Softbank Corp. (Japan) (OTCMKTS:SFTBY) finished the last trading session with a gain of 1.18% but the close proximity of the final closing price $27.8050 with the day open $27.82 reflected the indecision on the part of the investors. The daily candle took the form of a Doji, indicating the indecisive state at this point of time. Considering the overbought state at the end of this sharp rally, the investors may take a bit of precaution, especially this close to the upper boundary of the channel containing almost the entire long term decline. The band of $29-$30 is the immediate resistance.
Softbank Corp. (Japan)(OTCMKTS:SFTBY) intends to target Chinese tourists to Japan. The telecommunications and internet entity said that it has established an inbound online travel unit that will be listed on Alibaba Group Holding Ltd (NYSE:BABA)’s travel marketplace, known as ‘Alitrip’ starting November 11,
The details
The new entity, a fully owned subsidiary firm of Softbank, intends to serve Chinese visitors looking for different alternatives to well-trodden places in Japan. It should be noted that Softbank owns 32% stake in ecommerce giant Alibaba. The management stated that so far, the popularly known as ‘golden route’ for tour groups focuses on main cities like Kyoto, Tokyo and Osaka and Kyoto.
However, they intend to meet the needs of the increasing count of independent visitors. The business estimates sales of nearly Y20 billion yearly by 2020, the year in focus when Tokyo will host the Olympic Games. Softbank has sought expert knowledge from Japan’s largest travel entity, JTB Corp.
The scope
Softbank intends to take benefit from the changing travel industry in Japan. The number of Chinese travelers coming to Japan has increased considerably in last some years. It comes as a major boost for Japan’s economy, especially in the tough global market scenario.
Due to a big drop in the local currency that started in 2012, nearly four million people from China had traveled to Japan in 2015, as of the end of last month, up from 2.4 million recorded in last year. The figure definitely shows why Softbank is keen to target the Chinese travelers to Japan.
Competition
Softbank is not alone in targeting the Chinese visitors as various other firms seek to take advantage of changing trend. Rakuten Travel, the online tourism firm of Japanese e-commerce company Rakuten Inc., recently acquired travel startup firm Voyagin, which provides off-beat tours and activities.
Next in list is NTT Communications Corp., a subsidiary unit of Nippon Telegraph and Telephone Corporation, which has established SIM card vending machines aiming inbound travelers at major Japanese airports.
