Television ads still rule the day as Line Mall is losing to Mercari, study says

A still from a Mercari television commercial in Japan

Line has released so many new services recently that the messaging app could easily be mistaken for an unstoppable juggernaut. A report out of Mobile Marketing Data Labo is providing a reality check to that assumption. In its latest release, the research firm dives into the popular used goods resale app market and shows that Mercari, is the clear leader with 62.2 percent of respondents confirming that they currently use the product. Line Mall comes in third place at 12.7 percent.

In the race for second, Fril, a used goods app that caters almost exclusively to young women, holds steady with 19.7 percent. Rakuma, the Rakuten competitor is fifth, at 6.2 percent.

When asked why they use these apps, respondents predictably said they like being able to buy things cheaply and sell items they no longer need. Their reasons for trying these apps in the first place are surprising, however. Multiple responses were allowed but 36.3 percent of people said they started using the app because of a television commercial. A further 26.6 percent pointed to a smartphone ad as the reason. Only 18.9 percent said a friend’s recommendation prompted them.

Though we have seen the power of commercials for gaming in Japan, it is still notable that advertising is so much stronger than word-of-mouth tips. Web service entrepreneurs would be wise to understand that the rules of the gaming world might also apply to them.

The respective positions of Mercari and Fril jive with what I’ve heard from investors. Mercari does have a dominant position and Fril is a strong performer. That said, it might be unfair to say that they are soundly beating Line. Line Mall, while it does have a used goods selling function, is also a place to shop for new items from well-known brands.

Line Mall’s popularity as a used goods app might be small, but the true reach of Line Mall is still unclear.

See: 11 options for Japanese online shopping that aren’t Rakuten or Yahoo

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Television ads still rule the day as Line Mall is losing to Mercari, study says