Japan Market Update - September 2004 Edition

Hi ,

Labor Day unofficially marked the end of summer for those of us in the U.S., but many Japanese travelers will still be in "summer vacation" mode through September. After a long, hot, typhoon-plagued, muggy summer at home, many Japanese are in dire need of overseas vacations and will take the opportunity to travel through September where there are two Japanese holidays that should keep arrivals steady and business jamming.

Looking back over the summer, the July Japan visitor arrival numbers for Hawaii and Guam look positive! Hawaii saw a 28.9% increase in arrivals (128,359 total) for July, for a 19.3% YTD increase. Of the six billion dollars in total visitor spending in Hawaii YTD, Japanese visitors accounted for 1.2 billion, an increase of 22.9% over the previous year. Japan arrivals for Guam surged 50% over last year, contributing to July's total visitor count of 78,000 and representing 77% of Guam's total visitor figure. Current YTD figures show Guam's Japanese arrivals up 71%.

On the business and marketing front, planning for next year is in progress and final marketing efforts for the fall and holiday season are being executed. Some of the tools PacRim has to assist you in further developing your business with the Japan sector are mentioned in the Japan Report below.

Lastly, I was honored to be featured in the August 2004 edition of Japan Entrepreneur Report published by Tim Clark. If you would like to read more about PacRim and some of the services we offer read Tim's story here: www.pacrimmarketing.com/news/current/440.html. We look forward to working with you.

Warmest regards,
Dave Erdman

*Japan Market News
-----Travel: A strong summer for Hawaii tourism
-----Travel: Continental to add Japan flight
-----Travel: Korea boom spawns exclusive tours
-----Business: Heat wave spurs beer, soda, and AC sales
-----Business: The "how hot can you get" phenomenon
-----Business: Oxygen the newest health and healing trend
-----Business: Fusion desserts go mainstream
-----Fashion: Barneys New York to open in Ginza
-----Technology: Travel sites reach 17 million
-----Technology: Broadband usage rises steadily, exceeds 16 million
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: A STRONG SUMMER FOR HAWAII TOURISM

Rates up, rooms booked, money pumped into Hawaii tourism
Hotel rates and revenues have been at their highest since Hawaii tourism's peak performance in 2000, but higher rates hampered neither occupancy nor spending this summer. According to the DBEDT, visitor spending topped $1 billion in July, while Waikiki occupancy maintained a stellar 90 percent and above for the entire month. Neighbor islands saw low- to mid-80 percent range with higher room rates and REVPAR than last year (Maui rates were up 9.4 percent and Kauai up 8.7 percent). On average for the month of August, Hawaii occupancy stayed around 90 percent, a vast improvement from a year ago when room rates were softer and occupancy was at least 10 percent lower. (Sources: Pacific Business News 8/6/04-8/27/04; DBEDT)
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TRAVEL: CONTINENTAL TO ADD JAPAN FLIGHT

Daily non-stop service from Nagoya to Honolulu approved, scheduled to begin December
"Nagoya-Honolulu is currently an under-served market, and we look forward to capitalizing on the continued strong demand for Hawaii," said Mark Erwin, president of Continental Airlines-Asia Pacific Division, in a statement. The new flight will add 200 coach and 35 business class seats to the daily roster. JAL is currently the only airline that operates non-stop from Nagoya to Honolulu, while ANA, Northwest Airlines, and Korean Air stop through Tokyo or Seoul. Continental currently flies between Guam and seven Japanese cities, as well as Tokyo-Houston and Tokyo-New York. This will be the airline's first route between Japan and Hawaii. (Sources: Continental Airlines News Release 8/6/04; JAL; ANA)
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TRAVEL: KOREA BOOM SPAWNS EXCLUSIVE TOURS

Travel agencies take advantage of pop culture, highlighting location tours, food, and culture
A reported 5,000 participants this year has made the "Winter Sonata" tour -- featuring the widely popular Korean TV series -- one of Nippon Travel Agency's top Asia tours. JTB experienced similar success with their Korea tours this year and now Kinki Nippon Tourist is following suit. KNT experienced a 256 percent boost in Korea tour sales since last summer, and is now offering a package that includes tours of the show's location sites, running six different three- or four-night packages between 27,800 and 138,800 yen ($252 to $1,261). KNT's tour will also feature the popular Korean movie, "Hotelier," with accommodations at the movie's setting: the Sheraton Grande Walker Hill. NTA expects to sell 1,100 tours between September and October alone. Meanwhile the Korean National Tourism Organization reported a 69% surge in July traffic from Japan, continuing a six-month run of higher arrivals since February. (Sources: Travel Journal International 8/28/04; Kinki Nippon Tourist News Release 8/16/04)
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BUSINESS: HEAT WAVE SPURS BEER, SODA, AND AC SALES

