楽天(らくてん: Rakuten)

Definition

楽天, or Rakuten, is a Japanese e-commerce and online retailing company founded in 1997 by Hiroshi Mikitani. It has grown to become one of Japan's largest online marketplaces, offering a wide range of products and services, including shopping, travel, banking, and telecommunications. Rakuten plays a significant role in shaping contemporary digital consumer habits in Japan and globally.

5 Must Know Facts For Your Next Test

1. Rakuten was founded in 1997 and has since expanded its services internationally, including operations in North America and Europe.
2. The company operates various subsidiaries, such as Rakuten Travel and Rakuten Bank, making it a diversified digital services provider.
3. Rakuten is known for its unique point system that rewards customers for shopping on its platform, enhancing customer loyalty.
4. The brand has invested in sports sponsorships, including owning the FC Barcelona jersey sponsorship, reflecting its commitment to global marketing.
5. Rakuten's business model emphasizes connecting consumers directly with merchants, facilitating an extensive marketplace that supports small businesses.

Review Questions

• How has Rakuten influenced consumer behavior in Japan's e-commerce market?
  • Rakuten has significantly influenced consumer behavior in Japan by promoting the concept of online shopping through its user-friendly platform and extensive product offerings. The introduction of the point system incentivizes customers to shop more frequently and try new products. This approach not only enhances customer loyalty but also encourages a shift from traditional brick-and-mortar stores to online shopping experiences.
• Discuss the role of Rakuten's point system in fostering customer loyalty and its impact on sales.
  • Rakuten's point system is a strategic tool designed to foster customer loyalty by rewarding users with points for their purchases. These points can be redeemed for discounts on future transactions, creating an incentive for repeat purchases. This loyalty program enhances customer engagement and satisfaction, leading to increased sales and driving growth in the competitive e-commerce landscape.
• Evaluate the implications of Rakuten's international expansion on its competitive strategy within the global e-commerce market.
  • Rakuten's international expansion reflects its strategy to compete globally by diversifying its service offerings beyond Japan. By entering markets in North America and Europe, Rakuten aims to capture a larger share of the global e-commerce space while also leveraging its unique business model. This expansion poses challenges such as adapting to different market dynamics and consumer preferences but also presents opportunities for increased brand recognition and revenue growth on an international scale.

Related terms

EC (Electronic Commerce): The buying and selling of goods and services using the internet, which forms the backbone of Rakuten's business model.

ポイント制度 (Point System): A loyalty program that allows customers to earn points for their purchases on Rakuten, which can be redeemed for discounts or future purchases.

フリマアプリ (Flea Market App): A type of mobile application that allows users to buy and sell second-hand goods directly, similar to Rakuten's own marketplace features.