International News: Rakuten’s Claim over Indonesia
Japan's eCommerce Front Runner on the Move Again
Rakuten has become a name all too familiar in the e-Commerce world as of late, simply because Japan’s e-Commerce giant is by no means slowing down although it has already amassed great success across the Asian market. Its more recent venture into Indonesia is showing signs of being another hugely successful enterprise due to its increasing base of Internet users. Research by Frost and Sullivan predicts that the number of Internet users in Indonesia will jump to 175 million by 2016, more than quadrupling its current total users.
The pace of Rakuten’s market share and revenue is almost unmatched as it is currently at more than 200,000 users, an amount that has helped multiply its revenues eight times over the past year and a half.
Rakuten Belanja Online is an online mall that was created to create an equally stimulating shopping experience as compared to offline shopping. CEO Rio Inaba described further, “We are very excited by the explosive growth Rakuten Belanja Online has experienced since launching our service in Indonesia in June 2011. Our goal is to take the shopping mall experience online, providing consumers with the same fun and interactive experience they enjoy offline, but with the added convenience and security that online offers.”
Although Rakuten holds firm that it is NOT a discount retailer, it does insist that its online portals feature items that are competitively priced, giving it an edge over competitors and also attracting more customers.
Albeit, Rakuten’s growth seems to be almost exponential, it still does not have a majority of the market outside of Japan, and faces many competitors, as its model is basic within the eCommerce sphere.
By Sadaf Syed