Beer, soft drinks, air conditioners fly off shelves as temperatures climb across the country
When the mercury hit 100 degrees in Japan during the months of July and August, it was no surprise for seasonal products such as fans and air conditioners to sell like gangbusters. The Japan Refrigeration and Air Conditioning Association said July sales doubled from a year earlier, and showed no signs of abating through August. Beer sales shot up 10 percent, said Japan's top-five brewers, and soda sales also skyrocketed.
(Source: Kyodo News 8/12/04)
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BUSINESS: THE "HOW HOT CAN YOU GET" PHENOMENON

Habanero is hip: Japan abuzz with the Guinness Book's most potent chili pepper
Keeping cool during the heat wave seems obvious, but when it comes to beating the heat, the Japanese are not wimps. Spicy food is popular again this summer, but this year, foods flavored with habanero pepper -- said to be 80 times hotter than a jalapeno, and the world's hottest -- is all the buzz. Spicy foods apparently become so popular during this season, that some convenience stores around the country set up a "Super Spicy Foods" corner, featuring habanero-flavored chips, noodles, fried calamari, and even bacon. If you thought curry alone was hot enough, a habanero-infused curry has tripled sales expectations, as has a chips product in a menacing-looking packaging called "The Habanero Tyrant." Food industry experts expect the pepper boom to continue, as manufacturers race to introduce even hotter, hipper products. (Source: Fuji Sankei Business News 7/19/04)
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BUSINESS: OXYGEN THE NEWEST HEALTH AND HEALING TREND

In powder, liquid, or gaseous form, oxygen isn't free
A few years ago, a stressed-out nation ignited the "iyashi" -- or healing -- movement to mend itself, identifying anything from music to food to celebrities that soothed the soul. The newest addition to the iyashi trend, it appears, is oxygen. Though tasteless, invisible, and technically free, products pumped with extra oxygen are selling fast. Rakuten, Japan's most popular online shopping portal, lists 20 types of oxygenated water -- dubbed "super water" -- at the top of its "bottled water" ranking, above previously popular brands such as Evian and Perrier. Home electronics maker National introduced an "Oxygen Air Charger," which looks like a humidifier and apparently increases oxygen levels in the air. For on-the-go rejuvenation, oxygen bars are popping up across the country, where customers literally sit at a bar and hook up to oxygen tanks for about $6 a ten-minute session. Portable, concentrated oxygen "tanks" are also extremely popular; they look like spray cans, and come complete with nose piece for a more private pick-me-up. (Sources: Fuji Sankei Business News 8/21/04; www.asahi-net.or.jp 8/10/04)
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BUSINESS: FUSION DESSERTS GO MAINSTREAM

European pastries with an Asian twist bound to satisfy Japan's sophisticated palate
Hawaii is ever familiar with fusion cuisine, but would Roy Yamaguchi or Alan Wong have thought of wasabi-flavored cream puffs? The chefs at Ginza Mitsukoshi's new outlet "Wa-Bi-Sa" certainly did, and are making headlines with innovative sweets such as soybean-orange tartlets and montblancs made with --not chestnuts -- but a gooey, Japanese potato called "yamaimo." Across town at Tamagawa Takashimaya, world-renowned patissier Hironobu Tsujiguchi is dedicating an entire store, "Waraku Beniya" to his creative variations of rusk -- a traditional, biscuit-like pastry made from French bread -- with savory Japanese flavors such as miso, shoyu, and sesame. Tsujiguchi is famed for founding "boutique" pastry shops specializing in chocolate and roll cakes. Judging from the popularity of his $10 truffles at his chocolate shop, the rusk store is expected to be another niche success. (Source: Tokyo Shimbun Shopper 8/27/04)
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FASHION: BARNEYS NEW YORK TO OPEN IN GINZA

Rising from doom, upscale department store schedules October opening in Tokyo's fashion mecca
A decade after launching its first outlet in Shinjuku -- and merely five years since emerging from both bankruptcy and a soured relationship with former Japanese partner-retailer Isetan -- Barneys New York will open its third store in Japan. The Ginza store is modeled after Barneys' flagship Madison Avenue location, and will feature spacious displays spanning three floors, including a bridal wear section. Some retail industry experts considered Barneys' Ginza plan a bullish move during the nation's economic downturn, but now anticipate the luxury retailer will capitalize on Japan's recovery and the apparent revival of decadent consumer spending. (Sources: Barneys New York Press Release 8/17/04; Japan Today 6/7/03)
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TECHNOLOGY: TRAVEL SITES REACH 17 MILLION

