Japan Market Update - April 2005 Edition

Hi ,

News in Japan is hot this month, with the opening of the 2005 World Expo and a new airport in central Japan, and with new media trends changing the face of communications and providing new marketing opportunities.

The World Expo officially opened in Nagoya on March 25 and will run through September 25 under the theme, "Nature's Wisdom". On opening day, which I was fortunate to attend, Expo visitors stood in line in freezing weather--and even snow--for three hours prior to the Expo's opening. For good reasons, though. The Expo features the latest in technology, with high-tech robots and exhibits hosted by organizations and companies from 121 countries.

Also new to the Nagoya area in central Japan is the Chubu International Airport, called Centrair. This modern and inviting facility opened just last month (see the Japan Market Update below for more information).

New media has dominated news coverage in Japan this month. Internet company, Livedoor, is stretching its muscle to take over Fuji TV, but is getting resistance from shareholders, competitors, government, and even celebrities loyal to the Fuji TV network.

In successful debuts, however, Internet companies Softbank and Rakuten both claimed victory in highly publicized games on the the opening day of baseball season in Japan. Their strategy of purchasing baseball franchises to secure extended branding and customer loyalty opportunities, and to create new media channels for publicity, is already paying off --a brilliant move. Japan Market Update will keep tabs on this interesting convergence trend in media over the next year.

Golden Week is almost here and summer is just around the corner -- the perfect time to generate additional business from Japan. To boost your marketing efforts in Japan during the summer season, be sure not to miss next week's space deadlines for summer publications. Internet options and other advertising and publicity tactics to reach the Japanese market are also available.

Call us for further information on reaching the Japanese market this summer. We can help.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: Hawaii and Guam top H.I.S. Golden Week destinations
-----Travel: Hawaii tourism banks record February
-----Travel: Japan arrivals to Guam up again in February
-----Business: Japanese winter bonuses up
-----Business: Fuji TV vs. Livedoor vs. Softbank
-----Business: Nagoya's newest openings
-----Politics: Korea-Japan dispute affecting tourism
-----Fashion: UNIQLO.com launches home collection
-----Technology: New electric oven melts off calories
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: HAWAII AND GUAM TOP H.I.S. GOLDEN WEEK DESTINATIONS

Travel agency reports brisk sales and higher demand for charter flights
It seems that Japanese travelers are ready to hit the beaches after a particularly long and dreary winter this past season. Rather than wait for last-minute deals, which has lately become a popular travel-planning tactic, shoppers started booking as soon as travel agency H.I.S. Co. unleashed its Golden Week packages in mid-January. The agency has seen a 30 percent increase in reservations for travel from the Kanto region, which includes Tokyo's Narita and Haneda airports. Hawaii and Guam top the list for single-destination package tours, followed by New York, Bangkok, and Seoul. The number of H.I.S. tours using charter flights doubled this holiday season, including complete charters to Hawaii and Guam departing from the recently revamped Haneda airport. The charter tours from Haneda are marketed with Tokyoites in mind (the airport is only 12 miles from the city, whereas Narita is about 40 miles away), and for those who want to take advantage of red-eye flights, available to both Guam and Honolulu. The Hawaii tour also features a late departure from Honolulu (8:00 p.m., as opposed to the typical a.m. and noon departures for major airlines), which will afford travelers an "extra" day of leisure. H.I.S. expects Golden Week departures to peak on April 29th. Golden Week, a series of national holidays, officially ends on May 5th, although many are expected to travel through the weekend ending Sunday, May 8th.
(Sources: Travel Journal International 3/27/05; www.his-j.com 3/27/05)
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TRAVEL: VISAS MAY BE REQUIRED(again!) TO ENTER THE U.S.

U.S. border control snag may necessitate visas to visit favorite destinations like Hawaii and Guam
Japanese citizens who obtain a new passport or renew an existing one during an approximate six-month period after October 26, 2005, may temporarily need visas to enter the United States. October 26th is the deadline imposed by the U.S. Department of Homeland Security for foreign nations to issue machine-readable passports that contain biometric identification of the passport holder. Japan is currently about six months behind the deadline for implementing the biometric passports, as are most other countries. If Japan does not meet the deadline, or if the deadline is not extended, Japanese citizens with passports issued after October 26th will need to obtain a visa at either the U.S. Embassy in Tokyo, or the consulate offices in Osaka or Okinawa. Japan has been one of 27 countries included in the U.S. Visa Waiver Program (VWP), which allows citizens of those countries to enter the U.S. for up to 90 days (15 days for Guam) without a visa, when traveling for pleasure or business purposes. VWP has been regarded highly as a traveler-friendly protocol making U.S. tourism, and last-minute travel, appealing to the estimated 4.5 million Japanese tourists who enter the U.S. annually.
(Source: Weekly Diamond Magazine 1/15/05; U.S. Embassy of Japan)
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TRAVEL: HAWAII TOURISM BANKS RECORD FEBRUARY

