Hot on the heels of Naver’s big announcement comes its rival, KakaoTalk, with even more impressive news. KakaoTalk rang in the New Year announcing it achieved one billion messages sent in a single day.

In terms of growth, KakaoTalk was sending 600 million messages a day by the end of September last year. Three months later, on January 4, KakaoTalk achieved their milestone billion messages in a single day.

To put this amount of activity in perspective Kakao says one billion messages in a day equates to an average of 700,000 messages sent every minute. By comparison, in one minute:

• Twitter experiences 100,000 tweets
• Facebook get 510,000 comments posted
• Google receives 690,000 search queries

KakaoTalk is a South Korean startup that received investment from the A-Fund and has been quick to gain traction overseas. The recent billion message in a day announcement came from the Japanese arm of the company, which is experience particular success. In the future Kakao intends to add motion e-moji (smilies, etc.) and the ability to make voice calls for free.

[Image via KakaoTalk]

Photo: Impress.co.jp

Today Japan’s second largest telecom, KDDI (34 million subscribers), announced its strategic partnership with French Augmented Realityleader, Total Immersion.

Beginning immediately KDDI (TYO:9433) is opening up its “SATCH” SDK, a kit intended for developing advanced mobile augmented reality experiences. The SDK is based on Total Immersion’s D’Fusion technology and boasts features such as image recognition and markerless tracking, including face tracking.

Already the telecom has developed content for several major brands like Suntory and Glico. The SDK will be further be available for free to 3,000 content providers in total.

Currently the technical documentation online is only partially available in Japanese. API details and the authoring guide remain in English. This will slow initial adoption until KDDI can release a full SDK translation.

Followers of KDDI’s strategic partnerships may be wondering what this means for the telecom’s other AR partner, Tonchidot and its Sekai Camera application. In KDDI’s formal press releases there was no mention of its other partnership.

It may at first seem to be a conflict of interest for Tonchidot to have KDDI promoting another AR SDK. However, a macro assessment of Sekai Camera’s approach to AR and the SATCH SDK quickly reveals major strategic differences which may allow the two technologies to coexist under KDDI’s roof. Namely, Sekai Camera exists as an app with a relatively easy to implement SDK explicitly intended for content presentation within the Sekai Camera app. The SATCH SDK is app agnostic and, while can be more technically involved, is far more capable. As a result, the two technologies serve mostly different purposes.

See the below demo reel to glimpse samples of what content providers can build with the SATCH SDK.

[via KDDI, photo from Impress.co.jp]

Henri Holm (SVP Asia) announces Angry Birds Japan

Yesterday at the Techcrunch Tokyo 2011 event there was a panel discussion regarding starting a company aboard, specifically in Silicon Valley. The consensus among the panelists was that a solid command of English and an emphasis on networking are critical components of a fledgeling team. This advice is simple and self-evident but all too often undervalued. Nor is it any less applicable — well, perhaps not specifically with English — to companies venturing out of their homeland.

Today Rovio, most famous for the unbelievably successful Angry Birds brand, announced at a small event in Tokyo that they will be bringing Angry Birds, merchandise and all, to Japan. With the panel discussion from the previous day still in mind and several years of working in notoriously business-difficult Japan, I wonder if Angry Birds will find the success they seek.

Some might argue that Rovio isn’t a new company and that it isn’t faced with the same challenges as most startups. This is true, but it is important to keep in mind that while the company may not be fresh faced, the game that made Rovio the company it is today is still less than two years old.

The official presentation by the Finnish company, while fun (lots of hands on gameplay), didn’t contain too many details. The takeaway points were that the company’s emphasis is on providing quality entertainment above all else. Rovio intends to develop Japan-related gameplay similar to the China levels released earlier this year. However, no level specifics or timelines were revealed. Also, Rovio outlined its strategy for entering the Japanese market with its merchandizing and licensing would be similar to it’s strategy elsewhere: develop key partnerships with local operators.

Even with sparse details there are several other indications that Rovio is doing things right.

First, Rovio has Japanese speakers that can assemble a room of potential partners and media groups. That alone demonstrates the essential characteristics discussed at the Techcrunch panel.

