This is the first column in a new biweekly series introducing newsletter content provided by our local research partners, INterRIDE Inc..
Mobile GPS apps
2010 saw several social media GPS apps join the bulging ranks of digital tools already out there for Japanese consumers. International names like Facebook’s Places — launched in Japan last September as its first market outside of the U.S. — and Foursquare were joined by the likes of local giant mixi also offering their own version of geo-fun. Mixi’s Check In was used 2 million times in its first month alone, indicating the strong potential for these services.
Japanese GPS services can currently be categorized as map-style apps (e.g. Navitime), “spot” or site-searching apps (Hot Pepper FooMoo), gaming apps (CoroPura), or the newer SNS apps (including Tou.ch).

The local growth isn’t surprising when set against the overall global advance of geo-services, predicted to continue expanding until 2014 and reach $134 billion. Advertising on GPS services was a mere $2 billion back in 2009 but is expected to increase to some $59 billion by 2014.
Last February saw another major release, RecoCheck by Recruit, which has information on over 4 million sites and integrates Twitter. It aims to be the number one service of its kind by March 2012. Yahoo!’s Loco, set for release in June, also promises to be the biggest in Japan and to push the market yet further.
However, as reported by SPiRE, GPS is still a minority interest for most consumers. In a survey of over ten thousand mobile phone users only 20% used the apps, of which the leader was the rather generic Google Map.
Lawson x GREE
To celebrate the one-year anniversary of its Ponta loyalty card, convenience store chain Lawson launched a campaign with mobile game platform GREE’s virtual reality shop, Omeseya-san. Users collected digital items in order to complete their Ponta mascot-themed Lawson uniform avatar. Omeseya-san’s one million members had to get five items (including digital representations of Lawson products) to claim their prize.

Liberal Democratic Party
While last year Japan’s politicians tried to jump on the Twitter bandwagon, the Opposition Liberal Democratic Party (or Jiminto) took a different approach. In February they became the first local party to open an official Facebook page. Within four days a 1,000 people had “liked” the page; this has since grown to over 3,000. Not a lot but in proportion to the numbers of Facebook users who are LDP supporters it might be a large number indeed!
In an age where Presidents are announcing their bids for re-election via their Facebook pages this might not seem a radical move, but considering the opacity and intransigence of local politics, and the stolid growth of Facebook here, it’s an interesting development.
Osaifu Keitai for Smart Phones
As smart phone sales continue to prove healthy there will be innovations to localize them, or adapt other technology to work with them. This is especially true of popular Japanese mobile actions like reading QR codes, infra-red data transfer, and e-money functionality via FeliCa chips (osaifu keitai).

Previously mophie announced plans to create an add-on casing to the iPhone so that it could work with FeliCa readers, and Softbank more recently began selling a cruder solution in the form of “e-money stickers” that could be placed on your handset to allow it to connect with an e-money system like Waon or Edy.
Now BUG (pronounced as an acronym, not an insect) has developed the Smart Sound Touch system, where stores uses readers at the POS to allow even non-FeliCa-integrated smart phones to be scanned and read, to launch apps or connect to coupon websites. This ultimately means that smart phones will be able to offer loyalty programs and e-money services. (The readers apparently also work with FeliCa-integrated handsets too.) All the SST hardware requires now is for service providers to develop apps for consumers to download.
