Hiroshi Mikitani

Early Life and Background

Hiroshi Mikitani was born on March 11, 1965, in Kobe, Hyōgo Prefecture, Japan. He hails from an intellectually distinguished family, which significantly shaped his global outlook and ambition. His father, Ryoichi Mikitani, was a renowned economist, the first Japanese Fulbright scholar to the United States, and a professor at Kobe University. His mother, Setsuko Mikitani, was a former president of an English conversation school and served on the board of Rakuten. This academic and internationally-oriented background exposed Mikitani to diverse cultures and ideas from a young age, fostering an early appreciation for global perspectives that would later define his business philosophy. His sister, Ikuko Mikitani, is a medical doctor, and his brother, Kenji Mikitani, is a professor of veterinary medicine.

Education

Mikitani pursued his higher education at prestigious institutions, laying a strong foundation for his future entrepreneurial endeavors. He graduated from Hitotsubashi University in 1988 with a Bachelor of Commerce degree. Following his undergraduate studies, he joined the Industrial Bank of Japan (IBJ), a major Japanese financial institution. His tenure at IBJ provided him with invaluable experience in corporate finance and investment banking, exposing him to complex financial transactions and global markets. During his time with IBJ, he was sponsored to pursue an advanced degree abroad. Mikitani subsequently attended Harvard Business School, where he earned a Master of Business Administration (MBA) degree in 1993. His time at Harvard, particularly witnessing the burgeoning dot-com bubble in the United States, deeply influenced his perception of the internet's transformative potential and inspired his future venture into e-commerce.

Career

After completing his MBA, Mikitani returned to the Industrial Bank of Japan, where he continued to work until 1996. During this period, he specialized in mergers and acquisitions, gaining critical insights into corporate strategy and expansion. However, observing the rapid advancements in internet technology and its application in commerce in the West, Mikitani became convinced of the immense opportunity to bring a similar revolution to Japan. He left IBJ in 1996 and briefly worked as an advisor to Crimson Group, a venture capital firm, further solidifying his understanding of nascent industries.

On February 7, 1997, Mikitani founded MDM, Inc., which was later renamed Rakuten, Inc. His vision was to create an online marketplace that would empower small and medium-sized businesses across Japan, giving them an accessible platform to sell their goods directly to consumers. The flagship e-commerce platform, Rakuten Ichiba, officially launched in May 1997. Unlike early competitors, Rakuten Ichiba focused on a business-to-business-to-consumer (B2B2C) model, offering merchants extensive customization options and support, fostering a strong community of sellers. This merchant-centric approach proved highly successful, allowing Rakuten to rapidly gain market share.

Rakuten, Inc. went public on the JASDAQ exchange in April 2000, marking a significant milestone in its growth. Under Mikitani's leadership, Rakuten aggressively diversified its services beyond e-commerce, venturing into online travel, banking, credit cards, securities, and professional sports ownership. In 2004, he became the owner of the professional baseball team Tohoku Rakuten Golden Eagles and the professional soccer club Vissel Kobe. His strategic acquisitions expanded Rakuten's global footprint, including Buy.com (US, 2010), Kobo Inc. (e-reader and e-book service, Canada, 2012), Viber Media (messaging app, Israel, 2014), and Ebates (cashback service, US, 2014, later rebranded as Rakuten Rewards). He also spearheaded Rakuten's foray into the mobile network industry, launching Rakuten Mobile in 2019, aiming to disrupt the Japanese telecommunications market with a fully virtualized cloud-native network.

Major Achievements

Hiroshi Mikitani's career is marked by numerous groundbreaking achievements. He is credited with pioneering and popularizing e-commerce in Japan, transforming the retail landscape and creating a robust digital ecosystem. Rakuten Ichiba grew from a small startup into one of the world's largest online marketplaces, boasting millions of users and a vast array of services. His 'Englishnization' policy, implemented within Rakuten in 2010, mandated English as the primary language for all internal communications, aiming to foster a global mindset and attract international talent, a bold move that drew both praise and criticism in Japan. Mikitani also co-founded the Japan Association of New Economy (JANE) in 2010, an influential advocacy group promoting innovation and entrepreneurship in Japan. His philanthropic efforts include a significant donation of one billion yen (approximately $12.4 million) to the victims of the 2011 Great East Japan Earthquake and Tsunami. He has also authored several books on business strategy and innovation, sharing his insights on leadership and global entrepreneurship.

Personal Life

Hiroshi Mikitani is married to Christine Mikitani, and they have two children. Despite his demanding schedule as a global business leader, Mikitani maintains a keen interest in sports, which is evident in his ownership of the Rakuten Golden Eagles baseball team and Vissel Kobe soccer team. His personal background, steeped in academia and international exposure, continues to influence his strategic decisions and his advocacy for a more open and globally competitive Japan. He also serves as the Chairman of the Tokyo Philharmonic Orchestra, demonstrating his commitment to cultural institutions. Mikitani's family life, though largely kept private, reflects the values of hard work and intellectual curiosity instilled by his parents.

Legacy

Hiroshi Mikitani's legacy is profoundly tied to his role as a transformative figure in Japan's digital economy. He built Rakuten into a formidable global internet services conglomerate, challenging traditional business models and inspiring a new generation of entrepreneurs. His unwavering commitment to innovation, global expansion, and the empowerment of merchants has left an indelible mark on the e-commerce industry worldwide. Mikitani's 'Englishnization' initiative, while controversial at first, signaled a significant cultural shift within a major Japanese corporation, pushing for greater international integration. He is widely regarded as a visionary leader who not only created a hugely successful business but also actively worked to reshape Japan's economic future, advocating for dynamism, globalization, and technological advancement in a traditionally conservative business environment. His influence extends beyond business, touching sports, culture, and national economic policy, cementing his status as one of Japan's most significant contemporary business leaders.