The three parties have been working together since September 2000 when they signed a memorandum of understanding to brainstorm potential content for the new service.
The aim of the field trial is to determine the commercial feasibility of linking vending machines with i-mode mobile phones. During the trial period, consumers will be able to purchase products from special "i-vending Machines" on a cashless basis using their i-mode handsets. In addition, messages and advertisements will be displayed on i-mode handsets and users will receive points, which they can redeem for purchases.
The parties will conduct the trial in metropolitan Tokyo this summer.
(Please refer to attachment for further details regarding trial.)
Attachment
Outline of "i-vending Project" (provisional name) Trial
1. Primary components of the trial a. Advanced Payment Service The user accesses i-mode's dedicated website and signs up for the service. The "i-vending machine" then verifies the user's identity, after which the user can insert funds into any "i-vending machine" for subsequent cashless purchases.
b. Cashless Shopping Soft drinks and a variety of services can be purchased with prepaid funds. This can be done after the user's ID is verified by the "i-vending machine".
c. Point Service Points are earned by making purchases on compatible vending machines, and these points can be exchanged for special merchandises including soft drinks.
d. Advertising and local information delivery service Various types of advertising and local information can be delivered via displays and printers installed on compatible vending machines.
2. Time Period and Area of Trial Scheduled to start within metropolitan Tokyo area this summer.
3. The separate business roles for and corporate overview of each participating company Coca-Cola (Japan) Co., Ltd. The company will provide Coca-Cola and other brand soft drinks as well as vending machine business expertise with a nationwide network of approximately 1 million vending machines. It will also develop logistics and information systems.
NTT DoCoMo, Inc. The mobile communications carrier will provide its communications network and technical and marketing expertise. It will also provide its expertise related to managing service content.
Itochu Corp. Itochu will construct an alliance related to the development of technology and service content. It also will provide support for the portion of the commercial feasibility study, which deals with market development as well as system development and operation.
4. For further information, please contact: The i-vending Project (provisional name) business office Aerospace, Electronics, and Multimedia Company Information Industry Business Department Itochu Corp. Kita-aoyama 2-5-1 Minato-ku, Tokyo 107-8077 Tel: 03-3497-3535 Fax: 03-3497-4181 Email: i-vending@aemc.itochu.co.jp
Reference
Outline of participating companies
Coca-Cola (Japan) Co., Ltd. Address:6-3 Shibuya 4-chome, Shibuya-ku, Tokyo, Japan Founded: June 1957 Capital: 3,600 million-yen (As of December 2000) No. of employees: 500 (As of May 2000) Corporate representative: Mary E. Minnick, President
NTT DoCoMo, Inc. Address: 11-1, Nagatacho 2-chome, Chiyoda-ku, Tokyo, Japan Founded: August 1991 Capital: 949,679 million-yen (As of February 2001) No. of employees: 4,799 (As of March 2000) Corporate representative: Dr. Keiji Tachikawa, President
Itochu Corp. Address: 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo, Japan Founded: December 1949 Capital: 174,722 million-yen (As of September 2000) No. of employees: 5,254 (As of April 2000) Corporate representative: Uichiro Niwa, President and CEO
About Coca-Cola (Japan) Co., Ltd.
Coca-Cola (Japan) Co., Ltd. was established in 1957 as the Japanese subsidiary of The Coca-Cola Company (headquarters: Atlanta, Georgia). The Coca-Cola system conducts manufacturing and sales activities that closely meet local and regional needs, and reflects a strong orientation toward the consumer, a comprehensive marketing strategy, and strict quality control. All these elements combine to create a revolutionary structure that has transformed the soft drink industry in Japan. In close cooperation with Coca-Cola bottlers throughout the country, we continue to provide Japanese consumers with a wide variety of products as the industry's leader.
About NTT DoCoMo, Inc.
NTT DoCoMo is Japan's largest mobile communications operator, with over 34 million subscribers. It had consolidated operating revenue of 3.7 trillion yen (approximately US$34.7 billion) in fiscal 1999 (year ended 31 March 2000). In February 1999 NTT DoCoMo launched its i-mode service, which provides continuous connection with the Internet via mobile phones. The number of subscribers to the service exceeded 21 million by February 2001. NTT DoCoMo plans to introduce third-generation mobile communications services based on its W-CDMA system in May 2001.
About ITOCHU Corporation
ITOCHU Corporation (www.itochu.co.jp), is one of Japan's leading trading companies with annual sales exceeding 12.1 trillion yen (approx. US$114 billion). Currently ranked 10th in Fortune Magazine's Global 500 list, ITOCHU Corporation has over 800 subsidiaries and associated companies worldwide and is engaged in a wide variety of businesses, including information technologies, finance, textiles, construction, chemicals, real estate, aerospace, machinery, energy and food products.
