Yahoo Japan sees major gains from mobile commerce and e-commerce
Yahoo Japan, one of the largest Internet companies in the country, had a very lucrative 2012. The company, which boasts of its own search, mobile, and e-commerce platforms, has done very well despite strong competition from Google and others looking to engage consumers in the mobile space. New analysis from Trefis, a financial and stock market analysis firm, suggests that there are two major factors that have contributed to Yahoo’s success over the last year: Mobile commerce and e-commerce.
Mobile advertising drives commerce higher
In 2012, Yahoo Japan generated approximately $3.5 billion in profit, with a company-wide gross margin of 90%. Trefis analysts expect that this growth will continue into 2013, especially as Yahoo looks to take advantage of the growing mobile commerce and advertising sector. Analysis shows that mobile advertising accounted for approximately 17% of Yahoo Japan’s total value in 2012. These advertisements helped spur mobile commerce, which also helped the company in terms of finances.
E-commerce initiatives prove successful
Yahoo’s e-commerce business is considered is most lucrative factor, accounting for 18% of the company’s value. E-commerce generated a significant portions of the company’s profits in 2012, largely backed by the performance of mobile commerce campaigns and mobile advertisements. Growth of the e-commerce sector is expected to slow in 2013, but Yahoo Japan will likely continue seeing promising results from this sector in the years to come, especially as more consumers become enthralled with mobile commerce.
2013 is likely to be a good year for Yahoo Japan
Yahoo Japan is expected to have a very strong 2013. The company has been putting more focus on engaging mobile consumers recently, largely because Japan is home to one of the largest mobile markets in the world. Smart phone penetration in the Japanese market is significant, eclipsing other countries by a healthy margin. This typically means that companies with a focus on mobile consumers tend to have a more powerful reach in the market than others.