Mercari

Basic Information

Stock Code
4385
Industry
Information and Communications
Category Detail
Internet Site Operations
Prefecture
Tokyo
Establishment Year
February 2013
Listing Year
June 2018
Official Website
https://about.mercari.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
DeNA, ZOZO, Hamee, Market Enterprise, Golf Digest Online, BEEnos, Jade Group, iSTYLE, Enigmo, CyberAgent, Rakuten Group, C Channel

Overview

Mercari is Japan's largest flea market app operator in the information and communications industry, founded in 2013, and has also expanded to the United States and Taiwan.

Current Situation

Mercari achieved consolidated net sales of 187.4 billion yen, operating income of 18.8 billion yen, and net income of 13.4 billion yen for the fiscal year ending June 2024, with steady performance. Its flagship flea market app 'Mercari' boasts the largest scale in Japan and is actively expanding into overseas markets such as the United States and Taiwan. The payment business subsidiary Merpay provides contactless payment services and has entered the credit card business. In the innovation sector, it operates NFT business and cryptocurrency exchange services, strengthening competitiveness through the introduction of new technologies and diverse business developments. It is also advancing sustainability initiatives that consider local communities and the environment, with business expansion and sustainable growth set as long-term strategic goals for 2030. It is focusing on multifaceted product lineups and service improvements, including the launch of new services 'Mercari Haro' and 'Mercari Mobile,' and the addition of auction features. The internal governance structure is a company with a nomination committee, pursuing transparency and sound management. Compared to competitors, it maintains strong brand power and technological capabilities, and continues proactive capital investments tailored to growing markets.

Trivia

Interesting Facts

  • Holds the largest market share in Japan's flea market app market.
  • Achieved TSE Mothers listing just a few years after founding in 2013.
  • Integrates diverse payment methods through Merpay.
  • Early entrant into NFT business in collaboration with sports.
  • Expanded business not only in Japan but also to the US and Taiwan.
  • CEO concurrently serves as founder Shintaro Yamada.
  • Mercari Mobile is Japan's first service enabling data trading within an app.
  • Improved responses to return fraud incidents via SNS intervention.
  • Conducts diversified business through numerous subsidiaries.
  • Strengthening EC business for businesses alongside consumers.
  • Leading shareholder of J-League team Kashima Antlers.
  • Enhanced transaction safety with AI-powered illicit monitoring system.
  • Boosted competitiveness in payments via Origami acquisition.
  • Contributes to promoting circular economy through platform.
  • Promoted industry self-regulation through alerts on high-price resales.

Hidden Connections

  • Mercari, as the leading shareholder of Kashima Antlers, collaborates with sports business to strengthen its brand.
  • Through Origami Pay acquisition, strengthened ties with financial institutions like Shinkin Central Bank, building a financial ecosystem supporting regional banks.
  • Mercari participates in the government's EC business council, contributing to industry quality improvement and policy recommendations.
  • Business alliance with NTT Docomo advances integration of communications infrastructure and payment platforms.
  • Mercari Mobile's use of NTT Docomo lines is drawing attention as a new competitive model in the telecom industry.
  • Ban on listing electronic tickets and coupons is a pioneering consumer protection measure.
  • Sports NFT business jointly develops market with six Pacific League teams, contributing to new revenue expansion.
  • MerCard credit card, in partnership with JCB, further improves smartphone payment convenience.

Future Outlook

Growth Drivers

  • Further expansion of online flea market market
  • Promotion of mobile payments and cashless adoption
  • Development of new digital asset markets like NFTs and crypto
  • Increased utilization of business EC services
  • Aggressive overseas expansion and localization
  • Improved transaction safety and efficiency via AI technology
  • Service diversification focused on user experience
  • Promotion of community building through strengthened regional ties
  • Response to environmental regulations and sustainable management
  • Differentiation amid competition with Rakuten, LINE Yahoo, etc.

Strategic Goals

  • Maintain top CtoC platform status domestically and internationally
  • Expand share in cashless payment market
  • Monetize NFT and blockchain-related businesses
  • Sustainable growth through co-creation with local communities
  • Enhance transaction safety and customer satisfaction via AI
  • Contribute to reducing environmental impact and forming circular economy
  • Diversified rollout of new businesses and services
  • Maintain robust corporate governance
  • Foster employee diversity and supportive work environment
  • Aim for annual sales exceeding 300 billion yen

Business Segments

CtoC Marketplace Operations

Overview
Provides platform for goods transactions between individuals and small businesses.
Competitiveness
Large user base and high brand recognition
Customers
  • Individual Sellers
  • Consumers
  • Flea Market Users
  • Sole Proprietors
  • Small Businesses
Products
  • Flea Market App Development and Operations
  • Transaction Intermediation Platform
  • Payment Agency Services

Payment Services Business

Overview
Provides safe and convenient payment environments through smartphone payments and data processing.
Competitiveness
Enhanced integration with Mercari platform
Customers
  • Consumers
  • Retailers
  • Merchant Stores
  • Financial Institutions
Products
  • QR Code Payments
  • Contactless Payments
  • Credit Card Issuance
  • Credit Management Services

