Mercari, Inc. Market Research Report

Background

Company Overview

Mercari, Inc. is a Japanese multinational e-commerce corporation founded on February 1, 2013, by Shintaro Yamada, Ryo Ishizuka, and Tommy Tomishima. The company's flagship product, the Mercari marketplace app, launched in Japan in July 2013, has become the nation's largest community-powered marketplace, facilitating over JPY 10 billion in monthly transactions. As of December 2017, the app had been downloaded over 100 million times worldwide. Mercari holds the distinction of being Japan's first startup to achieve unicorn status.

Mission and Vision

Mercari aims to create a global marketplace where anyone can buy and sell with ease, fostering a community-driven economy that empowers individuals to monetize their unused items.

Industry Significance

As a pioneer in mobile-first consumer-to-consumer (C2C) e-commerce, Mercari has significantly influenced the online resale market, particularly in Japan, where it dominates with a 94% usage rate among community marketplace app users.

Key Strategic Focus

Core Objectives

Global Expansion: Establish a strong presence in international markets, including the United States and the United Kingdom.

User Experience Enhancement: Continuously improve the platform's usability and security to attract and retain users.

Diversification of Services: Expand offerings beyond the core marketplace to include financial services and other value-added features.

Areas of Specialization

Mobile E-commerce: Focus on a mobile-first approach to facilitate seamless buying and selling experiences.

Community Engagement: Leverage user-generated content and peer-to-peer interactions to build a trusted marketplace.

Key Technologies Utilized

AI and Machine Learning: Implement advanced algorithms for personalized recommendations and fraud detection.

Secure Payment Systems: Develop proprietary payment solutions to ensure transaction safety and convenience.

Primary Markets Targeted

Japan: Maintain and grow the dominant position in the domestic market.

United States: Expand user base and market share in the competitive U.S. e-commerce landscape.

United Kingdom: Establish a foothold and adapt services to the UK market.

Financials and Funding

Funding History

Series D Round (March 2016): Raised USD 75 million to support expansion efforts in the U.S. and UK.

Notable Investors

Information on specific investors is not publicly disclosed.

Utilization of Capital

International Expansion: Allocate funds to establish and grow operations in new markets.

Technology Development: Invest in platform enhancements and new feature development.

Pipeline Development

Key Initiatives

Merpay: Launched a mobile payment service to diversify revenue streams and enhance user engagement.

Mercoin: Introduced a cryptocurrency exchange platform to tap into the growing digital asset market.

Product Development Stages

Merpay: Fully operational in Japan, with plans for international rollout.

Mercoin: In the early stages of development, focusing on regulatory compliance and market readiness.

Target Conditions

Merpay: Address the need for secure and convenient mobile payment solutions.

Mercoin: Cater to the increasing interest in cryptocurrency trading and investment.

Anticipated Milestones

Merpay: Expand user base and merchant partnerships within the next 12 months.

Mercoin: Achieve regulatory approval and launch by the end of 2025.

Technological Platform and Innovation

Proprietary Technologies

AI-Powered Recommendation Engine: Utilizes machine learning to provide personalized product suggestions.

Secure Transaction System: Developed in-house payment processing to ensure safe and efficient transactions.

Significant Scientific Methods

Data Analytics: Employs big data techniques to analyze user behavior and optimize platform performance.

Machine Learning Algorithms: Applies advanced algorithms for fraud detection and automated customer support.

Leadership Team

Key Executives

Shintaro Yamada (CEO): Co-founder with a background in serial entrepreneurship, leading Mercari's strategic vision and global expansion efforts.

John Lagerling (Chief Business Officer and U.S. CEO): Joined from Facebook's management team in June 2017, overseeing U.S. operations and business development.

Key Contributions

Shintaro Yamada: Instrumental in establishing Mercari as Japan's leading marketplace and achieving unicorn status.

John Lagerling: Driving growth and market penetration in the competitive U.S. e-commerce sector.

Leadership Changes

John Lagerling's Appointment (June 2017): Assumed the role of Chief Business Officer and later U.S. CEO, bringing expertise from his tenure at Facebook.

Competitor Profile

Market Insights and Dynamics

Market Size: The global C2C e-commerce market is experiencing significant growth, driven by increasing consumer interest in sustainable shopping and the circular economy.

Growth Potential: With the rise of mobile commerce and peer-to-peer platforms, the market is projected to expand substantially in the coming years.

Industry Trends: Key trends include the integration of AI for personalized experiences, the adoption of secure payment systems, and the expansion into new geographic markets.

Competitor Analysis