Rakuten Group Inc

TSE:4755

Rakuten Group Inc., established in 1997 by Hiroshi Mikitani, has blossomed from its origins as a fledgling e-commerce platform into a sprawling digital ecosystem. At the heart of Rakuten's business model is its robust online marketplace, Rakuten Ichiba, which connects a broad spectrum of vendors with consumers. Unlike traditional e-commerce giants that focus on direct sales, Rakuten Ichiba operates as a marketplace, allowing a multitude of independent sellers to flourish and pay commission fees. This approach has fostered a unique, vibrant marketplace bustling with diverse products. The company enhances this ecosystem further through its loyalty program, Rakuten Super Points, which incentivizes spending across its platforms, instilling a cycle of engagement and repeat business that bolsters its retail operations.

Beyond e-commerce, Rakuten diversifies its revenue streams through ventures in fintech, telecommunications, and digital content. Rakuten’s fintech arm, which includes services such as Rakuten Card and Rakuten Bank, contributes significantly by harnessing the power of its expansive user base, facilitating credit and banking services seamlessly integrated into its online store. In telecommunications, Rakuten Mobile represents an ambitious foray into the competitive industry, offering cost-effective mobile services relying on proprietary network technology. This diversification is not merely horizontal but is also about vertical integration, combining shopping, communications, and financial services into a cohesive, interconnected ecosystem that generates multiple revenue channels and facilitates cross-promotion among its services, fortifying its overall market position.