Japan Market Update - March 2005 Edition

Hi SALUTATION,

It sure feels good to see the recent (March 4) Honolulu Advertiser headline: "Hawai'i hotels have best January since '91! " In the article, Joe Toy, president of Hospitality Advisors, is quoted as saying, "...the surge in Japanese arrivals in particular helped O'ahu lead the state's hotel industry for January 2005."

It's also positive to see that other destinations such as Guam are benefiting from the increase in outbound travelers from Japan. Marketers in the travel/tourism industry are feeling this positive momentum, but most are cautiously optimistic due to increased competition for Japanese visitors from multiple destinations. The best way to increase market share is with a solid marketing strategy, good communications, and an understanding of changing trends and patterns with the target audience.

To further monitor Japanese market trends and to better serve our clients, PacRim will officially open its Japan (Tokyo) office on March 15 (Tel & Fax: 03-5638-7721). Yuichi Sato, Marketing Manager, and Maiko Hanawa, Media Coordinator, will run the new office. The lower three floors of our building are occupied by YUKON, a leader in travel industry and tour operator market support services, with a specialty in custom publishing, printing, promotions, and brochure and collateral development. We look forward to working with them to leverage opportunities for our clients.

The entire PacRim team-in Hawaii and Japan-look forward to assisting you. With Golden Week and summer just ahead, this is the ideal time to review and enhance marketing plans and programs. Please contact PacRim's offices at 949-4592 or me directly at derdman@pacrimmarketing.com for assistance with your Japanese advertising, public relations, e-marketing, web site analysis and maintenance, on-line reservations, or e-mail programs.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: Strong Japanese traffic in January and February
-----Travel: Brand name spending increases among men
-----Travel: Bookings up for Hawaii, Guam
-----Travel: Guam targets families, weddings, seniors, tours
-----Business: Japan isn't buying Wal-mart's main appeal
-----Business: Toymakers strike a cord with the elderly
-----Business: Japanese economy is recovering just fine
-----Culture: Japan's "charisma housewife" snags top cookbook award
-----Society: Working women seek travel, shopping, fashion
-----Society: Spending shifts from goods to services
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: Strong Japanese traffic in January and February

Double-digit increases in international arrivals jumpstart Hawaii's 2005 tourism
Japanese arrivals rose 19.1 percent in January and 9 percent in February compared to 2004, marking a healthy start for Hawaii's tourism industry. About 131,000 Japanese visitors entered Hawaii in January, and just short of 134,000 in February. "Tourism countrywide is definitely on an upswing," said Robert Calhoun, Hawaii/Asia regional vice president of sales and marketing for Marriott Vacation Club International, "We don't see any slowdown at all." The improved tourism is largely attributable to increased air capacity to Hawaii, and a weak dollar against the euro and yen. Not only does the weak dollar encourage U.S. travelers to travel domestically, but empowers European and Japanese tourists with more bang for their bucks. In that light, tourists have been spending more than last year, too. Visitor spending rose 11.6 percent to $960.8 million for the month of January. Japanese visitors spent a daily average of $243, and East Coast visitors spent about $161 a day.
(Sources: DBEDT 3/1/05; Honolulu Star-Bulletin 3/1/05; Pacific Business News 2/28/05)
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Travel: Brand name spending increases among men

Marketing survey finds male travelers in their 40s are biggest spenders
Superfluous spending by Japanese tourists may be a thing of the bubbly past, but they're still spending plenty, says a recent survey conducted by the World Tax Free Association and Japan Tourism Marketing Co. According to the survey, the Japanese traveler spends an average of 76,000 yen (approx. $725) on brand-named goods when shopping in Hawaii; 61,000 yen ($580) in Oceania (includes Guam and Australia), 64,000 yen ($610) on the mainland, and 84,000 yen ($800) in Europe. The poll revealed Hawaii and Europe as the most popular shopping destinations because of the "attractiveness of the shopping venues." Of the age groups surveyed, men in their 40s spent the most on brand-named goods, surprisingly not for themselves but mainly on gifts for spouses and children. A healthy 7 percent of Japanese travelers spent 300,000 yen ($2890) or more on brand stuffs, most of whom were, again, 40-something males. So what do guys buy for gifts? Results say mainly food items (confectionary and gourmet stuff), cosmetics, fragrance, jewelry, wine and spirits, and bags and leather goods.
(Source: Travel Journal International 2/14/05)
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Travel: Bookings up for Hawaii, Guam

