Japan Market Update - April 2004 Edition

Hi,

Spring is here...and Japan's economy is looking brighter as it moves into its new fiscal year. Signs of positive economic recovery in Japan were seen when the Nikkei Stock Average closed above the psychological key level of 12,000 for the first time in 32 months on April 6. Improved corporate earnings and consumer spending, along with an expected end to deflation, helped the market surge.

On April 6, the Japan Auto Dealers Association released a survey noting big gains on luxury vehicles in 2003. Anothor key area of consumer spending seeing positive growth is travel and tourism. JTB reported that their 'Look JTB' reservation statistics for overseas travel during this year's Golden Week ( April 29 - May 5) show a 153% increase for the first time in three years, with Hawaii (+209%), Guam(+164%), and the US(+208%) leading the way.

Tokyo area hotels are predicting a 20-40% increase in business during this year's Golden Week compared to last year. Tokyo Disneyland expects more than 700,000 visitors during that Golden Week--a big increase from last year.

Sales of luxury autos, and increases in overseas and domestic travel are indications that consumer spending is on a positive track toward recovery. With these indications, the summer season for travel looks positive.

Now is the time to finalize plans to capture your share of the business. Let us know if PacRim can assist you.

Warmest Aloha,
Dave Erdman

*Japan Market News
-----Travel: Japanese visitor traffic up 13 percent
-----Travel: Hawaii among top destinations for spring travel
-----Hospitality: Park Hyatt offers "Lost in Translation" package
-----Business: ANA and Rakuten join loyalty programs
-----Business: Hawaii Convention Center markets free rent
-----Business: Hanami season inspires unconventional "musubi"
-----Business: Pork is not "the other red meat"
-----Business: Suntory forced to halt tea shipments
-----Business: Pac-Man revival a hit
-----Business: Gucci retail sales, operating profits up in final quarter
-----Fashion: Trend alert -- Jelly bags are in!
-----Technology: A survey -- users willing to pay for downloaded movies
-----Sports: Second K-1 fight another blow for Akebono
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: JAPANESE VISITOR TRAFFIC UP 13 PERCENT

March numbers show Japanese passenger volume is recovering from last year's events
A year after the start of the Iraqi war and the SARS epidemic outbreak, Hawaii's hard-hit travel industry is finally getting a boost from a rise in both domestic and international travel. Latest figures published by the Department of Business and Economic Development show Japanese arrivals increased by 13 percent in the seven-day period ending March 21st, compared to the year prior. Although the sudden increase is no surprise considering the immediate impact after last year's events, an upswing in Japanese travel affected by an improving economy is noteworthy for Hawaii's tourism industry. Japanese arrivals have yet to reach 2002 levels, pre-war and pre-SARS; March numbers show a 6.4 percent deficit, but the gap continues to narrow. (Sources: DBEDT; HVCB Tourism Industry Update 3/23/04)
Back to top

TRAVEL: HAWAII AMONG TOP DESTINATIONS FOR SPRING TRAVEL

With SARS gone and bonuses up, Japanese travelers plan for sun and sand
Golden Week -- a string of holidays between the last week of April and the first week of May -- is one of Japan's heaviest travel seasons, but peak-season prices are not deterring vacation plans. JTB announced that air and hotel bookings for spring have nearly doubled compared to last year, and other leading agencies are experiencing similar surges in sales. Hawaii and Australia are among JTB's most popular requests, as travelers seek R & R in resort settings. Hawaii is the top destination for bookings by H.I.S. Travel, followed by Guam, New York, Bali, and Italy. The agency reports peak departure forecasts for April 29, May 1, and May 2. This year's Golden Week ends on a Wednesday, but travel agencies anticipate many travelers will extend their vacation through the weekend for a maximum of 11 days -- an opportunity 8to take advantage of vacationing overseas instead of staying closer to home. (Sources: Yahoo! News Asia 3/18/04; HVCB Tourism Industry Update 3/23//04; Travel Vision News 3/29/04)
Back to top

HOSPITALITY: PARK HYATT OFFERS "LOST IN TRANSLATION" PACKAGE

Posh, five-star hotel emulates an unforgettable movie experience
Sofia Coppola's Oscar-winning movie has placed Tokyo's Park Hyatt among famous movie hotels such as The Ritz in Paris and The Plaza in New York. But only the Park Hyatt delivers the movie experience to its guests via an elaborate package designed to mirror the adventures of the film's main characters. The package price of 530,000 yen (approximately $5,000) includes five days' accommodation in a suite, complimentary breakfast, use of spa facilities, Japanese culture and etiquette lesson, shiatsu massage, one cocktail nightly, one dinner at Kozue restaurant, a half-day city bus tour and map of sights featured in the film (karaoke bar, arcade, strip club, etc). More than a dozen future bookings have been confirmed, according to Park Hyatt International Public Relations Manager Karina Shima, and package guests thus far have given "excellent feedback." By popular demand, the hotel is also offering the "Tokyo Escape Package" for 55,000 yen (approx. $520), a one-night stay that includes the Lost in Translation package benefits sans the bus tour, massage, and cultural immersion classes. This package, says Shima, has also been popular with the local market. (Source: Japan Today 3/12/04; Park Hyatt Public Relations)
Back to top

