Rakuten Group

Basic Information

Stock Code
4755
Industry
Services
Category Detail
Internet Site Operations
Prefecture
Tokyo
Establishment Year
February 1997
Listing Year
April 2000
Official Website
https://corp.rakuten.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
ZOZO, Hamee, Market Enterprise, Golf Digest Online, BEENOS, Jade Group, iSTYLE, Enigmo, Mercari, Rakuten Bank, Nissan, C Channel, SBG

Overview

Rakuten Group is a leading Japanese internet services company founded in 1997, forming a powerful economic ecosystem domestically and internationally across multiple domains including e-commerce, finance, mobile, and more.

Current Situation

Rakuten Group achieved consolidated sales of 2.0713 trillion yen for the fiscal year ended December 2023, but recorded an operating loss of 212.8 billion yen. It operates 'Rakuten Market,' one of Japan's largest e-commerce platforms, with Rakuten Bank and Rakuten Card as core financial services businesses. It continues aggressive investments in its mobile business while aiming to recover performance. With a global membership base of approximately 1.4 billion, it is aggressively expanding into diverse industries. It promotes user retention through brand unification and the Rakuten Points ecosystem. It also considers sustainability, implementing community contribution activities and promoting complete cashless operations. Moving forward, it positions the integration of communications and finance, overseas communications infrastructure expansion, and AI utilization as pillars of its growth strategy. Since 2021, it has been advancing the adoption of English as the official corporate language to strengthen global competitiveness.

Trivia

Interesting Facts

  • Rakuten's company name derives from the Rakuichi Rakuza free markets of the Azuchi-Momoyama period.
  • Aggressively promoting English as official corporate language since 2012.
  • Rakuten Points is one of Japan's largest common points programs.
  • Sports teams' colors unified with Rakuten corporate colors.
  • Has withdrawn from some overseas markets like Indonesia and Malaysia.
  • Fully cashless stadium operations is a pioneering domestic example.
  • 2005 personal information leak incident became a major lesson.
  • Experienced damages lawsuit over fake reviews on Rakuten Market.
  • Founder and President Hiroshi Mikitani is a former Nihon Kangyo Bank employee.
  • Rakuten aims to revolutionize communications business with AI and open RAN technology.

Hidden Connections

  • Rakuten Points collaborates with major companies like Japan Post and Japan Master Trust Bank.
  • Owns professional baseball's Tohoku Rakuten Golden Eagles and J.League's Vissel Kobe.
  • Former Rakuten subsidiary Rakuten KC changed name to J Trust Card.
  • Rakuten Mobile's customer base grows through linkages with Rakuten EC services.
  • Served as FC Barcelona's chest sponsor in high-value deal from 2017-2021.
  • Gene analysis company invested by Rakuten began selling in-house PCR test kits.
  • Rakuten's English promotion sparked various social reactions, seen as pioneer for Japanese firms.
  • Rakuten Market holds larger sales scale in Japan than Amazon or Yahoo! Shopping.

Future Outlook

Growth Drivers

  • Revenue expansion through synergies between communications and finance
  • Marketing innovation via AI and big data utilization
  • Deepening customer retention within Rakuten ecosystem
  • Quality improvement and market share expansion in domestic and international mobile business
  • Aggressive expansion and M&A in global EC markets
  • Transaction activation with rising digital payment adoption
  • Sustainable economic sphere formation and sustainability promotion
  • Brand value enhancement in sports-related business
  • Strengthening and diversification of online education offerings
  • Efficient infrastructure operations via new technology adoption
  • Enhanced adaptation to cashless society
  • Integrated growth promotion with regional communities

Strategic Goals

  • Expand Rakuten economic sphere to over 2 billion domestic and international members
  • Achieve profitability in communications business and complete nationwide 5G infrastructure rollout
  • Global expansion and product diversification in financial business
  • Full introduction of sustainable green IT
  • Overseas expansion and revenue base strengthening in sports business
  • Maximize customer experience through AI utilization
  • Support realization of fully cashless society
  • Strengthen international competitiveness in next-generation digital content
  • Group-wide diversity respect and comfortable work environment development
  • Promote business activities contributing to regional communities and environment

Business Segments

Corporate Communications Services

Overview
Provides communications services and infrastructure development to corporations.
Competitiveness
High-quality service via nationwide 5G network rollout
Customers
  • Corporations
  • Public Institutions
  • SMEs
Products
  • Rakuten Mobile Corporate Plans
  • Communications Infrastructure Services
  • Cloud Communications Solutions

Advertising and Marketing Services

Overview
Supports with promotions, ad delivery, and data analysis.
Competitiveness
Unique marketing leveraging Rakuten ecosystem
Customers
  • Retail Companies
  • Manufacturers
  • Advertising Agencies
  • EC Operators
Products
  • Rakuten Advertising
  • Data Marketing
  • Affiliate Services
  • SEO Measures
  • Points-linked Marketing

Fintech and Payment Processing

Overview
Comprehensive provision and operational support for payment services.
Competitiveness
Industry-leading points integration system
Customers
  • EC Operators
  • Financial Institutions
  • Retailers
Products
  • Rakuten Payment
  • Payment Processing Systems
  • Electronic Money Rakuten Edy
  • Credit Card Processing

Travel and Accommodation Corporate Transactions

Overview
Provides corporate travel arrangements and management systems.
Competitiveness
Abundant accommodations and online reservation network
Customers
  • Travel Agencies
  • Corporate Welfare
  • Hotel Chains
  • Tour Operators
Products
  • Rakuten Travel Corporate Plans
  • Accommodation Reservation Systems
  • Travel Package Provision

