Mickey Mikitani explains why Rakuten keeps betting against the crowd

Nearly three decades after founding Rakuten, Mickey Mikitani remains one of Japan’s most closely watched business leaders, particularly as the country debates how to remain competitive in an increasingly global and AI-driven economy.

In the CNBC Managing Asia interview below aired May 4th, Mikitani reflects on the key decisions that shaped Rakuten’s rise, including the controversial move to make English the company’s common language, the long and difficult path toward building Rakuten Mobile, and why he believes artificial intelligence will transform - but not fully replace - human work.

The discussion also provides broader insight into Japan’s corporate culture, long-term investment thinking and the role entrepreneurship may play in reversing the country’s prolonged economic stagnation.

Why does this matter to residential real estate? Rakuten is an example of what can be done even in conservative Japan. Not only does Rakuten employ tens of thousands globally, the platform, akin to the Amazon of Japan, provides a sales outlet to many small businesses nationwide.

Higher sales mean higher wages and higher wages means stronger borrowing power to buy homes.

Topics Covered

• Explains why Rakuten forced employees to adopt English in one of corporate Japan’s boldest management decisions.

• Rakuten’s English mandate reshaped the company into a globally focused business built around international engineering talent.

• CNBC examines Rakuten Mobile and the telecom gamble many critics believed would fail.

• Rakuten Mobile eventually reached 10 million subscribers after years of losses and investor scepticism.

• Mikitani says criticism has followed nearly every major Rakuten business launch from e-commerce to telecom.

• Rakuten claims AI already improved efficiency by 10% and could sharply increase future profits.

• Mikitani argues AI will augment human work rather than fully replace it.

• Rakuten staff once taught small merchants how to use computers and connect to the internet during the company’s earliest days.

• Mikitani explains why Rakuten built its marketplace around small entrepreneurs instead of conventional retail models.

• Rakuten’s ecosystem strategy helped connect its shopping, finance, travel and mobile businesses into a single platform.

• Mikitani defends long-term investment over maximizing short-term profits.

• The discussion highlights Mikitani’s willingness to challenge conventional wisdom despite public criticism.

• Rakuten used partnerships with FC Barcelona and the Golden State Warriors to build global brand recognition.

• Mikitani argues Japan still lacks enough entrepreneurial power despite its global industrial strengths.

• The interview closes with Mikitani warning that Japan’s economic direction must change and that entrepreneurship is key to reversing stagnation.