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【Merlogi】 Company/Product Introduction

September 02, 2022

【Merlogi】 Company/Product Introduction

This deck is introduction of Merlogi company.

We are currently hiring for the following positions
Senior Product Manager - Merlogi


September 02, 2022

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  1. 1 FY2023

  2. 2 What Is Mercari Group? Table of Contents What Is

    Merlogi? Merlogi’s Products Development Structure 02 03 04 01 References 05
  3. 3 What Is Mercari Group?

  4. 4    4 Mercari Group is made up of Mercari,

    Inc., and its consolidated subsidiaries. January 28, 2021 Planning, development, and management of internet services Yuki Ishikawa Souzoh, Inc. November 20, 2017 Financial-related businesses Masato Yamamoto Merpay, Inc. April 28, 2021 Cryptoasset- and blockchain-related services Naoki Aoyagi Mercoin, Inc. Merlogi, Inc. October 28, 2021 Planning, development, and management of logistics services Tomoyuki Shindo June 2022 Development of internet services Ken Wakasa (Managing Director) Bangalore, Karnataka, India Mercari Software Technologies India Private Limited Fintech Marketplace Mercari, Inc. Established Activities Locations Offices Representative Representative of Mercari JP February 1, 2013 Planning, development, and operation of the Mercari marketplace app Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6118, Japan Tokyo, Sendai, Fukuoka Shintaro Yamada Jeff LeBeau Established Activities Representative Locations January 2014 Planning, development, and operation of the US version of Mercari John Lagerling Palo Alto, CA Mercari, Inc. (US) October 1, 1991 Management of a soccer club Fumiaki Koizumi Higashiyama 2887, Aō, Kashima, Ibaraki, Japan Kashima Antlers F.C. Co., Ltd. Company Overview Japan Region
  5. 5    About Mercari, Inc. February 1st, 2013 Established Tokyo,

    Sendai, Fukuoka, Osaka, Palo Alto Offices 1,891 (including subsidiaries) Headcount
  6. 6    Corporate Mission Create value in a global marketplace

    where anyone can buy & sell "I want to make society more affluent by ensuring that limited resources are circulated." This is what founder Shintaro Yamada realized while traveling the world, and what led him to create the C2C marketplace known as Mercari. Thanks to technology, individuals around the world can now easily connect to buy and sell from each other. Through Mercari, we aim to establish a society where resources are circulated and where people can accomplish their goals without limitations.
  7. 7    The Circular Economy Mercari Strives For Things Increasing

    transactions on secondhand platforms Supporting production and marketing by providing credit and data Leading the move to a circular economy by integrating primary & secondary distribution Primary Distribution Secondary Distribution Money Data
  8. 8    The Circular Economy Mercari Strives For Shifting production

    and consumption from assuming eventual disposal of items to assuming circular use of products and materials By expanding secondary distribution to help items find their way into the hands of those that need them, we aim to build a circular economy with less waste.
  9. 9    Aiming for a “Planet-Positive” World Electric power, naturally-occurring

    materials, and the planet’s other resources form an essential foundation not only for Mercari to continue its business, but for the continued livelihoods of people all over the world. However, it’s said that humankind is currently consuming our natural resources at a rate 1.6 times faster than they can renew. We believe that creating a circular economy, where we use our limited resources smartly, is a fundamental mission we must complete. Mercari is a marketplace where items that someone no longer needs are passed on to someone else who needs them. That means that the more Mercari users we have, the more able we are to affect positive impact on the environment. From the experience of reusing items and increasing interest in sustainability, people will gradually take on a more sustainable approach to buying, using, and disposing of items, ultimately leading to a new form of production/sales and changes all along the value chain. We believe that by encouraging this change around the world, we not only help achieve a circular economy, but help reduce environmental burden and mitigate climate change. The concept of “planetary boundaries,” referring to the limits of our earth’s resources, is becoming more widespread. We use the word “planet positive” to express our desire to help solve environmental issues by continuing to generate positive impact on the environment through our business. Mercari will continue to pursue “planet-positive” action to create a world where anyone can demonstrate their value. 1. Source: Living Planet Report 2020, WWF
  10. 10    Values Go Bold All for One Be a

