Localization for U.S. Users and Business Expansion

「In the US, strengthening the core product experience and effective marketing, including category-specific CRM initiatives and shipping-discount campaigns, produced a synergistic effect.」

「In the US, strengthening the core product experience, holiday-season marketing campaigns and efficient coupon initiatives focused on specific categories proved effective.」

「By updating the UI/UX using AI and strengthening measures against fraud, we aim to deliver an exceptional level of ease of use and safety. We will also implement initiatives including competitive delivery plans, centered on fashion, our main category, and measures to enhance trust, with the aim of achieving positive year-on-year GMV growth while maintaining break-even.」

「From January 2025, under a structure in which the Group CEO Yamada also serves as US CEO, we will continue aiming to return to a growth trajectory and achieve break-even in the current consolidated fiscal year, including by changing to a model in which sellers bear most of the fees.」

「We took bold steps for future growth, including making listing fees free for the first time among major US marketplaces and changing to a model in which buyers bear the fees.」

「To stimulate transactions by increasing listings, we pursued bold initiatives for future growth, including changing the fee burden from sellers to buyers for the first time among major US marketplaces. External factors including inflation continued to affect the business. US GMV was US$705 million (¥103.6 billion, accumulated using monthly average exchange rates) in the nine-month period of the third quarter, down US$81 million year on year, but signs of improvement have begun to emerge in the number of purchases and GMV growth rate.」

「In addition to efficient marketing focused on activating existing users, we advanced various product initiatives aimed primarily at acquiring Generation Z users, including pilot tests of in-person transactions in selected areas and the launch of community features.」

「In the US, our business policy for the current fiscal year is to focus on refining the product to strengthen retention among existing users, return to a growth trajectory and engage Generation Z to support future growth. As expected at the beginning of the fiscal year, purchases continued to slow due to external factors including inflation, while effective marketing initiatives focused on existing users and others progressed well. As a result, US GMV was US$231 million (¥33.4 billion, accumulated using monthly average exchange rates) in the first quarter, down US$27 million year on year, while MAU was flat at 4.93 million.」

「In addition to conducting efficient marketing activities focused primarily on existing users, we implemented various initiatives to promote purchases and reduce the burden on buyers, including introducing a new lower-priced shipping plan for small packages and a bundled-shipping option.」

「In the US, our business policy for the current fiscal year is to focus on refining the product to promote both listings and purchases. Headwinds facing the online resale market have persisted as consumers prioritize spending on essential goods amid high inflation and as aggressive discounts in the primary market continue.」

「With a certain level of brand awareness established, targeted and effective advertising increased the number of new users, bringing MAU to 5.16 million.」

「Ongoing product improvements to simplify listings proved effective and drove growth in the number of listings, although the business has been affected by prolonged inflation.」

「We will focus primarily on product initiatives that promote both listing and purchasing in a balanced manner, including simplifying listings and personalization. Through establishing technological superiority as a service synonymous with C2C commerce in the US, we aim to reignite growth.」

「Mercari US continued to improve features to simplify listing items and pursued marketing initiatives aimed at becoming synonymous with C2C commerce in the US. As a result, the number of new users increased and MAU reached a record high of 5.9 million in January alone. Brand awareness also reached a new record high, surpassing the level of some competitors for the first time.」

「At Mercari US, marketing initiatives timed to the holiday-season demand period proved effective. The monthly growth rate in gross merchandise value (GMV) has continued to accelerate since July 2021, and MAU reached 5.3 million in December alone.」

「Mercari US invested in developing new features and products and recruiting talent, including the nationwide rollout of the same-day delivery service Mercari Local to improve convenience and the launch of a buy now, pay later (BNPL) service through its partnership with Zip.」

「Mercari US has worked to improve brand awareness and acquire users through disciplined yet proactive marketing investment, while also improving product functionality and delivery options, with the aim of providing a marketplace where users can trade items easily and safely. As a result, its earnings base improved, and it achieved its first quarterly operating profit in the fourth quarter.」

「At Mercari US, under the tagline “Mercari is your marketplace,” we are working to increase awareness and acquire new users, as well as optimize listings and delivery, to establish and grow Mercari, a marketplace where anyone can sell a wide range of items more easily and safely. Payment processing fees introduced in the previous quarter were effective during the quarter, improving unit economics.」

「At Mercari US, under the tagline “Mercari is your marketplace,” we are working to increase awareness and acquire new users, as well as optimize listings and delivery, to grow Mercari, a marketplace where anyone can sell a wide range of items more easily and safely. As a result, Mercari GMV was ¥58.2 billion in the cumulative second quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥105.36 per US dollar, an increase of ¥32.6 billion year on year.」

「Meanwhile, at Mercari US, we are working to increase awareness and acquire new users, as well as optimize listings and delivery, to grow the Mercari marketplace, where people can sell more easily and safely. As a result, Mercari GMV was ¥30.7 billion in the cumulative first quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥106.22 per US dollar, an increase of ¥19.0 billion year on year.」

「At Mercari in the US, we will place even greater emphasis on expanding seller features, including Instant Pay, which enables users to withdraw sales proceeds within minutes, simplified packaging and delivery, and fair-price suggestions, to make selling easier than buying.」

「Meanwhile, in the US, we are optimizing listings and delivery to increase awareness of the C2C marketplace Mercari and meet the diverse needs of customers. As a result, US GMV was ¥43.0 billion in the cumulative third quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥108.35 per US dollar, an increase of ¥13.7 billion year on year.」

「Meanwhile, in the US, we are optimizing listings and delivery to increase awareness of the C2C marketplace Mercari and meet the diverse needs of customers. As a result, US GMV was ¥25.6 billion in the cumulative second quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥108.06 per US dollar, an increase of ¥7.7 billion year on year.」

「Meanwhile, in the US, we are optimizing listings and delivery to increase awareness of the C2C marketplace Mercari and meet the diverse needs of customers. As a result, US GMV was ¥11.7 billion in the cumulative first quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥107.35 per US dollar, an increase of ¥3.7 billion year on year.」

「As a result, Mercari MAU surpassed 2.0 million, while US GMV was ¥40.2 billion in the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥111.11 per US dollar, an increase of ¥16.7 billion year on year.」

「Meanwhile, in the US, to expand the C2C marketplace Mercari, we have continued to focus on developing and improving features to enhance service convenience. In addition, to further increase awareness and the user base, we have undertaken campaigns to increase the number of sellers and buyers through online media and TV commercials, in addition to online advertising capable of reaching a broad target audience. As a result, Mercari's US GMV was ¥29.2 billion in the cumulative third quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥111.52 per US dollar, an increase of ¥12.2 billion year on year.」

「Meanwhile, in the US, we have continuously focused on developing and improving features and enhancing delivery functions to expand the C2C marketplace Mercari and improve service convenience. In addition, to further increase awareness and the user base, we pursued campaigns to increase the number of buyers, centered on online advertising capable of reaching a broad target audience, as well as offline advertising such as radio. As a result, Mercari's US GMV was ¥17.8 billion in the cumulative second quarter of the current consolidated fiscal year, calculated using the average exchange rate during the period of ¥112.18 per US dollar, an increase of ¥7.5 billion year on year.」

「In the US, to expand the C2C marketplace Mercari, we are strengthening management while continuously focusing on developing and improving local features and enhancing delivery functions to improve service convenience. As a result, Mercari's US GMV was ¥8.0 billion in the cumulative first quarter of the current consolidated fiscal year, calculated using the average exchange rate for each month, an increase of ¥3.5 billion year on year.」

「To better reflect the needs and preferences of US users, the Group has improved the UI and UX of Mercari in the US.」