Rakuten
Encyclopedia
operates and manages business to consumer electronic commerce
site, Rakuten Ichiba, and consumer to consumer auction site, Rakuten Freemarket. Its business is centered in Japan
, although it has began international expansion through acquisitions. The chief executive officer
is Hiroshi Mikitani. The company has its headquarters in the in Higashi Shinagawa, Shinagawa
, Tokyo
.
The company was founded in February 1997 as MDM, Inc. started operations in May the same year. In June 1999 MDM, Inc. changed its name to Rakuten, Inc. In June 2004 it was the second ranked site in Japan as measured by unique audience.
Rakuten's 2010 revenues were US$
4.2 billion (JPY 346.1 billion) with operating profits of approximately US$782M (JPY 63.7 billion), suggesting 18.6% gross profit
. The company is publicly-traded (JASDAQ: 4755). As of December 2010, it has a market capitalization of US$10 billion (JPY 1 trillion) and some 10,000 employees worldwide . Rakuten ranks amongst the top 10 Internet companies in the world (along with Google, Amazon, eBay, Baidu, Yahoo, etc.) .
The company claims to hold a leadership position (#1 or #2, based on key industry metrics) in each of the businesses within the core segments .
Rakuten's online shopping business, Rakuten Ichiba, is the largest online shopping mall in Japan, and allows customers to shop more than 85 million products from over 36,000 merchants . As part of its Internationalization efforts, Rakuten Ichiba has started offering international shipping.
thereby raising its ownership to 19%. Rakuten was said to plan a merger with the broadcast company, but eventually withdrew its bid and divested its shareholdings.
In recent years, Rakuten has broadened its business interests outside of Japan, to mixed results. Rakuten was a significant shareholder in Ctrip, a Chinese
travel site, but in August 2007, the company sold its share in Ctrip. Later, Rakuten acquired Linkshare
, a New York-based company, dealing in sales and marketing performance analysis.. In 2010, in another effort to increase its global competitiveness, Rakuten announced its intention to make English the company’s official language by mid-2012. That year, Rakuten also acquired the French e-commerce site Priceminister
for €200 million and US-based Buy.com
for US$250 million. The company also announced joint ventures with Baidu in China (Lekutian) and with MNC Group in Indonesia (Rakuten Belanja Online).
After launching Rakuten Belanja Online service on June 1, 2011, Rakuten continued its global acquistion trend with the purchase of Brazilian e-commerce firm Ikeda (now Rakuten Brazil) that same month. In July, it acquired e-commerce startup Tradoria in Germany, and in September purchased UK e-commerce pioneer Play.com
for £25 million.
In September 2011, Rakuten purchased a minority equity stake in Russian online retailer Ozon.ru. The total infusion of capital was US$100 million divided between four buyers, of which Rakuten was one. Rakuten's stake is unknown.
In November 2011 Rakuten signed an agreement to purchase the ebook company Kobo
.
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
site, Rakuten Ichiba, and consumer to consumer auction site, Rakuten Freemarket. Its business is centered in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, although it has began international expansion through acquisitions. The chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
is Hiroshi Mikitani. The company has its headquarters in the in Higashi Shinagawa, Shinagawa
Shinagawa, Tokyo
is one of the 23 special wards of Tokyo, Japan. In English, it is called Shinagawa City. The ward is home to nine embassies.As of 2008, the ward has an estimated population of 344,461 and a density of 15,740 persons per km². The total area is 22.72 km²....
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
.
The company was founded in February 1997 as MDM, Inc. started operations in May the same year. In June 1999 MDM, Inc. changed its name to Rakuten, Inc. In June 2004 it was the second ranked site in Japan as measured by unique audience.
Rakuten's 2010 revenues were US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
4.2 billion (JPY 346.1 billion) with operating profits of approximately US$782M (JPY 63.7 billion), suggesting 18.6% gross profit
Gross profit
In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments...
. The company is publicly-traded (JASDAQ: 4755). As of December 2010, it has a market capitalization of US$10 billion (JPY 1 trillion) and some 10,000 employees worldwide . Rakuten ranks amongst the top 10 Internet companies in the world (along with Google, Amazon, eBay, Baidu, Yahoo, etc.) .
Lines of business
The Rakuten Group is composed of six businesses:- E-Commerce Marketplace, managing Japan's largest online retail marketplace;
- Credit and Payments, offering personal consumer credit services including consumer loan card payment and loans
- Portal and Media, managing portal sites—which act as the gateway to the internet—and performing other activities;
- Travel, operating hotel booking and other travel-related websites and providing other services;
- Securities, providing services such as online securities brokerage; and
- Professional Sports, managing a professional baseball team, planning and selling related merchandise and performing other activities.
