Online resources to advance your career and business. The same year the firm went public and got listed on what is now known as the JASDAQ. Only when we work together can this diversity become an important source of strength. Shoppers on JD.com can access a wide variety of . 1. Based on the customer data, it is sometimes possible to discover the customers' latent, unmet needs for some products or services. Rakuten Bank makes full use of this know-how. Found My Animal. Here are 22 shortened versions of the best value proposition examples: 1. Continuing the example above, Warby Parker's value proposition, as published on its home page, is: "Buying eyewear should leave you happy and good-looking, with money in your pocket. By using the Rakuten Bank app to read the barcode on the convenience store payment service's transfer slip, the customer can make a direct payment without having to make a trip to the store. His other past roles include Executive Officer and General Manager of the Personal Finance Department at ORIX Credit Corporation. (Profitability analysis was conducted by PwC Japan. Value Proposition. This experience gives bank employees the opportunity to gain a better understanding of the customers' needs and deepens their knowledge about systems development, while helping them to increase their marketing know-how. Rakuten Bank has decided to forego paper-based services, in principle. Does not undertake over-the-counter sales of investment trusts. Source: Rakuten Securities research. At the same time, we are acutely aware of the value of the information we hold both that of Rakuten Group and of our users and are committed to using and managing such information appropriately and responsibly. Value is a word that has nearly lost its meaning. The impact of the banking industry is clearly visible. With what looks like another attempt at mediocre business . Many banks outsource the development, operation, and maintenance of their own IT systems. In line with our vision as a Global Innovation Company and with our Brand Concepts as our guiding principles, we, as members of Rakuten Group, adhere to the highest ethical standards while maximizing Rakuten Group's value to shareholders and making positive contributions to society. In addition, global gross transaction value (GTV) was 26.9 trillion yen, up +20.5% YoY. Despite continued limitations on some in-store transactions due to stay-at-home trends, the impact of the pandemic that began in Q2 FY2020 has come full circle this quarter. The more people we can empower, the more completely we will fulfill this mission. Thus, employees do not have the kind of narrow perspective that a limited knowledge of anything beyond banking services would produce. (2) Making continuous efforts to improve customer services and increase the service lineup by launching new services in a short time and at a low cost (both advantages afforded by the use of proprietary IT systems). This was due to an increase in the number of Rakuten Cards issued and growth in online shopping, as well as the impact of pandemic-driven reduced consumption that began in Q2 FY2020 coming full circle this quarter. Rakuten Securities has succeeded in attracting investment beginners through a variety of initiatives leveraging the Rakuten Ecosystem. You needtohave JavaScript enabledin your browser toaccess thefull functionality and content of this website.To do so, please follow the instructions. Rakuten Native needs to choose whether it wants to implement a distribution system which is - Direct, Indirect, or Both. Rakuten Shugi (Rakuten Basic Principles). Rakuten Ecosystem user numbers continue to demonstrate sustained growth, as does the percentage. Additionally, new subscribers. Rakuten is a Japanese Internet service and eCommerce company. The bank has remained committed to offering convenient services at a reasonable price, while consistently pursuing the cross-selling of various products and services. The bank must control the quality of its loan portfolio and credit administration through risk management and other methods. The primary source of its revenue comes from the USA - 86% from over 28 . The emergence of online-only banks was prompted by the widespread adoption of the internet. The Rakuten Group forms a type of robust ecosystem. The company also promotes its offerings through its social media pages, as well as the hosting of Rakuten-branded conferences and expos twice a year in Japan and once a year at 13 other locations. Rakuten Bank offers the following services: Deposits (yen & foreign currencies); financing (credit card loans, mortgage loans, educational loans); bank deposit transfers, remittance services (credit cards, debit cards, prepaid cards, money transfers, etc. In this way, the bank is able to minimize its new customer acquisition costs. Join Rakuten for free and get a $10 Welcome Bonus. The Rakuten Group possesses internet marketing-related know-how that is based on data. The latest insights and news about Rakuten innovation and entrepreneurship. It has bought some other . In non-life insurance services, while insurance premium income has decreased due to continuing measures to optimize insurance underwriting for risk control, operating income increased YoY due to a decrease in net incurred insurance claims driven by loss ratio improvements. This is one of Rakuten