    Pro With the whole team working together and all members working to their highest potential, the team can achieve large missions that one person alone cannot. In order to create innovation with a big impact on the world, everyone takes on bold challenges and learns from many failures. All members take ownership of their work as professionals in their field, learn every day, and commit to showing results.
  11. 11    Culture Go Trust & Openness Mutual trust is

    very important for Mercari. Based on the premise of trust, information is kept transparent, and the organization is built flat. We also don’t make more rules than necessary, so as to not limit our members. This is because we believe that everyone’s untied thoughts and actions lead to both personal growth, and a stronger organization. We call this culture Trust & Openness, seeking our ideal organization and people who share Mercari’s spirit.
  12. 12    By the Numbers (Consolidated)
 76.2 billion 106.1 billion

    147 billion (123.9) -1.93 billion 5.1 billion -3.7 billion Net Sales Operating Income 37.5 33.6 38.5 37.3 YoY +28% (Excluding the impact of the change in accounting policies) YoY +8% (Billion JPY) (Billion JPY) (Billion JPY) (Billion JPY)
  13. 13    GMV/MAU (JP)
 GMV/MAU YoY +4% YoY +5% (Billion

    JPY) (Million users) (Billion JPY) (Million users) 1. Quarterly average number of users who browsed our service (app or web) at least once during a given month
  14. 14    1,740.7
 billion JPY 2019 The market for C2C

    EC marketplace apps in Japan has grown to 1,958.6 billion yen (12.5% increase from the previous year). This is enormous growth considering that C2C marketplace apps only started to gain traction in 2012, and the market continues to hold great potential for growth. C2C EC Market Size in Japan
 1. Source: “FY2020 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry. The C2C EC market refers to the sum of the marketplace app and online auction markets. 2. Mercari JP GMV from January 2020 to December 2020 as of December 2020 3. Source: Ministry of Economy, Trade and Industry (April 2018). Estimated total value of items described as “items that became no longer needed over the past year.” Excludes automobiles, motorcycles, and motor scooters. 
 2020 1,958.6
 billion JPY Market Potential of C2C EC Marketplace Apps in Japan
 C2C EC market1   Approx. 1,958.6 billion JPY (YoY +12.5%)   
 Mercari GMV2 712.1 billion JPY Estimated value of unwanted items3 Approx. 7.6 trillion JPY/year (YoY +31%)
  15. 15 What Is Merlogi?

  16. 16    Relaying value far and wide for kinder living

    Our Corporate Mission Many people and systems are involved in transporting goods every day, and this network forms the backbone of society and daily life. Through easier and more seamless services, we wish to bring happier days to both the people using and the people supplying them. By combining our unique data and technology, we will create a better way of living, kinder to all people and to the world. Merlogi was created with this goal in mind.
  17. 17    Leadership (Merlogi) Tomoyuki Shindo (進藤智之) After graduating from

    university, Tomoyuki joined Yamato Transport, where he held positions such as branch manager. In 2007, he joined IBM Japan. There, he was responsible for projects including business strategy and process improvements for transport/logistics companies in the consulting division. In 2013, he joined Amazon Japan, where he was mainly in charge of mid- to long-term logistics network strategy and establishing new logistics networks. After leaving Amazon in 2020, he was involved in conceptualizing a next-generation online supermarket as Head of Transportation and Logistics at AEON NEXT Preparation Co., Ltd. In October 2021, he was appointed Representative Director and COO of Merlogi, and he became CEO of the company in February 2022. Merlogi, Inc. CEO
  18. 18    Leadership (Merlogi) Shunsuke Sako (迫 俊亮) After graduating

