Torture Japan Lotte "Two into the central Plains"

Recently, Japan's largest E-commerce website Lotte announced the launch of the online mall in China this year. Rakuten's president, Hiroshi Mikitani, said Rakuten will first bring online shopping malls into major cities such as Beijing and Shanghai, and gradually expand to North America and Europe in two or three years, striving to make the overseas market account for 1/3 of Rakuten's entire business after 10 years. At present, Lotte Company has on the commodity investment, distribution and other business began to negotiate with Chinese companies.

In fact, Lotte entered the Chinese market as early as a few years ago, this time can be regarded as "two into the central plains." In June 2004, Rakuten bought a 20.4% per cent stake in Ctrip at a high price of $109 million and became a major shareholder in Ctrip, and Rakuten's representative also entered the Ctrip board.

Rakuten's entry into China's E-commerce market is mainly due to the saturation of the Japanese market and the lack of stamina to achieve the company's established strategy, that is, the target of doubling business volume within 4 years. Expand overseas market, become Lotte inevitable choice. The reason why Rakuten locked China as the first stop for overseas expansion is that China's e-commerce development is in the ascendant, is in a growing period. This year, China's e-commerce market is 8.2 billion yuan, which will reach 46 billion yuan by 2010, according to an advisory group. Such a huge market space, of course, Lotte is unwilling to give up.

But whether Rakuten's foray into China's e-commerce market will be a repeat of ebay's retreat to China is unknown.

The author analyzes that Rakuten's entry to China faces at least two major tests: whether the

can be localized. Multinational companies in the expansion of overseas markets, most of the use of localization strategy, that is, the use of local talent, the use of local sales channels. And Japanese enterprises are mostly copied its overseas operation mode, in the Chinese market has a serious "acclimatized". Since last year, the Japanese mobile phone in the Chinese market has been the collapse of the whole, and ebay exit China's E-commerce market is also a few days ago. Although Rakuten established a partnership with Ctrip a year ago, she has some operational experience in the Chinese market. But now really want to mano, exerting force electronic commerce, but it is not easy. The operation of the soil, has been the Japanese enterprises, such as the Achilles heel of Lius, lingering. If Lotte wants to be in China's e-commerce market can be smoothly into the class, the company's senior executives must learn from the Japanese business lessons, pay attention to China's local social and cultural reality, the absorption of local talent responsible for management operations.

We often say: "Orange-born Huainan is orange, orange-born Huaibei is orange." Rakuten is currently operating in the Japanese market in a very wide range, not only includes online shopping, but also provides tourist hotels and air tickets booking services. To the Chinese market, it can not remain unchanged, and must be adjusted for business, the introduction of the Chinese mouth stomach products and services. Online payments, for example, are more popular in Japanese markets and have good conditions. But in the Chinese market, people's consumption habits are not suitable for this payment model. Rakuten, on this issue, must come up with practical tricks. The second is whether the

can withstand the weight of Alibaba. In China's e-commerce market, Alibaba from small to large, from weak gradually strong, has become the industry's leading geese. The Giants, whether Amazon or ebay, are trying to eat Alibaba, taking huge profits from the Chinese market. But the oath and the willing to violate, defeatGo to China. But Ma Yun is the more war more Yong, stable control of China's e-commerce market overall situation. Lotte settled in China, Alibaba is an unavoidable mountain. Rakuten entered, Alibaba certainly has the reaction, will further strengthen the marketing strategy. In addition, Taobao, ebay, Dangdang, etc. are very powerful, after a number of "war" baptism of people, in the Chinese market has its own different fixed user groups. Lotte, a "foreign monk", in the face of these formidable local rivals, such as the failure to take effective countermeasures, it is likely to appear "embattled" passive situation.

It can be seen that it is not easy for Rakuten to take a firm foothold in China. The success of the Chinese market will also affect the overall strategy of Rakuten's overseas expansion. In short, Rakuten's China trip, the future is not optimistic. (Starting in Silicon Valley power)