Antti Sonninen (Business Development Japan) socializes after the event

Second, Rovio acknowledges there are cultural differences and challenges ahead. The staff has experience working in Japan and is clearly aware of what to expect. During the presentation Harri Koponen, director of merchandizing, specifically mentioned that his attendance was to demonstrate Rovio’s sincerity in successfully working with Japan. A demonstration of commitment like this is key for doing business in Japan.

Lastly, Rovio is knowledgable of the market. After the presentation I was able to get Henri Holm, SVP of Asia, alone to answer a few direct questions on the company’s decision to enter Japan. He recognizes that the nation’s smartphone ecosystem is a natural evolution of the last ten years of advanced feature phone usage. Both the mobile phone culture and technology is prime for Angry birds. Henri, also noted that one of Angry bird’s greatest assets are the strong characters. Many who have not spent time in Japan are unaware of the immense popularity of brand characters. But Henri has spent several years in the country and is obviously mindful of the licensing and merchandizing opportunities.

On several occasions throughout the event Rovio made it clear that it was still in the early stages of entering Japan but was very bullish. So it’s too early to say if Angry birds will land successfully here. But if 500 million global downloads to date are any indication of what Rovio is capable of — and I think they are — then the outlook is good.

Minister for European Affairs and Foreign Trade for Finland, Alex Stubb shows off his Angry Birds skills

Mockup of Cocal-Cola's vending machine friend

Coca-Cola (NYSE:KO) wants its customers in Japan to get to know their favorite vending machines a little better. In the company’s latest move as part of its Happiness campaign, Coca-Cola is using gamification to get people to check-in and interact with its vending machines. It seems wacky in both concept and execution but the result could be meaningful.

Coco-Cola is affixing QR codes to its vending machines across Japan. For those unaware of vending machine ubiquity in Japan, the company will have over 400,000 machines with the a QR codes by the start of the campaign. By the end of March 2012 there will 820,000 machines with codes affixed and what Coca-Cola considers to be a unique identity.

As part of what Coca-Cola calls the “Happiness Quest” users are motivated to scan the QR code on their favorite vending machine and create its virtual identity. This entails naming the machine and choosing its avatar from a library of 20 designs. Users can scan multiple machines and create each machine’s unique identity as a sort of catalogue of check-ins and a rolodex of virtual friends. Each user is asked to designate a single machine to be “my machine” which will communicate with the user on a more personal level. This communication includes campaign news, weather information, and other relevant news.

The real game begins once user starts checking-in to machines on a regular basis. Each check-in awards the user points that can be spent to customize their machine. These virtual items include shoes, character skins, and backgrounds.

Check-in location (left) and customizable avatars (right)

Checking-in under certain conditions will also earn the user badges. For example, a check-in on Christmas gets the user the “Merry Christmas” badge and twenty check-ins during lunch time awards the lunch time badge. There is even a badge for checking-in to vending machines across the country, a common element to these “Stamp Rally” promotions. While traveling across the country is difficult this task will no doubt attract certain hardcore users.

Registration begins for the Happiness Quest on November 14. One user that signs up within the first month of the promotion will win a one million yen prize (approx. 12,900 USD). Coca-Cola hopes users will spread the word about the campaign and is encouraging users to do so by awarding another one million yen cash prize to a user that introduces the promotion to a friend.

The aim to further strengthen Coca-Cola’s brand loyalty is obvious. However, the Happiness Quest’s approach is noteworthy. The check-in game strives to get users interacting with its physical machines multiple times a day. The in-game rewards keep users coming back and form the check-in habit. Eventually spotting a big, red Coca-Cola vending machine on the street could evoke an emotional response, a sort of visual Pavlovian reminder to check-in and further the never ending game’s progress. Many other companies are utilizing the check-in as part of their marketing strategy. However, with its 800,000 plus machines, Coca-Cola may have the physical presence and reach to take it to a different level.

[Images via: Coca-Cola]

Applog Knows Its Users App Habits

Milog, a Japanese startup focused on Android development, has recently been the recipient of much negative attention regarding its sneaky business tactics. What’s interesting is that Milog was the focus of similar attention and accusations for their actions just months ago. While most companies would correct their practices Milog has instead shed other aspects of their business and focused solely on what has angered its Android users. In turn the young company has garnered support from Mediba, a major mobile advertising company owned by KDDI.

To fully appreciate the current situation and the activities which are causing so much controversy it is important to start from the beginning.

