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In Japan, Yahoo! Inc. (NASDAQ:YHOO) Is Having Tough Time Fighting Amazon And Rakunten

Boston, MA 10/11/2013 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) is meeting unfavorable conditions in Japan. The Chairman of Yahoo Japan Corp., Masayoshi Son has announced that the website would do away with fees for online shopping websites. Soon after this announcement, the number of applications that the site receives for online retail outlets shot up tremendously. The billionaire’s decision brought 26,000 new applications to the Tokyo based company, out of which, 10,000 were from stores and the remaining from individuals. The company already has 20,000 outlets on its list.

This new scheme etched out by Japan’s most visited website is, as of now, a successful one to face rivals such as Japan has a $4 billion Internet shopping market. Yahoo Japan’s move marks a competition between the two billionaires, Son and Rakunten Inc.’s Hiroshi Mikitani where the latter charges its customers to run stores on the nation’s biggest e-mall. Given the present scenario in Japan, the other two sites attract more customers because of better brands lineup. Perhaps Yahoo can now expect to increase the ad revenue it generates after its new strategy to pull in customers by bagging new stores.

According to Shinkin Asset Management Co. which is also based out of Tokyo, the company’s new move might not be very fruitful. They find it difficult to justify why customer preferred stores will switch from other websites to Yahoo when they are already well established there. In fact, it is most probable that the new applications that the company has received ever since it came up with its reformed policies, are also not from stores that are very influential. These stores perhaps have limited target customers and not very impressive sales.

According to last year’s financial reports, most of the sales of the company were from advertisements. SoftBank Corp. which owns 43% of Yahoo also reported a fall of 5.7% to 7,000 yen while Yahoo itself recorded a maximum low of two days since March 2011. This slump has been noticed soon after Son’s announcements. Sadly, despite its attempts the market conditions do not seem to be in favor of the company.

Published by Donna Fago

I believe in writing content Informing investors with the knowledge they need to invest better today- I have been following the markets for many years and was asked to join the team at recently due to my passion for the markets.

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