Global Mobile Consumer Survey 2019 Japan Edition | Deloitte Japan

Global Mobile Consumer Survey 2019 Japan Edition

DeloitteデロイトトーマツTohmatsuコンサルティング Consulting LLC合同会社 Table of contents

What is the Deloitte Global Mobile Consumer Survey 2019? 3

Device ownership 5

Mobile operators and their stores 10

5G 20

Usage of mobile phones / smartphones 23

Subscriptions 28

Mobile gaming 31

Digital wellbeing 35

Data privacy 38 What is the Deloitte Global Mobile Consumer Survey 2019?

 The Deloitte Global Mobile Consumer Survey (GMCS) 2019 is a global survey conducted by Deloitte’s Technology, Media, and Telecom industry group.  Survey overview:  Format: Online polling (accessible on computers, smartphones, etc.) conducted by a third-party survey company with the survey designed by Deloitte.  Geographical scope: 28 countries and regions (data on a select number of countries is not published)  Number of respondents: 44,150  Timing of the survey: July and August 2019  Main characteristics of the data used in this report:  The data from the United Kingdom, Germany, Japan, and Canada are representative of each country’s demographics (age, gender, and geographical distribution of the population) and economic situation.  The sample sizes are listed on the bottom of each page.  The respondents’ ages ranged from 18 to 75 for Japan, 18 to 55 in India, 18 to 55 in South Korea, 18 to 50 for China, and 18 to 75 for other countries.  This survey uses weighted sampling so the values may not add up to 100%.

3 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Japanese consumers tend to be relatively conservative and price-sensitive compared to those other countries with regard to device ownership, subscriptions, etc.; although there is a subset of customers that are concerned about data limits, network quality, 5G, and cashless payments, it is unknown how changes in the market will affect their usage. Mobile device usage trends in Japan

Device ownership Mobile operators and stores 5G Smartphone ownership maintains Although MNVOs continue to grow, a large Showing greater caution than other continuous growth as consumers replace percentage of the 18 to 24 age group, which is countries, approximately 1 in 4 Japanese their feature phones with smartphones. focused on data limits and network quality, still consumers show interest in using 5G. use the "big three" operators. Although "if my However, smart speaker ownership rates However, not much interest is shown current phone is broken" is still the leading have stagnated at 4%, exhibiting a low reason (at 46%) for buying a new phone, 5G towards 5G services, revealing the level of interest in smart devices. devices may become an incentive to switch. possibility that awareness is low. Usage of mobile / smartphones Subscriptions Consumer app usage shows that 18 to 24 year Global Mobile Subscription rates for video, music, news, olds focus on social media and gaming apps, magazines are low across the board when while 65 to 75 year olds use weather and news Consumer Survey compared to other countries. Video apps. Shopping through e-commerce and subscription rates exceed 40% in other cashless payments are continuously 2019 growing across all age groups for countries yet only reach 21% in Japan. smartphone owners. Mobile gaming Digital wellbeing Data privacy In Japan, the 34 and under age group Perception of over-use is low compared The percentage of consumers who think make up the core of mobile gamers, with a to other countries, staying at 30%. Not that their personal information is being sudden drop after 35. many are taking steps to control their used by companies has increased by Although not many players make in-app smartphone usage. 10% from 2 years ago. Japanese purchases, the average purchase consumers read Terms of Use more than those in other countries. amount per paid user is high.

5 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Smartphone ownership has peaked in most countries, and smart speaker ownership is rising; Japan currently has the lowest rates for both devices out of the 21 countries surveyed

Q1-1. Which, if any, of the following devices do you own or have ready access to? (by country) (Several answers possible)

100% 94% 94% 96% 93% 92% 92% 93% 93% 93% 92% 92% 91% 91% 90% 91% 88% 89% 88% 86% 83%

80% 74%

60%

40% 39% 38% 31%

20% 21% 19% 21% 19% 19% 19% 17% 16% 17% 18% 18% 17% 20% 14% 14% 12% 14% 11% 11% 13% 13% 12% 13% 12% 10% 10% 10% 10% 9% 10% 9% 9% 7% 4% 5% 5% 6% 2% 4%

Denmark Luxembourg

Ireland United Kingdom Turkey

Argentina Netherlands Australia

Germany India

Canada

China Japan South Korea

Italy

Spain

Finland Norway

Sweden Brazil Mexico

Smartphone Standard mobile phone Voice-assisted speakers N = UK: 4,000 Ireland: 1,000 Germany: 2,000 Netherlands: 2,000 Finland: 1,000 Denmark: 1,000 Norway: 1,000 Sweden: 2,001 Luxembourg: 1,001 Spain: 1,000 Italy: 2,000 Turkey: 1,000 India: 1,001 China: 2,001 Japan: 2,001 South Korea: 2,000 Australia: 2,000 Canada: 2,001 Mexico: 2,000 Argentina: 1,000 Brazil: 2,003 Note: Respondent age groups are 18–55 for India, 18–55 for South Korea, 18–50 for China, and 18–75 everywhere else