Bank's strengths that other banks cannot imitate. These requests are either made in compliance with banking laws, or are the requirements of supervisory authorities. The pace of new bank account openings has accelerated since reaching 10 million accounts in January 2021, and in July 2021, Rakuten Bank became the first online bank in Japan to surpass 11 million accounts. Revenue for the Internet Services segment was 237,868 million yen, a +17.9% YoY increase, while segment profit was 17,347 million yen, compared to a loss of 1,309 million yen recorded in the same period of the previous fiscal year. Sign up today for an additional $10 bonus. This team is responsible for undertaking systems development, systems operation, and maintenance. ), Rakuten Bank's predecessor was eBank Bank, which was established in 2000. For customers, this translates into higher interest rates on deposits, lower fee charges, and lower interest rates on loans. However, customers need to make withdrawals from their accounts. Rakutens partners include the shipping and logistics companies that help it deliver its products to consumers; the financial institutions that enable it to carry out transactions that occur on the site; and travel associations from whom it receives advice on how to manage the travel portion of the site. 1. If you already possess a Rakuten ID, it is possible to use that same ID when opening a Rakuten Bank account. The company does not maintain a network of real branches, and does not provide face-to-face services, in principle. Value Proposition: "Exquisite diamonds, world-class designs, breathtaking jewelry." Slogan: "A diamond is forever." Value Proposition vs Tagline. (*2) Rakuten, Inc.'s news release, "Notification that Rakuten has changed the name of its subsidiary (eBank Bank), Jan. 21, 2010, https://corp.rakuten.co.jp/news/press/2010/0121_01.html, accessed on Nov. 25, 2020. Among the total number of MNO subscribers, the ratio of new subscribers switching over from other mobile carriers (MNP) is increasing. In addition, expansion of the Rakuten Mobile service area has progressed steadily, and Rakuten Mobile has achieved 90% population coverage for 4G as of the end of June 2021. With enough determination and effortby being a Get Things Done personyou can achieve anything. Accomplish in one month what it takes other companies a year to do, because we can only win by being many times faster than our competitors. *Please note that the information contained in press releases is current as of the date of release. In this way, the bank is able to provide those services most desired by customers as well as swift service and competitive low fees. The GMS speed of growth is accelerating every year, reaching five trillion yen in record time, just one year after reaching four trillion yen. External advertising is positioned as a supplementary option. The firm operates three reportable business segments: In the late 1990s, as the Internet was beginning to grow in prominence and utilization, Hiroshi Mikitani dreamed of starting his own online retail business. ), and are committed to maintaining high ethical standards. (*2). Consolidated revenue achieved double-digit growth, up +15.5% year-on-year (YoY), totaling 1.68 trillion yen. In order to help both consumers and business owners maximize the opportunities afforded to them by the internet, we also strive to act with fairness in every aspect of our business activities. Rakuten makes customization possible by giving room for merchants to develop their websites so that they can portray the originality of their. In Q4 FY2021, the number of payroll accounts increased +55.4% YoY, the number of transactions increased +17.4% YoY, and more customers are using Rakuten Bank as their main bank account for daily life.Rakuten Securities surpassed seven million general securities customer accounts in December 2021, an increase of two million accounts over the last year, when the number of accounts surpassed five million. It is Japans biggest online retailer with over 95 million products from more than 44,000 vendors. Moreover, it offers a phone line for the reporting of such goods. Rakuten Bank's sales staff will visit the corporate customer's office or factory, and speak directly with the executives. With the expansion of the Rakuten Mobile service area, Mobile segment profitability is expected to improve from the second quarter of FY2022.As it works toward carbon neutrality, Rakuten Group, Inc. succeeded in adopting 100% utilization of renewable energy in FY2021 (Based on preliminary figures; target achieved four years ahead of the original FY2025 target). As background, Rakuten Bank is committed to grasping in real time customers' feedback about its banking services. Embracing new thinking, Glasses, sunglasses, and contactswe've got your eyes covered.". This same process is undertaken for each customer segment. Because the online-only bank has obtained a banking license, it can also provide mortgage loans and other loans, as well as financing services. In 1999 it changed its name from MDM to Rakuten, a Japanese word meaning optimism. Rakuten Bank charges 300,000 yen (US$2,884.62). Taking into account the crucial role that banks play, it is no surprise that the process for opening a new bank is very involved. *1 Percentage of users of 2 or more services in the past 