Travel agencies report double-digit increases in reservations for first quarter
According to a quarterly survey conducted by the Japan Association of Travel Agents, overall outbound reservations are up by an average of 34.9 percent for March 2005, the highest rate for the first quarter. The biggest increases are seen for Asian destinations, thanks to the continuing Korea boom and the Chinese New Year in February. China bookings surged to 220.4 percent compared to last year, boosted by increased air capacity, three-day weekends conducive to short-haul travel, and the opening of the new Chubu International Airport in mid-February. U.S. bookings are also rising; for February, Hawaii increased 11.9 percent and Guam-Saipan by 24.9 percent compared to January alone. As graduation season approaches, student travel is expected to increase in coming months. Golden Week (end-April to early-May) is likely to boost long-haul vacations this year -- many Japanese travelers are expected to max out their holiday to ten days.
(Sources: Japan Association of Travel Agents 1/24/05; Travel Journal International 1/23/05)
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Travel: Guam targets families, weddings, seniors, tours

Visitors Bureau introduces multi-pronged approach to woo over 1 million Japanese tourists

Bold but probably not too far-fetched, Guam Visitors Bureau's Japan representative announced at a recent promotion seminar that the bureau's 2005 goal is to bring 1,050,000 Japanese visitors to Guam, up 16 percent from last year. Year-to-date, Japanese arrivals rose 13 percent to 89,000 compared to the same period last year. February has been especially strong, with arrivals up 23 percent. According to GVB Japan's Yuji Mitsumori, the bureau will focus its promotional activities on multiple, lucrative travel markets including families, young working women, weddings, senior, sports, corporate groups, and school group tours. The wedding market in particular holds high potential, not only because overseas weddings are gaining popularity among today's Japanese couples, but because near-boomer couples who wed in Guam in the 1970s are likely to consider returning to the islands for a second honeymoon. GVB has planned various events to target these groups, with the "Go! Go! Guam" campaign slated to kick off a string of family-oriented promotions for the summer.
(Source: J-Wing Travel 2/21/05)
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Business: Japan isn't buying Wal-mart's main appeal

"Everyday Low Prices" struggles to catch on among discerning Japanese shoppers
When Wal-mart started scooping up shares in Japan's sinking retailer Seiyu (currently 37 percent), the discount giant was fairly positive that its successful business model would quickly revitalize the bottom line. It turns out that "Everyday Low Prices" doesn't transcend cultures -- or shopping habits -- and Wal-mart now expects to post losses until at least 2006. Masafumi Shodo, a retail analyst with Nomura Securities summarized one part of the problem: Japanese shoppers are not motivated by rock-bottom prices. They generally associate low price with low quality. Add to that Japan's highly localized taste (e.g. produce that sells well in Hokkaido probably won't in Kyushu) and a complicated web of small, regional farms and fisheries, and Wal-Mart is left with a supply-chain quagmire. But Wal-Mart isn't giving up yet. Shabby stores are getting makeovers, higher-priced merchandise are joining the mix, and new computers have been installed in half its 400 stores, equipped with technology to track inventory, and hopefully, better analyze Japanese shoppers' complex shopping habits.
(Source: Business Week Online 2/28/05; Investments Magazine online 3/7/05)
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Business: Toymakers strike a cord with the elderly