6 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Smartphone ownership rates have reached 90% around the world, and ownership in Japan is steadily growing as feature phones are replaced

Q1-2. Which, if any, of the following devices do you own or have ready access to? (by country) (Several answers possible)

100% 96% YoY 92% +6% 88% 89% 83% 81% 78% 76% 76% 80% 74% 73%72% 72% 68% 65% 64% 60% 60% 54% 54% YoY 52% -3% 49% 50% 45%

40% 35% 36% 31% 29% 26% 24% 23% 22% 21% 20% 21% 20% 18% 18%18%18% 16% 17% 17% 20% 14% 14% 12% 13% 10% 10% 9% 10% 9% 6% 6% 7% 4% 5% 4% 3% 3% 2% 0% Japan United Kingdom Germany Canada South Korea China Smartphone Standard mobile phone*1 Laptop computer Desktop/tower computer Tablet Portable games player *2 eReader *3 Fitness band*4 Smart watch*5 Virtual reality headset excluding cardboard versions*6 N = Japan: 2,001 UK: 4,000 Germany: 2,000 Canada: 2,001 South Korea: 2,000 China: 2,001 *1: e.g. Feature phone, flip-phone *4: Wristband used to measure physical activity (Fitbit, Garmin, etc.) *2: e.g. PlayStation Vita, Nintendo 3DS *5: e.g. Apple Watch, Sony Smartwatch *3: e.g. Amazon Kindle, Rakuten Kobo *6: e.g. Oculus Rift, Samsung Gear

7 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. The smart speaker ownership rate in Japan has plateaued at 4%, with ownership of other smart devices lagging behind that of other countries

Q1-3. Which, if any, of the following connected devices do you own or have ready access to? (by country) (Several answers possible)

100%

80%

60%

37% 38% 37% 40% 34% 35% 26% 26% 24% 23% 24% 21% 20% 18% 18% 17% 20% 14% 13% 7% 7% 8% 8% 4% 5% 4% 5% 4% 6% 3% 1% 2% 0% Japan United Kingdom Germany Canada South Korea China

Games console*1 Voice-assisted speakers*2 Smart home appliance*3 Smart lighting system*4 Camera or monitoring system*5

N = Japan: 2,001 UK: 4,000 Germany: 2,000 Canada: 2,001 South Korea: 2,000 China: 2,001 *1: e.g. PS4 / PSPro, XBox One / One S, Nintendo Switch, etc. *4: App-controlled systems such as Philips Hue *2: Devices with voice assistants such as Amazon Echo or Google Home *5: Includes home security cameras, pet cameras, and alarms *3: Internet-enabled or app-controlled home appliances

8 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Specific uses of smart speakers have taken root in Japan, such as for music and weather, while Chinese use for audiobooks has become commonplace, exceeding 50% of respondents

Q2. For which of the following reasons do you use your voice assistant app? High Low - Voice assisted speaker (by country) (Several answers possible) 2019 2018 Japan United South Germany Canada China 2018 Total 2019 Total Kingdom Korea

To play music 48% 60% 73% 67% 73% 46% 53%

For weather updates 46% 53% 56% 49% 61% 36% 38%

To set up alarms or timers 31% 42% 46% 45% 48% 28% 40%

For amusement*¹ 26% 19% 41% 38% 46% 34% 40%

To search general information 24% 30% 47% 38% 46% 33% 26%

For news / sports updates*² 21% 40% 34% 33% 22% 18% 26%

To manage smart home appliances 11% 15% 22% 30% 26% 31% 34%

For calendar entries 10% 11% 18% 27% 15% 14% 31%

For entertainment*³ 13% 11% 19% 26% 20% 16% 39%

To listen to audio books*⁴ 8% 9% 12% 23% 11% 30% 52%

N = Japan: 39 （2018）, 53 （2019） UK: 586 Germany: 172 Canada: 240 South Korea: 82 China: 245 Note: Users of voice-assisted devices *1: Asking funny questions or having the app say funny things *3: Games, trivia, etc. *2: Includes sports news *4: Playing a recording of a book read out loud

Q3-1. Which mobile operator do you use for your main phone? Please select one answer only (Japan / annually) Other network Don't know Other network Don't know 1% 0% 1% 1%

MVNO 17% MVNO 19% NTT NTT Y!Mobile docomo docomo 5% 34% 32% Y!Mobile In 2018 8% In 2019

SoftBank 18% SoftBank 16% au au 25% 23%

N = 1,700 （2018） 1,773 （2019） Note: All feature phone and smartphone owners aged from 18-75. The results above are obtained from the online survey.

