From Japan via videoconference: Overview of present Japanese mobile economy & some lessons learned – Koji Fukada, President of YUMENI Inc.
Who is Yumeni?
Startup mind: Make IT useful for all! Send our ideas to the World! Always challenge to pioneer with new use of the mobile internet.
Strength of Yumemi
Experience in large scale services in mobile, advertising and mail magazine.
Mobile Usability know-how:
– Quick step to purchase
– Easy input support
– Device optimization
Yumemi is experienced in
– Mobile e-Commerce
– Mobile CRM
– Mobile social games
There’s a variety of mobile services in Japan such as commerce, coupons, real payment, e-ticketing, mobile gaming, personalized recommendations, one-seg (mobile TV), e-comic, etc.
Mobile e-Commerce
The mobile market has grown strongly since 2004. About 20% of the total b2c e-commerce comes via mobile (11 Bio. $).
Mobile Commerce Share for Product Categories
In clothing 25% of revenues come from mobile, in health 19%, for event tickets 37%, in music 84%, in gaming 66%.
Learnings
1. Female users tend to buy more via mobile than via PCs. Often times they don’t have PCs at home.
2. Usability is very important to improve the conversion rate
3. The less page transitions, the better
4. After flat rate and 3.5G (3-7Mbps) started in 2007, mobile e-commerce grew dramatically
Mobile CRM
Sample: McDonalds’s Japan Mobile CRM System
Higher marketing ROI
– 1-to-1 CRM base on user profile
– Direct navigation to stores via coupons
– Lower cost vs paper based coupons
Store operation excellence
– Enhancement of made-to-order due to information depth
– Lower cashier HR cost
Swipe type coupon grew rapidly in the recent years.
Learnings
1. After McDonald’s success all other food chains started mobile coupon services. Until there no one had succeeded.
2. Usability is key
3. Swipe-type coupon is still limited with McDonald’s due to high costs
Mobile Social Games
Mobile already grew bigger than PC use in Japan. It actually now is 5 times bigger counting 28 Mio users!
Two out of three mobile gaming suppliers offer mobile only (Mobage and Gree), the third has 84% mobile users (Mixi). They all have around 21 mio users.
Learnings
1. Mobile platforms are suitable for digital contents because carriers prepared the way for easy payments
2. Social networking services are suitable for mobile more than PC because mobile internet is much more private than the PC
3. Popular games in Mobage and Gree are very different, because of the different social graph of the users
Apps vs browser, conclusion in Japan
Browser-based has beaten apps in Japan. Apps are limited in use such as FeliCa.
Why is that?
– Download is bothering for a typical Japanese user
– Network communication speed is enough for mobile web
– Apps development is more difficult
– Finding apps is more difficult
When did things take off?
– After 3G penetration exceeded 70%
– In 2007 mixi mobile PV surpassed the PC use
Q & A
What are typical usability issues?
– In mobile it’s tough to check the calendar or other information while purchasing something in the tiny browser.
– Therefore processes need to be short and easy.
Are iPhone and iPad going to have an impact on the currently used mobile apps?
– So far there is no impact, ‚traditional‘ mobile seems to be a market on itself.
How is mobile payment used?
– 60% goes via cash card
– 20-25% goes via credit card
– Carriers also provide a payment method but it is not commonly used.
The presentation was hosted by IBM Innovation Center for Mobile Monday.
Mobile Monday Switzerland’s Twitter profile and the realtime Twitter stream.
