Japanese Rakuten, the world’s fifth largest e-commerce company, has posted a 16.4 % turnover growth in the first six months of 2018, while its profit grew even faster (+60 %). Still, the company sees the need for an internal reorganisation to better deal with demanding circumstances.
No harm from Amazon
Despite the growth of Amazon in Japan, e-commerce remains the most important factor in Rakuten's growth (the company is also active in telecom and finance): the branch saw its turnover rise 16.1 % and its profit 28.8 %.
Still, Rakuten feels it has to arm itself against the stronger competition, starting an internal reorganisation that should be finished by next spring. 'Rakuten e-commerce' will hold the company's e-commerce activities in Japan, where Rakuten is market leader with a share of 27 % (or 25 billion euro) in 2017. Telecom activities will be grouped in 'Rakuten Mobile Network' and the financial branch in 'Rakuten Card'. A (so far nameless) entity will hold the company's foreign activities, consisting of Rakuten France (former Priceminister) as well as American companies Buy and Ebates and German Tradoria.