Arrivals, stays, and spending rose, making 2005 the best February ever for Hawaii tourism
Latest reports issued by Hawaii's Department of Business, Economic Development, and Tourism showed both domestic and international visitors arrived in larger numbers, stayed longer, and spent more this February. Domestic arrivals rose by 8.7 percent and international by 2.7 percent; Japanese arrivals rose by 5.7 percent to 122,513, and more significantly, has risen 12.3 percent year-to-date compared to 2004. In keeping with past monthly averages, Japanese visitors' stays are relatively short -- 5.5 days -- compared to mainland visitors who stay an average 10 days and Canadian visitors who stay an average of two weeks. The DBEDT report also revealed that February honeymoon traffic rose 16.7 percent compared to last year. Maui and the Big Island saw the biggest influx in February arrivals, with Maui up 7 percent and the Big Island up 26 percent.
(Source: DBEDT 2/05)
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TRAVEL: JAPAN ARRIVALS TO GUAM UP AGAIN IN FEBRUARY

Guam tourism kicks off 2005 with two consecutive months of high Japan arrivals
February arrival figures were modest compared to January, but Guam still scored a four percent increase in Japanese arrivals compared to last year, according to the Guam Visitors Bureau. Visitor statistics showed 80,955 Japanese arrivals in February compared to January's stellar 88,977, keeping Guam well on track towards the goal of one million Japanese visitors for 2005. Visitor numbers are expected to ebb and flow during the second half of the year when travel holidays become scarce, but upcoming Golden Week and summer travel should still bolster the figures. Statistics also showed an up-trend in repeat visitors among the 18-29 age group, as well as an increase in arrivals from regional airports such as Hokkaido, and the newly opened, much-anticipated Chubu International Airport in central Japan.
(Source: Guam Visitors Bureau 2005 Visitors Report)
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BUSINESS: JAPANESE WINTER BONUSES UP

Consumer spending outlook positive, as job prospects and wage growth also rise
For the first time in eight years, Japan's semi-annual bonus rose 2.7 percent in the winter of 2004 to 430,278 yen (approx. $4,010). The labor survey released by the Ministry of Health, Labor and Welfare also showed that Japan's workforce expanded by 0.6 percent, and cash earnings rose 0.1 percent in February to 274,742 yen (approx. $2,567), the third increase in four months. And despite a drop in household spending in February, consumer sentiment is actually rising. Economists expect the combination of increased earnings and an optimistic outlook for the year will revive consumer spending. Consumer spending accounts for more than half of the Japanese economy, and had recessed in the last two quarters of 2004.
(Sources: Ministry of Health, Labor, and Welfare Monthly Labor Survey 3/30/04; Bloomberg News 3/30/04)
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BUSINESS: FUJI TV VS. LIVEDOOR VS. SOFTBANK

A takeover saga involving Japan's biggest media companies grips corporate Japan
A hostile takeover attempt of Japan's largest TV network by an Internet start-up is leading headlines and shaking up Japan's corporate world. A Tokyo High Court ruling has allowed Livedoor, an emerging ISP led by 32-year-old entrepreneur Takafumi Horie, to gain foothold of radio station Nippon Broadcast Systems as its largest shareholder. Livedoor's control of NBS had theoretically put the ISP closer to controlling Fuji TV, Japan's top TV station, with which Horie allegedly wants to develop an Internet-broadcasting network. NBS was the largest shareholder of Fuji TV, part of media conglomerate Fuji Sankei Group. But in a surprise move which appeared designed to thwart Livedoor, Soft Bank Investments, the investment arm of Soft Bank Corporation, replaced NBS as the top shareholder by setting up a 20 billion yen (approx. $187 million) venture capital fund together with Fuji TV and NBS to invest in content, media, and broadband upstarts. Livedoor's managerial rights over NBS is imminent, but Fuji TV and SBI are reportedly drumming up support from Fuji and NBS subsidiaries by convincing them to raise their stakes in Fuji, in an attempt to weaken Livedoor's influence. Livedoor has been reported in the media to be on a "shopping spree" for mergers and acquisitions. An attempt last fall to buy a brand new major-league baseball team was lost to Rakuten Inc., another Internet services giant.
(Sources: Chunichi Shimbun 3/26/05; Financial Times 4/4/05; TBS News 4/4/05
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BUSINESS: NAGOYA'S NEWEST OPENINGS

