Japan Market Update - February 2003 Edition

Hi,

Here is your update for February 2003.

The Department of Business, Economic Development, and Tourism (DBEDT) has released the Japanese visitor numbers for 2002 with a slight drop of only 2.9% in total visitor arrivals to Hawaii. Considering the circumstances that Hawaii faced last year, these numbers solidify the fact that Hawaii remains as one of the most popular overseas destination for the Japanese.

PacRim Marketing Group is constantly developing new programs and opportunities to reach the Japanese consumer. Click if you would like to email me to set an appointment to discuss how we can assist you with increasing your business potential with the Japanese market in 2003, particularly in these uncertain times. Or give us a quick call and we would be pleased to visit you at your office. 949-4592 ext.833 direct to me, or 949-4592 ext. 814 for Toby Tamaye.

Hope this trend and news update is helpful for new ideas and planning for 2003.

Regards,

3/3 Hina Matsuri (Girl's Day)
3/14 White Day
3/21 Vernal Equinox Day (Holiday)
4/29 -5/5 GOLDEN WEEK
4/29 Green Day (Holiday)
5/3 Constitution Memorial Day (Holiday)
5/4 Kokumin no Kyujitsu (Holiday)
5/5 Children's Day (Holiday)
5/11 Mother's Day

2002 IN REVIEW

In 2002, Hawaii welcomed a total of 1,484,770 Japanese visitors, which was 2.9% less than in 2001. Of these visitors, 53.9% were repeat visitors, up from 51.5% in 2001. The majority of Japanese (90.8%) chose to stay at hotels. However, the number of Japanese staying at hotels dropped 2.9% for the year. More Japanese chose alternative accommodations such as staying with friends and relatives (+51.8%) and in bed and breakfast properties (+53.6%). The number of Japanese visitors increased for wedding and honeymoons (+56.8%), attend school (+244.2%), for conventions (+122.8%) and for corporate meetings (+57.4%). Fewer Japanese visitors came for vacation (-7.3%), for incentive travel (-87.5%) and for other business (-36.6%). (DBEDT 1/03)

JTB ESTIMATES 3.1% GROWTH IN OVERSEAS TRAVELERS

JTB has released their preliminary figures for 2003, forecasting a 3.1% growth to 16.85 million in overseas travelers. Overseas travel will particularly be supported by strong demand from the older generations, and women in their 30's, many of whom will travel with special purposes centering on a theme or hobby. (Travel Journal International 1/13/03)

JAPANESE OVERSEAS HONEYMOON UP TO 97%

More than 97% of Japanese couples in the Winter of 2002, chose to celebrate their marriage by having an overseas honeymoon. The most popular choice was Hawaii, which marks the fifth consecutive year that Hawaii was chosen as the top honeymoon destination. Hawaii currently enjoys a 28.1% market share, which is up 2.6% from the previous year. (Travel Journal International 11/5/02)

NARITA AIRPORT REACHES RECORD TRAFFIC DURING NEW YEARS HOLIDAY

According to a recent report by the Narita Airport Authority (NAA), the number of passengers using Narita Airport during the dates of December 20 -- January 6 reached a record of 1,313,000 travelers, up 14.3% over 2000 figures. The peak day for outbound travel was December 28 when it recorded 51,000 passengers were on outbound destination flights. (The Travel Vision News 1/27/03)

NORTHWEST TURNS HONOLULU INTO TRANSFER POINT FOR NEW SEATTLE FLIGHT

Northwest Airlines, the largest American airline to fly to Japan, has created a new service from Osaka to Seattle. What makes this new flight interesting for Hawaii is that Northwest is adjusting their schedules so that Japanese can conveniently fly to the US Mainland through Honolulu as their connecting airport. (Pacific Business News 1/20/03)

H.I.S CONTINUES RECORD SALES

While most agencies have continued to show numbers lower than previous years, H.I.S. continues to show its strength in the industry by recording a 7.4% increase in November over 2000 figures. H.I.S. has succeeded in improving its business by focusing on "cheaper, closer, and shorter" destinations for FIT (free independent travelers), such as Korea, China, Guam, and Hawaii. (J Wing Travel 1/20/03)