Q3-2. Which mobile operator do you use for your main phone? Please select one answer only (Japan / by age group) Other network Don't know Other network Don't know Other network Don't know 1% 1% 1% 2% 1% 1% MVNO Y!Mobile 11% MVNO 7% NTT 19% NTT MVNO NTT docomo docomo 27% docomo 34% 30% 34% Y!Mobile SoftBank 18-24 6% 25-34 35-44 17% SoftBank Y!Mobile 16% 6% SoftBank au au au 14% 18% 30% 25%

Other network Don't know Other network Don't know Other network Don't know 2% 2% 2% 1% 1% 1% MVNO 13% MVNO MVNO NTT NTT Y!Mobile 18% 21% NTT docomo docomo 8% 29% docomo 32% 34% Y!Mobile 8% 45-54 55-64 65-75 Y!Mobile SoftBank 11% SoftBank 18% SoftBank au 17% au 12% 25% au 21% 25% N = 1,773 Note: All feature phone and smartphone owners aged 18–75. The results above are obtained from the online survey. *1: NTT docomo, au, SoftBank

12 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. 18–24 year olds consider monthly costs, network quality, and unlimited data plans to be important and care more about data limits and network quality than other age groups

Q4. Which services are important to you? - Very important

(Japan / by age group) (Several answers possible) High Low

18-24 25-34 35-44 45-54 55-64 65-75 Total monthly cost 54% 60% 72% 70% 71% 68% No hidden / surprise costs 32% 31% 38% 40% 39% 40% Ability to use a point service 20% 20% 21% 22% 18% 17% Costs Ability to cancel 2-year contract without penalty mid-contract 20% 16% 24% 18% 20% 19% Availability and price of a 'friends and family' package 19% 13% 18% 22% 17% 19% Roaming tariff costs 18% 10% 9% 6% 4% 4% Quality and coverage of network when accessing the Internet or services that use data 36% 24% 29% 23% 22% 19% Availability and quality of 4G / LTE network 35% 26% 28% 19% 16% 12% Network Availability and quality of Wi-Fi hotspots 30% 18% 25% 19% 20% 21% Quality Quality and coverage of network for voice calls 25% 20% 31% 26% 27% 24% Availability of Voice over 4G (VoLTE) services 19% 8% 12% 6% 5% 6% Availability of preferred phone 36% 33% 26% 33% 22% 21% Device Availability of early phone upgrade 15% 8% 10% 7% 6% 6% Data rollover 32% 22% 27% 25% 23% 21% Availability of unlimited data tariff 28% 15% 16% 13% 8% 8% Data Availability of tariff with shared data plan 19% 9% 11% 11% 10% 10% Plans Availability of promotional offers or packages that include video streaming services 17% 9% 8% 4% 5% 4% Availability of promotional offers or packages that include music streaming services 12% 7% 7% 5% 4% 2% Quality of customer services / technical support 22% 11% 18% 18% 20% 20% Others Availability of additional services 16% 12% 9% 7% 5% 5% Availability of promotional offers or packages that include connected home devices or services 15% 8% 6% 3% 2% 5% N = 1,773 Note: All feature phone and smartphone owners aged 18–75.

13 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Contract renewals and purchases are most often done in-store, and are a major contact points with 18–24 year olds

Q5. When, if at all, was the last time that you went into a mobile operator's store for each of the following? Was this within the....?(Japan / by age group / by reason) Last 12 months Last 2 years Longer ago Never Don't know 18-24 27% 8% 9% 45% 11% 25-34 31% 10% 13% 35% 11% 1. To get information about new mobile 35-44 27% 9% 20% 39% 6% phones 45-54 28% 10% 21% 37% 4% 55-64 27% 8% 16% 47% 3% 65-75 29% 7% 12% 51% 2% 18-24 38% 16% 22% 16% 9% 25-34 32% 20% 25% 14% 9% 2. To renew my contract or purchase a mobile 35-44 27% 18% 34% 16% 6% phone 45-54 27% 19% 35% 17% 3% 55-64 29% 14% 28% 25% 4% 65-75 30% 17% 28% 21% 3% 18-24 19% 9% 9% 48% 16% 25-34 19% 6% 13% 52% 10% 3. To obtain help or advice with technical 35-44 18% 8% 15% 52% 8% issues or other technical queries 45-54 20% 8% 16% 53% 5% 55-64 23% 4% 18% 52% 3% 65-75 33% 6% 15% 43% 3% 18-24 24% 9% 7% 47% 13% 25-34 25% 9% 14% 42% 10% 4. To get information about contract / tariffs 35-44 23% 6% 15% 51% 6% or query / check my bill 45-54 24% 7% 17% 47% 5% 55-64 23% 8% 11% 54% 5% 65-75 27% 7% 13% 51% 2% N = 1,773 Note: All feature phone and smartphone owners aged 18–75. 14 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Although expectations for in-store interactions have lowered in many categories, many 65–75 year olds have high expectations