    from UCLA (University of California, Los Angeles), Shunsuke joined Mitsubishi Corporation in 2008. Following this, he joined MOTHERHOUSE Co., Ltd. where he was involved in launching business and establishing branches of the company overseas. In April 2014, he was appointed Representative Director & CEO of Minit Asia Pacific Co., Ltd. and oversaw Mister Minit businesses launched in six APAC regions. He next served as a Management Advisor for Unison Capital, Inc. In November 2021, Shunsuke joined Mercari as a VP, and he now works on new business that combines offline and online areas. Merlogi, Inc. Director
  19. 19    Leadership (Merlogi) Jeff LeBeau (ジェフ・ルボー) After graduating with

    a BSc in Economics from the University of Oregon, USA, Jeff worked as a freelancer in localization and development of global expansion strategies for web services. From 2014 onwards, he worked with venture and mega-venture companies in both Tokyo and Silicon Valley. He joined Mercari US as Business Operations Manager in June 2017 and transferred to Mercari JP the following year to work on developing data-driven business strategies. He was appointed Vice President of Analytics in 2020, a position he held concurrently with that of Mercari Japan CPO since June 2021. He was appointed Vice President, CEO of Mercari Japan in January 2022. Merlogi, Inc. Director
  20. 20    November: Launched a proof of concept of our

    logistics network in Setagaya History 2021 October: Established Merlogi, Inc. 2022 April: Launched an app for package sorting tasks May: Expanded package pickup area to seven wards of Tokyo August: Plan to launch an app for pickup drivers The seven wards of Tokyo that Merlogi package pickup is available in
  21. 21    Merlogi’s Business Within Mercari Group Japan Region Marketplace

    Fintech Merpay Mercoin Mercari Mercari Shops (Souzoh) Merlogi Merlogi works to contribute to further growth of Marketplace by building our own logistics network, providing added value utilizing that network, planning logistics strategies for Mercari and Mercari Shops, and more.
  22. 22 Why We Established Merlogi

  23. 23    Mercari Distribution Statistics Amount of packages shipped using

    express delivery services in Japan annually Percentage of shipments in the express delivery market that are Mercari purchases Percentage of packages shipped at convenience stores that are Mercari purchases Approx. 5 billion1 5–10%2 Approx. 80%3 As Mercari’s gross merchandise volume grows at a rate of +25%4 YoY, its impact on the distribution industry grows as well. 1. Source: Ministry of Land, Infrastructure, Transport and Tourism’s “2020 Express Delivery Volume Report” (only available in Japanese) 2. Percentage of Mercari shipments among total express delivery volume nationwide in 2020 (researched by Mercari) 3. Percentage of Mercari shipments among specified website linked logistics service providers shipping from convenience stores (researched by Mercari) 4. Source: Mercari’s FY2021.6 full-year financial results 
  24. 24    The Logistics Industry’s 2024 Problem With the large

    impact Mercari has on the logistics industry, Mercari must take initiatives to help solve the 2024 problem. 1. Source: Ministry of Economy, Trade and Industry’s “Logistics Crisis and the Physical Internet”  
  25. 25    As the amount of transactions on Mercari increases,

    it has become more and more necessary to reduce the operational burden post offices and convenience stores face when users ship items Operational burden caused by the increase in shipments Past initiatives and results Convenience store example: Each package shipped from a Mercari Post eliminates approx. 60 seconds of operational burden on a convenience store register1 Installed approx. 2,200 Mercari Posts, where sellers can ship items they sold on Mercari without having to line up at a counter 1. Source: The average time it takes to process shipment for a single listing on Mercari at the counter of a convenience store (researched by Mercari) Reason 1: The Need for Sustainable Shipping Operations
  26. 26    I can list items, but it’s confusing that

    shipping methods and locations change depending on the size of the package. I have a hard time listing items because it’s hard to tell how much shipping will cost for an item when listing it. I hate having to get all the right packing materials for each item, and I’m never sure if I’m actually doing it right or not. While Mercari has worked on offline initiatives and making shipping easier, the complexity of the shipping process has continued to be an issue. We need to improve the user experience for shipping with in-house solutions. Reason 2: Room to Improve the Shipping Experience for Users
  27. 27    We need to take steps to reach Mercari’s

    goal of creating a circular economy that makes the most of the world’s finite resources. We must be conscious of the environmental burden created in the shipping process in order to continue expanding our business sustainably. Developing Mercari Eco Pack (reusable packaging material) Past initiatives and results Reducing the environmental burden of shipping items Reason 3: Reducing the Environmental Burden of Shipping Items
  28. 28 Merlogi’s Products as of FY2022 Q4

