Japan Market Update - July 2004 Edition

Hi,

The recent headline of the Asia edition of Business Week posed the question: "Is Japan Back? The numbers are strongest in a decade...what's real, and what's not."

One of the surprises in the global economy is Japan's remarkable turnaround. Some even say that Japan has engineered a "stealth" recovery in a most Japanese way.

After a disastrous decade, markets, household spending, and the once struggling sectors are soaring.

Just look at some powerful statistics: Japan's growth rate in the 4th quarter of fiscal 2003 was 7.3%, and, in the first quarter of 2004, 6.1%. This is the fastest growth rate amongst industrialized countries. Household spending shot up 7.2 % in April, the best in 16 years, as consumers flocked back to stores. Japanese stocks have gained 45% in the last year and foreign investment in Japan are pouring in at a fervent pitch.

What's going on? With the rise in intra-Asia trade, Japan is now benefiting. Demand for Japanese electronic and high tech gadgets is booming--yes, we all want the latest in digital cameras, flat screen TV's, and any digital appliance--most of which are still made in Japan.

Time is repairing the Japanese bubble. Global competition and restructuring have made Japanese companies more competitive. Japan looks like it's back...and let's hope so. Fingers crossed. Cautious optimism.

This summer, both Hawaii and Guam will benefit from the economic change as consumers open their pockets to take trips abroad and experience resort destinations. The trends look positive, but there is always a lot of work to be done to be creative and pro-active to meet the needs of the demanding, Japanese consumer.

Read on for some trends and news in travel, technology, business, and fashion.

Warmest Aloha,
Dave Erdman

*Japan Market News
-----Travel: Japanese wedding parties grew in 2003
-----Travel: Guam weddings hit a high note
-----Travel: Survey highlights three-generation travel and most-wanted services
-----Travel: Canada catches on to Japan's negative ion fad
-----Travel: Japanese families need a (vacation) break
-----Technology: Japanese e-commerce use soared in 2003
-----Business: Japanese business confidence soars
-----Business: "Anpan" draws unexpected crowd for Father's Day
-----Business: Beer garden season starts
-----Fashion: "Sleeping Beauty" promises nighttime support
-----Fashion: New diet swimsuit just in time for summer
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: JAPANESE WEDDING PARTIES GREW IN 2003

Survey shows overseas weddings declined, but attendance grew in Hawaii and mainland
Last year's downturn in Japanese travel had an expected negative effect on overseas weddings, according to a recent survey by bridal consultant company Watabe Corp. But despite all major wedding destinations posting weak returns, Hawaii remained on top for two factors: Hawaii experienced the smallest decline at 12.3 percent (U.S. and Canada dropped 43.6 percent) with a total of 20,957 weddings, and the average number of attendees actually increased 43 percent to 11 people per wedding (average last year was 7.7). The survey also showed that the majority of couples had no qualms about planning the wedding overseas, whereas 21.7 percent worried about the language barrier, and 16.4 percent were concerned with hair and make-up issues.
(Source: The Travel Vision News 6/21/04)
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TRAVEL: GUAM WEDDINGS HIT A HIGH NOTE

Visitor bureau promotes island nuptials as better-than-expected bookings fuel Guam's wedding market
Overseas wedding specialists World Bridal received over 150 bookings within a month of announcing the November-scheduled reopening of Guam's Crystal Chapel: Chapel of Wind. Thanks to a revamped web site and wedding promotions by the Guam Visitor Bureau, World Bridal expects 2,000 reservations for the Crystal Chapel alone by July 2005. Earlier this month the GVB held bridal shows in Tokyo, appealing to Japanese couples seeking island weddings. The GVB emphasized easy access from Japan and Guam's abundance of chapels overlooking the ocean.
(Sources: Travel Vision News 7/05/04
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TRAVEL: SURVEY HIGHLIGHTS THREE-GENERATION TRAVEL AND MOST-WANTED SERVICES

One in five trips are paid in part by grandparents, Japanese-speaking facilities desired, and more
An extensive survey conducted by travel agency H.I.S. revealed that close to half of the respondents have traveled with their children and their parents (or in-laws), and that in most of those cases the elders either contributed to, or foot the entire bill. Other findings:
- price is the biggest consideration when booking travel (50.2 percent)
- ideal expenditure for the trip is between 200,000 and 400,000 yen ($1,850 --$ 3,700) (39.0 percent)
- bookings were made over two months in advance (28.4 percent)
- desired services while traveling: Japanese-speaking hospital facilities (43.6 percent), enjoyable programs for children (32.2 percent), availability of tour escorts (only 4.6 percent)
(Sources: Travel Journal International 6/20/04)
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TRAVEL: CANADA CATCHES ON TO JAPAN'S NEGATIVE ION FAD

