Japan Market Update - August 2004 Edition

Hi,

As summer comes to a close for most of us, it is the start of OBON Season for the Japanese, a time which typically represents an increased tourist count from Japan. Japanese arrivals for Hawaii this summer represented double digit increases over last year (Exceptions were city-wide convention dates, for which room availability became scarce, leaving some Japanese to seek out other tourist destinations). Air seat availability from Japan has been low (due, in part to a reduced number of flights) and hotel space all over Hawaii has been tight with the demand from all market segments. Due to this mix of market conditions and positive growth last year, this year's OBON Season in Hawaii could have a lower growth rate of arrivals compared to last year.

However, we are now focused on FALL, and the pre-holiday season marketing. The many holidays (listed on the calendar below) in September and the fact that companies encourage their staff to take "summer vacation" up to the end of SeptemberÉ is great for the market. In addition, the Annual JATA/World Travel Fair in Japan in late September provides marketing opportunities. PacRim has some exciting media programs associated with it that will encourage prospective Hawaii travelers to visit your hotel or place of business. Closings for special Ala Moana Center related media, as well as Hawaii-Arukikata.com trade show media, are Friday, August 20.

Hawaii marketers can also look forward to an upturn in business due to increased air traffic in the near future. Last week, Continental Airlines filed plans for daily service from Nagoya to Honolulu beginning December 20. The Nagoya market, which has been traditionally strong with weddings and honeymoons, has been under-served. The new service will add over 7050 passengers per month. Continental will utilize their 767-400 aircraft, which features 200 coach seats, and 35 Business First sleeper seats. The flight leaves from Hawaii to Japan at 2:15 PM, so it will accommodate Neighbor Island connections easily. This announcement is an indication of the strength of interest and anticipated demand for Hawaii from Japan. We all look forward to an approval of the filing. Below, we have an interesting piece about "Nagoya Style". Maybe it's time to learn more about Nagoya and Aiichi Prefecture!

Warmest Aloha,
Dave Erdman

*Japan Market News
-----Travel: Stress-free Hawaii package equals one "happy mama"
-----Travel: Hawaii ranks best on agents' forecast index
-----Travel: JTB online sales soaring, could double by 2005
-----Business: Female CEOs in Japan growing
-----Business: Starbucks Japan rolls out licensing plan
-----Economy: Summer bonuses reach record high
-----Society: Japan smitten by everything Korean
-----Society: "Nagoya style" infiltrates mainstream Japan
-----Technology: Asia-Pacific Web traffic surges
-----Technology: iPod Mini a monster hit
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: STRESS-FREE HAWAII PACKAGE EQUALS ONE "HAPPY MAMA"

Popular parenting Web site offers online reservations and family traveling tips
A new tour package introduced by Nippon Travel Agency will take the guesswork out of how many diapers parents need to pack for a four nights' trip to Hawaii. The "happy-mama.com" tour will not only provide free (premium Japanese) diapers throughout the stay, but will provide strollers, children's books, a portable DVD player (with kids' titles), a cell phone, family-friendly seating arrangements in-flight, and a dedicated tour desk at the destination -- The Hilton Hawaii Village Resort & Spa -- for a price of 132,000 yen ($1,189) per adult. The itinerary includes a local-style barbecue party for families on the final day. NTA's tour is available through happy-mama.com, a popular portal geared towards moms-to-be and new parents. (Sources: www.happy-mama.com; Travel Journal International 7/25/04)
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TRAVEL: HAWAII RANKS BEST ON AGENTS' FORECAST INDEX

Hawaii recovers as agents' top pick for outbound travel in third quarter
A quarterly diffusion index polled among travel retailers, issued by the Japan Association of Travel Agents, underscored a positive outlook for Hawaii tourism between July and September. Hawaii finally surpassed Europe as the destination of choice, after having ranked below it since the third quarter of 2001. JTB, which dominates the group tour market, expressed similar optimism based on actual bookings for the same period. JATA also reported improvements in the incentive and senior markets, in addition to a sharp rise in the "business and inspection tour" sector. Honeymoon travel, which typically peaks in summer, is expected to level off in the third quarter. (Sources: JATA 7/9/04; Pacific Business News 7/12/04)
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TRAVEL: JTB ONLINE SALES SOARING, COULD DOUBLE BY 2005

More online customers are booking hotels and they're booking from home, survey suggests
Japan's leading travel agency reported online sales of 45.86 billion yen ($411 million) in 2003, a 37 percent increase from last year. JTB forecasts 70.75 billion yen ($633 million) for 2004, and aims to reach 100 billion yen ($895 million) by 2005. A stunning two-thirds of online sales were generated through domestic hotel bookings, while the rest consisted of tickets and tours. Online sales include purchases made through kiosk-style "multimedia" stations available at 24,000 convenience stores nationwide. In related findings, Web sales jumped 54.1 percent while kiosk sales showed only a modest 5.1 percent increase. Furthermore, most customers booked between 10 p.m. and 1 a.m., suggesting that a larger number are perusing broadband access from home. (Sources: JTB News Release 7/16/04; Travel Journal International 7/25/04)
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BUSINESS: FEMALE CEOS IN JAPAN GROWING