Talking "smart" dolls make unlikely companions for lonely elders
About 8,000 of Japanese toymaker Tomy's talking "Yumel" dolls have sold in less than three months, with hardly any marketing. The dolls, which cost about 12,800 yen, is said to be a hit especially among elderly who live alone, underscoring the delicate social structure of Japan's aging society. Yumel dolls mimic a little boy, can be programmed to fall asleep and awake with his owner, and can quip 1,200 phrases in typical toddler style, such as "Why do elephants have long noses?" It is not the first time that toymakers have targeted the elderly; one of Japan's largest, Bandai, sold a majority of its talking Primopuel dolls to middle-aged-and -above customers as well. Last year Bandai held a 5th anniversary party for the dolls and its owners at a Tokyo amusement park, where hundreds of adults showed up to celebrate their dolls' birthday. Toymakers originally created these dolls as a means to tap into Japan's "iyashi" (healing) movement that began several years ago. But they quickly learned from their customer base that the dolls triggered a basic human need to nurture, and be responded to. Wrote one 82-year-old woman, "Thank you for giving me a heart-warming baby. I'm no longer alone."
(Source: Yahoo! News 2/23/05)

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Business: Japanese economy is recovering just fine

Amid negative attention on a struggling economy, analysts say Japan's on the right track
It seems as though Japan's economy takes a step back for every step-and-a-half it takes forward. But the general consensus among think tanks is that it's still growth, and it's OK. In fact, analysts predict fiscal 2005 will be a year of moderate growth, making way for better financial health in coming years as banks continue to sort out bad loans inherited from the bubble economy. Capital spending, the economy's primary growth engine, is expected to gain momentum as the dollar strengthens and Japanese exports regain a strong foothold. The scenario is not perfect; the dollar may wobble again, industrial output may not increase as manufacturers concentrate on paying off debts than spending money on plants and equipment, and corporations may cut jobs or cut salaries to increase their bottom line. But even as the economy shrank over the last two quarters largely due to decreased consumer spending, economists and the government hardly called it a recession. "The economy is moving almost sideways," said Heizo Takenaka, the minister of economic policy. Cautious optimism thus reigns: recovery may not happen this year at full-throttle, but it will be consistent, and it will continue, agree many analysts.
(Source: Kyodo News 02/21/05; Pacific Business News 2/17/05)
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Culture: Japan's "charisma housewife" snags top cookbook award

Food writer Harumi Kurihara becomes first Asian recipient of international Gourmand award
Dubbed the "Oscars" of the food and wine industry, the 10th annual Gourmand World Cook Book Awards crowned Japan's favorite housewife, Harumi Kurihara, the world's best cookbook author. The English version of Kurihara's bestseller "Harumi's Japanese Cooking," was chosen from over 5,000 cookbooks written in 2004, and lauded for its down-to-earth approach to traditional Japanese cuisine. Kurihara, nicknamed "charisma housewife" for her no-fuss, yet elegant domestic prowess, has sold over 15 million books and magazines featuring her recipes and tips for stylish living. Her latest honor is expected to boost sales of her namesake desserts sold at select convenience stores. Cute and cup-sized, her famous green tea pudding and pannacota (130 yen, approx. $1.20) have been especially popular for its free recipe card, which doubles as a coaster.

(Sources: Tokyo Shimbun Shopper 02/18/05; Gourmand International 2/15/05)
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Society: Working women seek travel, shopping, fashion

Survey shows Japan's career women value high fashion and travel
A broad marketing survey of over 5,000 Japanese women showed that the majority of working girls in their 20s and 30s actively seek information on travel, shopping, fashion, gourmet food, and beauty. The survey results were not necessarily shocking; urban Japanese women have long been known for their penchant for fashion and beautification. Instead, the results affirmed Japanese women's passion for exploration, as well as their consumer confidence. The survey also revealed the flip-side of this demographic's search for material satisfaction: their pursuit of good housekeeping. While 55 percent of surveyed women sought travel, shopping, and fashion, a close 53 percent also sought cooking. Surprisingly, cooking even ranked above beauty. The surveyed genres ranked as follows:

1. Travel
2. Shopping
3. Apparel/Fashion
4. Gourmet
5. Cooking
6. Beauty
7. Music
8. Health/Medicine
9. Internet
10. Trendy Places
11. Computers
12. Living
13. Career-building
14. Investing & Finance
15. Economics
16. Sports & Outdoor Life
17. Watches
18. Environment & Regional Culture
19. Cars
20. Parenting & Education

