Japan Market Update - October 2004 Edition

Hi ,

"Business Confidence Flying High"...."Optimism surges at Japanese companies-quarterly index jumps to its highest level in thirteen years." These are the recent positive headlines from the Asahi Shimbun at the beginning of October.

The Bank of Japan's quarterly survey of business executives, the Tankan, showed that confidence was on the rise from large manufacturers. This survey is considered to be the country's most important economic survey. The survey also confirms the view that corporate profits have improved significantly and the economy is recovering well. Economists predict some slowdown will occur in the future; they are still worried about the prices of crude oil, the potential signs of economic slowdown in US and China, as well as pension and tax changes.

It has been noted that Japanese consumers are putting their yen into traveling before purchasing additional durable goods--an indication of why department store sales are not seeing the robust up-tick. After a hot summer in Japan, a greater proportion of consumer spending is now being directed toward services, including overseas travel.

I just returned from JATA International Travel Congress and World Travel Fair in Tokyo. The mood amongst consumers and travel agents appeared very bullish on the prospects for outbound travel. Discussions in the sessions focused on marketing and attracting the FIT visitor. The new challenge is to create programs and marketing approaches to reach an ever-changing, sophisticated consumer, with multiple travel experiences. Electronic marketing and the Internet were big topics at the conference as well.

Speaking of the Internet-- two Internet companies are trying to buy a baseball team in Japan. Rakuten and Livedoor Co., Japan's top Internet entrepreneurs see the Internet as a way to revolutionize baseball. Where is the relationship between baseball and the Internet? Both companies see opportunities for cell phone services to subscribers for streaming broadcasts, as well as on-line merchandise sales. On November 2 we will learn who wins the right to buy the Sendai baseball team.

Stay tuned for more updates...

Until next month, all the best for your October business.

Happy Halloween!

Warmest regards,
Dave Erdman

*Japan Market News
-----Travel: Tourism conference calls for an upgrade
-----Travel: Continental Airlines flight bound to boost island business
-----Travel: Get wired on JAL and ANA
-----Travel: Japanese are buying time shares
-----Business: Japan's "Silver Spenders" a target market
-----Business: In hot pursuit of female shoppers
-----Business: Foreign bank cards accepted at select Tokyo ATMs
-----Trends: Poll: "We all scream for ice cream!"
-----Trends: Glamour and ambience key to Tokyo's "cafŽ culture"
-----Trends: Poll: Japanese men mostly fashion-conscious
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: TOURISM CONFERENCE CALLS FOR AN UPGRADE

State leaders and industry reps discuss ways to revamp and retain Hawaii's tourism climate
"People are not coming to the islands for our sewers and sidewalks; we are already doing that kind of basic infrastructure. We've got to do more than that," said Honolulu Mayor Jeremy Harris at the state's annual tourism conference, stressing the need to upgrade Hawaii's image. Gov. Linda Lingle acknowledged Hawaii must improve public infrastructure such as the harbors, airports, and parks, to stay competitive as an attractive tourist destination. The two-day event drew roughly 250 hospitality industry representatives and speakers from Japan, Australia, and the mainland, who discussed changes in tourist profiles, tourist expectations, and ways to keep up with those trends. To receive a copy of the presentations presented at the conference visit http://www.hawaii.gov/tourism/tourism_conference.html#presentations (Source: 2004 Hawaii Tourism Conference; Pacific Business News 9/13/04)
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TRAVEL: CONTINENTAL AIRLINES FLIGHT BOUND TO BOOST ISLAND BUSINESS

A later Honolulu departure will give travelers the option to stay an extra night on neighbor islands
Last month, Japan Market Update reported Continental Airlines' plan to launch non-stop service between Nagoya and Honolulu. The service has been scheduled to begin December 21st, just in time for holiday travel. The outbound flight will depart Honolulu at 2:15 p.m., hours later than Japan-bound flights that typically leave mid-morning. Rather than leave neighbor islands the night before to catch their morning flights home, Japanese travelers will have the opportunity to enjoy an additional night's stay, said PacRim Marketing president Dave Erdman for Travel Journal International. (Sources: Travel Journal International 9/27/04)
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TRAVEL: GET WIRED ON JAL AND ANA

Both airlines will offer in-flight broadband service on select flights by year-end
Passengers aboard the Narita-Munich route -- and six transatlantic flights -- on Lufthansa Airlines are already enjoying real-time Web surfing, VPN, and email access thanks to Boeing's "Connexion" wireless LAN platform. ANA will soon be the first Asian carrier to offer the service in November, followed closely by JAL, which will launch it in December. ANA's first wired route will be Narita-Shanghai, a shorter flight than the typical long-haul routes on which broadband connection is available. ANA and JAL both plan to expand the service to most of their U.S.- and Europe-bound flights by 2005. The connection fee is expected to be about $30 for the duration of the flight, or $9 to $10 per hour. The airlines' Internet portal -- which will offer news, weather, and shopping information -- will be accessible free of charge. (Sources: J-Wing Travel 9/27/04; BroadBand Watch 10/5/04; Lufthansa Airlines)
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TRAVEL: JAPANESE ARE BUYING TIME SHARES

