Dentsu Inc. and Dentsu Digital Inc. form business partnership with Zuora Japan to support subscription-based businesses

The text of the Dentsu Inc. news release distributed on May 18 is as follows.

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May 18, 2017

Dentsu Inc. and Dentsu Digital Inc. Form Business Alliance with Zuora Japan for Subscription-Based Business Support

Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President: Toshihiro Yamamoto) and its wholly-owned subsidiary Dentsu Digital Inc. (Headquarters: Minato-ku, Tokyo; CEO: Norihiro Kureya) have formed a business alliance with Zuora Japan Inc. (Headquarters: Minato-ku, Tokyo; President: Junichiro Kuwano), the Japanese subsidiary of U.S.-based Zuora Inc.※1, a global leader in subscription platform solutions. Headquarters: Chiyoda-ku, Tokyo; President: Junichiro Kuwano), a subsidiary of Zuora Inc. (Headquarters: San Francisco, USA; President and CEO: Jeff Weyer), a global leader in subscription platform solutions. This partnership will launch services supporting corporate business and marketing transformation through subscription-based models.

Subscription-based business refers to a billing model where payment is received continuously for a fixed usage period, rather than per transaction for goods or services. This model has traditionally been used in industries such as service goods and digital content, primarily through monthly flat-rate contracts.

In recent years, driven by advances in digital technologies like IoT and AI, along with shifts in values and lifestyles from "ownership to usage," the value companies provide has begun expanding beyond product sales to include accompanying services and experiences. As this paradigm shift from goods to services accelerates, diverse forms of subscription-based business models are emerging across various industries and gaining significant attention.

Moving forward, Dentsu Inc., Dentsu Digital Inc., and Zuora Japan will leverage their respective track records and expertise in marketing communications and digital solutions to provide integrated solutions for subscription-based businesses.

Specifically, for companies considering subscription-based business models or seeking to evolve their existing ones, we will provide services ranging from customer-centric service development consulting to pricing strategies, operational process design support, and the development and implementation of contract management systems. Post-implementation, we will also offer detailed communication support, such as providing plans tailored to each customer's specific product/service needs and usage patterns, and introducing trial products or services to targeted potential customers.

Subscription-based business models applicable across various industries include the following:

【Potential Use Cases】
◇ "Automobiles & Related Products," "Home Appliances & AV Equipment": Monthly billing models based on usage levels, or maintenance services tailored to usage patterns

◇ "Education/Medical Services": Offering services with fees that vary based on usage frequency or duration

◇ "Cosmetics/Toiletries," "Food," "Retail": Package sales of multiple products based on customer needs and individual diagnostic results

◇ "Information & Communications": Offering flexible billing model services based on usage volume and provided content

◇ "B2B Companies": Building long-term relationships through continuous service provision rather than one-time purchases

Dentsu Inc. and Dentsu Digital Inc. will continue to strengthen subscription-based business services supporting corporate digital transformation.

※1 <Overview of Zuora Headquarters>
・Company Name: Zuora Inc.
　 https://zuora.com
・Location: California, USA
・Representative: Tien Tzuo (CEO)
・Founded: September 2007
・Capital: $250 million USD
・Business Description: Provides Subscription Relationship Management (SRM), a platform for subscription-based businesses. Covers processes related to pricing, quoting, web sales, contract management, billing and collections, revenue recognition, and reporting/analysis, supporting revenue growth and operational efficiency

※2 <Overview of Zuora Japan>
・Company Name: Zuora Japan K.K.
　 https://jp.zuora.com/
・Location: Egg Japan, Shin-Marunouchi Building 10F, 1-5-1 Marunouchi, Chiyoda-ku, Tokyo
・Representative: Junichiro Kuwano (President and CEO)
・Established: July 2015
・Shareholder: Wholly owned subsidiary of Zuora Inc. (U.S.)
・Business Description: Provides Subscription Relationship Management (SRM) in Japan, one of 13 global locations

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/0518-009293.html