JALPAK AND NIPPON TRAVEL AGENCY CREATE TIE UP FOR HAWAII

On January 9, JALPAK and the Nippon Travel Agency announced a joint venture in which they will create a business tie-up for the purchase of hotel rooms and a land operation business in Hawaii. The new package tours will be available starting in April 1. There are four areas for them to join forces: joint purchase of hotel accommodations, all the arrangements pertinent to package tours to the Neighbor Islands, customer services such as phone rentals, and the operation of optional tours. In 2002, JALPAK carried 290,000 travelers to Hawaii, while Nippon Travel Agency carried 90,000 travelers. (Travel Vision News 1/20/03)

AIR NIPPON AIRLINES LAUNCHES NEW TOUR BUSINESS OPERATION

On January 16, Air Nippon Airlines (ANA) announced the opening of their new travel business operation that will combine three different departments. The new venture will be called ANA Sales & Tours and will combine ANA Skyholiday tours (which specialized in the domestic wholesale business), ANA World Tours (which specialized in the overseas wholesale business), and ANA Travel (for the retail business). (J Wing Travel 1/27/03)

TEN TRAVEL AGENCIES EXPERIENCED GROWTH IN TRANSACTIONS

In November of 2002, only 10 travel agencies experienced growth when compared to November of 2000. These agencies (in order of transaction volume) were H.I.S (up 7.4%), ANA Travel (24.9% up), Big Holiday (16.6% up), Odakyu Travel Service (9.5% up), Okinawa Tourist (21.8% up), Travel Plaza International (21.0% up), New Orient Express (9.1% up), Tonichi Travel (115.4% up), Keisei Travel Service (12.5% up), and Travel Japan (69.9%). (J Wing Travel 1/27/03)

HONOLULU MARATHON SEEN BY 2.4 MILLION IN JAPAN

The Tokyo Broadcasting System says that its broadcast of the Honolulu Marathon was seen by 2,480,451 viewers. The race drew 16,246 participants from Japan this past December. (Pacific Business News 1/15/03)

DEPARTMENT STORES IN JAPAN REPORT 3.5% LOSS IN 2002

According to the Japan Department Store Association, total sales for its member stores declined by 3.5% on a same store basis. The cause is attributed to the warm weather in Japan that negatively affected autumn and winter clothing sales. (The Japan Economic Newspaper 11/26/02)

ACCESSORY BAGS CONTINUE TO OUTPERFORM HANDBAG SALES

According to the latest study by Japan Exports and Imports, accessory bags was the top imported bag into Japan (33.8 billion yen), followed by luggage (30.4 billion yen), and then handbags (28.4 billion yen). This shows a continued trend of the shift from handbags to smaller accessory bags for major brand importers. In 1997, handbags accounted for 42.5% of all imported bags into Japan. In 2001, it accounted for just over 30%. Also, in regards to the country of origin, Italy leads the importers with a market share of 30.2%, followed by China (27.7%), and France (24.2%). (JETRO)

FOREIGN COSMETICS REMAIN STRONG IN JAPAN

Another study completed by the Japan Exports and Imports was for cosmetics. According to their study, the most popular imported cosmetic were special purpose cosmetics (29.8%), followed by skin care and makeup products (25.1%) and hair care products (20.6%). The most popular country that imported cosmetics in 2001 was France (32.4%), followed by the US (28.4%). (JETRO)

POPULARITY OF DIGITAL CAMERAS SOARS

The number of digital cameras sold in Japan in 2001 exceeded the sales of conventional film cameras. The best selling products ranged in price from 30,000 yen to 50,000 yen. One of the most popular choices was Sony Corp's Cyber Shot DSC-U20. (Daily Yomiuri 1/20/03)

TEA CHALLENGES COFFEE AND COLA FOR MARKET SHARE

Tea is thriving in Japan. According to the National Soft Drink Industry Association, the sale of Japanese tea has increased almost threefold from 1997 to 2001, going from 505,000 kiloliters to 1.421 million kiloliters. Meanwhile sales of Coca-Cola, Japan's most popular soft drink, increased only 1.6% over these five years (1.152 million kiloliters to 1.17 million kiloliters), while coffee expanded by only 4.7% (2.568 million kiloliters to 2.688 million kiloliters). The largest tea company in Japan is Itoen. Large advertisement campaigns are credited with the growth, generally playing up teas healthy image. (Yahoo Business 11/22/03)