Time share appeal grows, as more Japanese buyers drop cash for a chance to own a morsel in paradise
A rising number of Japanese repeat visitors are snatching up time share properties, with the desire to call Hawaii "home" -- at least for a week out of the year. Japanese time share buyers currently account for 10 percent of the $600 million market. In fact, Hilton Grand Vacations Club, which operates a sales outlet at Ala Moana Shopping Center, boasts 7,000 Japanese customers (or half of the company's ownership base), with potential to grow dramatically in coming years. Many Japanese buyers are willing to pay cash for an average $30,000 unit, while others purchase multiple properties. Potential buyers are also arming themselves with the knowledge needed to acquire a Hawaii time share, signing up for special "time share tour" packages offered by travel agencies, and participating in presentations. (Sources: Pacific Business News 9/24/04; HIS Travel)
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BUSINESS: JAPAN'S "SILVER SPENDERS" A TARGET MARKET

From home electronics to travel, Japan's aging consumers are an obvious, and viable, target
The fears of rising pension costs and lower productivity have been the inevitable visions of an aging nation. But economists and manufacturers alike are putting a positive spin on a pessimistic outlook, focusing on the estimated 1,400 trillion yen ($12,670 billion) that Japan's pensioners and baby-boomers -- dubbed "dankai" seniors -- have stashed away in cash and savings. "It's the sheer number. Although they're not really avid spenders, consumers in their 50s and above are a big force," said Yoshimasa Maruyama, an economist at Mizuho Research Institute. Consumer electronics companies such as Sharp Corp., have shifted their marketing focus from the young and affluent, to the older and wealthier demographic. Yoshinaga Sayuri, a 59-year-old actress with a loyal middle-aged following, now appears on commercials for the popular Aquos flat-screen TV, which retails for more than 500,000 yen ($4,553). Travel agencies such as JTB are also keenly aware of the "mature" traveler market, which tend to book longer trips and spend twice as much as those in their 20s and 30s. (Source: Reuter's Japan 9/7/04; Japan Association of Travel Agents 9/02)
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BUSINESS: IN HOT PURSUIT OF FEMALE SHOPPERS

Japanese women of varying age groups show spending potential at home, and in Hawaii
The shoppers are back: women in their 20s showed a 53 percent increase in outbound travel this year, Hawaii being a major destination. By mid-2004, women in their late 20s outpaced their younger counterparts by more than double. In Japan, the "older" 20s and thirty-somethings are also making a mark, as more working women stay single and, as a result, increase their disposable income. Industries are pitching to this demographic with "single and fabulous" themes, such as luxurious girls-only vacations and "gohoubi" -- or "reward" -- jewelry meant to empower unmarried women, as well as offset the decline of the wedding ring market. The mother-and-daughter market is another coveted sector, as it combines the spending power of middle-aged moms with trend-savvy girls in their teens and early 20s. Women in their 40s are showing the fastest recovery in travel, as are women in the "silver spending" category (see above article) who have the highest spending power of all age groups. (Sources: Travel Journal International 8/2/04; The Washington Post 9/3/04)
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BUSINESS: FOREIGN BANK CARDS ACCEPTED AT SELECT TOKYO ATMS

Shinsei Bank installs foreign-friendly ATMs at select locations, with more to follow
One of Japan's youngest -- and reportedly most progressive -- bank came to the rescue of thousands of cash-strapped visitors and foreign residents in Tokyo, installing several ATMs that accept international bank cards. Shinsei Bank Ltd. launched five ATMs throughout the Roppongi Hills residential and shopping megaplex, and one at the American School in Japan campus; both areas cater largely to foreign communities. Foreign-compatible ATMs are not new -- the Postal Service and select institutions such as Citibank have bank machines that accept foreign cards -- but they have been few and sparse. Shinsei Bank, which celebrated its third anniversary this summer in retail banking, hopes to quickly expand their ATMs to airports and business districts (Source: Shinsei Bank press release 9/27/04)
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TRENDS: POLL: "WE ALL SCREAM FOR ICE CREAM!"