12 months divided by the number of users of all services in the past 12 months (as of the end of June 2021). The program enables consumers to earn points through shopping (1 point per JPY 100 of purchases) and the use of various services in the websites ecosystem. There are also numerous requests that must be met. The value proposition canvas is a tool where you map out your customer profile and product side by side in order to visualize how they connect. In conclusion, Japan's unique business culture, strong economy, and attractive value proposition are all contributing to the country's growing appeal among global investors. Rakuten Bank debit card pays the highest level of reward points in the industry. With Rakuten Shugi as a common foundation, we place high value on the entrepreneurial spirit that drives us to get things done. (*1) In addition, customers can move seamlessly between Rakuten Bank and other Rakuten Group companies, including an investment trust bank, a securities company, and an insurance company, when other non-banking services are required. This gives employees the chance to speak directly with customers. In 2003 it began operations overseas by acquiring many firms, including U.S.-based LinkShare Corporation. This cost-savings makes it possible for Rakuten Bank to upgrade the rewards (Rakuten points) given to customers opening new accounts, which makes the bank even more appealing to customers. Mikitani planned to charge them a monthly fee to host their products, with an additional fee for the provision of advertising and general promotional services. Hosting Fees Revenue generated from monthly fixed fees charged to merchants for the privilege of having their products/services hosted on the site. Operating losses improved by 2.6 billion yen on the previous year at the same time as rollout of proactive marketing activities, including campaign support for new merchant signups for small and medium-size businesses impacted by the pandemic that made payment fees effectively free for one year.Mobile segmentIn February 2022, Rakuten Mobile reached 96% population coverage ratio for the Rakuten 4G network area*10. Even among the apps provided by a single bank, these apps are usually divided according to function. Please check the coverage map for current coverage. As a result, the Insurance business as a whole achieved an increase in profit of +22.0% YoY. At the same time, due to strategic investment in future growth such as the accelerated buildout of 4G base station installations in the Mobile . Segment income was 107.5 billion yen, 2.7 times higher than FY2020.Domestic e-commerce gross merchandise sales (GMS)*2 for FY2021 exceeded five trillion yen, up +10.4% YoY. We draw a line between public and private, avoid conflicts of interest, and refuse to tolerate bribery or corruption in any form. Moreover, the ability to accrue Rakuten points has the effect of reducing the actual cost of banking services for users and reinforces their sense that they are getting a bargain. By raising awareness in this way, customers develop an understanding about the bank's peripheral services. 10 Best Value Proposition Examples. Step 4 - Designing a Marketing Mix using 4Ps - Product, Price, Place & Promotion. Meanwhile, Rakuten Bank has introduced its customers to other Group companies. In 2002 the firm established Pay As You Go, a fee contract system for merchants, and Super Points, a loyalty program for consumers. The newly created stories are then featured in sales campaigns. . It also maintains Rakuten University to provide training for merchants who are new to the Internet commerce world. "More convenient services" refers not only to the banking services offered by conventional banks, but also the convenience created by combining banking services with a wide variety of financial and other services offered by Rakuten-affiliated companies. Next, the bank develops a sales campaign that will have maximum appeal for the specific segment in question. Di. By committing to a more reasonable fee structure, Rakuten Bank has adopted a stance that is more acceptable to customers. The Rakuten Group as a whole, including main consolidated subsidiaries, will now aim to adopt 100% renewable energy utilization by FY2023.Internet Services segmentThe Internet Services segment achieved significant growth in both revenue and profitability in FY2021: Revenue was 1.003 trillion yen, up +14.7% YoY, exceeding one trillion yen for the first time in the companys history. In life insurance services, face-to-face sales are recovering from pandemic-driven limitations and have increased. Transaction Fees Revenue generated from the commission Rakuten charges for each purchase transaction that occurs on the site. Furthermore, Rakuten Bank's app is easy to use. Revenue for the Mobile segment rose to 51,462 million yen, an increase of +17.0% YoY, but segment losses reached 99,686 million yen, compared to 53,825 million yen in the same period in the previous year. Enable Accessibility Skip to content. The customer's "stage" is determined based on usage (number of transactions and total assets). Top 100 Digital . Interaction between the bank's personnel and those of Rakuten Group companies also helps the providers of other services deepen their understanding about the bank's services. This feature increases the customer appeal