Expansion of the Makuake reward-based crowdfunding platform

「Through its Makuake service, the Company is working to acquire more high-quality projects from new project creators as well as repeat creators and increase the number of active projects. At the same time, it is expanding and standardizing its services to maximize the amount of support purchases for each project and is working to increase the average value per project.」

「Against this backdrop, during the interim accounting period, the Company continued to focus on raising the average transaction value per project rather than expanding the number of projects launched or active projects.」

「As a result of these measures, the average transaction value per project grew above forecast. However, the number of projects launched failed to reach forecast due to external factors including the weaker yen and higher prices, as well as internal factors including ongoing issues with the project-acquisition structure. Total support purchases decreased 5.8% year on year to ¥16,588.533 million. Gross transaction value, including the Safe System usage fee applied from August, was ¥16,637.373 million.」

「Against this backdrop, during the cumulative first quarter, the Company focused on raising the average transaction value per project rather than expanding the number of projects launched, while implementing various measures, particularly for repeat project owners and repeat supporters.」

「As a result of these measures, the number of projects launched by repeat project owners, designated as the most important KPI from the current fiscal year, was 4,378, and repeat support-purchase value was ¥13,325.854 million. Meanwhile, as real-world consumption accelerated following the reopening that began in the second half of the previous fiscal year, and the scale of total support purchases declined substantially from the fourth quarter of the previous fiscal year, total support purchases decreased 11.0% year on year to ¥17,609.329 million.」

「As a result of these measures, the number of projects launched by repeat project owners increased 13.6% from the previous quarter to 1,085, while repeat support-purchase value increased 8.9% to ¥3,409.367 million. Total support purchases increased 11.2% from the previous quarter to ¥4,569.329 million.」

「Under the existing vision of “Creating a world where what should be born is born, what should spread spreads, and what should remain remains,” the Company has established “Connecting the world and creating the new” as its mission and operates Makuake, a support-purchase service connecting project owners (businesses) offering new products not yet available in the world with project supporters (consumers) who purchase new products and experiences with the desire to support them after learning about the creators’ aspirations and backgrounds.」

「As a result of these measures, the number of projects launched increased 5.1% year on year to 8,314, while unique users accessing the platform increased 19.9% year on year to 53,180 thousand.」

「Against this backdrop, during the cumulative third quarter, the number of projects launched by project owners seeking to debut new products and services and the number of unique users accessing Makuake to search for new products and services suited to their interests and preferences continued to increase, and demand for Makuake continued to grow.」

「Against this backdrop, during the cumulative second quarter, the number of projects launched by project owners seeking to debut new products and services, as well as the number of unique users accessing Makuake to search for new products and services suited to their interests and preferences, continued to increase.」

「Against this backdrop, during the cumulative first quarter, the number of projects launched by project owners seeking to debut new products and services, as well as the number of unique users accessing Makuake to search for new products and services suited to their interests and preferences, increased, continuing the trend seen in the fiscal year ended September 2021.」

「During the fiscal year, in response to the sharp increase in projects launched and unique users accessing the platform driven by increased demand related to COVID-19, the Company strategically strengthened its defensive measures and established its organizational framework to provide an even higher level of quality assurance.」

「During the cumulative third quarter, as the spread of COVID-19 restricted opportunities for offline launches of new products, awareness grew of the benefits of launching new products and services on Makuake without taking on inventory risk. These benefits include obtaining consumer needs and purchaser data before mass production, securing initial customers, producing only the required quantities and then moving into the mass-production phase. As a result, the number of projects launched increased substantially. In addition, brand awareness improved through television commercials, exposure on television programs increased, and the number of unique users accessing the platform grew further as web and app advertising was strengthened. Total support purchases on Makuake increased 67.1% year on year.」

「During the cumulative second quarter, the Company pursued measures to increase total support purchases, building on the quality-assurance framework it had focused on strengthening during the first quarter. Specifically, it expanded exposure through television commercials and television programs, strengthened Makuake’s recommendation features and took other measures, aiming to increase the number of listed projects, unique users accessing the platform and the number of support purchases.」

「The number of projects launched by project owners continued to increase.」

「During the fiscal year, the Company worked with financial institutions nationwide, held brand-awareness events throughout Japan and continued media exposure. This increased awareness among project owners and the number of project owners using “Makuake” for marketing and public relations for new products before mass production, resulting in an increase in the number of projects launched.」

「By working with financial institutions nationwide, holding brand-awareness events throughout Japan and continuing media exposure, the Company increased awareness among project owners (businesses). The number of project owners using Makuake for marketing new products before mass production, including research into customer needs and evaluations before launch and branding, as well as for public relations, increased, and the number of projects launched on the platform also rose.」

「The Company operates the “Makuake” platform to provide a place where new products not yet available in the world can first be discovered and obtained.」

「As Makuake became more widely recognized among project supporters as a platform where enjoyable and interesting products and services are launched every day, its membership grew.」

「The Company operates Japan’s No. 1 reward-based crowdfunding platform, “Makuake” (Note).」