FamilyMart and NTT DoCoMo Agree on Capital Tie-Up and Strategic Alliance

Published: May 28th, 2007 | Author: Roman

TOKYO, JAPAN, May 28, 2007 — FamilyMart Co., Ltd. and NTT DoCoMo, Inc. announced today that they will form a strategic alliance through a capital tie-up in which DoCoMo will acquire 2,930,500 shares of common stock owned by FamilyMart as treasury stock — approximately 3% of total issued shares — for about 9 billion yen on June 13, 2007.

From July 10, FamilyMart convenience stores nationwide will begin accepting mobile credit via DoCoMo’s iD???? platform, thereby enabling users to make payments simply by waving their phones over a reader/writer. Currently, the iD platform is accepted in about 140 FamilyMart stores in Tokyo, Nagoya and Fukuoka cities.

The two companies expect to leverage mutually beneficial strengths, including FamilyMart’s nationwide network of approximately 7,000 convenience stores and expertise in retail store operations, and DoCoMo’s some 52 million customers and expertise in Osaifu-Keitai???? wallet services, as well as mobile credit services via the iD platform. These strengths, as well as the two companies’ powerful brands, will foster value-added services that offer customers increased convenience and flexibility.

Initially, FamilyMart will upgrade reader/writers at FamilyMart payment counters for compatibility with DoCoMo’s ToruCa???? information-capture service, thereby enabling customers to download coupons and useful information into their DoCoMo phones. In addition, Osaifu-Keitai compatible reader/writers will be installed in “Famiport” multimedia terminals in all FamilyMart stores. These services will become available by the end of May 2008.

The strategic alliance will be enhanced in other ways as well, including:

  • Introduction of iD mobile payments for purchases made on FamilyMart’s shopping website (http://www.famima.com/).
  • Introduction of the “Famima iD” mobile credit card for “Famima Card” credit-card users. (FamilyMart currently offers credit and non-credit [points and other benefits only] versions of the Famima Card, numbering 1.67 million cardholders as of April 2007.)
  • Provision of benefits for using DoCoMo’s DCMX???? and FamilyMart’s “Famima iD” mobile credit cards via the iD platform at FamilyMart stores.
  • Trial use of Famima Cards by owners of DoCoMo phones with Osaifu-Keitai capability.

Going forward, the two companies will consider other options, including:

  • Incorporation of Osaifu-Keitai services in FamilyMart’s customer relationship management (CRM) operations.
  • Test marketing of other mobile-related services at selected FamilyMart stores.
  • Exchanges of personnel to further develop value-added mobile-related services at FamilyMart stores.
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