CReATION: WAP phones win the hearts of Japan's youth

The mobile phone has emerged as the most popular communication platform for young 'Net users in Japan. Hakuhodo's recent consumer report - Japan's Keitai e-life - found one in 10 Japanese were Keitai (mobile phone) users. Although 65.4 per cent of WAP phone users also had access to the Internet via a PC, half did not use a computer to log on to the Web. As WAP phones were widely used by young, trendy Japanese, the report predicted that third generation (3G) mobile phones would feature more intricate e-functions, providing various information and ecommerce services. The top three features sought after in 3G phones included global services, car navigation services and enhanced newsgroup information. Given the popularity of WAP phones among young people, Japanese marketers were keen to explore ecommerce and marketing activities on the phone. More than 60 per cent of 19 to 29 year-olds using WAP phones were active short message services (SMS) users, marking a potentially effective platform for marketing and advertising. According to the survey, Japanese consumers preferred virtual shopping through WAP phones for simple transactions, such as paying utility bills and purchasing concert and cinema tickets. "Real" shopping was considered more suitable when making complex transactions involving a variety of categories and brand selections, such as buying cosmetics, foods and jewellery. In terms of competitiveness, many Japanese noted WAP phones were more convenient than PCs when shopping with credit. The survey found WAP phones were considered more safe and reliable because users trusted the medium more in terms of privacy issues and transactions. Nevertheless, PC and WAP phones were graded almost equally for their ability to satisfy shopping needs on demand. The PC was seen as a better medium in terms of offering goods and services from anywhere, getting information and using your favourite services. With the convergence of PC and WAP phones in ecommerce, it is predicted that online shopping will grow more in the future with one-tenth of personal shopping being done online. MIT Media Lab director Nicholas Negroponte said: "The global ecommerce market might expand rapidly into US$2 trillion by the end of 2003 ... Japanese are quickly becoming active consumers in the world of ecommerce." On average, Japanese consumers spend about 13,000 yen (US$118) each time they are online and use ecommerce services twice a month.

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