BUSINESS: ANA AND RAKUTEN JOIN LOYALTY PROGRAMS

Japan's leading online shopping site and ANA will offer mileage and points exchange
Starting this July, ANA Mileage Club members and Rakuten's Super Points customers will be able to shop with airline miles, book tickets with purchase points, or turn either into cash. With combined membership exceeding 34 million users, the alliance is expected to spur customer loyalty and allow both companies to leverage each other's client base -- male business travelers and young, female shoppers. "A robust point programs as this one will cost the company, but our goal is to expand long-term patronage," explained ANA President Yoji Ohashi, adding that ANA's revenue growth, as a result of the alliance, is anticipated to exceed $1 billion. Even before the joint venture with Rakuten, ANA has aggressively revamped its mileage program, the latest feature allowing miles to be cashed into e-money via the "Edy" smartcard system. Rakuten CEO Hiroshi Mikitani also expressed confidence in the collaboration, citing that the multi-faceted and flexible point-exchange program will not only attract new users, but will raise the inherent value of mileage and shopping points in the eyes of consumers. Meanwhile business has grown for Rakuten; revenue grew by 2.5 percent this year to $6 billion, of which its travel sector contributed $2 billion. (Sources: IT Media News 3/31/04; J-Wing Travel 3/29/04)
Back to top

BUSINESS: HAWAII CONVENTION CENTER MARKETS FREE RENT

Lackluster convention hall hopes for turnaround by offering deep discounts
The center's marketing company, SMG Hawaii, announced it will provide free rent to groups scheduling events at the Hawaii Convention Center between 2005 and 2010, an offer that can shave 20 percent from actual convention costs. Although short-term bookings from Japan have grown for the next two years, SMG hopes to target large groups from both Japan and the mainland -- namely auto and pharmaceutical companies, incentive trips for corporations, and religious groups -- to fill gaps for 2010 and beyond. SMG will strategically market the new offer to the Professional Convention Management Association's conference next January -- an annual event that typically draws 2,000 attendees -- hoping to lure meeting planners to book Hawaii. The $350 million convention center was initially projected to book 30 events in its first year and double the business by 2008. Although the goal has since been pared down to 34 events per year, there are only a dozen events confirmed per year up to 2007, and five annually between 2008 and 2010. (Sources: Pacific Business News 3/26/04; Department of Business and Economic Development)
Back to top

BUSINESS: HANAMI SEASON INSPIRES UNCONVENTIONAL "MUSUBI"

Just in time for picnic season, restaurants offer musubis with a twist
Musubi (also called "onigiri" in Japan) is as versatile as a sandwich when it comes to meshing flavors, and food retailers nationwide are introducing their signature musubi in time for Hanami -- or flower gazing -- season. Tempura restaurant "Hageten" is offering a "tem-musu," which has deep-fried tempura batter folded into the rice and comes with a dipping sauce (580 yen; approx. $5). "Ryogoku-chaya" sells musubi on a stick -- yakitori-style -- with teriyaki chicken sandwiched in rice and then grilled (150 yen; approx. $1.50). Hanami is traditionally an occasion for beer, sake and puu-puus rather than wine and cheese, but for a more refined -- and eclectic -- musubi experience, French restaurant "Flo Prestige" will be offering grilled musubi with foie gras (680 yen; approx. $6). (Source: Tokyo Shimbun Shopper 3/15/04)
Back to top

BUSINESS: PORK IS NOT "THE OTHER RED MEAT"

Restaurants deal with U.S. beef ban, but pork doesn't satisfy nation's hunger for beef
Two months ago, beef disappeared from menus at most gyudon -- beef bowl -- restaurants in Japan. And despite efforts in promoting new pork, chicken, and curry dishes, a survey shows that most customers just aren't buying it. A market research company showed that over 70 percent of previous gyudon restaurant customers have either stopped eating at gyudon restaurants, or have been there less often after beef was taken off menus. The survey results are disappointing news for gyudon restaurant chains, especially with no end in sight for Japan's ban on U.S. beef. Meanwhile gyudon chain Yoshinoya D & C Co. Ltd. launched a new campaign featuring the CEO dishing out pork bowls at its most popular Tokyo restaurant. The nation's largest gyudon franchise hopes to recuperate its losses by returning most restaurants back to operating 24 hours, and by slashing prices. (Sources: Kyodo News 3/19/04; Nihon Keizai Shimbun 3/19/04; Yoshinoya Press Release 3/18/04)
Back to top

