While Yahoo! JAPAN faces competition in this division from Japanese eCommerce giant Rakuten, we think that the firm will be able to capitalize on the increase in online spending by consumers. According to research firm Forrester, eCommerce sales are expected to grow over 50% from around JPY 4.9 trillion in 2012 to JPY 7.6 trillion in 2015.  This growth will translate to an increase in the transaction value on both Yahoo! Auctions and Shopping, making this segment an important driver of Yahoo! JAPAN's value.
We currently have a $14 price estimate for Yahoo! JAPAN, which is around 30% above the current market price. Yahoo owns 35% of Yahoo! Japan.