Milog spent the last several years building apps and services, receiving moderate public reception. On multiple occasions the company was recognized as a runner-up at the biannual Infinity Ventures Summit (2009, 2010). But in time, for one reason or another, the apps and services Milog has developed have been abandoned. Most recently this was the case for App.tv.

App.tv was an Android app launched in July 2011 that allowed users to watch anime on their smartphones. Unbeknown to hundreds of its users, the app was secretly sending information about the user back to Milog. This information included logs of the other apps installed on the phone and the frequency of app use. Milog then sold this data to advertisers without the users’ permission. The company’s activities were discovered, the president apologized, and the app was shut down in September October.

Now only weeks later the company is bouncing back with its next effort. But have they learned their lesson? Well, yes and no.

Milog has recently released its service called Applog. In essence it is the spying technology developed for App.tv but repackaged as an SDK for other developers to implement in their apps. If all goes as planned other developers will insert Milog’s code into their apps which will spy on users on the behalf of Milog and advertisers. While Milog is ignoring user complaints, this time the company is legally sound as it asks for users’ permission before sending personal information.

Applog collects users’ data and shares it with advertisers

Milog’s effort this time around is more transparent than with App.tv. The Applog website attempts to appeal to all parties involved (users, developers, and advertisers), although the pitch to app users is understandably weak. Developers are enticed by a monthly payout of one yen per month for each app with the Applog code in use. So an app that has 100 users that give Applog permission to gather user data will garner the developer 100 yen per month from Milog.

The biggest beneficiaries are the advertisers, specifically KDDI’s wholly owned subsidiary, Mediba, who will have access to users’ personal data. Mediba will be able to see the phone model, OS, a list of downloaded apps, and the frequency of these apps’ use. Milog also pitches that advertisers will be able to determine the age and gender of the user. This information is worth paying for and will be presumably be Applog’s main source of revenue.

Milog compels app users to give sharing permission to developers in an appeal to indirectly financially support the developers. As the pitch on the Applog website goes, developers will be more inclined to keep their apps free if users agree to share their data.

In the end, despite the bad press and online uproar (see big red comments screaming “Spyware!”) Applog is an opt-in service. Those opposed to the service can always deny permission and continue to use their apps as is.

[Images via Milog and Asahi]

Update: A reader was kind enough to point out that App.tv was not shut down until October, just days ago. Likewise, registration for the Applog SDK has been suspended.

Update (Oct 30): Milog has announced it has taken down the AppLog SDK.

Shirotsuku (Castle Builder) Screenshot

Location based services (LBS) garnered quite a bit of attention last year with new services like Foursquare and Gowalla battling over market share in America. While the hype over these services has lessened, LBS growth in Japan has not. Seed Planning, a market research and consulting firm, has published a report projecting market growth for mobile LBS in Japan. The research company estimates a 340 percent increase between 2010 and 2015.

The LBS market accounted for 43 billion yen (560 million USD) in 2010 and is expected to expand to 147 billion yen (1.9 billion USD) by 2015. That growth, while substantial is not too surprising. Increase in LBS demand is roughly in line with anticipated smartphone adoption over the next few years. However, a closer look shows that the market isn’t growing simply due to an increase in smartphone users.

GPS functionality was introduced to Japanese feature phones in 2007. Location based services such as navigation predate the smartphone and the several year head start allowed the LBS market in Japan to grow to tens of billions of yen. In other words, new smartphone users were already potential LBS users and its not the change in handset which will drive growth. Future LBS market growth will instead be attributed to the popularity of smartphone specific services and LBS innovation. This can be seen when assessing Seed Planning’s category breakdown of the market.

Category Breakdown of Location Based Services Market Growth

Although growth of the LBS market will be more or less proportional to smartphone usage, the growth of specific service types (e.g. navigation, games, etc.) is not. Some types of LBS are expected to see massive growth compared to other types. For example, the market for navigation is expected to not quite double by 2015 while the market for location based games is expected to increase many times over.

The major growth categories, as can be seen in the graph, are location information and location games. Location information is a crowded category filled with major players such as Yahoo and Sony. However, location based games currently see far less competition within its category (competition within mobile games in general is a different issue). Current LBS game companies are typically much younger and smaller. Colopl, a company I previously wrote about, is one example of a LBS game that’s popularity is growing. Other LBS games include Shirotsuku (Castle Builder) and iButterfly Plus.

