Slide 25
Slide 25 text
QandA
Using Fermi estimation to analyse the improvement in the number of products and
share due to the new Mercari feature *This is a rough calculation
Assumptions.
- Current number of active Mercari users: approx. 20 million
- Estimated value of unwanted goods lying in Japanese households: approx. 66 trillion
yen (approx. 532,000 yen per capita)
- New functionality lowers the hurdle for listing items
Assuming 20% of active users regularly exhibit
Current number of active sellers: 20 million x 20% = 4 million
Approx. 70% of the active users have stopped listing their
items because they find it too much of a hassle to think about
the selling price
Assuming that 30% of this 70% will list with the new function
Number of new sellers: (20 million - 4 million) x 70% x 30% =
3.36 million
4 million + 3.36 million = 7.36 million
Percentage increase in the number of exhibitors: (7.36 million
- 4 million) / 4 million ≈ 84%.
Assuming annual transaction value per person: 50,000 yen
Current annual transaction value: 4 million people x ¥50,000 = ¥200 billion
Transaction value of new exhibitors: 3.36 million x ¥50,000 = ¥168 billion
Increase in transaction value of existing sellers due to price optimisation:
assumed to be 10%.
Increase in transaction value of existing exhibitors: ¥200 billion x 10% = ¥20
billion
JPY 200 billion + JPY 168 billion + JPY 20 billion = JPY 388 billion
Increase in total transaction value: (¥388 billion - ¥200 billion) / ¥200 billion
= 94%.
Assuming 10% commission for Mercari
New share: ¥388 billion x 10% = ¥38.8 billion
⇨ 84% UP!!! ⇨ 94% UP!!!