Q6. Which, if any, of the following things would you like to be able to do in an operator store? Please pick all you would like to do, it doesn't matter whether you do this already or not. High Low (Japan / by age group) (Several answers possible)

2018 2019 18-24 25-34 35-44 45-54 55-64 65-75 Total Total Repair my phone (e.g. screen repair, battery replacement) 54% 43% 35% 38% 45% 46% 44% 43%

Get advice on the tariff that best suits my needs 44% 42% 32% 36% 38% 43% 41% 54%

Buy new phones 40% 40% 38% 38% 41% 43% 40% 38%

Get advice on understanding my bill 46% 36% 29% 28% 33% 33% 42% 44%

Try out new phones 36% 31% 23% 30% 33% 33% 30% 33%

Guidance on how to use smartphone features 29% 25% 17% 16% 20% 25% 29% 40%

Get advice on apps 22% 20% 12% 11% 15% 19% 22% 32%

Purchase accessories, relevant devices 22% 19% 18% 18% 19% 21% 17% 20%

Talk about latest phones / network advancements 13% 15% 14% 14% 15% 20% 14% 15%

Purchase phone insurance 14% 14% 18% 13% 13% 19% 13% 12%

Renew contract or purchase additional air time 15% 14% 10% 10% 15% 14% 12% 17%

None of these 18% 23% 31% 27% 22% 21% 27% 18% N = 1,700 （2018） 1,773 （2019） Note: All feature phone and smartphone owners aged 18–75. Choices include services that cannot be used currently *1: SoftBank Kantan insurance, au Denki (electricity), dEnjoy pass, etc.

15 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Although 40% of customers of other operators’ purchase their smartphones online, purchasing in-store remains strong

Q7. Which, if any, of the following apply to how you got your current phone? (Japan / by operator)

100% 3% Other 2% 1% 3% 7% I received it from a family 6% member or friend 10% 80% I purchased it over the phone

I purchased it online 41% 60%

40% 79%

*3 I purchased it in-store 48% 20%

16 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. A quarter of the big three’s smartphone owners make use of operator or manufacturer trade- in programs

Q8. What happened to your previous mobile phone when you bought or received your current phone? (Japan / by operator) 100%

Other*6 23% Returned it to my employer 26% 80% 1% Threw it away 4% 1% Sold it online*5 3% 1% 4% 2% 6% Gave it / sold it to a family 5% 60% member or friend 10% Recycled / Sold it*4 25% Sold it / traded it in for a new 10% phone to the mobile operator / 40% to the device manufacturer*3

20% 42% 36% Kept it as a spare

0% Big three*1 Other operators*2 N = 983 for the big three, 476 for other operators Note: Smartphone owners signed to a mobile operator. Does not include respondents who answered “unknown” for their mobile operator. *1: NTT docomo, au, SoftBank *5: Sold through Yahoo auctions, Mercari, Amazon, etc. *2: MNO and MVNO businesses other than NTT docomo, au, SoftBank *6: Other answers include theft, loss, “don’t remember,” “never had a mobile *3: Traded in to mobile phone operator or manufacturer trade-in programs phone,” etc. *4: Sold or donated to a second-hand store, phone recycling company, etc.

Q9. Thinking about your main phone, what is the brand and model of your current handset? When did you buy or receive your current phone? (Japan / by age group)

2019 Total 10% 13% 24% 30% 21% 2%

Before 2016 In 2016 In 2017 In 2018 In 2019 Don't know

18-24 6% 15% 18% 37% 21% 4%

25-34 8% 17% 29% 26% 16% 4%

35-44 9% 11% 25% 32% 20% 3%

45-54 10% 13% 25% 28% 24% 2%

55-64 11% 9% 26% 30% 22% 3%

65-75 13% 13% 21% 31% 22% 0%

Before 2016 In 2016 In 2017 In 2018 In 2019 Don't know

N = 1,484 Note: All smartphone owners aged 18–75. Survey conducted from July to August 2019.

18 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. The most common reason for replacing a smartphone is because it is broken (46%), and 9% responded that they would replace their phones for 5G

Q10. What do you think will be the reason you buy your next phone? (Japan) (Several answers possible)

0% 10% 20% 30% 40% 50%

If my current phone is broken 46%

When my 2 year contract ends 17%

If I can buy it at a discount or on promotion 15%

If a cheaper model is available 14%

When my own replacement cycle has come 12%

If a new model which can use 5G is released 9% If a new model of a specific brand is released / If a new model which adopt new technology is released 9% If a new model with foldable screen is released 1%

If my company change company phone 1%

For another reason(s) 4%

I will not replace my phone 3%

Don't know 13%

N = 1,484 Note: All smartphone owners aged 18–75. The question explains that “In May 2019, a law was announced where discounts can no longer be applied by bundling mobile phone device costs with mobile phone communications fees. This law will be enacted in fall 2019.”

