Yahoo Japan shoots for the stars in e-commerce with Zozo deal

Sep 13, 2019 | News On Japan

Sep 13, 2019 (Nikkei) - Yahoo Japan's acquisition of online fashion retailer Zozo presents an opportunity for the venerable internet services company to bring fresh blood into its e-commerce audience as the business looks to step outside the shadow of Amazon.com and Rakuten.

"Yahoo is focused on advertising, but we want to make e-commerce into a second pillar," Kentaro Kawabe, CEO of the SoftBank Group member, said at a news conference Thursday. "In fact, we want to make e-commerce our [main growth] driver."

Right now, Yahoo relies heavily on earnings from ads. Its media segment -- mainly advertising -- logged operating profit of 141 billion yen ($1.3 billion at current rates) for the year ended in March, well over double the contribution from the commerce business.

A trailblazer when it launched back in 1996, Yahoo Japan now perpetually lags in third place in the country's e-retail market -- to the frustration of SoftBank Group CEO Masayoshi Son, whose philosophy stresses the importance of world-beating market share. The technology conglomerate is throwing its considerable weight behind Yahoo to change this with the 400.7 billion yen tender offer for Zozo.

"Our goal of becoming the No. 1 e-commerce company in Japan by the early 2020s is coming within reach," Kawabe said.

Yahoo's audience skews somewhat older than those of Amazon and Rakuten, toward people in their 30s and 40s. Younger users turn to the service only for certain applications, such as looking up public transit information.

Zozo offers a base of 8 million customers, mostly in their 20s and 30s. Having the apparel seller set up shop on Yahoo's marketplace should bring more of these young consumers to the platform, the thinking goes.

The deal also could draw more women to a platform now used mainly by men. Males constitute 60% of users for Yahoo's online mall, while 70% of Zozo's customers are female.

SoftBank Group chief Masayoshi Son, left, and Zozo founder Yusaku Maezawa at a news conference announcing the deal in Tokyo.

Players to Watch When Japan Faces the Netherlands

Japan's World Cup campaign begins on June 14 when the Samurai Blue face the Netherlands at Dallas Stadium in Texas, a clash that will showcase some of the game's most talented players and pit two ambitious teams against one another in a crucial Group F opener. While Japan arrives without injured winger Kaoru Mitoma, one of its most recognizable stars, the squad still boasts a wealth of talent drawn from Europe's top leagues.

El Nino Returns, But Japan Faces Another Hot Summer

The Japan Meteorological Agency (JMA) announced that an El Niño phenomenon is believed to have developed this spring, warning that Japan is likely to experience above-average temperatures nationwide this summer despite the climate pattern's traditional association with cooler summers.

Narita Airport Advances Compulsory Land Acquisition for Runway

Narita International Airport Corporation is expected to announce next month that it will apply to the national government for project certification as part of the process to enable compulsory land acquisition for the construction of a new runway at Narita Airport, according to sources familiar with the matter.

Fire Destroys Historic Arima Inari Shrine

A fire broke out at Arima Inari Shrine near the Arima Onsen hot spring resort area in Kobe on the night of June 9th, destroying multiple buildings and leaving an elderly Shinto priest and his wife with minor injuries.

Japan National Team Holds First Training Session in Nashville

Japan's national soccer team arrived in Nashville, Tennessee, on June 8th from Monterrey, Mexico, where it had been conducting a pre-World Cup training camp, and held its first practice session at its base camp for the FIFA World Cup in North America.

MEDIA CHANNELS

MORE Society NEWS

Fire Destroys Historic Arima Inari Shrine

Japan Cycling Association Head Arrested Over Alleged 30 Million Yen Fraud

Two men, including the head of the Japan Cycling Association, have been arrested by the Metropolitan Police Department on suspicion of defrauding two men in Kagoshima Prefecture out of 30 million yen by falsely promising a massive return on a purported patent-related investment.

Another Bear Feared Roaming Utsunomiya

A bear that had been repeatedly spotted in commercial and residential areas of Utsunomiya, Tochigi Prefecture, was captured in a residential neighborhood at around 3:30 p.m. on June 9th after authorities used a tranquilizer gun, but the city remains on alert because police say they cannot rule out the possibility that another bear may still be roaming the area.

Self-Proclaimed 'Messenger of God' Among Seven Arrested Over Teen's Confinement

Nara Prefectural Police have arrested seven people, including a 46-year-old Yokohama man who described himself as a "messenger of God," on suspicion of unlawfully confining a teenage boy entrusted to their care by his parents, allegedly threatening him, confiscating his belongings, and forcing him to sleep naked.

Knives Found in Eye and Abdomen of Dead Man in Kobe

A man believed to be in his 50s or 60s was found dead with knives lodged in his left eye and abdomen inside a container at a company property in Kobe's Suma Ward on June 8th, prompting police to investigate the possibility of a criminal case.

Missing American Student Found Dead After Week-Long Search in Kyoto

The family of James "Weston" Higginbotham, a 20-year-old Auburn University student who disappeared during a family vacation in Japan, announced on June 7th that he has been found dead after a volunteer search-and-rescue team located his body in a mountainous area outside Kyoto, bringing a week-long multinational search to a tragic end.

Unlicensed Peruvian Man Conducts Risky Medical Procedure During Delivery

A clinic director and a former Peruvian staff member have been referred to prosecutors after the man allegedly performed medical procedures without a license, including an external cephalic version—a procedure used to manually turn a baby into the correct position before birth—at an obstetrics and gynecology clinic in Fukuoka City, raising concerns about patient safety and oversight in maternity care.

Video Shows Old Lady Chasing 14-Year-Old Girl After Cash Grab

A 14-year-old junior high school girl was arrested on suspicion of robbery resulting in injury after allegedly spraying a woman in her 60s in the face and stealing her wallet during a robbery attempt in Kasukabe, Saitama Prefecture.

< 2 3 4 5 >