Amid frenzy over pastries and confections, frozen desserts rank no.1 in an Internet survey
The sheer quantity of patisseries and boutique-style bakeries in Japan is testament to the population's love affair with sweets. But in an online survey conducted by Dentsu Inc., Japan's marketing giant and consumer think-tank, ice cream and soft serve were ranked Japan's favorite dessert by an overwhelming 70 percent, followed by yogurt, cake, cream puffs (properly called "choux a la creme"), and custard (known simply as "pudding" in Japan). Among women, a dessert's texture, quality of ingredients, and modest sweetness (not too sweet), were listed among the highest considerations. Men also prioritized texture and quality but were drawn to nostalgic flavors and healthful choices, such as fat-free, Japanese "wagashi" confections. (Source: Dentsu Trend Box Research 9/27/04)
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TRENDS: GLAMOUR AND AMBIENCE KEY TO TOKYO'S "CAFE CULTURE"

From large-scale to hole-in-the-wall, coffee shops and exceptional brew abound in Tokyo
Japan's urban landscape is a paradise for the thirsty traveler. Vending machines adorn every street corner, as do bars and cafes -- downstairs, upstairs, at parks and galleries, or tucked away in office buildings everywhere. Traditional cafes -- called "kissaten" -- were often dim, dingy havens for businessmen on cigarette breaks. Today, image is everything. Cafes have been transformed into cosmopolitan hotspots; livelier and sexier than ever before. "Serendipity" in Nihonbashi, an expansive European-inspired cafe, serves early birds with breakfast, afternoon shoppers with Vienna coffee, and night owls with late-night grinds. On the flip side, "Margo" in Yutenji seats just ten. A quaint hole-in-the-wall nestled in a residential neighborhood and decorated with English antique furniture, this hip little shop is ranked among Tokyo's top "anaba" -- or "popular hideaway." For a pick-me-up after bar-hopping, partiers head to "Spuma," located in a Shibuya shopping mall basement, where local DJs spin to the latest tracks. Any of these joints may set you back several bucks for a cup of coffee, but the key is to see and be seen at Tokyo's hottest hangouts. To view a photo gallery of these shops, click here (Flash required): http://happy.woman.excite.co.jp/garbo/040712/index.html. (Source: Garbo Web magazine vol. 21)
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TRENDS: POLL: JAPANESE MEN MOSTLY FASHION-CONSCIOUS

Survey shows clothing, watches, and grooming products popular among all age groups
A vast majority of Japanese men -- be it in their 20s or in their 50s -- consider themselves aesthetically aware, with men in their 20s leading other age groups, at 70 percent. The online survey, conducted by Dentsu Inc., also showed men's interest in fashion dropped off by 12 percent in their 30s, but regained momentum in their 40s and 50s. The older age groups showed higher interest in collectible fashion items such as luxury watches, pens, and planners, while twenty-somethings prioritized physical appearance. For them, donning something they think is cool takes precedence to affordability, meaning they'll go beyond budget in pursuit of the latest fashion. But despite the younger folks' obsession with appearance, men in their 50s led the category for grooming. Thirty-two percent admitted to having their own facial and hair care routine; not just dipping into their wives' wrinkle cream. (Source: Dentsu Trend Box Research 8/24/04)
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Photos courtesy of Dave Erdman & David Keuning

Shichi-go-san
November 15 is Shichi-go-san, a day of prayer for the healthy growth of young children. 'Shichi-go-san" literally means "7-5-3' and the festival celebrates children aged 7, 5 and 3. Girls aged 7 and 3 and boys aged 5 and 3, dress in their finest formal clothing and are taken to a Shinto shrine to give thanks for their health and pray for their continued growth and well being. The girls wear bright colored kimonos with long draped sleeves and their hair in a bun decorated with cloth flowers and dangling decorations. The boys wear 'haori' jackets and 'hakama' or formal skirt-like trousers. Today, formal western attire such as party dresses and suits are also worn. The children are given shitose ame (thousand year candy) in special paper in colored bags with illustrations of cranes and turtles symbolizing long life. Photographs are taken informally and professionally, in some cases, before everyone can enjoy a party to celebrate the event.

It is said that Shichi Go San is actually a combination of three festivals from the Samurai times, hence the triple name. In those days, at age 3, both boys and girls stopped having their heads shaved and were allowed to grow it long. At 5, boys wore hakama (pleated trousers) for the first time. And at 7, girls began to wear an obi (proper sash on the kimono) instead of a cord belt. Back to top

Do you need to find media to meet designation requirements for Ala Moana Center? Here is one of your last opportunities.

To ensure your share of the market, advertising this Winter 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 Winter 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 of the changes happening 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:

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

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
01/01/2005 Gantan (Oshougatsu) --New Year's Day
01/10/2005 Seijin no Hi --Coming-of-Age Day

Click here to see entire 2004 year.

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