Tourism officials emphasize Canada's natural abundance of feel-good ions to Japanese travelers
The fad is not new; gadgets ranging from air purifiers to hairbrushes have been touting the healthful benefits of negative ions to Japanese consumers for about five years. But the trend shows no signs of slowing down, and the Canadian Tourism Commission is ready to jump on the bandwagon. In its latest Japanese promotion, a splashy ad campaign calls Niagara Falls a "dynamic shower of negative ions," describing the benefits of experiencing Canada's abundant natural settings. Although there is no substantial data to back up the positive effects of negative ions, research indicates they may restore balance in the human body, and in effect, aid various health conditions such as asthma, stress, and allergies. (Sources: Travel Journal International 6/20/04; www.siliconvalley.com 6/6/02)
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TRAVEL: JAPANESE FAMILIES NEED A (VACATION) BREAK

A national council's report promotes longer vacations, holiday reform, family-oriented travel
Japan's Ministry of Land, Infrastructure, and Transport is spearheading efforts by The Japanese National Promotional Council for Long Family Travel, in support of extended vacations and quality family time. The council's report calls for, among a long list of recommendations, diverse school holiday systems, a reform of Japan's scattered (and numerous) public holidays, providing workers more paid vacation days, and most importantly, encouraging workers to take them. In Hawaii, Japanese tourists spend an average of a week, but the council's report recommends that families take a minimum of a week's extended vacation each year. In addition, the report urges family travel to be "active" and appreciative of natural settings at home and abroad; the Honolulu Marathon is cited as an ideal example of a purposeful travel agenda. A glance at paid leave around the world, including public holidays:

Italy: 45 (37 vacation days)
Germany: 38 (30 vacation days)
France: 34 (25 vacation days)
UK: 34 (25 vacation days)
Japan: 31 (18 vacation days)
U.S.: 28 (12 vacation days)

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TECHNOLOGY: JAPANESE E-COMMERCE USE SOARED IN 2003

Business and private commerce showed strong growth, while mobile transactions doubled
Keeping pace with the surge in broadband and mobile access in recent years, e-commerce use by Japanese individuals jumped 64.8 percent last year to 4.42 trillion yen ($40 billion), according to a recent government report. Increased efforts by businesses to use the Internet for marketing largely accounts for the e-commerce success. Transactions through mobile communication devices more than doubled, amounting to 777 billion yen ($7.1 billion) in sales. Bookings of hotels and airline tickets over the Internet, and online banking transactions also contributed to the brisk rise. B2B (Business-to-Business) transactions rose at a similar rate, up 67.2 percent to 77.43 trillion yen ($710 billion). (Source: HDTC 6/14/04 )
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BUSINESS: JAPANESE BUSINESS CONFIDENCE SOARS

Economic recovery gains momentum, as quarterly index shows historical growth in business confidence
Large manufacturers in Japan showed the most improvement in business confidence, as their sentiment index rose sharply by ten points to 22 between March and June this year. That number is comparable to business confidence during the Bubble years of the '80s and early '90s, during which the index never exceeded 25. The index for large non-manufacturing companies and small to medium-sized businesses also showed modest but significant gains, indicating that a broad range of Japanese companies think conditions are improving in their country. The Tankan index, a quarterly survey conducted by the Bank of Japan, gauges the nation's business environment and influences monetary policies. (Source: Pacific Business News 6/28/04; Morgan Stanley 7/02/04)
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BUSINESS: "ANPAN" DRAWS UNEXPECTED CROWD FOR FATHER'S DAY

For the second year, Kimuraya's Father's Day pastries sell out in minutes
Last year, Japan's Kimuraya Bakery, known for its delectable anpan (bean-filled pastry), began offering a truly unique Father's Day gift idea -- a personalized anpan adorning dad's face. Only available at Takashimaya department store in Shinjuku, Kimuraya bakers hand-made each life-size anpan from customers' photos. Word got around again this year, as eager customers lined up at the bakery on the day reservations began. Within minutes, Kimuraya reached its limit of 90 anpan reservations, each sold for 880 yen ($8). Kimuraya operates a bakery in Honolulu, at Kahala Mall. (Source: Tokyo Shimbun Shopper 6/4/04)
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BUSINESS: BEER GARDEN SEASON STARTS

Roof tops at department stores alight with lanterns, beer buzz, and jolly banter
During Japan's sweltering summer-heat season, department store roof tops transform into a seasonal oasis traditionally lined with picnic tables and chintzy lanterns. Young and old, men and women gather here from happy hour until 10 p.m. (plenty of time to catch the last train home), enjoying ice-cold draft beer in frosty mugs, and sweeping views of the city skylights. In recent years, "upscale" beer gardens with better beer, better food, and more luxurious settings, have gained popularity. At Kirin Brewery's "Beer Garden in the Woods" in central Tokyo's famous Jingu-Gaien park, patrons feast on all-you-can-eat barbecue and ice-cold Kirin under massive pine trees. The Hanezawa Garden, tucked away in the ultra-hip Hiroo district, is a former governor's mansion-turned-restaurant. The mood at this torch-lit Japanese garden is ambient and romantic than boisterous, but its beer lounge is attracting crowds wanting to catch be buzz. (Sources: The Tokyo Weekender; Tokyo Shimbun Shopper 5/20/04)
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FASHION: "SLEEPING BEAUTY" PROMISES NIGHTTIME SUPPORT

