Japan's dominant SNS Mixi

Mixi is Japan's most popular social networking site users, has Facebook, MySpace and other competitors left behind, with the advertisers in the tremendous appeal of its online advertising revenue grew rapidly.

Japan's dominant social networking sites

29-year-old Asuka Kosaka this year become a Facebook member, and the English-speaking friends to establish contact. However, if Kosaka want the same in Japan and the 70 friends and family to exchange and share photos, she would not hesitate to another landing site: Mixi. Mixi of the world may not see social networking sites MySpace and Facebook giant's influence, but in Japan, it is well-deserved hegemony. As of June this year, but it is Tokyo's subscribers reached 15 million, with 10.7 million a year ago, compared to 40 percent increase.

Analysts said that in Japan, has yet to have any one social networking sites can match (Facebook and MySpace's News Corp. just announced a global scale the number of users). Kosaka said: "My friends do not know the majority of Facebook and MySpace site is also available in Japanese." According to Internet market research firm comScore statistics, as at June this year, Mixi in Japan's social networking sites occupy 41 percent market share, in Japan's social networking sites total 31 million users visited an independent, its exclusive 12.4 million, will be the second left far behind MySpace, the world's dominant social networking site users to access independent of only 1.2 million.

Google's Orkut and Facebook ranked third and fourth, the independent user visits were 638,000 and 538,000. Nomura Research Institute analyst Hideo Yamazaki said: "Mixi has done everything in order to cater to local users in Japan. So, I think Facebook and MySpace can not be replaced by Mixi in Japan's position." Hideo Yamazaki wrote the one on Mixi Works.

Analysts optimistic about the prospects Mixi

Mixi in the click rate has continued rising at the same time, its network of advertisers in the growing influence. This is crucial to the development of Mixi, because of its 92 million U.S. dollars in annual revenue, online advertising on the station to 85 percent. According to the Japanese advertising giant Dentsu's Dentsu Institute for the dissemination of statistical data, the Japanese online advertising spending this year, an increase of 20 percent, reaching 5 billion U.S. dollars. To 2011, this figure may be more than 6.9 billion U.S. dollars.

Mixi many analysts are optimistic about the prospects for profit. August 15, Morgan Stanley analyst Naoshi Nema will Mixi stock target price from 600,000 yen (about 5,454 U.S. dollars) raised to 750,000 yen (about 6,818 U.S. dollars), while estimates for the fiscal year of Mixi Profits will be higher than its operating profit forecast 1.4 percent growth, reaching 34.5 million U.S. dollars, sales reached 118 million U.S. dollars.

The biggest advantage of Mixi

Last year, Mixi profits and sales increase by 72% and 92%. For MySpace and Facebook, they will face severe tests in Japan. But MySpace Japan said company spokesman Daisuke Chikuda, MySpace and Mixi is not direct competitors. According to him, MySpace is to music lovers with the entertainment-loving people together, and more focus on the maintenance of Mixi users with alumni or friends of contact.

Facebook in the Japanese market to take a different operating strategy, it does not employ local staff, launched in May this year when the Japanese site, the site will be entirely dependent on volunteers translated into Japanese. Mixi greatest advantage comes from the influence of the network. As more and more users become Mixi member, its users will no doubt from the growing group of beneficiaries. In this way, Mixi in the ad in it more attractive to their target market is college students, 20 and make the youth and housewives, and these people are the core of Mixi users.

"Cleansing" Member

Mixi What is the secret of the success of « Waseda University professor, network services experts Tatsuyuki Negoro said, Mixi CEO Bonin-rule (Kenji Kasahara) know how to get other people before, so obsessed with the Japanese have a blog. In 2004, the predecessor of Mixi eMercury Hengkong born, many early users will be Mixi simple and practical online diaries and so-called "footprint" (footprint) function deeply attracted - "footprint" be able to track users. In addition, Bonin-rule in the early let Mixi become a "mobile phone-friendly" site, users can send messages in any place.

Mixi highly respected Another reason is to take the "cleansing" policy. In order to ensure that Mixi not result in murder cases and online chat rooms and dating sites keep company, Bonin-rule resolutely Rema Fan guy and easy to be deceived young people "deported." Even now, new members must also be Mixi members of the recommendation, any person under 18-year-old people do not have the qualifications to join.

In order to reduce users to disclose personal information in the Internet concern, Mixi allows users to use false names or nicknames hide true identity. This use of web-based tools for the Japanese, is quite attractive. Japanese used in anonymous in the electronic message boards to comment at this time the message board as a rumor factories, sources of information and exchange of inside information by the role. Soon after, many users will have to Mixi as they write online diary of the base. By the end of 2006 MySpace log in Japan, Mixi the number of users has reached 6 million.

Shares fell

Every three months alone some 100 million people become new users Mixi. September 2006, Mixi the Tokyo Stock Exchange GEM an initial public offering (IPO), raising total to 1.9 billion U.S. dollars, still have a lot of surplus cash. However, since January this year, Mixi's shares have dropped 43 percent, the market value evaporated nearly 1 billion U.S. dollars.

Shares dropped one of the reasons is that investors are worried that Japan's economic growth slowdown will affect the advertising revenue to Mixi; Another reason is: Mixi tired of. Now, only 55% of users visited at least every three days a Mixi, this ratio in 2006 was 70%. Analysts point out that, Mixi users into other sites. Japan's Nomura Research Institute advisory body of Yamazaki said: "Mixi competitors is not the existing social networking sites, but to provide special services of the site, such as the use of the 'embodiment' website."

This is the Ogasawara-governance will be a lot of funds for upgrading Mixi reasons. August 20, Mixi other sites that allow the developers to use OpenID tools, such, Mixi users can only log in once at the same time to visit other sites and services. In addition, Mixi also plans to study and Facebook, allow external application procedures will be added to the Mixi site.

In early August, Mixi started testing Mixi Echo, and a similar micro-Twitter blog service, but each release of the information can not be more than 50 characters. While all of these services are free of charge, but Mixi have begun to use Disney characters and the Hello Kitty image of custom personal pages, the use of music sharing service or additional storage capacity of user fees. In the coming months, Mixi will launch a Chinese language services. Bonin-rule, said: "I hope that the speed, so that in creating innovative services on a better performance. In this process, we still have to cross many obstacles."