Monthly Archives: April 2017

Three Reasons Why Japan Is Falling Behind in Mobile Commerce

Thanks; 
Published; April 22nd, 2017

Many see Japan as a technology leader in various industries and the country is continuing to develop innovative solutions in the digital space. However, if we look at adoption of technology on the consumer side, there is greater inconsistency than might be expected.

Euromonitor International’s 2016 Digital Consumer Index unveiled a remarkable gap between Japan’s advanced digital environment and the slow uptake of digital commerce, particularly with mobile-based purchases that are increasing rapidly in other Asian countries. Whilst mobile digital purchases registered strong 17% value growth in Japan in 2016, other Asian countries registered even stronger growth, at a minimum of 30%. The leader of mobile digital purchases, China, saw an 81% value increase in 2016. This analysis aims to explore major impediments that are keeping Japan from what should perhaps be phenomenal growth in mobile digital purchases.

mobile-purchases-asia-pacific

CHART 1 : MOBILE DIGITAL PURCHASES IN ASIA PACIFIC, TOTAL VALUE SALES, 2013-2021

1. DEMOGRAPHIC CHALLENGE: LOW PENETRATION OF SMARTPHONES AMONG SENIORS

Smartphones are the catalyst for digital disruption in countries. The leading digital commerce marketplaces have developed platforms optimised for mobile apps. However, in Japan, smartphones are not as ubiquitous as one would expect. In Japan, the population aged over 60 accounts for 34% of the total population, and is characterised by low smartphone penetration. Only 28% of respondents aged over 60+ owned personal smartphones, according to Euromonitor International’s 2016 Global Consumer Trends Survey. This is extremely low compared to other Asian countries. Against the backdrop of low smartphone penetration among seniors, there also is a strong presence of feature phones that offer fewer functions in exchange for ease of use. As a result, a sizeable portion of the Japanese population is unable to take advantage of digital innovation.

CHART 2 : POPULATION AND SMARTPHONE OWNERSHIP IN JAPAN, 2016

population-smartphone-owners-japan

2. LIFESTYLE CHALLENGE: HIGH SECURITY CONCERN AMONGST JAPANESE CONSUMERS

In addition to the relatively conservative nature of Japanese consumers, there also has been a lot of media coverage on cybersecurity from the early digital era, which has made consumers concerned. For example, Consumers Affairs Agencies regularly warns against cyber-crimes due to the growing prevalence of e-commerce. As a result, Japanese consumers are highly concerned about the potential risk in online activities. In fact, only 6% of Japanese online respondents answered that they were willing to share personal information online, which was the lowest in 20 responding countries, according to Euromonitor International’s 2016 Global Consumer Trends Survey.

This hesitation toward sharing information online is especially true with mobile users. Many Japanese consumers utilise long commuting time on trains for mobile activities, but still feel uncomfortable entering their credit card information aboard a busy commuting train, afraid that other riders may see their personal information on the screen. Additionally, many are reluctant to let mobile devices store payment information, and would rather use alternative payment options, such as cash on delivery. In general, Japanese consumers are typically risk-adverse, and remain cautious about making payments on websites. Despite the rise of card payments worldwide, Japanese consumers bucked the trend, opting to more often pay for purchases with cash compared to other developed countries. Within Asia, while 85% of mobile remote orders were paid online in South Korea, only 51% were paid in Japan.

CHART 3 : WILLINGNESS TO SHARE PERSONAL INFORMATION IN ASIA PACIFIC, 2016

willingness-to-share-personal-information-japan

3. COMPETITION: MATURITY OF EXISTING SHOPPING OPTIONS VERSUS MOBILE COMMERCE

Another reason why mobile digital purchases have struggled to gain wider acceptance in Japan is due to the many other shopping options that Japanese consumers already have. One example of competition for mobile proximity payments is maturity of contactless payments using a physical card. This is because in Japan, consumers prefer to use a physical card to touch an NFC-enabled terminal rather than a device. Therefore, many mobile proximity payment brands such as Suica and Edy also offer consumers physical cards along with the digital payment option. Contactless smart cards, registered a 26% value CAGR during 2011-2016, and in 2016 Japanese consumers held an average of three contactless smart cards per person; far higher than in other Asian countries. Without a compelling reason to switch from contactless smart cards to mobile proximity payments, most consumers are satisfied with using card-based tap-and-go payments in an in-person environment.

SUMMARY

The gap between the advancement of mobile-centric products and actual adoption of mobile commerce amongst consumers is something businesses in Japan need to address. Communication with the customer or data collection made via mobile devices can be valuable, but is currently ineffective due to this gap. Over the forecast period, mobile digital purchases in Japan will continue to face these demographic, lifestyle and competitive obstacles.

