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E-COMMERCE DEVELOPMENT IN JAPAN

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

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  1. E-COMMERCE DEVELOPMENT IN JAPAN Catherine Vairappan, Teuta Cata, and Toru SakaguchiNorthern Kentucky University

  2. INTRODUCTION • 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)

  3. PURPOSE • 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.

  4. BACKGROUND • 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)

  5. B2C E-Commerce in Japan • slow penetration of PCs • slow penetration of credit cards • slow economy?

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

  7. Government Support for 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

  8. NEW FORMS OF E-COMMERCE DEVELOPMENT IN JAPAN • Mobile Devices and M-Commerce • Convenience Stores

  9. Mobile Devices • 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

  10. M-Commerce • Entertainment • Ringer music tones • “Music Tone Full” • Screen Pictures • Games • Reservation • Travel • Event Tickets

  11. New Platform for B2C Commerce - 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

  12. Other New Notable Developments • 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

  13. CONCLUSION • 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

  14. Future Studies • 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)

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