On a bitterly cold mid-February day, in the midst of an even harsher economic climate, Hiroshi Mikitani — founder, president and CEO of one of Japan's largest online retailers, Rakuten Inc. — shook off a slight cold to announce at a concise news conference that in fiscal 2008 his company had achieved record results.

Rakuten's net sales for the year were up 16.8 percent to ¥250 billion, he said, having been buoyed significantly by 20.2 percent sales growth in its core e-commerce segment and 24 percent growth in its travel sector. E-commerce sales hit ¥92 billion for the year and contributed a record ¥26 billion to the company's annual profits. Meanwhile, Rakuten Travel — an eight-year-old offshoot from the retail business — attracted 2.5 million domestic travelers in 2008, topping even heavyweight Japan Travel Bureau's total for 2007 (the latest figures available).

Forward-looking: Founder, president and CEO of Rakuten Inc., Hiroshi Mikitani, discusses his vision for the Internet retail super-company at his office in Higashi- Shinagawa during his JT interview in mid March.
Forward-looking: Founder, president and CEO of Rakuten Inc., Hiroshi Mikitani, discusses his vision for the Internet retail super-company at his office in Higashi- Shinagawa during his JT interview in mid March. | YOSHIAKI MIURA
All that was against a backdrop of belt-tightening nationwide that saw, for example, total department-store sales contract by 4.3 percent — the sector's biggest fall in over a decade.