20 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Although smartphone owners in Japan are more cautious about 5G compared to those in other countries, almost a fourth will switch as soon as it is available or if they hear good things about it

Q11. A 5G network describes the next generation of mobile wireless communication which can provide consumers with mobile Internet speeds typically around 5 times faster than currently available on 4G / LTE. Which of the following best describes your attitude towards 5G networks?(by country) 100% 1% 4% Don't know 15% 9% 20% 30% 21% 80% 22% 19% I would switch to a 5G 20% network if it was the standard offering and 60% 24% 31% there was no alternative 31% I would probably switch to 37% 30% a 5G network eventually 40% 22% 31% I would switch to a 5G 17% 17% network if I start hearing 20% 36% 15% good things about it

13% 13% 8% 12% I would switch to a 5G 0% network as soon as it is Japan United Kingdom Canada South Korea China available

N = Japan 1,484 UK: 3,537 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–75. Only five countries are compared as Germans were not asked this question.

21 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. The majority of respondents answered that the 5G service they would pay extra to use is not listed in the survey, potentially revealing a lack of knowledge about 5G

Q12. The following services may be provided by 5G. Which, if any, of these would you be willing to pay a few extra hundred yen a month to use? (Japan / by age group) High Low

18-24 25-34 35-44 45-54 55-64 65-75 Care and nursing service - an operator can oversee all the residents via high resolution cameras 5% 9% 13% 18% 18% 15% around the facility, or remote healthcare is also available. Mobile 4K / 8K video streaming 15% 14% 12% 10% 9% 9% - users can watch high quality videos even from mobile devices.

Mobile live video streaming (sports, music) 10% 8% 12% 9% 11% 13% - users can enjoy live streaming via any angles that you prefer.

Mobile VR live video streaming (sports, music) 7% 7% 8% 7% 5% 7% - by using VR technology, users can experience live. Live VR / AR Commerce - by using VR or AR technology, users can see and purchase items from 7% 6% 8% 6% 3% 6% a remote area. Mobile cloud gaming and eSports - users can enjoy gaming and eSports without game consoles through 9% 8% 7% 5% 4% 1% cloud streaming. Video conference at remote workplace 5% 7% 7% 6% 4% 3% - users can work from not the office, but any place.

None of these 67% 71% 66% 69% 70% 68%

N = 1,484 Note: All smartphone owners aged 18–75.

23 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Many respondents aged up to 34 years old use social networking, video, and music apps, while many respondents 65+ years of age use newspaper/broadcast apps

Q13. Which, if any, of these apps do you use at least once a day? (Japan / by age group) (Several answers possible) High Low

2019 Ranking 18-24 25-34 35-44 45-54 55-64 65-75 Total 1 Weather apps 38% 16% 32% 38% 44% 40% 53% 2 Social Network 34% 55% 50% 33% 29% 26% 21% 3 News apps 31% 14% 28% 33% 35% 34% 35% 4 Game apps 21% 35% 29% 24% 20% 13% 6% 5 Newspaper / broadcast apps 15% 5% 7% 11% 14% 19% 35% 6 VOIP 11% 11% 10% 14% 9% 10% 15% 7 Retail / Shopping apps 10% 8% 12% 13% 8% 12% 9% 8 Classified apps 10% 17% 13% 13% 7% 7% 2% 9 Navigation apps 9% 8% 8% 10% 9% 9% 11% 10 Photo / Videos 9% 20% 9% 11% 5% 5% 9% 11 Apps provided by your bank or financial institution 9% 8% 9% 9% 9% 5% 12% 12 Music apps 9% 21% 11% 8% 7% 5% 5% 13 House keeping book apps or managing your assets 8% 10% 11% 6% 8% 7% 5% 14 Video apps 7% 18% 12% 6% 6% 3% 4% 15 Mobile payment apps 7% 6% 9% 10% 6% 5% 5% N = 1,484 Note: All smartphone owners aged 18–75.

24 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. LINE usage is high across all age groups, 70% of respondents between 18–24 years old use Twitter, and nearly half are using Instagram

Q14. Apps used on mobile phone (Japan / by age group) (Several answers possible)

100%

81% 80% 76% 69% 69% 63% 59% 60%

47% 46% 43% LINE 40% 36% Facebook 26% 24% 21% 21% 20% 20% Twitter 20% 17% 13% 16% 11% 17% 8% 15% 12% Instagram 5% 4% 7% 2% 1% 1% 0% ♪ TikTok 18-24 25-34 35-44 45-54 55-64 65-75 N = 1,484 Note: All smartphone owners aged 18–75.

