Wireless Technologies The Future is Japan.ppt

Wireless TechnologiesThe Future is Japan,April 2002,Overview,Internet Market in JapanWireless Market Trends The Success of i-modeNew and Funky i-mode sitesThe Future,The Wireless Market in Japan,Japan is alive and happeningInternet usage increasing at phenomenal ratesMobile Internet is rocketing as more and more content is made availableThe i-mode is hot!Everyone wants one“There are a few things a Japanese teenager girl doesnt leave home without:her six-inch platform shoes,some touch-up toner for her hair colour of the day,and her i-mode phone”Business Week,1/17/00,Why the i-mode?,i-mode was launched in February 1999 by NTT DoCoMo and is proving to be a huge successHaving a Major impact on marketing and e-business in JapanDoCoMo is dominating the Mobile Internet marketi-mode allows its users instant access to the Internet via a cell phone-users are always connected,in stand by for receive data98%nationwide access i-mode uses a packet network system which enables cheaper usage feesmonthly fee of only 300 with i-mode e-mail address,i-mode users-Who are they?,User Profilealmost half of users are white collar workersthe next largest group is students,teenagersuser group split quite evenly between men and women,though there are dramatic differences in age distribution by genderfemale users are younger than male users on averagewomen in their 20s account for almost 2/3 of all female i-mode users80%of all male users are between 21 and 40 years of age,i-mode Subscriber Rate,Number of subscribers to i-modea huge 4,211,111(2/20/00)in first 12 months and growing rapidly 250,000 new subscribers weeklyThe number of i-mode customers exceeded 5,927,764 as of April 13,2000.NTT DoCoMo is predicting to reach a target of 10 million subscribers in 2000,Internet Access by PC&i-mode Forecast,Subscribers(mil),i-mode:A Lifestyle,Home PC penetration rates remain low in Japan-(29%)68%of Japanese households have at least one mobile phoneThe mobile Internet offers an attractive option due to ubiquity,convenience and lower access fees than a PCmore people are experiencing the Internet for the first time via the mobile phone rather than through the PCThe i-mode is fast becoming a lifestyle,a part of daily life-whether on a train,in a caf,or just walking through a park,i-mode is used everywhereThe mobile phone may gradually become more popular than the PC as an Internet access device as number and quality of sites increasesdisplays improve and speeds increaseability to send longer email increases,i-mode:ISP Site War,i-mode even seems to be competitive among ISPsAmong the three largest ISPs in Japan,i-mode has largest number of subscribers:4,450,000(Feb 2000),i-mode:Portal Site War,After Yahoo,i-mode has greatest number of page views per day:40 million,Available Services,Currently,there are 400 official sites,but almost 6,000 specially formatted sitesApplications include:email,online chatcustomized news bulletinsgames(esp.BANDAI character downloads)online horoscopesfishing updates,horse racingrestaurant guidesInternet banking,insurance information,travel reservations,JAL is most popularentertainment bookings,eg.concert reservationsrent-a-carmusic downloads AND MORE.,Official Sites vs Unofficial Sites,Official sites(400)Banner advertising or linking to other sites is limited.Site links need to be approved by DoCoMo(no links to dodgy sites)All sites listed on i-mode menuUnofficial sites(5000)Banner advertising is unlimitedGreater variety of services is possibleBUT.User must know url or search on independent search engines,Applications,Applications:e-mail,E-mail is the most popular application among Japans Internet-enabled mobile phone users75%of business-oriented mobile phone users over 90%of i-mode users,report using their phones for e-mail.Nearly all users under 20 years of age use e-mail or short mail especially high school students.For example,What are you doing?Whats for lunch?E-mail based Community-type websites are very popular.B-a database searchable by user name,age,city,email address.Users can search for people who meet their criteria then compose and send email and create email pals.,E-mail-the killer app,Currently E-mail is the killer appSurfing is less common and is used more by the very youngUse of i-mode for banking increases with age,Applications:News/Media,News services are the second most popular application for business-oriented mobile usersServices include:news updates(Nikkei BP updates