Seed Planning’s full report can be purchased on through their website although its content is written in Japanese.

[Image credit: Shirostuku]

Sharp's 3D Phone

CEATEC Japan 2011, Japan’s annual IT and electronics trade show, isn’t until next week but many companies are already teasing what they will bringing to the show. While Penn-Olson will be there bringing coverage from the floor, a few early mobile hardware announcements have already piqued my interest.

There are no doubt some great smartphone handset manufacturers from outside Japan. Samsung and HTC continue to produce popular phones with big, beautiful screens and fast processors. But when it comes to risky hardware innovation, the sort that may be too wacky to be useful or just may change the world, I always look to Japan.

Japan is the home of many mobile firsts, either in development or commercial deployment. While the jury is still out on some of this technology, smartphone innovations include 3D screens, 3D cameras, waterproof handsets, wireless charging, 1seg (mobile terrestrial audio/video), and Mobile FeliCa (similar to NFC for contactless payments etc.).

NTT Docomo's Sensor Case

At CEATEC next week a few more mobile firsts will be debuted. As already reported, NTT Docomo will show off a series of smartphone cases with the ability to measure things like radiation and body fat. Docomo rival, KDDI, and handset manufacturer Kyocera have teamed up to develop an entirely different technology.

The two companies have come up with an advanced speaker system which may change the way people take phone calls. Compared to current phones which blast sound directly into the listener’s ear this new technology will allow phones to automatically adjust the method of noise projection based on the listener’s condition. For example, if the user has ear plugs in, such as a construction worker, the phone can detect the ear canal blockage and direct sound more directly through a subtle vibration of the ear itself. This would effectively allow the phone to be used while wearing earplugs. KDDI has also stated phone use over top of headphones as another use case.

KDDI and Kyocera's New Speaker Technology

Consumer implementation of the advanced speaker system is expected for fiscal 2012. Currently the necessary hardware requires less than 0.6mm of space. This is small enough to fit in most any smartphone, although I expect it will debut in a Kyocera handset first. The trade show will be the public’s first hands on with the technology and the manufacturers will no doubt be gauging consumer interest.

CEATEC Japan 2011 runs from October 4-8 at the Makuhari Messe. Visit the trade show homepage for more details and stay tuned to Penn-Olson for updates throughout the week.

[Images: Engadget, Asahi, KDDI]

A KDDI phone - a Fujitsu Toshiba WP7 device - shown off in Tokyo recently.

The research firm’s report breaks down the 2015 market revenue generated by ads, and by revenue generated from user’s purchases. User purchases will account for the majority of the market size, roughly 11 times more than ad revenue. This ratio is not substantially different from what Japanese gaming giant DeNA currently experiences.

Japan's expected smartphone gaming growth from 2010 to 2015

What I find most interesting about Seed Planning’s projections is that market growth and smartphone growth are not proportional. By the end of fiscal year 2010 approximately 7.5 million smartphones had been sold in Japan. For those wondering, the breakdown was 2.5 million from NTT Docomo, 1.1 million from KDDI, and approximately 3.9 million iPhones. Seed planning expects 76 million smartphone users by 2015. This figure is in line with other reputable companies’ projections, and means that from 2010 to 2015 there will be a 10-times increase in smartphone usage.

If during the same six-year period smartphone users increase 10-fold but the smartphone gaming market increases 30-fold, the question that begs to be answered is why?

Unfortunately, Seed Planning does not directly answer this question. At least not in its teaser report. The company does however give some interesting insight on the affect of smartphones on console gaming. 44 percent of polled smartphone users claimed to have lessened their console gaming or stopped all together. This suggests that smartphone gaming will act as a replacement for not just how console gamers spend their time, but also how they spend their money.

How console gaming use has changed by those who bought smartphones

What is unsaid by the research company – but I suspect to be a reason for such large market growth – is that the 2010 market size is smaller than it could have been. Japan’s key players, DeNA and Gree, only recently released smartphone versions of their game platforms. So while there were millions of smartphone users in 2010, their gaming options were limited. Not that expected growth from now to 2015 isn’t impressive or inaccurate, but the 30-fold figure should be taken with a pinch of salt since usage in 2010 was somewhat stunted.