(Source: Japan Brand Strategy CafŽ Globe Survey 2005)
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Society: Spending shifts from goods to services

More Japanese in search of "the perfect experience" than material satisfaction
The Nikkei Weekly recently profiled a 39-year-old Tokyo housewife who exhibited a trend in changing spending habits among Japan's middle-class: With a disposal monthly income of 55,000 yen (approx. $520), the only material item she purchased this winter was a sweater for 14,800 yen ($140) . But she bought two 10,000 yen ($95) tickets to watch Maria Sharapova play in the Pan Pacific Open Tennis Tournament, and paid about 43,000 yen ($400) to stay overnight at a luxury hotel in central Tokyo. She often enjoys going out for lunches with friends after playing tennis with them at a club that charges a monthly fee of 18,000 yen ($170). Japan's growing middle-aged population may be fueling this phenomenon, but the nation is definitely exhibiting signs of goods-weariness in exchange for more personal enrichment. The government's household spending data shows that consumer spending on leisure activities, cultural events, and other forms of entertainment is growing, as spending is decreasing for home purchases, renovation, clothes, and household goods. Most consumption of the "emotional satisfaction" variety include things related to eating, education (I.e. hula, archaic Japanese, flower arrangement), health (I.e. spas, salons, health clubs), and travel.

(Source: The Nikkei Weekly 2/28/05; Ministry of Internal Affairs and Communications)

Hanami

In a couple of weeks, cherry blossom season will begin sweeping the Japanese isles, starting at the southern end and reaching far to the northern tip. In small towns and big cities, streets and parks will be canopied by towers of puffy, pink sakura, or cherry blossom trees. Like the autumn foliage in the American Northeast, sakura season is a mere two or three weeks, after which the delicate petals begin to fall. But whether the blossoms are in tact or the petals are showering the pavement, sakura is a magnificent sight. The act of "hanami," which literally means "flower viewing" during the sakura season, is said to have begun as a favorite pastime for Japanese aristocrats during the early Heian period (794-1185). They sat under the sakura trees, writing and reciting poetry as they socialized. Flower-viewing "parties" was in fact forbidden among commoners until the late 1500s. Today, the hanami is Japan's favorite excuse to party, making it undoubtedly the most popular springtime event. Famous Tokyo hangouts such as Ueno Park become packed with large groups of families, friends, and work colleagues crowded under trees for a day-long picnic. Because public drinking is legitimate, hanami is also notorious for excessive alcohol consumption and rowdy behavior.

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Just in time to increase your reach in the Japanese visitor market for the Summer season rush!

Summer time brings thousands of Japanese visitors to Oahu. To ensure your share of the market, advertising for the Summer is more important than ever. The "Nouveau Ala Moana Center" issue can help you target shoppers visiting the impressive Ala Moana Center. This issue is the only Japanese guidebook exclusively dedicated to the shopping center. This conveniently sized magazine is hand-delivered to JTB tour customers at the check-in counter at Narita Airport in Tokyo. We are still accepting advertising reservations for the upcoming issue.

If you are interested in finding out more about advertising in this publication please contact Lynelle Lingaton at llingaton@pacrimmarketing.com

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Click here for our Media Request Form or contact us.

Space Deadlines:

3/10/05 Nouveau Tumon Sands -- May 2005
4/10/05 Nouveau Ala Moana -- June 2005
5/1/05 Aloha Express Quarterly -- July 2005

Material Deadlines:

4/10/05 Nouveau Tumon Sands -- May 2005
5/10/05 Nouveau Ala Moana -- June 2005
5/15/05 Aloha Express Quarterly -- July 2005

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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3/21 Shunbun no Hi -- Vernal Equinox Day
4/29 Midori no Hi -- Green Day
4/29 Golden Week Begins (ends May 5)
5/3 Kenpo Kinenbi -- Constitutional Memorial Day
5/5 Kodomo no Hi -- Children's Day
5/10 Haha no Hi -- Mother's Day
6/19 Chichi no Hi -- Father's Day

Click here to see entire 2005 year.

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