Concentrating Management Resources and Investing for Growth in minne

「We will leverage the stable and strong earnings generated by services in the domain and rental server (hosting) business and e-commerce support business, which have stock-based business models, to invest in high-priced, high-value-added stock services and businesses using AI. We will also invest in new services and affiliated companies offering significant synergies by leveraging our brand strength, customer base and operating expertise, thereby expanding our business domains.」

「As we reviewed our business portfolio, optimized management resources, and pursued business selection and concentration, we repeatedly considered the future development of GMO Creators Network. We decided to transfer the shares after determining that the company could pursue new initiatives aimed at service growth.」

「We will leverage the stable and strong earnings generated by the hosting and e-commerce support services with stock-based business models to invest in high-growth businesses with flow-based business models, including e-commerce support, handmade and financial support services. We will also invest in new services and affiliated companies offering significant synergies by leveraging our brand strength, customer base and operating expertise, thereby expanding our business domains.」

「We will leverage the stable and strong earnings generated by the hosting and e-commerce support services with stock-based business models to invest in high-growth businesses with flow-based business models, including e-commerce support, handmade and financial support services. We will also invest in new services and affiliated companies offering significant synergies by leveraging our brand strength, customer base and operating expertise, thereby expanding our business domains.」

「For the fiscal year ending December 2021, in addition to steady growth in stock services such as the rental server “Lolipop!” and online shop creation service “Color Me Shop,” we aim to further expand revenue from e-commerce-related services including the handmade marketplace service “minne” and the rapidly growing original goods creation and sales service “SUZURI,” against a backdrop of e-commerce market expansion driven by the shift to digital.」

「For the fiscal year ending December 2021, in addition to steady growth in stock services such as the rental server “Lolipop!” and online shop creation service “Color Me Shop,” we aim to further expand revenue from e-commerce-related services including the handmade marketplace “minne” and the rapidly growing original goods creation and sales service “SUZURI,” against a backdrop of e-commerce market expansion driven by demand from people staying home and the shift to digital.」

「In addition to growing demand from people staying home due to requests to refrain from going out and the steady use of e-commerce after the declaration of a state of emergency, promotional activities including various coupons, campaigns and TV commercials helped GMV reach ¥14.9 billion in the fiscal year, up 24.5% year on year.」

「For the fiscal year ending December 2020, in addition to steady growth in core stock services such as the rental server service “Lolipop!” and the online shop creation service “Color Me Shop,” driven by higher average revenue per customer, we aim to further expand revenue from the profitable handmade marketplace service “minne,” which achieved profitability in the fiscal year ended December 2019. We also plan to continue investing in the rapidly growing original goods creation and sales service “SUZURI” and the factoring service for freelancers “FREENANCE.”」

「For the fiscal year ending December 2020, in addition to steady growth in core stock services such as the rental server service “Lolipop!” and the online shop launch and creation service “Color Me Shop,” driven by higher average revenue per customer, we aim to further expand revenue from the profitable handmade marketplace service “minne,” which achieved profitability in the fiscal year ended December 2019. We also plan to continue investing in the rapidly growing original goods creation and sales service “SUZURI” and the factoring service for freelancers “FREENANCE.”」

「In the fiscal year ended December 2019, we sought to diversify revenue streams based on the service foundation built through large-scale promotion since 2015, including the number of creators, items and downloads. The handmade segment achieved full-year profitability. Promotion costs totaled ¥271.895 million, down 71.3% year on year, as a result of reducing promotion.」

「In addition to reducing promotion, we worked to improve profitability at minne, resulting in higher revenue and profit, and the service remained profitable in the nine months ended September. Promotion costs totaled ¥190.685 million, down 73.8% year on year, as a result of reducing promotion」

「As a result of reducing promotion, promotion costs totaled ¥137.343 million, down 70.1% year on year, while GMV for the six months ended June reached ¥6.1 billion, up 3.7% year on year.」

「For the fiscal year ending December 2019, the main theme was achieving profitability at the handmade marketplace “minne,” in which we had actively invested since 2015. In the first quarter, in addition to an increase in contracts for “Lolipop!” driven by stronger promotion, minne achieved profitability for the first time at the quarterly level.」

