Yahoo Financial Review Analysis Lotte to enter the global outlook

Yahoo Finance published a commentary, analysis of the Japanese electric business Lotte to enter the global outlook.

The article reads as follows:

Japan does not yet have internet companies in the global fame of legend, E-commerce website Lotte (Rakuten) CEO Sam Mikitani (Hiroshi Mikitani) to change the situation.

Over the past few years, SANMU has been recruiting on the Internet, spending 250 million of dollars on Buy.com, buying Play.com for $38 million, and finally paying 315 million dollars for Kobo, an e-reader producer.

In return for these acquisitions, Samu has asked employees in Japan and around the world to speak English. The use of a unified language is essential for companies to march to the world. Sanmu said the company's plan for "englishnization (since the creation of words, meaning English)".

There is much more that Rakuten wants to do to expand globally, and more needs to be done in addition to cutting costs and speaking English. First, the experience of operating in Japan is to be extended to global operations, and then consideration will be given to the rewards from the purchased projects.

Rakuten Market Model

Rakuten, a Japanese power-maker, is similar to the Etsy website, offering a platform for commodity trading. On the website, small businesses can sell their wares and attract more customers through Rakuten. Unlike Amazon, which is a traditional shopping site, Rakuten pays more attention to business than products. In the Rakuten market, sellers are the main factor to consider when users shop. This model works very well in Japan. Although 2011 was affected by Japan's big earthquake, Rakuten's total revenue remained at $4.6 billion trillion, up 9.8% from a year earlier, with a profit of $2.8 billion. Rakuten's market capitalisation is about $13 billion trillion, and its share price has remained stable over the past 12 months.

Rakuten also has a peripheral business in the banking, telecommunications and tourism industries, and even a baseball team northeast Lotte Golden Eagle.

78% of Japanese netizens have Rakuten accounts. Rakuten has a 30% market share in Japan's electricity market, easily defeating Amazon. But Amazon is catching up, so Rakuten inevitably chooses to move to the world.

The future of Lotte Market

So far, only 10% of Rakuten's revenue comes from outside Japan.

49 million Internet users in the United States visited Buy.com last December, according to a report published by comscore, a market research agency. Amazon's 111.5 million visit in the fourth quarter of last year.