However, there are positive developments that can help drive mobile commerce. For example, 2019 will be the first year with production of feature phones planned to be discontinued. Following the increase of low-cost smartphone plans, a switch from feature phones to smartphones can be expected. Moreover, solutions are being introduced in response to the high security concerns among Japanese consumers. For example, the mobile-focused fashion marketplace called ZOZOTOWN, implemented a post-pay product in 2016. GMO post-pay allows ZOZOTOWN customers to make post-pay options by cash, at convenience stores, after safely receiving their products. This is important as in Japan, credit card payments are mostly paid in full each month. Therefore the introduction of post-pay service will lower the hurdle and expand mobile remote purchases for those consumers who can only spend a limited amount of money each month, such as students and housewives. The post-pay options will support expansion of remote purchases while also meeting the demand of the cash-driven society.

Recognising the gap between digital connectivity available and digital commerce uptake, digital innovators and promoters like Suica should make concerted efforts to address concerns among Japanese consumers while promoting mobile digital purchases like Mobile Suica. Although mobile digital purchases in Japan is expected to see a strong 11% value CAGR at constant 2016 prices over the next five years, growth could be even stronger with consumers’ greater acceptance. In fact, other Asian countries are expected to see more than 20% value CAGRs. If Japan wants to remain a digital leader, its wider society needs to be incentivised to adopt mobile technologies. At the moment, it isn’t empowered – or interested enough.

 

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Brexit is killing the pound but it’s having a really productive side-effect on Britain’s economy

Thanks;Lianna 


Brexit is having a seriously positive impact on employment.

LONDON – The pound has cratered against the US dollar ever since Britain voted to leave the European Union on June 23 last year.

But while that has a negative effect on Brits’ purchasing power, it is actually having a seriously positive impact on another sector in Britain’s economy – employment.

That is according to Sam Bowman, the executive director of one of the world’s prominent think tanks, the Adam Smith Institute, who spoke at a local Conservative party conference in East Croydon, which Business Insider attended on Saturday.
He was talking about how Brexit is expected to affect the UK economy over the short and long term and looked at both positive and negative impacts from Britain planning to leave the European Union.
“Probably many people in this room are like me – frustrated by the tone of the Brexit debate, even eight or nine months after the referendum,” said Bowman.

“It feels like the referendum debate has never ended. On one side we have around 10% some extremely die-hard leavers, who refuse to accept there could be any difficulty on leaving the European Union. And then there is 10% extremely die-hard remainers who refuse to admit there would be any benefits from leaving the European Union.
“In the middle, I think, is the rest of us – 80% who accept the result and want to make Brexit work but also want to acknowledge that it is not necessarily going to be an easy ride.”
He also talked about how Brexit has already had an impact on the UK economy. But it is not all bad. Bowman said he is a “short term pessimist but a long term optimist about Brexit.”
Here is an excerpt from his speech:

“I think employment is likely to be quite strong. It is unlikely that [Brexit] will cause any large scale unemployment. even in a very, very pessimistic outcome – the reason for that being the pound has absorbed most of the costs, meaning that we effectively have real term wage cuts and our purchasing power falls but people become more employable as a result. So there are good and bad [aspects] to the fall in the pound.”
The pound against the US dollar tanked in the immediate aftermath of the EU referendum vote. While it has recently gained a little bit of ground to reach $1.28, it is still a far cry from the $1.50 last seen in June last year:

Markets Insider

UK flag glasses

Brexit is having a seriously positive impact on employment.Reuters

LONDON – The pound has cratered against the US dollar ever since Britain voted to leave the European Union on June 23 last year.

But while that has a negative effect on Brits’ purchasing power, it is actually having a seriously positive impact on another sector in Britain’s economy – employment.
That is according to Sam Bowman, the executive director of one of the world’s prominent think tanks, the Adam Smith Institute, who spoke at a local Conservative party conference in East Croydon, which Business Insider attended on Saturday.
He was talking about how Brexit is expected to affect the UK economy over the short and long term and looked at both positive and negative impacts from Britain planning to leave the European Union.
“Probably many people in this room are like me – frustrated by the tone of the Brexit debate, even eight or nine months after the referendum,” said Bowman.
“It feels like the referendum debate has never ended. On one side we have around 10% some extremely die-hard leavers, who refuse to accept there could be any difficulty on leaving the European Union. And then there is 10% extremely die-hard remainers who refuse to admit there would be any benefits from leaving the European Union.
“In the middle, I think, is the rest of us – 80% who accept the result and want to make Brexit work but also want to acknowledge that it is not necessarily going to be an easy ride.”

He also talked about how Brexit has already had an impact on the UK economy. But it is not all bad. Bowman said he is a “short term pessimist but a long term optimist about Brexit.”