25 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Over half of all smartphone owners, especially one third of those 65+ years old, have purchased groceries or essentials from their phone

Q15. How often, if at all do you personally buy each of the following products or services using your phone? - Groceries & Essentials (Japan / by age group)

100% Never/Don't know

80% 38% 38% 47% 46% 46% About once a year/Less often 50% than once a year 65% 60% About once every six months 13% 14% 11% 12% 2% 12% 7% 4% About once every three 40% 4% 11% 7% 4% 3% months 6% 7% 8% 9% 8% 13% 13% 7% 10% 8% 11% 2% About once a month 6% 4% 20% 9% 21% 21% 23% 23% 22% 22% More than once a month 12% 0% 2019 18-24 25-34 35-44 45-54 55-64 65-75 Total

N = 1,484 Note: All smartphone owners aged 18–75.

26 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. PayPay and LINE Pay both have the highest share of mobile cashless payment options for smartphone owners at 15%

Q16. Which, if any, of the following mobile payment solutions have you used on your smartphone (whether in store or on transportation)? (Japan / by age group) (Several answers possible) High Low

2019 18-24 25-34 35-44 45-54 55-64 65-75 Total PayPay 15% 8% 19% 18% 16% 15% 12% LINE Pay 15% 21% 20% 16% 14% 16% 7% Rakuten pay 12% 6% 14% 14% 12% 12% 11% Rakuten Edy 10% 6% 12% 14% 11% 8% 7% d Barai 9% 6% 12% 12% 9% 11% 4% Suica*1 7% 4% 11% 7% 8% 7% 3% iD 6% 6% 8% 11% 5% 6% 1% nanaco 6% 3% 7% 7% 9% 4% 3% Credit card payment with Apple pay / Google pay 5% 3% 8% 6% 5% 3% 4% au Pay 4% 4% 6% 2% 4% 1% 4% Convenience store QR code payment 3% 3% 6% 4% 3% 2% 2% QUICPay 3% 3% 5% 3% 3% 3% 2% Waon*1 3% 1% 4% 4% 4% 1% 1% Origami Pay 2% 2% 3% 3% 2% 3% 0% merpay 2% 4% 4% 3% 2% 1% 0% N=1,484 *1: All smartphone owners aged 18–75. Survey conducted from July to August 2019. Although prepaid cards like Suica and Waon can be used without a smartphone, non-smartphone payments are not included in the data above.

28 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. The percentage of respondents subscribed to video, music, news / magazine services in Japan is lower than compared to other countries

Q17-1. Which, if any, of the following subscription services*1 do you have access to? (by country) (Several answers possible)

Video Music News / Magazine*2 （e.g. Netflix、Amazon Prime Video）（e.g. Spotify、Apple Music）

Japan 21% 17% 11%

United 54% 39% 14% Kingdom

Germany 41% 37% 11%

Canada 55% 37% 19%

South 41% 34% 24% Korea

0% 50% 0% 50% 0% 50%

N = Japan: 2,001 UK: 4,000 Germany: 2,000 Canada: 2,001 South Korea: 2,000 Note: Some services cannot be accessed in China, so only five countries are compared. *1: Also includes non-free subscriptions for family members in addition to the subscriptions the respondent is in. Devices used are also not limited to smartphones. *2: Purchased publications such as Nikkei Digital, Asahi News Digital, or The Guardian.

29 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Amazon Prime Video is the most-subscribed service；Netflix and Hulu occupy a small share of the video subscription market for 18–24 year olds who may be using widely available free content

Q17-2. Which, if any, of the following subscription services*1 do you have access to? (Japan / by age group) (Several answers possible) High Low

18-24 25-34 35-44 45-54 55-64 65-75 Amazon / Prime Video (a Video service part of the Amazon Prime subscription) 15% 18% 14% 15% 14% 11% Netflix 3% 8% 4% 3% 2% 1%

Video Hulu 2% 8% 3% 3% 2% 1% YouTube Premium 2% 1% 2% 1% 2% 3% Media subscription services provided by mobile operators 7% 4% 3% 2% 1% 2% Media subscription services provided by broadcasters 1% 2% 2% 2% 1% 1% Amazon / Prime Music (a music service part of the Amazon Prime subscription) 10% 11% 8% 10% 12% 8% Music Spotify 6% 4% 5% 3% 2% 3% Apple Music 4% 6% 4% 2% 3% 2% Google Music 2% 4% 3% 1% 3% 2% LINE Music 6% 3% 2% 1% 2% 1%

News/ Nikkei 2% 4% 3% 5% 7% 8% Magazine Asahi Shimbun 1% 1% 2% 1% 4% 4% Online News Subscription (Excluding Newspaper publisher) 4% 7% 3% 4% 3% 4% Magazines (e.g. Economist, Ideal Home) 2% 5% 4% 4% 4% 5% N = 2,001 *1: Also includes non-free contracts of family members in addition to the contracts the respondent is in. Devices used are not limited to smartphones.

