E commerce development in japan
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E-COMMERCE DEVELOPMENT IN JAPAN. Catherine Vairappan, Teuta Cata, and Toru Sakaguchi Northern Kentucky University. INTRODUCTION. E-Commerce: early developments were made in the U.S Japan: The Internet-related industry: one of the fastest growing in Japan

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E commerce development in japan


Catherine Vairappan,

Teuta Cata,

and Toru SakaguchiNorthern Kentucky University


  • E-Commerce: early developments were made in the U.S

  • Japan:

    • The Internet-related industry: one of the fastest growing in Japan

    • Japanese is the third most used language

    • Still the second largest purchasing power in the world

  • The e-commerce development in Japan has lagged behind the US (Sakaguchi, 2001)


  • It has been more than five years since the above-mentioned research

  • The purpose of this research is to examine the current situation of Japanese e-commerce and see if any interesting developments have been made in this area.


  • B2C E-Commerce in Japan

    • Slow growth in the late 1990’s

Figure 1: E2C e-Commerce Market in Japan (Source: METI, et al., Survey on Actual Condition and Market Size of Electronic Commerce for 2004)

B2c e commerce in japan
B2C E-Commerce in Japan

  • slow penetration of PCs

  • slow penetration of credit cards

  • slow economy?

Figure 2: Reasons for not using the Internet for private purposes (multiple replies possible)(Source: “The 7th Internet active user survey,” MIAC, 1999)

Government support for e commerce in japan
Government Support for purposes (multiple replies possible)E-Commerce in Japan

  • IT Basic Bill (passed Sep. 2000)

    • eased regulations on the Internet

    • set up rules to expand electronic commerce

    • made Internet access more affordable

  • Electronic Commerce Promotion Council of Japan (2000)

  • Promoting the use of information technology through the creation of a broadband network infrastructure, e-commerce promotion and the protection of private information

New forms of e commerce development in japan
NEW FORMS OF E-COMMERCE DEVELOPMENT IN JAPAN purposes (multiple replies possible)

  • Mobile Devices and M-Commerce

  • Convenience Stores

Mobile devices
Mobile Devices purposes (multiple replies possible)

  • 4 million (or 20%) people online use their mobile phones in Japan (JETRO, 2000)

  • i-mode service from NTT DoCoMo

    • a digital packet based mobile phone with Internet access

M commerce
M-Commerce purposes (multiple replies possible)

  • Entertainment

    • Ringer music tones

    • “Music Tone Full”

    • Screen Pictures

    • Games

  • Reservation

    • Travel

    • Event Tickets

New platform for b2c commerce convenience stores
New Platform for B2C Commerce purposes (multiple replies possible) - Convenience Stores

  • Kiosks in the store

    • Shop online

    • Receive merchandize at the store

    • Pay at the store

  • Solve major problems in Japan

    • Credit Card

    • Delivery

Other new notable developments
Other New Notable Developments purposes (multiple replies possible)

  • WebNation-CRM e-commerce with database information on CDs, DVDs, etc.

  • Kimonoichiba 19-hybrid communication (web and human)

  • Convenience store chains and “e-retsu” -- e-commerce is just one of the channels

CONCLUSION purposes (multiple replies possible)

  • Japan was late in developing e-commerce businesses

  • Business model developed in the US, PC and credit card transaction did not fit to the Japanese culture

  • Mobile devices and convenience stores were the answers in order to advance in this new arena

Future studies
Future Studies purposes (multiple replies possible)

  • Emerging business model – e-retsu

  • Other advanced M-commerce countries, e.g., Asia, Northern Europe

  • New technology for m-commerce, e.g. QR code (2-dimensional bar code)