Here is an excerpt from his speech:

“I think employment is likely to be quite strong. It is unlikely that [Brexit] will cause any large scale unemployment. even in a very, very pessimistic outcome – the reason for that being the pound has absorbed most of the costs, meaning that we effectively have real term wage cuts and our purchasing power falls but people become more employable as a result. So there are good and bad [aspects] to the fall in the pound.”

The pound against the US dollar tanked in the immediate aftermath of the EU referendum vote. While it has recently gained a little bit of ground to reach $1.28, it is still a far cry from the $1.50 last seen in June last year:

sterlingUSD1

Markets Insider

Since the Brexit vote, various economists and financial institutions predicted that the UK’s unemployment rate will shoot up as a result of the vote to leave. Credit Suisse, for example, predicts an increase to 6.5% for the base rate, equivalent to roughly 500,000 jobs being lost. However, the last few months have seen the rate remain near its record low and Wednesday’s figures show the trend appears to be holding up.

Unemployment in the UK fell once again in March, according to the latest data released by the Office for National Statistics on Wednesday.

Headline unemployment fell was 4.7% in the month while employment remained unchanged at 74.6% in the month, equalling a record high set in both January and February, but not seen before that since records began in 1971.

However, wage growth is still poor.

CHILD REFUGEES ‘FORCED TO SELL THEIR BODIES’ TO ENTER EUROPE, RESEARCHERS WARN

THANKS:BY  

Published; 4/19/17 AT 7:29 AM

Smugglers are forcing unaccompanied child refugees to sell their bodies in exchange for money to aid their traveling through Europe, a new report from Harvard University has claimed.

There is a “growing epidemic of sexual exploitation and abuse of migrant children in Greece,” say the report’s co-authors, Dr Vasileia Digidiki and Professor Jacqueline Bhabha, at Harvard University’s center for health and human rights.

Informants in Greek migrant camps told Digidiki and Bhabha that men prey on unsuspecting child refugees, sexually abusing those without proper adult supervision. The actual number of children who have been abused is unknown as many do not report it, fearing reprisal.

A psychologist in one of the camps told the researchers: “[Many children] do not want to report [the incident], because they are afraid that the offender will take revenge on them. They also do not believe that the police can help them.”

Unable to afford exorbitant fees charged by smugglers to help them reach European nations where they can seek asylum, children who have fled conflict in Syria, Afghanistan and Pakistan are selling sex to fund their journeys.

child-refugees-lesbos (2)

Child refugees at the Moria migrant camp on the island of Lesbos, Greece, September 20, 2016.REUTERS/GIORGOS MOUTAFIS

The report includes an interview with a child refugee who told a journalist: “I never thought I’d have to do something like this. When the money ran out I had to learn to do this. He said “it was the first time I did this, I had no experience.”

The average price of a sexual transaction between a child and a smuggler is 15 euros, the researchers say, adding that the majority of those forced into prostitution are Syrian, Iraqi and Afghan boys.

Offenders, primarily men aged 35 or older, target the children who are found in Athens’ Victoria Square and Pedion tou Areos, a park next to departure areas for buses traveling towards Greece’s northern border.

“There is a reason why these two places have been chosen. They have been key centers for the drug and sex trade for years now. The only difference is the age of people involved. Before you wouldn’t see children. Now you do,” one informant said.

Digidiki told The Guardian that the international community cannot ignore the situation of child refugees in Europe: “We can no longer sit idle while migrant children are abused and forced to sell their bodies in broad daylight and plain sight in the heart of Athens simply to survive.”

“It is our responsibility as human beings to face this emergency head on and take immediate action at every level to put an end to this most heinous violation of dignity and human rights,” she said.

 

 

Dozens dead after Coptic Christian churches in Egypt are hit by Palm Sunday blasts

Thanks;Dahlia Kholaif

Published: Apr 9, 2017 9:33 a.m. ET

At least 36 killed in attacks on churches in Tanta and Alexandria

A relative of one of the victims weeps outside church in Tanta, Egypt.

CAIRO—Twin blasts struck Coptic churches in Egypt as worshipers gathered for Palm Sunday services, killing at least 36 people, as violence escalates against the country’s Christian population.

Security officials said an unknown assailant planted a bomb under a seat in the main hall of the Mar Girgis Church in the Nile Delta city of Tanta, some 60 miles north of Cairo, in the morning.

The ensuing explosion killed 25 people and wounded another 69, an adviser to Egypt’s health minister told state media. Footage aired on official television showed blood stains sprayed over the floor of the church hall, shattered furniture and rubble sprayed on wooden benches.
Separately, a suicide bomber attempted to enter Saint Mark’s Church in the center of the coastal city of Alexandria, blowing himself up at the entrance after being stopped by security, state media reported.