The company claims to hold a leadership position (#1 or #2, based on key industry metrics) in each of the businesses within the core segments .
Rakuten's online shopping business, Rakuten Ichiba, is the largest online shopping mall in Japan, and allows customers to shop more than 85 million products from over 36,000 merchants . As part of its Internationalization efforts, Rakuten Ichiba has started offering international shipping.
Recent developments
In October 2005, Rakuten bought a 15% stake in Tokyo Broadcasting SystemTokyo Broadcasting System
, TBS Holdings, Inc. or TBSHD, is a stockholding company in Tokyo, Japan. It is a parent company of a television network named and radio network named ....
thereby raising its ownership to 19%. Rakuten was said to plan a merger with the broadcast company, but eventually withdrew its bid and divested its shareholdings.
In recent years, Rakuten has broadened its business interests outside of Japan, to mixed results. Rakuten was a significant shareholder in Ctrip, a Chinese
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
travel site, but in August 2007, the company sold its share in Ctrip. Later, Rakuten acquired Linkshare
Linkshare
LinkShare Corporation provides ecommerce businesses with a range of online marketing services including Search Marketing , Lead Generation and Affiliate Marketing....
, a New York-based company, dealing in sales and marketing performance analysis.. In 2010, in another effort to increase its global competitiveness, Rakuten announced its intention to make English the company’s official language by mid-2012. That year, Rakuten also acquired the French e-commerce site Priceminister
Priceminister
PriceMinister is the French company behind the online electronic commerce website PriceMinister.com, ranking 2nd amongst French e-shopping sites....
for €200 million and US-based Buy.com
Buy.com
Buy.com, Incorporated is an online retailer based in Aliso Viejo, California.Buy.com began by selling computers and electronics in 1997 and has since expanded into many other categories...
for US$250 million. The company also announced joint ventures with Baidu in China (Lekutian) and with MNC Group in Indonesia (Rakuten Belanja Online).
After launching Rakuten Belanja Online service on June 1, 2011, Rakuten continued its global acquistion trend with the purchase of Brazilian e-commerce firm Ikeda (now Rakuten Brazil) that same month. In July, it acquired e-commerce startup Tradoria in Germany, and in September purchased UK e-commerce pioneer Play.com
Play.com
Play Ltd., trading as Play.com, is a Jersey-based online retailer of DVDs, CDs, books, gadgets, video games, DRM-free MP3 downloads, and other electronic products, as well as clothes and accessories. It is a wholly owned subsidiary of the Rakuten Group....
for £25 million.
In September 2011, Rakuten purchased a minority equity stake in Russian online retailer Ozon.ru. The total infusion of capital was US$100 million divided between four buyers, of which Rakuten was one. Rakuten's stake is unknown.
In November 2011 Rakuten signed an agreement to purchase the ebook company Kobo
Kobo Inc.
Kobo Inc. is the company that makes the Kobo eReader, and its headquarters is in Toronto, Ontario, Canada. It was founded in 2009. The majority shareholder is Indigo Books and Music. Before being spun off, Kobo was a division of Indigo...
.
See also
- Vissel KobeVissel Kobeis a Japanese professional football club, currently playing in the J. League Division 1. The team is located in Kobe, Hyōgo Prefecture. The home stadium is Kobe Wing Stadium, in Hyōgo-ku, though some home matches are played at Kobe Universiade Memorial Stadium in Suma-ku.-History:The club was...
- Tohoku Rakuten Golden EaglesTohoku Rakuten Golden EaglesThe is a baseball team founded in 2004; it played its first season in the Japanese Pacific League in 2005. It is simply called Rakuten . The team was created to fill the void left by the merger of the Orix Blue Wave and the Kintetsu Buffaloes, after the 2004 season due to financial difficulties,...
- Japan Open Tennis ChampionshipsJapan Open Tennis ChampionshipsThe Rakuten Japan Open Tennis Championships is a tennis tournament held in Ariake Tennis Forest Park with its center court Ariake Coliseum, located in Kōtō, Tokyo, Japan. The championship includes both men's and women's, as well as singles and doubles competitions...
- Rakuten Institute of TechnologyRakuten Institute of Technologya.k.a RIT is the R&D organization in Rakuten Inc. in Japan.It is not a subsidiary company of Rakuten Group, but one department in charge of research and development in Rakuten Inc....
- Yukihiro MatsumotoYukihiro Matsumotois a Japanese computer scientist and software programmer best known as the chief designer of the Ruby programming language and its reference implementation, Matz's Ruby Interpreter ....