobile carrier business for infrastructure investment. The core values of the Rakuten Group, along with the values and principles understood and practiced by Rakuten employees, embody Rakuten Shugi. The company offers cost reduction through its Rakuten Super Points loyalty program. Rakutens many acquisitions and joint ventures helped it to expand its product lines, branching out into financial services such as banking, and to increase its global reach to countries such as Canada, Austria, Taiwan, and Spain. 2. Moreover, members accrue Rakuten reward points when using any of the services offered by Rakuten-affiliated companies. (*2). Rakuten Bank's interest on deposits, rates on financing, and its service charge pricing system are all reasonable and set at a level that is advantageous to the customer. This was due to an increase in the number of Rakuten Cards issued and growth in online shopping, as well as the impact of pandemic-driven reduced consumption that began in Q2 FY2020 coming full circle this quarter. This speaks to some of the fundamental needs and concerns of someone who's starting a new business: it can all get real overwhelming, real fast. Rakutens customer relationship with consumers is primarily of a self-service nature.
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