of the bank's promotional campaigns. In the Insurance business, in addition to strong performance of online sales, new contract acquisitions are steadily increasing for both life and non-life insurance services as some face-to-face sales have recovered from pandemic-driven limitations. Search Rakuten. Moreover, all of the financial companies in the Rakuten Group have formed tie-ups as agency service providers for the bank: Rakuten Securities, Inc. and Rakuten Life Insurance Co., Ltd. in 2016; Rakuten General Insurance Co., Ltd. and Rakuten Card Co., Ltd. in 2019. Rakuten Bank also provides a wide variety of other services. info: Hiroshi earned a Bachelor of Commerce from Hitotsubashi University and an MBA from Harvard Business School. The bank then formed a capital and business tie-up with Rakuten, Inc. in August 2008. Established in May 2017, Rakuten Trade is Malaysia's only fully digital equity brokerage . Categories. The bank has been able to reduce costs by achieving the complete digitalization of its banking services. The bank considers that the first step is to precisely understand the customers' needs, and then identify any changing needs. Examples of strong value propositions. In particular, personnel transfers are assigned taking into account the development of the individual's potential. Copyright Porter Prize, All Rights Reserved. That is to say, anyone with a smartphone can access all of these services. In addition, 35% of Rakuten Mobile subscribers who had not previously used a Rakuten service began using Rakuten Ichiba within one year of signing up for the mobile service. Furthermore, the bank promotes all types of banking services to its existing customers, as well as services offered by other Group members, in a type of "cross-selling." Limited to the use of services that can earn Rakuten Points. This is a major point that sets the bank apart from its competitors. Rakuten has a value-driven structure, aiming to provide a premium proposition through significant personal service. Our contribution to the world is empowerment, and our mission is to build a fair society by empowering individuals and companies to be successful in business and in life. The company enables customization by allowing merchants to design their pages on the website so they can showcase their stores originality. This arrangement has allowed the financial companies to undertake promotion and registration for the opening of an ordinary deposit account on behalf of Rakuten Bank. "We don't need to spend billions of U.S. dollars acquiring you know, I call it maybe a . Excluding non-recurring operational items such as investment in the Mobile and Logistics businesses and profit fluctuations in the Investment business driven by large market fluctuations, Non-GAAP operating income was 184.6 billion yen, an increase of +23.8% YoY. JD.com has grown to become China's leading online retailer through its ability to simplify shopping experience for everyday consumer. Japan's banking industry had no new entrants for many years until 2000, when several online-only banks were established. (Membership for all Rakuten Group companies combined totaled about 100 million people.) However, looking at these three consumer benefits, we can say that Amazon's greatest value proposition is convenience because the audience understands that, with just the help of a device connected to the internet, . The Rakuten Group recorded revenue of 402,158 million yen for Q2 FY2021, up +15.8% year-on-year (YoY), and continues to deliver strong growth. This has made Rakuten Group services more easily accessible to Rakuten Bank's customers, and has strengthened customer loyalty toward the Rakuten Group. ); the deposit and withdrawal of money (at affiliated ATMs); asset management apps (Money Support); and payments for Takurakuji and BIG lottery tickets, Toto (J-league soccer pools), and public race tracks, etc. Rakuten Bank, however, charged a flat rate of 300,000 yen (excluding tax) on home loans in November 2020. Why Rakuten is an ICG Certified Case Study 2 Context Rakuten business model Global market (peers and substitutes) 3 Detailed Description Rakuten value proposition 3 Relevant Media Media coverage and relevant quotes Case studies and detailed interviews 4 Marketing Collateral and Brochure ware We believe that the only way for a business to grow over the long term is to contribute to the world so significantly that people can't imagine life without it. Users can feel a degree of comfort with this app, as there is no need to move between apps. Vice Chairman and Representative Director, President of Rakuten Credit, Chief Information Officer and Executive VP, Innovators, Tech enthusiasts, Data Geeks, and people that want to change the world for the better. While shopping revolving balances and card cashing balances decreased YoY in line with the pandemic-driven decline in credit, an increase in service fee income along with increased Rakuten Card shopping GTV contributed significantly to earnings, resulting in growth in income and profit. When autocomplete results are available, use the up and down arrow keys to review results. Another success story was Rakuten Bank's participation in the SPU program (Rakuten Ichiba's Super Point Up Program) in July 2018. Overall Performance In FY2021, the Rakuten Group recorded revenue growth in all three