Toys "R" Us and Merrill Lynch among top-grossing Japanese companies led by women
A recent survey shows that more women in Japan's business world are putting a dent in the proverbial glass ceiling, reaching the highest levels of management. Private research agency Teikoku Databank Ltd. says female CEOs and COOs increased 1.2 percent from the previous year, and 9 percent from 2000. Among the highest grossing, female-led companies, international firms fared well: Toys "R" Us-Japan Ltd. ranked first, followed by Merrill Lynch Japan Securities Co. Ltd. at eighth, and Levi Strauss Japan K.K. at 37th. This year, female CEOs in the civil engineering industry bucked the "leading women in retail" trend of past years. According to Teikoku, a rise in female leadership signals a welcomed change in Japan's recovering, male-dominated world of business. (Source: Teikoku Databank Report 7/04)
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BUSINESS: STARBUCKS JAPAN ROLLS OUT LICENSING PLAN

"The Starbucks Experience" planned for airports, train stations, roadways, parks
The world's largest coffee shop chain announced a plan to expand beyond its 530, directly owned and operated stores in Japan -- the world's second-biggest coffee-consuming country after the U.S. Starbucks Coffee Japan Ltd. started offering licenses to operate franchised outlets in locations otherwise difficult to open stand-alone stores, such as in public transit areas, roadside rest stops, and amusement parks. "Through this licensing effort, we hope to continue offering our customers that "third place" -- an oasis beyond home and work -- in more settings than ever before," said Starbucks Coffee Japan CEO Yuji Tsunoda in a press release. An estimated 50 outlets are slated to open throughout the country by March 2005. (Source: Starbucks Coffee Japan Press Release 7/23/04; Yahoo! News Asia 7/23/04)
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ECONOMY: SUMMER BONUSES REACH RECORD HIGH

Average compensation rises 3 percent, IT, auto, and steel industries see highest increases
The latest indicator of Japan's healthier economy appeared in a form more tangible than stocks and currency -- the semi-annual bonus paycheck. Japan's summer bonus on average reached an all-time high of 829,030 yen ($7,422) in a survey of 208 major manufacturers, according to the Japan Business Federation. It is the first record-breaking bonus season in six years, highlighting 2004 as possibly the milestone year in economic recovery. Automakers were among the highest-paid sectors, topping the million-yen mark for the first time. A booming IT industry also saw an 8 percent increase, while the competitive electronics sector continued to struggle with deregulation and stagnant sales. The retail sector also failed to recover from deflation in recent years, resulting in lower than expected bonuses. (Sources: Nippon Keidanren Times 7/22/04; Nihon Keizai Shimbun 7/16/04, 7/22/04)
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SOCIETY: JAPAN SMITTEN BY EVERYTHING KOREAN

From movies to travel, Korean pop-culture ignites a wave of passion in Japan
Step aside, Leonardo DiCaprio. Japan's newest media darlings are the cast of the Korean tearjerker television series "Winter Sonata," and they're considered largely responsible for an intense Korea boom sweeping the nation. Flights to Korea are booked, and so are Korean-language classes. Fans were weak-kneed at Ginza Mitsukoshi, where a record 52,000 people attended a photo exhibit of young Korean film stars. When "Sonata" actor Bae Yong Jun arrived at Haneda Airport this April, the ensuing fan frenzy was likened to The Beatles' first Tokyo appearance in the late 1960s. By popular demand, public TV network NHK is now airing the 20-episode drama for the third time since its Japanese debut in April 2003. A Korean-language textbook published by NHK, which uses excerpts from the show, is now a bestseller. (Sources: www.newsflash.nifty.com 7/26/04; www.centurychina.com 4/19/04)
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SOCIETY: "NAGOYA STYLE" INFILTRATES MAINSTREAM JAPAN