31 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. The percentage of mobile gamers decreases with age for all countries; this is especially pronounced for people 35 years old and above in Japan

Q18. Which, if any, of the following types of games do you play on a smartphone? (by country / by age group)

100% 95% 93% 90% 86% 83% 79% 80% 80% 78% China 76% 72% 71% 74% 73% South 67% 66% 73% Korea 60% 65% 60% 60% 54% 49% 53% 45% 47% 44% 40% 40% Canada 33% 33% Germany 30% 27% 27% United 20% Kingdom 18% Japan

0% 18-24 25-34 35-44 45-54 55-64 65-75

N = Japan: 1,484 UK: 3,537 Germany: 1,774 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–55 in South Korea, 18–50 in China, and 18–75 in other surveyed countries

32 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Casual / Puzzle games have become the most popular type of game in the world, with card games seeing traction in Europe, and Asia showing an interest in action / adventure / strategy games

Q19. Which, if any, of the following types of games do you play on a smartphone? (by country) (Several answers possible) High Low

United South Types of games Japan Germany Canada China Kingdom Korea Casual / Puzzle 16% 26% 23% 28% 33% 47% Role playing 9% 5% 3% 5% 14% 23% Simulation 8% 7% 6% 5% 13% 19% Action / Adventure 7% 5% 5% 4% 17% 38% Card games 6% 14% 15% 19% 11% 25% Music / Rhythm 5% 4% 3% 4% 12% 20% Augmented Reality (AR) games 5% 4% 5% 5% 11% 11% Sports 4% 5% 5% 3% 12% 11% Board / word 4% 13% 8% 16% 11% 28% Strategy 4% 7% 10% 9% 20% 26% Arcade / Retro 2% 7% 5% 7% 13% 17% Casino / Betting 2% 5% 3% 5% 4% 4% Racing games 2% 5% 4% 4% 12% 24% Family / Trivia 2% 6% 8% 6% 4% 4% I don't play games on a mobile phone 53% 49% 47% 41% 20% 10% N = Japan: 1,484 UK: 3,537 Germany: 1,774 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–75.

33 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Although the ratio of paying players is low, 1 in 5 spend 21 USD or more a month, with a significant percentage of medium-to-heavy spenders

Q20. Typically how much*1, if anything, do you spend on in-app purchases for mobile games each month? Please think about your total in-app purchases across all mobile games (by country) In-app purchase experience In-app purchase amount per month 100% 100% 8% 4% 26% 27% 29% 31% 32% 80% 80% 37% 31% 51% 48% 58% 59% 10% 69% 5% 60% 60% 31% 25% 33% 19% 36% 33% 40% 40% 71% 19% 18% 16% 49% 52% 7% 8% 20% 42% 41% 20% 39% 31% 10% 6% 7% 21% 21% 13% 14% 13% 0% 0% Japan United Germany Canada South China Japan United Germany Canada South China Kingdom Korea Kingdom Korea

I have never made an in-app purchase 21USD+ 11-20USD 1-10USD 0USD Don't know I have made an in-app purchase N = Japan: 631 UK: 1,779 Germany: 907 Canada: 944 South Korea: 1,431 China: 1,722 *1: Consists of smartphone owners who play mobile games and have spent money on them. The N value above includes respondents who have never made in- app purchases. In-app purchase amounts are based on in-app purchases made across all mobile games converted to USD.

Q21. Overall, do you think you use your mobile phone too much, or not? (by country)

100% 1% 2% 1% 1% 0% 4% 5% 13% Don't know 26% 34% 33% 80% 32% 31% No, I don't think I use it 40% too much 60% 34% 26% 25% No, I use it a lot, but it 34% is not too much 40% 47% 29% Yes, probably 27% 27% 28% 20% 21% Yes, definitely 17% 18% 9% 12% 12% 12% 0% Japan United Germany Canada South Korea China Kingdom

N = Japan: 1,484 UK: 3,537 Germany: 1,774 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–75.

36 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Japan comes in highest, at 37%, of the five surveyed countries for percentage of users who do not try to manage their usage

Q22. How, if at all, do you try to manage your smartphone usage? (by country)

High Low

South Japan Germany Canada China Korea I turn the sound off 24% 32% 33% 26% 36% I turn notifications off 15% 12% 24% 26% 31% I turn the smartphone off / put it down / put it away 13% 28% 33% 35% 40% I delete apps which I use too much 12% 25% 8% 11% 31% I put on 'do not disturb' or 'airplane mode' 11% 18% 16% 11% 23% I turn data connectivity off 8% 10% 13% 8% 23% I use screen time trackers*1 5% 5% 6% 4% 14% I use apps to limit my usage*2 3% 3% 2% 6% 14% I give my smartphone to someone else 1% 2% 2% 4% 4% Other 1% 2% 3% 2% 2% I do not try to manage my smartphone usage 37% 34% 31% 27% 13% Don't know 10% 6% 4% 3% 2% N = Japan: 1,484 Germany: 1,774 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–75. This question is asked differently in the UK, so only five countries are compared. *1: Screen time feature on the iPhone / Digital Wellbeing app on Android, etc. *2：Forest, Block Timer, etc.