BUSINESS: SUNTORY FORCED TO HALT TEA SHIPMENTS

Unexpected demand for a new green tea drink overwhelms production and suspends delivery
"We didn't expect it to sell so well, we're very sorry," were the humble remarks from a Suntory spokesman after the beverage maker temporarily stopped shipments on their newest product only three days after its debut. According to Suntory Ltd., actual demand quadrupled the supply, and will require at least a month to restore and restructure production. Suntory's "Iemon" tea was created in collaboration with renowned Kyoto tea maker Fukujuen, and created a huge buzz during pre-sale promotions. Green tea drinks have been increasingly popular in Japan over the last decade, but the latest teas featuring exclusive quality and higher levels of catechin -- believed to have cancer-fighting benefits -- have had unprecedented success. Suntory alone sells six types of unsweetened Japanese and Chinese teas, while rival Coca-Cola's product line offers five. (Sources: Mainichi Shimbun 3/19/04; http://www.jafra.gr.jp; Suntory Press Release 3/16/04; http://www.cocacola.co.jp)
Back to top

BUSINESS: PAC-MAN REVIVAL A HIT

Gamers young and old welcome newly released video games of yesteryear
A backlash against today's complex, role-playing video games is fueling the success of '80s favorites such as Pac-Man, Donkey Kong, and Space Invaders. Game makers caught onto a downward trend in high-skill software -- 10% in the 2001 and 2002 -- by repackaging a few oldies and releasing them to a very receptive public. "New products are unearthing new clients by attracting adults who have left behind complicated games," said Hirokazu Hamamura, president of game software publisher Enterbrain, Inc. In fact Nintendo's Donkey Kong is selling so well among customers in their '30s and '40s that it's frequently sold out, according to a game shop owner in Osaka. A 19-year-old reader of Japan Today who calls himself an avid gamer wrote, "Bring the oldies back!" adding that recent games are too long and annoying. Just as gaming software reached new heights with life-like graphics and intricate plots, a combination of overkill and nostalgia may inspire more product retrograding at Japan's biggest game software companies. (Sources: Japan Today 3/23/04)
Back to top

BUSINESS: GUCCI RETAIL SALES, OPERATING PROFITS UP IN FINAL QUARTER

Fourth-quarter success paves way for changes at the world's third-largest luxury retailer
"I think the company is moving in a strong direction, and Tom [Ford] and I leave it in a really healthy situation," said Gucci Group CEO Domenico De Sole, upon announcing Gucci's $183 million operating income for the 4th quarter, up 29 percent from the previous year. De Sole and lead designer Tom Ford will leave the company at the end of the month. De Sole is also optimistic for the next fiscal year; the company reported a 30 percent increase in U.S sales for the month of March, a remarkable feat absent of store openings. Gucci has relied heavily on sales at high-profile destinations such as Hawaii, Las Vegas, and Tokyo in the wake of 9/11 and the war, pumping millions into opening flaghip stores in Waikiki and Tokyo (due in 2005). The fashion industry's favorite comeback kid faces challenges this year in light of replacing Ford and De Sole -- credited for the brand's outstanding rebound from near-bankruptcy in 2003 -- and helping its stake in Yves Saint Laurent achieve similar success. (Sources: http://www.entertainment.msn.com 11/05/04; DNR News 4/2/04; Pacific Business News 4/1/04)
Back to top

FASHION: TREND ALERT -- JELLY BAGS ARE IN!

Japan's spring and summer fashion features casual, candy-colored jelly handbags
Remember Jelly Sandals? The flashy, neon-colored vinyl is coming back with a vengeance this spring, and the trend isn't stopping at the U.S. Upgraded from popular '80s footwear to an Hermes-inspired tote bag, the "Jelly Kelly" (as it's known here), are selling out at department stores in Japan. Printemps Department Store in Ginza is reporting 25 to 40 sales a day, pink being the most popular color and most likely to be sold out. Available in three sizes ranging from 9,800 yen (approx. $90) to 14,800 yen (approx. $130), Jelly Bags gained popularity after Reese Witherspoon showcased hers in the Japanese box-office hit "Legally Blonde 2." They have been featured on fashion magazines since, described as versatile, beach-to-boutique handbags adored by Hollywood celebrities. (Sources: Tokyo Shimbun Shopper 2/27/04; about.com)
Back to top

TECHNOLOGY: A SURVEY -- USERS WILLING TO PAY FOR DOWNLOADED MOVIES

PC users prefer legit versions of movies and musi, contrary to popular assumptions
A recent survey by Intenetcom Corp. and InfoPlant Co. Ltd. showed that a majority of PC users in Japan want to be able to download movies onto their computers, and will pay for it. The survey results, which respondents were mostly in their 20s and 30s, suggested that many young PC users seek unpirated versions of digital music and movies. Of the various venues that they can acquire music and movies, 61 percent said they rent CDs, DVDs, and videos from rental shops, and 40 percent said they purchase them at stores or on the Internet. (Source: japan.internet.com 3/15/04)
Back to top