JAPAN'S AGING POPULATION STARTS NEW MARKET FOR BABY FOOD

With the steady drop of newborns in Japan, major producers of baby food have begun to create products that are similar in concept to baby food but targets seniors. Soft-boiled scabbard fish, bite size shrimp meatballs, chop suey with tofu, and dozens of other varieties can be found at many grocery stores. It seemed that the characteristics of baby food appealed to seniors. However, instead of aiming to sell the food to seniors, companies are labeling their products as "fun meals" or "food for ages 0-100". (Business Week 1/27/03)

VALENTINE'S DAY & WHITE DAY IN JAPAN

In Japan, the women only give presents to the men. Men are inclined to return the favor one month later on White Day (a Japanese creation). According to a japan-guide.com survey, the most popular Valentine's Day present is chocolate with over 75% of women following this tradition. On White Day, however, there is a greater variety of presents. Men mostly gave cookies as presents along with flowers or candy. For more information on this Japanese tradition click here

CHIKYU NO ARUKIKATA - WAIKIKI & OAHU MOOK

Don't miss this opportunity to reach Japanese travelers before they leave for Hawaii!
For best positioning and editorial consideration, respond TODAY!

Targeting the young female shopper aged 18-35, the Chikyu no Arukikata Waikiki & Oahu Mook is the shopping "bible" filled with detailed information.
Issue Date: June & November 2003
Circulation: 180,000 (semi-annual)
Distribution: International Bookstore Worldwide
Click on the cover to find out more!

Want to be a part of these books? Click here for our Media Request Form or us.

Space Deadlines:

Chikyu no Arukikata - West Coast USA Guidebook - February 21, 2003
Chikyu no Arukikata - Los Angeles Guidebook - February 21, 2003
Chikyu no Arukikata - Saipan Guidebook - February 21, 2003
Chikyu no Arukikata - Hawaii Guidebook - February 21, 2003
Chikyu no Arukikata - USA Guidebook - March 24, 2003
Chikyu no Arukikata - Waikiki/Oahu June Mook - March 24, 2003
Chikyu no Arukikata - Guam Mook - March 24, 2003
Nouveau - Ala Moana Center Selection - Summer issue - April 10, 2003
Aloha Express - July Quarterly - May 1, 2003

Nouveau - Ala Moana Center Selection - Summer issue - May 10, 2003

Material Deadlines:

Chikyu no Arukikata - West Coast USA Guidebook - February 21, 2003
Chikyu no Arukikata - Los Angeles Guidebook - February 21, 2003
Chikyu no Arukikata - Saipan Guidebook - February 21, 2003
Chikyu no Arukikata - Hawaii Guidebook - March 14, 2003
Chikyu no Arukikata - USA Guidebook - April 18, 2003
Chikyu no Arukikata - Waikiki/Oahu June Mook - April 18, 2003
Chikyu no Arukikata - Guam Mook - April 18, 2003
Nouveau - Ala Moana Center Selection - Summer issue - May 10, 2003
Aloha Express - July Quarterly - May 15, 2003

PACRIM STAFF UPDATE

Joy Ishiara - V.P., Advertising Services & Media Planning - IS EXPECTING! We are all wishing her the best. She will be on maternity leave from early March to June 2003.

We are pleased to welcome , who has a full-time role as Senior Consultant with PacRim. Originally from Hawaii, David is back in the islands after many years in Tokyo. Bringing his extensive experience working in the high-tech sector with companies like Sony Corporation, Postcard Software and Hawaii-based Inovaware Corporation, David will be involved in strategic marketing and sales development expansion.

Welcome! Taryn Harada< - she joined PacRim Marketing this month as an intern helping our Integrated Marketing Services department. An International Business & Marketing student from the University of Hawaii, Taryn brings her experience from being Vice President of Promotions for the American Marketing Association.