A traditionally low-profile region becomes Japan's hottest trend in food and fashion
Korea is hot, but so is Nagoya. Japan's fourth largest city has typically been a cultural and economic underdog compared to Tokyo and Osaka, but its conservative fashion and robust food are today's de rigeur. Department stores are featuring styles favored by the refined, brand-clad, and now iconic Nagoya Lady (called "Nagoya-jou"). Her ultra-feminine hairstyle -- soft, shoulder-length curls called "Nagoya-maki" -- are also top requests at salons (see http://www.aichima.net/guruguru/culture/05/04/index.html). The popularity of Nagoya cuisine has made signature dishes like miso-katsu (pork cutlets with miso sauce) and ten-musu (tempura musubi) commonplace in Tokyo, where Nagoya-style restaurants are enjoying a surge in business. In Honolulu, a team of Nagoya exports and Hawaii chefs opened "Momomo" this June, serving up Nagoya specialties to crowds of visiting and local Japanese patrons. (Sources: www.tv-tokyo.co.jp 6/26/04; Honolulu Weekly 7/04; Yahoo! News Asia 7/29/04) (Source: Tokyo Shimbun Shopper 6/4/04)
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TECHNOLOGY: ASIA-PACIFIC WEB TRAFFIC SURGES

Internet traffic increases fourfold, outpacing all other regions
Intra-Asian Web traffic grew more than 400 percent in the past 12 months, according to Internet research company TeleGeography, Inc. As a whole, global traffic on the Internet grew by 115 percent in the past 12 months, with Asia leading the Internet's rapid, worldwide growth. A bandwidth boom, along with expanding mobile technology and a diffusion of Web content volume contributed to the sharp increase. Japan's data flow is consistently the highest and most reliable among other Asia nations, according to a daily global index. (Sources: Pacific Business News 7/26/04; TeleGeography News Release 5/5/04; Internet Traffic Report)
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TECHNOLOGY: IPOD MINI A MONSTER HIT

Apple's highly anticipated MP3 player sells out in six hours at Japan's flagship store
Over a thousand gadget fans lined up along several city blocks for a chance to snag the super-hyped iPod Mini. The Ginza store -- Apple's only direct retailer outside the U.S. -- depleted its stock of 1,500 iPod Minis by mid-afternoon. Most electronics retailers had sold out during reservations taken weeks prior to the anticipated debut. The shortage fueled online sales; the 28,000 yen ($250) Minis are now reportedly backordered for at least a month. The popularity is expected to not only spawn new MP3 players by rival manufacturers, but brand-name accessories as well; standard-size iPod cases by Gucci and Prada are known to sell out before ever hitting store shelves. Mini versions should reach the market in a matter of time. (Sources: news.goo.ne.jp 7/24/04; mippondoor.livedoor.biz 7/25/04) (Sources: Wacoal Press Release 10/28/03)
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Ochugen

The Japanese love to give gifts. It is an undeniable fact. Whether it is a formal occasion such as a birthday or a wedding or just a casual visit to family, friends or acquaintances, Japanese always give gifts. Twice a year, in July and December, the traditional and major gift-giving seasons come around. One in July is called Ochugen. During this period people go crazy deciding what to give to their bosses, friends, relatives, teachers, customers or anyone they have become indebted to. Many gift departments especially set up for the Ochugen season. The department stores become jam- packed with people who have in their hands a list of people they are going to send gifts to. The word Ochugen is derived from the Chinese word for the 15th of the seventh month of the lunar calendar. It fell on Obon and it was customary to distribute the Obon offerings to relatives and others. However, this custom has secularized over the years. So even though Ochugen season coincides with Obon season, Ochugen gifts are no longer offerings to the soul of the ancestors. Ochugen gifts can be food, delectable cakes and sweets (okashi), drinks or even gift certificates. Source: http://www.jun-gifts.com/others/culturalcalendar1/culturalcalendar.htm

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As the summer season comes to an end, many of you are planning your year-end holiday advertising campaigns. The holiday season brings thousands of Japanese to Hawaii, especially during the first week of January. The Aloha Express Yearbook can assist you with reaching these Japanese expected to travel here this winter and in 2005. Nearly 200,000 copies are distributed in Japan, giving it the broadest distribution of any Aloha Express magazine released during the year. The Yearbook also includes an impressive Ala Moana Center guidebook that is inserted into an additional 10,000 copies of the magazine and handed to Japanese shoppers at the mall during the New Year holiday season. Finally, the Yearbook has a variety of ad sizes to meet any budget. Take advantage of the promising Japanese travel market and place an ad in the Aloha Express Yearbook due out this November. Please call our sales department for more details.Please call our sales department for more details.

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Click here for our Media Request Form or contact us.

Space Deadlines:

07/30/04 Nouveau - Ala Moana Center Selection September 2004 (FINAL CLOSINGS NOW)
08/15/04 Chikyu no Arukikata - Hawaii Mook November 2004 (FINAL CLOSINGS NOW)
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
09/02/04 Chikyu no Arukikata - Hawaii Mook November 2004
09/15/04 Aloha Express - November 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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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
11/03/2004 Bunka no Hi -- Culture Day
11/23/2004 Kinrou Kansha no Hi -- Labor Thanksgiving Day

Click here to see entire 2004 year.

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