[Source: Seed Planning]

JR East has announced it will begin testing a service called ‘Train Net’ during the month of October. Train Net aims to deliver train-related information directly to passengers’ smartphones via Wi-Fi. The one month test will take place on Yamanote line trains. For non Tokyo residents, the Yamanote line is the iconic circular line which encompasses the heart of Tokyo. The Yamanote line sees an estimated 3.5 million passengers a day, making it one of Tokyo’s busiest train lines and the perfect testing ground for new services.

Train Net, while broadcasting Wi-Fi throughout the train cars does, not provide access to the outside Internet. Instead it will provide real-time information regarding the Yamanote line trains and stations based on the user’s location. Some of the information services that will be tested are:

• The passenger’s current station and the remaining time to subsequent stations
• News and pictures around the station of choice
• Real-time updates on delays and warnings
• Station maps which may show things like exits and elevators
• The temperature of each train car as well as the temperature outside
• The crowdedness of each train car
• Coupons and shop information for stores in the station
• Comics, books and movies
• Advertising

JR East is vague on some of the information the service will provide and admits the actual test may differ from this announcement. Regardless, this experiment is a step towards more personalized communications with passengers. Much of the information provided in Train Net is already presented on screens in the train. However, Train Net will allow passengers to access the information at their desire. In turn, this system may give JR East a better understanding of their customers and a more direct opportunity to advertise.

More information to come (in Japanese) on JR East’s official web site.

Images from JR East press release

I am a fan of the Nikkei; I read it every single day. But this smartphone theory makes me skeptical. After all, Japan has arguably the most advanced mobile environment in the world, with 3G Internet use on phones for the last ten years. Surely online shopping was prevalent before the recent introduction of smartphones. It turns out it was.

According to a survey by Net Asia (Japanese) in January of this year 57.5 percent of mobile users have experience shopping online via their phones. There is certainly still room for growth but the experience is not novel to the smartphone.

Also, according to comScore (Japanese), by the end of fiscal 2010, there were just shy of 10 million smartphones in Japan. If the year-on-year 230 billion yen sales increase is attributed to these 10 million users — which of course the Nikkei isn’t strictly suggesting, but bear with me–the average revenue per user is 23,000 yen ($300). This is not inconceivable but it is highly unlikely.

The Rakuten Android apps

Of course e-commerce sales’ increase is a result of many factors. But the implication that smartphones play a major role is an interesting notion. Especially since the suggestion is that smartphones are driving sales in addition to those from PC purchases instead of just eating from PC’s share.

So what is it about smartphones that stimulates e-commerce? That is a question deserving of its own post. My best guess is smartphones support impromptu purchases. Also, as Rakuten has implemented in its smartphone apps, the ability to scan barcodes in brick-and-mortar stores and purchase cheaper goods on the fly aids sales.

While I am hesitant to give smartphones too much credit for the last year in e-commerce sales, their potential is undeniable. With the smartphone market share at about ten percent, Japan is positioned at just the beginning of the smartphone boom, making the outlook for online stores even better.

[Photo credits: Gapis, smallbusinessfriends]

Network overload due to smartphone data consumption is a problem many countries are facing. In mid 2010 AT&T buckled under extreme data usage and eventually had to eliminate its flat rate data plan. Instead of an all-you-can-use plan AT&T shifted to a tiered system charging users based on their consumption. Just a few months ago in June, Verizon came to the same decision and killed off its unlimited data plan.

No carrier in Japan wants to be the first to eliminate the flat rate data plan. Doing so translate to a rate hike for many users. Whichever carrier suspends its unlimited data plan first will be vulnerable to losing customers. This is even more true today as carriers have begun unlocking phones, an act which allows smartphone users to take their phones to another carrier. Instead of doing away with the flat rate plan Japan’s carriers are taking a different approach.

Japan already leads the world in data ARPU

This week KDDI announced it will begin limiting data throughput speeds of smartphone users exceeding a data cap. This is an effort to combat an overall network slowing due to a handful of heavy data consumers (see Japanese press release). Beginning in October, smartphone users under KDDI that exceed three million packets (approx. 366MB) of data transfer during three consecutive days will have their data speeds limited on the fourth day. The speed limitations apply for 24 hours and are only expected to affect the top 3-4 percent of data consumers. NTT Docomo, Japan’s largest carrier (58.6 million subscribers) already has a near-identical system in place to combat overextending its network.