every 30 minutes)sports updates such as sumo tournament updates,baseball,horseracingweather forecasts In December 1999,Nikkei News had more than 20,000 subscribers at 300yen per month(monthly revenues of about US$60,000),Applications:Internet Access,Within official i-mode site categories,Entertainment sites are greatest in number and most frequently accessed across all age groups,Entertainment:Popular i-mode sites,DWANGO-Virtual Fishing GameVery popular fishing game that uses geographical data on 1,000 locations nationwideUsers can choose from 1,000 fishing spots and equipment,select speed/strength of fishing linePhone vibrates when a fish is caughtCurrently no advertising,Entertainment:Popular i-mode sites,DWANGO-Virtual Fishing Game,Entertainment:Popular i-mode sites,BANDAI-cartoon character downloadBandai Charappa is one of the most popular sitesabout 600,000 i-mode subscribers in January 2000only 300 per month to download a character dailyBandai earns more than 60 million yen per monthBandai also offers a service dubbed Dokodemo asobegasudelivers daily quizzes to subscribers handsetsUsers bet and invest points won on past quizzes and may borrow points from a virtual bankAn even more creative service by Bandai offers Love by Mailenables users to experience the dating process by dating one of Bandais virtual pen pals via e-mail.Performances are evaluated and scorecards sent back to subscribers.,Entertainment:Popular i-mode sites,CHAKU-MERO着downloading of melodies for when phone calls and emails are receivedvery popular among teenagers and ganguro 顔黒according to a recent survey conducted on i-mode,Entertainment:Popular i-mode sites,CYBIRD-Surf information providerProvides domestic and international surfing reports three times daily-sports,waves300 per monthDecember 1999,the company reported over 30,000 subscribers which is US$90,000(9 million yen)monthly revenue,Entertainment:Popular i-mode sites,Photonet Japan-Photo downloadPhotonet Japan provides a service whereby wireless users can bring their 35mm/APS film to an affiliated photo shop and have their pictures uploaded to an online album.Service is 500 for an ID,3 days later will receive an email with your own URL,then can access all of your pictures on the i-mode WebUsers can customise their handset displays,send copies of digitised photos to friends,order prints online,Entertainment:Popular i-mode sites,TSUTAYA-video storeexpanding its services on i-mode rapidly200,000 members on-line60%of members used i-mode to joinprovides information on top ranking CDs,videos,games,booksalso possible to perform store check and video order via i-mode,Entertainment:Popular i-mode sites,TSUTAYAWireless Coupons Sends discount coupons to members for their favourite videos.Members then present the coupon to their video storeEach coupon has a number which is recorded at POS and the transaction is then recorded in the databaseData collected used for customer behaviour analysis&forms basis for new marketing plan development,tailored customer specific services.,Entertainment:Popular i-mode sites,AJINOMOTOProvides simple online recipes and menus for busy people who need to prepare quick and easy meals Users can choose from:breakfast menus10-minute mealslow-salt mealsvegetarian,Travel:Popular i-mode sites,JAPAN AIRLINESServices include:domestic e-ticket reservations and purchaseseat availabilitymileage account check,ticket pricing checktransfer location informationPayment possible with credit cardThe rapid increase in i-mode subscribers shows a direct correlation to a rapid increase in JAL ticket bookings via i-mode(up 440%per annum)i-mode is an effective sales channel for airline tickets!,Travel:Popular i-mode sites,Japan Airlines,Retail:Popular i-mode sites,KINOKUNIYAJapans largest bookstore chain,both online and through retail outletsKinokuniya sells more than 2 billion worth of books annually via Internet-10%of orders are from i-modeProvides a free service on i-mode.This includes:best seller liststitle searchesonline ordering and home deliveryonline dictionairiesPayment possible for books by credit card12%of new subscribers to its BookWeb service are i-mode users,Share Trading,Share Trading,DLJ Direct-online stock trading companySharemarket trading via i-mode is increasing at phenomal ratesOnline stock trading via i-mode is as high as 1150 orders per day.While still not as high as orders via PC or phone(8354),increasing steadilyOther investment information services-Daiwa Securities,Nikko