  29. 29 Buyer Our Products Package registration Seller FM Pickup Merlogi

    Open Hub LH Transport Arrival at base LH Transport LM Delivery MOH App Admin Tool FM App Seller Partner Partner Partner Existing scope Mercari Post Delivery center
  30. 30 Touchpoint Shipping locations

  31. 31    Product overview • An unattended mailbox that sellers

    can use to ship items by themselves ◦ Just scan a QR code to print a label, attach it to the package, and place it in the mailbox—it’s easy! Future outlook • Improving the experience for users shipping multiple items at once • Displaying the operational status of Mercari Posts on the Mercari Post map We have developed Mercari Post, a touchpoint for shipping items that’s easy to use and doesn’t require any face-to-face interaction. Touchpoint: Expanding Merlogi’s Unique Shipping Locations
  32. 32 First Mile Package pickup

  33. 33    Management tool Coordinate with drivers Create efficient pickup

    plans/routes Buyer Touchpoint Seller FM Pickup Departure SC LH Transport Arrival SC/Base LH Delivery Delivery Center LM Delivery Create a sustainable and kind logistics network App Merlogi logistics network Buyer Package registration Seller FM Pickup Merlogi Open Hub LH Transport Arrival at base LH Transport Delivery center LM Delivery First Mile: Mercari’s Unique Package Pickup Challenges
  34. 34    First Mile: App for Drivers By solving and

    optimizing Mercari’s unique package pickup challenges, we will expand Merlogi’s kind pickup network Product overview • An app for drivers that provides support for pickup tasks ◦ Pickup route guidance ◦ Progress management for pickup tasks ◦ Codes to unlock Mercari Post mailboxes to collect the packages from inside Future outlook • Optimizing pickup routes • Expanding pickup sites (picking up packages from locations other than Mercari Posts) • Supporting pickup tasks (breath tests, maps, etc.)
  35. 35 Merlogi Open Hub Sorting warehouse

  36. 36    - Operators at the Merlogi Open Hub (MOH)

    take the packages, add information necessary for the next steps in the delivery process, and sort them based on their destination - Going forward, we will expand the operations carried out within MOH to provide a unique Merlogi delivery UX Merlogi Open Hub: App for Sorting Operators
  37. 37 Future Outlook

  38. 38    Future Outlook We hope to open up Merlogi’s

    pickup network for anyone to use. Opening up the logistics network for use outside of Mercari Providing added value services Make Mercari Posts available for shipping returns, etc., including for other e-commerce sites Offer item storage/shipping services for online shops
  39. 39 Development Structure

  40. 40    Development Process Role Analysis (quantitative/ qualitative) Business planning

    Partner negotia- tions UX design Ops design UI design System design Develop- ment QA BizDev PM UX Designer Engineer QA
  41. 41    • Meetings/documents with business teams and external stakeholders:

    Japanese • Meetings/documents with development teams: English ◦ Simultaneous interpretation is provided for some meetings such as company-wide meetings ◦ The company provides various forms of language learning support depending on the company’s needs and the employee’s language level We focus on “yasashii” (easy and kind) inclusive communication Communication Languages
  42. 42 References

  43. 43    Blogs • What it’s like to work as

    a PM ◦ Introducing Merlogi’s Product Development Team (only available in Japanese) ◦ New Member Blog: What Future Do Merlogi PMs Envision? (only available in Japanese) • What technology we use ◦ Introducing Merlogi’s Tech Stack and Architecture (only available in Japanese) • About our products ◦ Launched by Someone with No Hardware Experience: The Long Road to Developing Mercari Post and Future Goals (only available in Japanese)
  44. 44    Job Description • Senior Product Manager - Merlogi