In addition to slowing subscribers that exceed data caps, carriers are being proactive in unloading smartphone users elsewhere. Instead of burdening cellular networks, the carriers are expanding Wi-Fi hotspots. KDDI aims to have 100,000 spots up and running by April 2012. LTE services are also being fast-tracked to handle the overload. NTT Docomo is adjusting its budget to allocate more money towards the expansion of its Xi network. Docomo also has four smartphones in the pipeline that can make use of this network.

By focusing efforts on future technologies, subscribers stand to benefit in the long term. However, in the near future this speed capping solution is just a band-aid on an ever-worsening wound. Whether the carriers can keep the networks up to speed long enough for their efforts to pay off is yet to be seen. Either way the balancing may act as a helpful experiment for nations facing this problem in the future.

[Photo credits: topics.or.jp, journal.mycom.co.jp]

Last month Japan’s second largest carrier, KDDI (30 million subscribers), took a 5 percent stake in Colopl (short for ‘Colony Plus’ and pronounced ‘co-ro-pu-ra’), Japan’s booming location-based social gaming platform. The 5 percent translates to approximately $6.2 million in funding and a $125 million valuation.

The news received a fair amount of attention in Japan but barely made a blip overseas. This is just the way Colopl seems to want it. Unlike other social games, Colopl games go far beyond virtual items as a source of revenue. The company is tapping into a unique business model and wants to keep it their little secret.

While Colopl is just shy of announcing two million registered users they reportedly have $1.5 million in monthly revenue and log 2.5 billion page views a month. That translates to an ARPU of $0.84 and an average 1,250 page views per users a month.

It is time the rest of the world took a closer look at Colopl’s unique gameplay and business model.

Location Based Gaming

Rather than using the player’s location to log a visit to a store or serve up local information, Colopl awards virtual currency based on the real-world distance between two check-ins. Traveling 25km between check-ins generates 25 Pura (the in-game currency) for use when buying in-game items. The more a player travels the more they earn and the better their gaming experience is.

Checking-in is also incorporated into gameplay during critical moments. Periodically the player’s colony is threatened by a meteor attack. By traveling one kilometer and checking-in the player is able to avoid damage to their colony.

Although not essential to building a colony, checking-in to select areas around Japan allows players to redeem virtual souvenirs and collect location stamps. There are 748 location stamps and nearly the same amount of virtual souvenirs. Enthusiastic Colopl players plan weekends and vacations to collect these virtual items.

Tourism Tie-ins

To date there are over 100 souvenir merchants, a few in each prefecture, that participate in Colopl tie-ins. Colopl promotes the merchant’s souvenirs in their game and on their website. In turn the merchants give out Colopl-branded collectible cards (called ColoCa) with every purchase over a certain amount. These cards come with a serial number on the back which players can input into their game to redeem exclusive virtual souvenirs and other in-game goods.

Several tourism agencies, the largest being Jalan, have also teamed up with Colopl. The agencies host Colopl branded tours around various destinations in Japan. Users are able to check-in to multiple key spots for getting virtual collectibles and visit sponsored merchants. In the case of Jalan, the travel search site promotes over 500 hotels that users can reserve to receive a ColoCa.

The last major tourism related revenue stream comes from an assortment of transportation agencies. Multiple train, subway, bus and ferry companies have teamed up with Colopl to offer ColoCas with promotional events. The Tokyo Metro, for instance, had a six-month promotion where they offered a ColoCa with the purchase of a special one-day metro pass.

Colopl has refused to comment on the specifics of these tie-ups but it appears that the companies, the souvenir merchants specifically, have revenue share deals with Colopl. This assumption is supported by fluctuating monthly revenue which peaks during key travel periods. The ColoCa’s serialized redemption process likely acts as the method for tracking sold merchandise from partners.

Next Steps

In recent months Colopl has released several additional games that use their check-in mechanic. Each game utilizes the check-in a slightly different way. For example, one requires the user to move in a particular direction to solve a puzzle. The platform is open to outside development now but access is granted selectively and publishing an application is tightly controlled.

One also might expect Colopl to expand internationally. The business model is certainly unique and ripe for imitation. However, its success may be directly related to the specifics of Japan’s tourism culture and replication without modification will likely fall flat in other countries. For the time being Colopl has plenty of room to grow in Japan and seems to be content with its domestic-only path.