Mobile commerce over cell phones jumped 25 percent last fiscal year to around 971 billion yen ($8.8 billion) according to a survey on e-business just released by Japan's Ministry of Economy, Trade and Industry [.pdf in Japanese]. Covering all of fiscal 2004 (which in Japan ended March '05), the survey showed wireless purchases of books and music had grown by 85 percent from virtually nothing the previous year to 330 million yen ($3 million). Shopping for clothing and accessories over the smallest screen accelerated 79 percent, taking in 150 hundred million yen ($1.3 million).

Via Wireless Watch Japan

Interesting points by Simon Judge and Capgemini/INSEAD (see picture). Needless to say that I fully subscribe to them.


Image from Capgemini/INSEAD

Users Think They Don’t Want Advanced Mobile Services

First of all, as the report suggests, it opens up new opportunities for network operators to innovate with simpler pricing and services. However, we should not rule out new advanced service just because people don’t want them. People might not know what they want until they see it. People have responded to the survey in terms of the services offered now. As for new advanced services, they must be clearly priced and made as simple as possible.

Application Developer Perspective: Part 1: Payment

In summary, I believe existing and new solutions should…

• Be affordable compared to non-mobile alternatives
• Have transparent pricing
• Easily allow providers to accept payments
• Easily allow end users to pay