Securitiesoffer stock price quotes,stock sales/purchase,fund ratings and market trends,Banking:Popular i-mode sites,Japan is a cash society where bank-to-bank transfers are common.But,most ATM hours are limited and inconvenient for most people who work long hours or attend schoolWireless banking offers an attractive alternative Over 140 Japanese banks offer i-mode access to customer accountsMost commonly used services are account balance checking and fund transfersOther services include:interest and exchange rate information,location of branches and ATMs,Advertising on i-mode,Banner advertising still quite low But.i-mode users are responding to banner ads and e-mail advertising much faster than standard Web usersFor example,OH!NEW,an unofficial site run by Digital Street,gets 220,000 page views per day.The banner ad click rate of 5-10%is well above the 1%level for standard Web sitesHUGE OPPORTUNITY FOR BANNER ADVERTISING,5-10 TIMES MORE EFFECTIVE THAN PC WEBSITES,What are Clients Competitors doing?,AmexJapans top 6 credit card providers all provide a service on the i-mode,eg.Sumitomo Visa,UC Card,DC CardThough not yet very sophisticated(basic functionality,)these services include:credit balance checkloan applicationsbrowse through special promotional materialsreport lost or stolen cardsCD/ATM locationsNorthWestJAL-currently domestic only on i-modeANA-domestic only,What are our Competitors doing?,UnileverShiseido-doing nothing directly but 3rd party retailer driven advertising existsFor eg,a retail outlet,Nakai Cosmetics Store provides an information service on i-mode describing its range of products,and mentions Shiseido among theseManufacturers are yet to capitalise on new advertising mediumZurichMeiji Life,Sumitomo Life,Yasuda LifeNestleAjinomoto-provides recipe site,The Future,The Future,Faster SpeedsLarger Screens,GPSJava TextCar Navigation SystemsAdvertisingPotential Market Size,Faster Speeds,All mobile phones in Japan predicted to be i-mode type by June 2000(NTT DoCoMo)Based on W-CDMA high speed protocol,DoCoMo will be the first service provider to launch a 3G digital cellular system.This will enable:Faster download speeds and Internet access to graphic and text-based informationIn 2000,speeds more than 300kbps are expected and by May 2001,peak speeds will hit 2 megabits per second.Current i-mode speeds only 9.6kilobits/sec announced by NTTDoCoMo on Monday,April 4,2000Current cell phones enable Internet access and transmission of still-visual data,but advanced models will perform this much faster(fast enough for high quality music downloads and video clips),Larger screens,GPS,Larger screensavailable this year to accommodate more complex sitesGPSpredicted to be available by 2002 at the latestA new model of i-mode was released on March 4,which enables users to download restaurant or entertainment information,then connect the phone to the car navigation system for a display of location map and directionsLocation Serviceswill enable tracking of handset users prone to getting lost-children,senior citizens,Java Text,Java enabled i-mode handsets due to launch in September,2000This will enable application/content providers to distribute software(applets)to cellular phonesapplets include interactive games,client agent software to manage serversSSL(secure socket layer)protocol will be implemented to make it possible to safely send credit card numbers directly from an i-mode wireless handset.,Car Navigation Systems,NTT DoCoMo plans to start offering Internet access to users of both car navigation systems and i-mode compliant handsets from spring 2000Users will be able to connect their i-mode to the car navigation system to gain low cost access to online information services(already available from DDI and IDO,competitors of NTT DoCoMo),Advertising,WebInteractive Ltdan online advertising companyis currently developing a membership based service which will enable subscribers to automatically receive retailer information via their handsets when they pass within close proximity of a participating store,Potential Market Size,The Japanese Government forecasts that in 2010,120 million Japanese will own a mobile phoneSince many are predicted to own more than one,Japans market potential is estimated at 360 million units.Currently,Japans wireless market generates$50 billion in revenue,40%of the countrys total telecom revenuesBy 2003,the market is expected to be worth$100 billion,with$60 billion generated by mobile Internet business.,