Why Rakuten

Rakuten is a Japanese electronic commerce and online retailing company founded in 1997 by Hiroshi Mikitani. Headquartered in Tokyo, Japan, Rakuten has grown from a small online marketplace into a global internet services powerhouse, often referred to as "the Amazon of Japan."

The company's name "Rakuten" means "optimism" in Japanese, reflecting its ambitious vision and positive outlook on the potential of e-commerce and digital technology. Rakuten started as a small online marketplace called Rakuten Ichiba, which connected small and medium-sized businesses with consumers. This model proved highly successful, and the platform quickly became Japan's largest e-commerce site.

Over the years, Rakuten has significantly expanded its services and global footprint through strategic acquisitions and partnerships. Today, the Rakuten Group encompasses a wide array of businesses, including e-commerce, fintech, digital content, and communications. Some of its notable services include:

Rakuten Ichiba: The flagship e-commerce platform

Rakuten Travel: Online travel bookings

Rakuten Card: Credit card services

Rakuten Bank: Online banking

Rakuten Securities: Online brokerage

Rakuten Mobile: Mobile network operator

Rakuten TV: Video-on-demand service

Viber: Messaging and VoIP app

One of Rakuten's key strengths is its ecosystem approach, which integrates various services under a single membership program called Rakuten Points. This loyalty system allows users to earn and spend points across different Rakuten services, encouraging customer retention and cross-platform engagement.

Internationally, Rakuten has made significant strides through acquisitions and investments. Notable examples include the purchase of Buy.com in the United States (now Rakuten.com), PriceMinister in France, and a major investment in Lyft, the ride-sharing company. The company has also made a name for itself in the sports world by sponsoring high-profile teams like FC Barcelona and the Golden State Warriors.

Rakuten's innovative approach extends to its corporate culture. The company adopted English as its official language in 2010, a bold move for a Japanese corporation. This decision was part of Mikitani's vision to transform Rakuten into a truly global company and attract international talent.

In recent years, Rakuten has been focusing on expanding its technological capabilities, particularly in areas like artificial intelligence, blockchain, and 5G networks. The launch of Rakuten Mobile in 2020 marked its entry into the telecommunications industry, with the company building the world's first end-to-end fully virtualized cloud-native mobile network.

Despite its successes, Rakuten faces challenges, including intense competition in the e-commerce and fintech sectors, both domestically and internationally. The company continues to invest heavily in technology and global expansion to maintain its competitive edge.

As of 2024, Rakuten remains a dominant force in Japan's digital economy and continues to pursue global growth opportunities. With its diverse portfolio of services and commitment to innovation, Rakuten aims to become a leading global internet services company, connecting people, businesses, and society through its integrated ecosystem of products and services.