Lingerie maker introduces long-anticipated sleeping bra for women
When a third of its customers said they wore their bras to bed, Japanese lingerie maker Wacoal Corp. knew they were onto something. After years of research and design, the company introduced the "Sleeping Beauty" bras this spring; Wacoal expects to sell 50,000 sleeping bras by year-end. The patented full-coverage, wireless undergarment is made of cotton and a touch of lycra, and sells for 2,315 yen ($21). (Sources: Wacoal Press Release 10/28/03)
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FASHION: NEW DIET SWIMSUIT JUST IN TIME FOR SUMMER

Scientific research backs a raspberry-scented swimsuit with fat-burning powers
Tokyo's Tobu Department Store began selling slimming swimsuits for women, powered by a raspberry extract popularly known to both suppress appetite and burn fat. The berry-infused fabric, named "Bell Berry" was researched and developed two years ago by consumer products company Kanebo, Ltd., and was primarily marketed for use in undergarments. Trend-setting and aromatic textile research is booming for Kanebo, with their textile division introducing beauty- and health-enhancing garments several times each year. One of their newest products is a skin-whitening fabric treated with an aromatherapeutic essence known to alleviate stress, promote rest, and decrease melanin production in the skin. (Sources: Kanebo Press Release 10/14/04; Tokyo Shimbun Shopper 5/25/04)
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TECHNOLOGY: IT'S OFFICIAL: JAPAN'S BROADBAND IS FASTEST AND CHEAPEST

Global survey credits competition for Japan's broadband market growth
A report released by the Organisation for Economic Cooperation and Development concluded Japan offers "by far" the fastest and cheapest broadband service among companies operating in 30 surveyed countries. Japan's fiber-optic networks -- offered by KDDI Corp., NTT Corp., and Usen Corp. -- led the pack by providing unmatched throughput of up to 100-Mbps. Sweden's Bostream AB and South Korea's Hanaro Telecom Inc. provided DSL services with throughput between 20- and 26-Mbps, while Japan's eAccess Inc. offered copper phone line-based DSL featuring 40-Mbps. Verizon, which offered the fastest service in the U.S., delivers 7.1-Mbps. Three services offered by two Japanese companies made the list of the world's cheapest broadband service, with Yahoo Japan Corp.'s Yahoo BB ranking first with 12-Mbps service for $19.09. KDDI's 100-Mbps service cost as low as $20.07, while another Yahoo BB product offered 26-Mbps for $20.54. (Sources: Nikkei Net Interactive 4/21/04; OEDC News Release)
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Obon--Many of us know that Obon is a major Japanese holiday in mid-August, but what is its significance? Like many Japanese traditions, the origin of Obon or Bon was adapted from a Buddhist observance in China, and was introduced to Japan in the seventh century. It is a ritual that welcomes deceased ancestors' spirits back to their ohaka (family tomb). It is believed that each year during Obon, the ancestors' spirits return to our world to visit their relatives. Lanterns are traditionally hung in front of houses or family tombs in order to guide the ancestors' spirits, while food offerings are made in front of the butsudan (house altar), ohakas, and temples. Bon Odori (folk dancing) is performed as a rite to welcome ancestors, as well as to celebrate life. At the end of Obon, Toro Nagashi (floating lanterns) are cast into rivers, lakes and seas to guide the spirits back to their world. Obon typically takes place in the middle of August (or July, according to the lunar calendar).

Today, Obon season has become a time of family gathering, as people who live outside of their hometown return during this time. Many companies provide employees a week's holiday to observe Obon. Most businesses close for the holiday, resulting in intensive domestic and international travel activities. Back to top

This fall will bring Ala Moana Center its most anticipated redevelopment with the opening of the third floor on the Ewa side of the mall. In addition, Walmart will open just minutes away by foot. While these new retail and restaurant outlets bring excitement to shoppers, it also means more competition for you and your business.

To ensure your share of the market, advertising this fall is more important than ever. Nouveau Magazine, the only Japanese-language guidebook exclusively dedicated to Ala Moana Center, is still accepting advertising reservations until the end of the month for the upcoming fall issue. Japanese consumer shopping decisions in Hawaii are still influenced before they leave Japan. But with Nouveau's exclusive distribution at Japanese airports, you can be confident your advertising will reach travelers on their way to Hawaii, despite all the changes happing in retail. Click here for more information about Nouveau, or call your PacRim Marketing representative for more details.

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Click here for our Media Request Form or contact us.

Space Deadlines:

7/15/04 Aloha Express - September 2004 (FINAL CLOSINGS NOW!)
07/30/04 Nouveau - Ala Moana Center Selection September 2004
09/01/04 Aloha Express - November 2004

Material Deadlines:

08/23/04 Aloha Express - September 2004 (DROP DEAD!)
08/10/04 Nouveau - Ala Moana Center Selection September 2004
09/15/04 Aloha Express - September 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.

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07/20/2004 Umi no Hi -- Marine Day
08/13/2004 Obon Season begins (8/13-8/15)
09/20/2004 Keirou no Hi -- Respect-for-the-elderly Day
09/23/2004 Shubun no Hi -- Autumnal Equinox Day
10/11/2004 Taiiku no Hi -- Sports Day

Click here to see entire 2004 year.

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