Rakuten Buys Nearly 10% of China’s Fanli to Deliver a World-Class Customer Experience
James M. Loy, Loyalty360
The appeal of a great loyalty program can easily transcend international boundaries. Consumers across the world are always on the look out for superb customer experiences. Loyalty programs can create meaningful customer engagement that, in turn, will breed lasting customer relationships, which equals value for the brand.
This idea may have provided a strong impetus for Rakuten Inc., Japan’s leading ecommerce website, to purchase almost 10% of China’s Fanli, the country’s largest online company that offers rebate flash sales to over 70 million customers who purchase over 1 billion RMB (the equivalent of nearly £110 million) in local and international products every month.
Rakuten’s stock in Fanli will further extend the company’s global presence that already extends into China and the U.S. with Ebates and Extrabux.com, two major online loyalty program retailers. Exrabux.com allows members to earn cash back rewards by networking over 2,500 stores through thousands valuable coupons. Similarly, Ebates, which is currently the leading online loyalty program-shopping site in the U.S., offers a host of online rebates, sales, and promo codes when members shop over 1800 stores.
Rakuten previously acquired Ebates in 2014 to expand is international and global marketing reach. And now, as part of the new deal with Fanli, Kevin Johnson, CEO of Ebates, will officially become a part of Fanli's board of directors.
"We are very excited to bring Rakuten on as an investor and welcome Kevin Johnson as a member of our board of directors,'' said Gary Ge, CEO of Fanli. ''Rakuten is a genuine e-commerce pioneer with significant global experience and we look forward to working with Rakuten as we bring our vision to consumers across China and around the world.''
Johnson is equally exited about the possibilities this new deal will bring.
''This investment in Fanli reflects Rakuten and Ebates' ongoing interest in the rapidly evolving Chinese market,'' said Johnson. ''As the market continues to mature we believe consumers will demand world-class shopping experiences. Rakuten and Ebates hope to support Fanli's vision of fulfilling this role and exploring potential collaborations in China and abroad.''