「In the fiscal year ended December 2018, we actively invested in promotion, including continued offline initiatives such as the “Handmade Market” and stronger web advertising. As a result, cumulative smartphone app downloads exceeded 10 million in October, while annual GMV reached ¥12.07 billion, up 17.3% year on year. Promotion costs for minne, including advertising expenses, sales promotion expenses and the provision for points, totaled ¥1,023.860 million, down 21.0% year on year, as we focused on web advertising without airing TV commercials.」

「As a result, cumulative smartphone app downloads reached 9.97 million in the nine months ended September and exceeded 10 million on 6 October. GMV for the same period reached ¥8.8 billion, up 19.0% year on year. Promotion costs for minne, including advertising expenses, sales promotion expenses and the provision for points, totaled ¥805.332 million, down 7.2% year on year, as we focused on web advertising and various coupon initiatives without airing TV commercials.」

「The handmade marketplace “minne,” No. 1 in Japan by both the number of items and creators, continued its offline initiatives and promotional efforts, including stronger web advertising. As a result, cumulative smartphone app downloads exceeded 9.54 million in the six months ended June, while GMV reached ¥5.9 billion, up 20.5% year on year. Advertising expenses for minne totaled ¥385.628 million, down 36.8% year on year, as we focused on web advertising without airing TV commercials.」

「The handmade marketplace “minne,” No. 1 in Japan by both the number of items and creators, continued its offline initiatives and actively invested in promotion, including stronger web advertising. As a result, cumulative smartphone app downloads exceeded 9.11 million in the first quarter, while GMV reached ¥2.9 billion, up 20.9% year on year. Advertising expenses for minne totaled ¥153.160 million, down 34.2% year on year, as we focused on web advertising without airing TV commercials.」

「The handmade marketplace “minne,” No. 1 in Japan by both the number of items and creators, continued to receive promotion investment. In addition to actively deploying web advertising and TV commercials, we worked to expand awareness through offline initiatives including “minne Handmade Market” and the “Handmade Awards.” As a result, cumulative smartphone app downloads reached 8.63 million in the fiscal year, while GMV reached ¥10.2 billion, up 22.6% year on year.」

「The handmade marketplace “minne” grew rapidly to become No. 1 in Japan by both the number of creators and the number of items listed within just 2 years of launch. To develop it into an even stronger service, we shifted from a web service to an app and have continued to make active investments in promotion and organizational strengthening since the fiscal year ended December 2015. As a result, cumulative smartphone app downloads exceeded 8.24 million in the nine months ended September, while GMV reached ¥7,433.236 million, up 22.3% year on year. Advertising expenses for minne totaled ¥806.980 million, down 8.7% year on year, with promotion focused mainly on web advertising. In the fourth quarter, we planned to air TV commercials ahead of the year-end shopping season, when demand for gifts is highest, to maximize GMV.」

「The handmade marketplace “minne” grew rapidly to become No. 1 in Japan by both the number of creators and the number of items listed within just 2 years of launch. To develop it into a stronger service, we began making active investments in the fiscal year ended December 2015 and have continued investing in promotion. As a result, cumulative smartphone app downloads exceeded 7.77 million in the six months ended June, while GMV reached ¥4,929.573 million, up 22.9% year on year. Advertising expenses for minne totaled ¥609.696 million, down 12.9% year on year, with promotion focused mainly on web advertising.」

「The CtoC handmade marketplace “minne” grew rapidly to become No. 1 in Japan by both the number of creators and the number of items listed within just 2 years of launch. To develop it into a stronger service, we began making active investments in the fiscal year ended December 2015 and have continued investing in promotion and strengthening the organization. As a result, cumulative smartphone app downloads exceeded 7.19 million in the first quarter, while GMV reached ¥2,436.038 million, up 23.6% year on year. Advertising expenses for minne were ¥180 million in the first quarter of the previous fiscal year, including TV commercial costs, but fell to ¥232.803 million in the current first quarter, down 47.2% year on year, as promotion focused on web advertising without TV commercials.」

「We began making active investments in the fiscal year ended December 2015 and have continued investing in promotion and strengthening the organization. As a result, cumulative smartphone app downloads exceeded 6.7 million in the fiscal year, while GMV reached ¥8,397.972 million, up 88.3% year on year.」

「To grow “minne” into a stronger service, we have continued to concentrate management resources on it and invest in promotion and organizational strengthening since the fiscal year ended December 2015. As a result, smartphone app downloads exceeded 6 million in June, while GMV reached ¥4,012.490 million in the six months ended June 2016, up 160.5% year on year.」