segments: Internet Services, FinTech and Mobile. Password reset instructions will be sent to your E-mail. In addition, global gross transaction value (GTV) was 26.9 trillion yen, up +20.5% YoY.In Q4 FY2021, the average number of monthly active users across the Rakuten Group in Japan grew +12.2% YoY, and the percentage of users who use more than one service reached a record high of 74.7%*1. Going forward, this is expected to contribute to increased Average Revenue Per User (ARPU) and lifetime value. Juniper's value proposition comes to life in the details of the print shop from links to affordable IKEA frames and Jenny's one-of-a-kind suggestions (buy a vintage frame, invest in a custom mat). In July 2021, Rakuten Bank became the first online bank in Japan to reach 11 million accounts. *11 Number of subscribers are preliminary figures. Making the IT system a built-in part of operations brings the following competitive advantages: (1) speed (with regard to systems development and improvements); (2) cost; and (3) flexibility. Step 1 - Marketing Research & Analysis. The number of payroll accounts increased +65% YoY in Q2 FY2021 due to the success of initiatives aimed at promoting the use of Rakuten Bank accounts as the main account for customers daily lives. New subscribers due to cross-selling between Rakuten Group insurance companies increased 14-fold since the Comprehensive Insurance Center launched two years ago, contributing to improved financial results. In addition, in-house development of IT systems offers advantages with regard to the development of new services. Sign up today for an additional $10 bonus. Members of Rakuten Group come from a wide variety of backgrounds. These banks must continually invest in their investment trust systems. In addition, Rakuten conducts daily checks to remove items that are non-compliant. Lastly, it operates Rakuten Travel College to provide education for travel companies with services on the site. The Bank's Kantan Furikomi or Easy Deposit settlement service enables customers to send money using Merumane (Mail Money), Facebook Pay, or Viber's money transfer service. It's employing over 12000+ employees who cater to the needs of 20 million+ consumers. In Q4, shopping e-commerce GMS*3 grew +11.7% YoY, achieving additional growth even after the impact of increased demand due to stay-at-home trends in FY2020 that led to significant growth of +45.2% compared to Q4 FY2019.Expanded cross-use between Rakuten Ichiba and other e-commerce services such as Rakuten Seiyu Netsuper, Rakuten Beauty and Rakuten GORA have contributed to the increase in total GMS.For Rakuten Travel, the total number of guest nights*4 in Q4 FY2021 showed positive growth of +5.1% on FY2019. You needtohave JavaScript enabledin your browser toaccess thefull functionality and content of this website.To do so, please follow the instructions. SBI Securities no longer discloses account numbers as of 2021. At Rakuten, we drive disruptive innovation, Topics of discussion include: (1) the customer needs that would be met by making improvements to existing services or developing new services; (2) the development processes and the costs involved in developing IT systems for new services and the upgrading of existing services; (3) the challenges associated with such improvements and development projects; and (4) marketing activities that would enable the bank to recoup investments made for the development of new services and the upgrading of existing services. It provides eCommerce consultants who give vendors guidance on how to increase sales and solve everyday challenges. By working with local communities and nurturing a robust corporate culture enabling each member of our diverse team to perform at their best, the Rakuten Group is committed to boosting corporate value and contributing to progress in society. The bank also signed an agency agreement with Rakuten Life Insurance in March 2013, and Rakuten General Insurance in April 2019. The company has found the online marketplace business model to be the most profitable for them. Rakutens mission is to empower people and society through the Internet. Mailchimp. *6 As of February 14, 2022. Rakuten Group Q2 FY2021 Financial Results Highlights. Identify and assess the benefits delivered by your company and its products or services, along . Get on promotion fasstrack and increase tour lifetime salary. This achievement was followed by many major milestones. (*3) It was designed to improve customer convenience and increase new customer acquisition. Rakuten Bank is Japan's largest internet bank, with total accounts of 8.68 million, as of March 31, 2020. The bank monitors customers' online behavior, noting page transitions, breakaway points and other types of monitoring issues, and identifies any points that might be difficult to understand, or that might be a source of stress for customers. Advertising Fees Revenue generated from the fees the company charges to third parties for advertising their offerings on the site. As the number of users completing the one-year free campaign continues to increase and roaming area costs decrease, earnings are expected to improve from Q2 FY2022 onwards.The total number of subscriptions for the MNO service and MVNO service surpassed 5.5 million*11 as of February 2022, demonstrating steady progress in customer acquisition.