NFT and Digital Content

Overview
Provides platform for trading digital ownership using emerging technologies.
Competitiveness
First in industry to enter sports NFT business
Customers
  • Sports Organizations
  • Creators
  • Digital Goods Sellers
Products
  • NFT Marketplace
  • Digital Content Sales

MVNO Business

Overview
Offers flexible communication plans linked to proprietary services.
Competitiveness
Data trading possible within Mercari app
Customers
  • Budget SIM Users
  • Smartphone Users
Products
  • Mobile Communication Services
  • Data Sharing Services

Business EC Services

Overview
Supports EC site building and sales for businesses.
Competitiveness
Seamless integration with Mercari platform
Customers
  • Small Businesses
  • Individual Entrepreneurs
Products
  • Mercari Shops Operations
  • Sales Support

Soccer Club Operations

Overview
Strengthens regional ties and brand power through J-League club management.
Competitiveness
Corporate brand expansion and regional contributions
Customers
  • Sports Fans
  • Local Communities
Products
  • Kashima Antlers Shareholder Management
  • Club Operations Support

Logistics Services

Overview
Supports efficient shipping and logistics management for transacted goods.
Competitiveness
Rapid response through integration within Mercari Group
Customers
  • Online Sellers
  • Individual Sellers
Products
  • Product Shipping Management
  • Warehouse Services

Credit and Lending Services

Overview
Provides credit evaluation services based on user data.
Competitiveness
Credit technology leveraging Mercari transaction data
Customers
  • Merpay Users
  • Merchant Stores
Products
  • Credit Assessment
  • Credit Card Services

Cryptocurrency-Related Business

Overview
Completed registration as cryptocurrency exchange operator, providing secure trading environment.
Competitiveness
Broad service expansion through group synergies
Customers
  • Crypto Traders
  • General Consumers
Products
  • Cryptocurrency Exchange Services
  • Bitcoin Trading Platform

Competitive Advantage

Strengths

  • Japan's largest user base
  • Diverse payment solutions
  • Diversified business within the group
  • Stable financial foundation
  • Advanced platform technology
  • Aggressive expansion into overseas markets
  • Strong brand recognition
  • Integrated payment and EC business
  • Rapid infrastructure development
  • Robust customer support
  • Comprehensive regulatory compliance
  • Established diverse sales channels

Competitive Advantages

  • Presence in diverse domestic and international markets
  • Strong synergy between Mercari app and Merpay
  • Early adoption in new business areas like NFTs
  • Improved customer convenience through diverse payment methods
  • High brand image and reliability
  • Proprietary AI-based fraud detection system
  • Market share expansion by addressing diverse consumer needs
  • Comprehensive local community-focused services
  • Agile capability to launch new services
  • Access to broad customer segments and continuous user acquisition
  • Stable management through strong financial position
  • Business scope expansion via group synergies

Threats

  • Intensifying service diversification and price competition from rivals
  • Business constraints from strengthened regulations
  • Brand risks from increasing fraudulent transactions
  • Cultural and legal risks in overseas markets
  • Risk of lagging behind rapid technological changes
  • Risks of personal data leaks and cyber attacks
  • Revenue instability from fluctuating user trends
  • Unpredictable consumption behavior due to social changes
  • Rising logistics costs and delivery delays
  • Customer outflow to other platforms
  • Impact of exchange rate fluctuations on overseas revenue
  • Pressure from innovative new entrants

Innovations

2024: Launch of Side Gig Service 'Mercari Haro'

Overview
Launched side gig matching service for verified users aged 18 and over.
Impact
Contributes to expanding new user segments and platform diversification.

2025: Launch of Mobile Service 'Mercari Mobile'

Overview
Entered MVNO business with innovative communication service enabling data trading within the app.
Impact
Creates new revenue streams in the communications sector.

2025: Launch of Online Auction Service

Overview
Launching auction service with bidding features from 2025 to promote transaction diversification.
Impact
Strengthens market competitiveness and boosts usage.

2022: Issuance of Credit Card 'MerCard' in Partnership with JCB

Overview
Launched credit card service utilizing Merpay's credit functions.
Impact
Strengthens payment ecosystem and customer retention.

2020: Acquisition of Origami Pay to Strengthen QR Code Payments

Overview
Expanded QR code payment share through competitor acquisition, enhancing market competitiveness.
Impact
User base expansion and payment platform integration.

2021: Entry into NFT Business

Overview
Launched NFT marketplace in collaboration with sports teams.
Impact
Builds new revenue sources and strengthens brand.

2023: Completion of Cryptocurrency Exchange Registration

Overview
Mercoin completed registration as cryptocurrency exchange operator, advancing related businesses.
Impact
Establishes foundation for advanced financial services.

2021: Full Rollout of Business EC Service 'Mercari Shops'

Overview
Launched platform enabling businesses to sell within Mercari app.
Impact
Develops new customer segments and strengthens platform.

Sustainability

  • Reducing waste and promoting circular economy through person-to-person transactions
  • Enhanced safety via AI-powered illicit listing detection
  • Strengthened volunteer support for local communities
  • Promotion of logistics efficiency to reduce environmental impact
  • Advancing diverse hiring and work style reforms
  • Strengthened digital privacy protection
  • Improved transparency through CSR activities
  • Energy consumption reduction and renewable energy utilization
  • Pursuit of sustainable business models