Digital Content Production and Distribution

Overview
Provides planning and distribution support for digital content.
Competitiveness
Global expansion and multilingual capabilities
Customers
  • Publishers
  • Video Streaming Operators
  • Advertising Agencies
Products
  • E-book Platforms
  • Video Content Distribution
  • Music Streaming Services

Data Analysis and AI Services

Overview
Strategic analysis leveraging big data and AI.
Competitiveness
Abundant data from Rakuten ecosystem
Customers
  • Retailers
  • Communications Companies
  • Financial Institutions
Products
  • Customer Behavior Analysis
  • Marketing AI Tools
  • Big Data Analysis

Logistics and Delivery Solutions

Overview
Provides efficient logistics services and delivery management.
Competitiveness
Rapid delivery via nationwide network and EC integration
Customers
  • EC Operators
  • Retail Chains
  • Logistics Companies
Products
  • Warehouse Management Services
  • Delivery Networks
  • Last-Mile Delivery

Sports Business Support

Overview
Promotion and IT solutions specialized for sports businesses.
Competitiveness
Track record with own teams and stadiums
Customers
  • Professional Sports Teams
  • Sports Event Organizers
Products
  • Ticket Sales Systems
  • Marketing Support
  • Cashless Payment Implementation

Education and Language Services

Overview
Provides online education services and business training.
Competitiveness
Expertise in hybrid online-real education
Customers
  • Individuals
  • Corporate Training
  • Educational Institutions
Products
  • Rakuten English Conversation
  • Online Language Learning
  • Corporate Training Services

Real Estate Related Services

Overview
Offers real estate information and management services.
Competitiveness
Enhanced convenience through IT utilization
Customers
  • Real Estate Companies
  • Corporations
  • Individuals
Products
  • Rental and Sales Information
  • Real Estate Management Systems
  • Accommodation Operations

Overseas Business Expansion Support

Overview
Multi-faceted support for Japanese companies' overseas expansion.
Competitiveness
Global network and numerous local subsidiaries
Customers
  • Companies Expanding Overseas
  • Cross-border EC Operators
Products
  • Overseas EC Site Operations
  • Logistics and Payment Support
  • Local Marketing

IT Infrastructure and Cloud Services

Overview
Provides advanced IT infrastructure to group and external entities.
Competitiveness
Proven operations in large-scale environments
Customers
  • Group Companies
  • External Clients
Products
  • Cloud Infrastructure
  • Security Services
  • IT Operations Support

Competitive Advantage

Strengths

  • Operation of one of Japan's largest EC platforms
  • Rakuten ecosystem points integration effects
  • Integrated operation of multifaceted financial services
  • Strong brand recognition and customer base
  • Nationwide mobile communications infrastructure
  • Global membership and transaction network expansion
  • Rapid digital shift responsiveness
  • Abundant cross-selling opportunities
  • Business expansion through aggressive M&A
  • Advanced IT and data analysis technologies
  • Diverse subsidiaries and industry collaborations
  • High utilization rate of Rakuten Points program
  • Synergy utilization with sports business
  • International competitiveness via English as official corporate language
  • Pioneer in cashless society adaptation

Competitive Advantages

  • User retention strategy centered on Rakuten economic sphere
  • Customer touchpoint optimization through integrated brand strategy
  • Multi-vertical revenue model spanning finance, communications, and EC
  • Strong customer retention via largest Rakuten Points membership
  • Differentiation from competitors via own mobile network rollout
  • Enhanced user convenience through diverse payment services
  • Precise marketing via AI and data utilization
  • Growth foundation through aggressive global market expansion
  • Brand value enhancement via sports sponsorships
  • Innovation in cashless stadium operations
  • Internationalization promotion through flexible organization and English official language
  • Rakuten Group's unique scalable IT infrastructure
  • Rapid entry into new business areas via M&A
  • Customer retention effects from large-scale points program
  • Synergy marketing through rich inter-service linkages

Threats

  • Intense price competition and profit pressure in communications market
  • Competition from Amazon and other domestic/international players in EC market
  • Business operation risks from strengthened financial regulations
  • Brand image decline from Premiums and Representations Act violations, etc.
  • Credit loss from fraudulent transactions and review manipulation incidents
  • Increased financial burden from underperforming diversified businesses
  • Risks of overseas business withdrawals or market contraction
  • Consumer resistance to cashless payments
  • Demand for advanced personal information protection and security measures
  • Increased uncertainty from exchange fluctuations and international situations
  • Intensified technological innovation competition from new entrants

Innovations

2023: Open RAN Technology Deployment in Vietnam

Overview
Deploys advanced open RAN network through partnership with local telecom giant.
Impact
Contributes to improved communications quality and cost reductions.

2023: Advancing Profit Growth Strategy with AI Utilization

Overview
Leverages AI technology to strengthen earnings per share growth.
Impact
Achieves cost reductions and improved customer satisfaction.

2022: Launch of Fully Cashless Stadium Operations

Overview
Introduces full cashless payments at Rakuten Life Park Miyagi and Noevir Stadium Kobe.
Impact
Promotes efficient operations and purchasing data utilization.

2021: Completion of English as Official Corporate Language

Overview
Applies English operations company-wide to develop global talent and strengthen international competitiveness.
Impact
Contributes to overseas business expansion and hiring strength.

2020: Sales of Corporate COVID-19 PCR Test Kits

Overview
Launches PCR testing services for corporations using self-collection kits.
Impact
Contributed to health safety measures support but also faced challenges.

Sustainability

  • Promoting cash reduction via fully cashless stadium operations
  • Ongoing regional reconstruction support activities
  • Environmentally considerate office building operations (Rakuten Crimson House)
  • Support for diverse work styles and expanded benefits for sexual minorities
  • Building sustainable market operation models using data