SPORTS: SECOND K-1 FIGHT ANOTHER BLOW FOR AKEBONO

Hawaii native and retired sumo wrestler Akebono loses after a controversial judges' call
Three months after a first-round, knockout defeat at his K-1 debut against ex-NFL lineman Bob Sapp, Akebono suffered yet another setback in his fighting career. Akebono's opponent, former K-1 champion and karate fighter Musashi, was considered an underdog going into the fight, after officials lifted a ban on sumo techniques a day earlier. Over 22,000 fans packed the arena to watch three rounds, after which judges ruled 0-3 against Akebono for a grave penalty involving a foul pin. Even Musashi seemed dumbstruck by his victory, shaking his head after the judges' announcement. "I want to improve my tactics and continue growing as a fighter," Akebono remarked stoically after the match, suggesting the Waimanalo-born wrestler -- and Japan's first foreign yokozuna -- won't be throwing in the towel just yet. Meanwhile the mixed martial arts forum known as K-1 entered its 10th year under new management by Fighting & Entertaining Goup, Inc., expanding rapidly beyond Japan's enormous fan base and attracting fight fanatics worldwide. Not only do K-1 fighters hail from every continent, but tournaments are held across the globe in Spain, Belarus, France, Croatia, South Africa, and Sweden. (Sources: http://www.asahi.com 3/27/04; http//www.sportsnavi.com 3/27/04; K-1 Official Web Site)
Back to top

Although originally known as Boys' Day, "Kodomo no Hi" on May 5th marks Japan's celebration of its children. Outside homes, paper or cloth carp billow from long flagpoles. According to Chinese legend, the multicolored streamers (fukinagashi) represent the tough waters of the Yellow River, symbolizing the family's hope that its son will face life with the same preseverance and courage. The black carp (magoi) represents the father; the red carp (higoi) and the smaller carp symbolize the sons of the household. Inside the home, parents traditionally display dolls (musha ningyo) on a three-tier dais representing legendary heroes who symbolize strenght and success. An ancient ritual of bathing with flag plant leaves is also observed on this day, and is said to have medicinal values. The girls are not left out; they are invited to share chimaki (sweet, sticky rice wrapped in iris or bamboo leaf) and kashiwa mochi (mochi rice cakes filled with bean paste and wrapped in an oak leaf). (Source http://japan.chez.tiscali.fr/Th-Index/E-Th-Kodomonohi.htm)

Back to top

ALOHA EXPRESS JULY ISSUE

With Japanese arrivals estimated to exceed 400,000 this summer, it is not too late to reach your international customers for the peak travel months of the year. Sony Magazine's Aloha Express Quarterly is a premier seasonal guidebook, with over 150 pages covering the latest in Hawaii travel recommendations. The upcoming issue will focus on two special themes: family travel and Big Island vacation planning with a special family insert for the Big Island that will be reprinted and distributed for the Big Island Visitors Bureau as one of their collateral pieces. Don't be left out on what industry experts say will be the best summer travel season in years! For more information about rates and deadlines for Aloha Express please click here.

Call Toby Tamaye now at 949-4592 ext. 814 and ask for more information!

Back to top

Catch the wave of Japanese travelers coming in the summer!! Click here for our Media Request Form or contact us.

Space Deadlines:

04/10/04 Nouveau - Ala Moana Center Selection June 2004
04/15/04 Chikyu no Arukikata - Neighbor Island Guidebook 2004
05/01/04 Aloha Express - July 2004

Material Deadlines:

05/10/04 Nouveau - Ala Moana Center Selection June 2004
05/15/04 Chikyu no Arukikata - Neighbor Island Guidebook 2004
05/15/04 Chikyu no Arukikata - Guam Mook 2004
05/15/04 Aloha Express - July 2004

It is not too late to call us (808-949-4592 or Toll Free 1-800-338-4502) to find out more about these upcoming media releases as we strive to find the best media available for you.

Back to top

04/29/04 Green Day (Environmental Awareness Day)
04/29/04 Golden Week Begins (until May 5)
05/03/04 Kenpou Kinenbi -- Constitution Memorial Day
05/04/04 Kokumin no Kyujitsu -- National Holiday
05/05/04 Kodomo no Hi -- Children's Day/Boy's Day
05/09/04 Haha no Hi -- Mother's Day
06/20/04 Chichi no Hi -- Father's Day
07/20/04 Umi no Hi -- Marine Day

Click here to see entire 2004 year.

Back to top