Rakuten pins hope on 3G

Rakuten pins hope on 3G

Rakuten Tarad.com, Thailand leading e-commerce marketplace, has earmarked a marketing budget increase of 1,000% this year to chase rapid growth of e-commerce with the advent of the third generation (3G) mobile broadband market.

The Japanese firm released a survey finding that 47.5% of 5,000 respondents purchased goods online for the first time in the past two years.

Some 64.5% of the respondents say they use social media suggestions by friends to buy online products.

Pawoot Pongvitayapanu, founder and managing director of Rakuten Tarad.com, said the spending will cover TV advertising and other online activities.

Rakuten will roll out its global "Super Sale" campaign in Thailand on May 27, offering discounts of more than 50% during the 12-day promotion.

The campaign is expected to increase its online merchandise sales by 200% during the period, and add more customers to its current 2.5 million.

Mr Pawoot said Rakuten will start offering product delivery services this year through its outsourcing partners.

The company is also looking to expand to financial services, especially with the Rakuten credit card.

Rakuten's sales in the first quarter of 2013 grew by 23% from the same period last year, said Mr Pawoot.

The top three best-selling products are in the fashion, food and health, and watches and jewellery markets. Other popular products are baby clothes, automobiles and toys.

Mr Pawoot said the company also saw a change in customer demographics. Customers aged above 40 purchased more products online with a 100% increase in sales volume last year.

He added that mobile commerce also saw growing momentum. Mobile commerce is expected to make up 29% of Rakuten's customers this year.

Mobile transactions volume will account for 13% of this year's total, up from 11% last year.

Mr Pawoot said mobile commerce in Thailand is the company's second largest market after Japan, where 30% of total sales came from the mobile sector.

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