Nielsen//NetRatings survey says majority of Japanese Web users sought online travel resources
For the first time ever, a 50.1 percent majority of Internet users (17.3 million) accessed online travel sites, according to a report by NetRatings Japan Inc., a Nielsen Media Research partner. The 48 percent increase in travel-related Web access is a sure sign that the travel category of the Internet is booming, although the report strictly reveals access, and not actual sales. "Good weather and economic recovery boosted summer travel this year, but it also seems that Japanese Internet users have become increasingly apt at making reservations and collecting travel-related resources online," said chief analyst and CEO Masayuki Hagiwara. Among the top-ranked travel Web sites, domestic travel leader Jalan.net reached the most users at 2.7 million, followed by Yahoo!Travel (2.2 million), Mytrip.net (2.1 million), JAL (1.9 million), ANA (1.5 million), and JTB (1.5 million).
(Source: Nielsen//NetRatings Press Release 8/25/04)
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TECHNOLOGY: BROADBAND USAGE RISES STEADILY, EXCEEDS 16 MILLION

DSL reigns as top broadband choice, but fiber optics expanding faster
Latest reports from the Japanese Ministry of Public Management, Home Affairs, Posts, and Telecommunications showed that broadband access is up 14.2 percent since February, topping 16 million users. DSL remains the access of choice, holding 75 percent of the broadband market with 12 million users. But DSL accounts increased a modest 13 percent in the last six months, compared to a more robust FTTH (fiber-to-the-home) expansion at 40 percent during the same period. FTTH exceeded expectations in the telecom industry, reaching 1.4 million users compared to 994,000 users in February. Broadband through cable, now at 2.7 million users, and a distant second behind DSL, only increased about 8 percent. (Source: Ministry of Public Management, Home Affairs, Posts, and Telecommunications; Nikkei Electronics Asia Online 8/6/04)
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O-hashi
Chopsticks

It is said that chopsticks originated about 5,000 years ago in China. In Japan, "ohashi or hashi", are regarded not merely as eating utensils, but carry a symbolic meaning deeply rooted in tradition.

In Japan, chopsticks were originally considered precious and were used exclusively for religious ceremonies. People say that a Japanese person's life starts with "hashi" and ends with "hashi". A baby and its parents celebrate the occasion of the first meal with a new set of "hashi" on the 100th day, the 120th day, or the 7th day after the birth, depending on the region in which the family lives.

Each family member owns his or her own set of chopsticks which are used at each meal eaten in the home. Guests are provided with a special set for their use. A separate set of "hashi", called "tori-bashi (picking chop sticks)" are used to serve the dishes. A newlywed couple purchases a set of matching chopsticks, "meoto-bashi" (married couples' chopsticks): one large set for the husband and another slightly smaller set for the wife.

There are many important rules to remember when using "hashi":
- Hold your chopsticks towards their end, and not in the middle or the front third.
- When you are not using your chopsticks and when you are finished eating, lay them down in front of you with the tip to left.
- Do not stick chopsticks into your food, especially not into rice. Only at funerals are chopsticks stuck into the rice that is put onto the altar.
- Do not pass food with your chopsticks directly to somebody else's chopsticks. Only at funerals are the bones of the cremated body given in that way from person to person.
- Do not spear food with your chopsticks.
- Do not point to something or somebody with your chopsticks.
- Do not move your chopsticks around in the air too much, nor play with them.
- Do not move around plates or bowls with chopsticks.
- To separate a piece of food into two pieces, exert controlled pressure on the chopsticks while moving them apart from each other. This skill takes practice.
- If you already have used your chopsticks, use the opposite end of your chopsticks in order to move food from a shared plate to your own plate.
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Last chance to increase your reach in the Japanese visitor market this winter. The winter season brings thousands of Japanese to Hawaii for the Honolulu Marathon and other New Year's holiday activities. The "Aloha Express Yearbook" can help you reach the Japanese expected to travel here this winter and in 2005. Nearly 200,000 copies of the "Yearbook" 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 the "Yearbook" with an additional 10,000 copies of the magazine 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.

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Click here for our Media Request Form or contact us.

Space Deadlines:

09/01/04 Aloha Express - November 2004 (FINAL CLOSINGS NOW)
10/10/04 Nouveau - December 2004
12/01/04 Aloha Express - February 2005

Material Deadlines:

09/30/04 Chikyu no Arukikata - Hawaii Mook November 2004 (Drop Dead)
10/29/04 Aloha Express - November 2004 (Drop Dead)
11/10/04 Nouveau - December 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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Upcoming Holidays in Japan

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
12/23/2004 Tennou Tanjoubi -- Emperor's Birthday
12/31/2004 Ohmisoka -- New Year's Eve

Click here to see entire 2004 year.

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