38 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Japanese smartphone owners’ awareness that personal data is being used and shared by companies is increasing, but is still lower than that of Europe and other regions, with awareness among the younger generation being particularly low

Q23. Do you believe that the companies you interact with online use your personal data? Do you believe that the companies you interact with online share your personal data with third parties (e.g. social networks sharing data with retailers)? By country Japan / by age group 100% 100% 15% 12% 15% 14% 11%

36% 5% 8% 6% 10% 11% 80% 44% 80%

58% 57% 58% 59% 60% 9% 60% 12% 45% 45%

40% 80% 79% 79% 77% 78% 40%

54% 20% 44% 20%

0% 0% Japan Japan United Germany Canada South China 18-24 25-34 35-44 45-54 55-64 65-75 2017 2019 Kingdom Korea Total Total

Yes No I don't know Yes N = Japan: 1,194 （2017）, 1,484 （2019） UK: 3,537 Germany: 1,774 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–75.

39 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Japanese respondents are more likely to read terms and conditions compared to those in other countries, with nearly 30％ of Japanese respondents answering that they have “Never” or “Hardly ever” accepted terms and conditions without reading them first

Q24. How often, if at all, do you accept terms and conditions without reading them? (by country)

1% 100% 3% 3% 2% 8% 4% Don't know

80%

Always/almost 60% 64% 68% 78% 77% always/Sometimes 86% 87%

40% Hardly ever

20% 18% 17% 10% 11% Never 8% 8% 11% 9% 11% 9% 0% 3% 4% Japan United Germany Canada South Korea China Kingdom

N = Japan: 1,484 UK: 3,537 Germany: 1,774 Canada: 1,655 South Korea: 1,850 China: 1,918 Note: All smartphone owners aged 18–75.

40 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Older generations of smartphone owners in Japan are more aware than younger generations that their personal data is shared with organizations that they interact with online

Q25. Thinking about companies which you may interact with online (such as Facebook, public Wi-Fi providers, online retailers), as far of you are aware, which, if any, of the following types of information do you already share with them? (Japan / by age group) (Several answers possible) High Low

18-24 25-34 35-44 45-54 55-64 65-75 My email address 24% 31% 33% 39% 40% 52% My name 25% 33% 32% 32% 34% 51% My phone number 24% 32% 28% 32% 34% 48% My address 20% 23% 25% 28% 28% 46% My purchase history 11% 19% 24% 22% 27% 25% My location / location information 12% 18% 18% 19% 21% 31% My address book / contacts 7% 11% 13% 13% 14% 17% My browsing activity (i.e. that the sites you browse on are shared with a 6% 15% 11% 10% 16% 11% third party) My health metrics (e.g. walking patterns, calorie intake) measured by my 10% 6% 5% 4% 5% 6% phone / wearable device My photos 4% 5% 6% 3% 3% 6% A list of calls that you make from your phone 1% 5% 4% 4% 3% 9% Access to my friends' contact list 3% 5% 4% 3% 3% 6% I never share any of these forms of personal information 15% 16% 21% 18% 21% 16% I don't know 40% 33% 23% 26% 26% 16% N = Japan: 1,484 Note: All smartphone owners aged 18–75. The "organizations" described here assume social media operators, public wireless LAN providers, online retailers, etc.

41 Global Mobile Consumer Survey 2019 © 2019. For information, contact Deloitte Tohmatsu Consulting LLC. Deloitte Tohmatsu Group (Deloitte Japan) is a collective term that refers to Deloitte Tohmatsu LLC, which is the Member of Deloitte Asia Pacific Limited and of the Deloitte Network in Japan, and firms affiliated with Deloitte Tohmatsu LLC that include Deloitte Touche Tohmatsu LLC, Deloitte Tohmatsu Consulting LLC, Deloitte Tohmatsu Financial Advisory LLC, Deloitte Tohmatsu Tax Co., DT Legal Japan, and Deloitte Tohmatsu Corporate Solutions LLC. Deloitte Tohmatsu Group is known as one of the largest professional services groups in Japan. Through the firms in the Group, Deloitte Tohmatsu Group provides audit & assurance, risk advisory, consulting, financial advisory, tax, legal and related services in accordance with applicable laws and regulations. With about more than 10,000 professionals in nearly 40 cities throughout Japan, Deloitte Tohmatsu Group serves a number of clients including multinational enterprises and major Japanese businesses. For more information, please visit the Group’s website at www.deloitte.com/jp/en.

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