An airport, an amusement park, and an expo spark up the nation's second-largest city
In 2004, Nagoya emerged from the shadows of Tokyo and Osaka to become the nation's hippest metropolis. That trend continues as Nagoya kicks of 2005 with the opening of three major landmarks -- a Pokemon theme park, the Aichi expo, and the Central Japan (Chubu) International Airport. The first world expo of the 21st century opened with much fanfare on March 25th, welcoming 4,300,000 visitors on day one. The six-month extravaganza, which spans a massive 427-acre area on Nagoya's eastern hills, is expected to draw over 15 million visitors. The new Pokemon theme park is expected to get substantial overflow traffic from the expo, as well as a healthy gathering of families on vacation during spring break, Golden Week, and the upcoming summer months. Visitors pay-as-they-go with smartcard-enabled electronic money, which opens up the park to stroll and browse without paying an entrance fee. Serving these sites is the Chubu International Airport, nicknamed "Centrair," which opened in February. Japan's third-largest airport after Narita and Kansai, the new international gateway runs a 24-hour flight schedule. Dubbed "aircity" rather than a mere "airport," Centrair is designed akin to a theme park, with facilities ranging from gourmet restaurants and spas, to an indoor garden and a public bath overlooking the runways.
(Sources: Trendy Magazine 03/05; Chunichi Shimbun 3/26/05; enjoy.centrair.jp; www-1.expo2005.or.jp; Mainichi Daily News 02/03/05)
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POLITICS: KOREA-JAPAN DISPUTE AFFECTING TOURISM

Bitter territorial dispute over the Dokdo islets chill the travel climate
Hana Tours, a Korean travel agency, has reported a 30 percent increase in cancellations to Japanese destinations, as political tension brews between Korea and Japan over the Dokdo islets. Other agencies have reported similar figures, as dozens of cultural and educational exchange programs between the two countries have been cancelled or suspended. Some Japanese school groups have also been asked by their Korean hosts to postpone their trips. Ironically the two governments had plans to celebrate 40 years of diplomatic relations this year, when news surfaced that certain factions of the Japanese government expressed renewed interest in claiming sovereignty over the uninhabited islands of Dokdo, called Takeshima Island in Japan. The Japanese ambassador to Korea helped provoke the fury by claiming publicly last month that the islands are legally and historically Japanese. Located in the Sea of Japan, the Dokdo islands are roughly half-way between the two countries, and are registered as part of South Korea's Uleung province. The political drama is also an unexpected turn of events on the social and cultural fronts, as both nations had been enjoying a "warming of ties," particularly fueled by the phenomenal Korea boom in Japan. With Japanese tourists accounting for over 40 percent of all foreign tourism to Korea, industry experts warned continued tensions may have far-reaching effects on the nation's travel and retail sectors.
(Sources: Chosun Ilbo 3/27/05; Mainichi Daily News 3/28/05; BBC News 3/14/05)
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FASHION: UNIQLO.COM LAUNCHES HOME COLLECTION

Line of home linens market luxury at a bargain
The thread-count on a futon cover may not have been a priority to the vast Japanese population, but one retailer is ready to change that mind-set. Casual fashion company Uniqlo launched a collection of Internet-exclusive linens including sheets, duvet covers, pillowcases, plush towels, and bath mats. The linens boast thread counts of 300 to 460, which give the sheets a silky texture comparable to those used in top-notch hotels. Twin sheets start at 1,990 yen (approx $18.50), keeping with Uniqlo's mantra of affordability, but go up to 7,990 yen (approx. $74.70) for queen-sized, 460-thread-count fitted sheets. The sheets are available for standard western mattresses, which are common in Japanese households, as well as for the flatter, traditional futon mattresses. In April Uniqlo also plans to add to the product line "towelquettes," terry cloth blankets equivalent to western flat sheets that are also commonly used in Japan's bedrooms.
(Source: Trendy Magazine 3/05; www.uniqlo.com)
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TECHNOLOGY: NEW ELECTRIC OVEN MELTS OFF CALORIES

Sharp pleases health-conscious public with fat-busting oven
Japan's leading household electronics maker Sharp Corp. unleashed a new electric oven that no longer "nooks" the food, but literally "zaps" the fat out of it. The "AX-HC1," called "Healthio" in Japan, in fact doesn't use microwaves at all. It generates super-charged steam at a temperature of about 570 degrees Fahrenheit, hot enough to melt off fat and reduce salt content in almost any food. Sharp claims that the AX-HC1 can remove eight times more fat off a 200-gram steak than prepared in a frying pan, leading to a 13 percent reduction in calories. The super-steam technology can apparently cut the sodium factor in Japanese-food favorites such as salted fish and bacon as well, by about 20 percent. According to Sharp, the added benefit of cooking with the AX-HC1 is that it actually retains nutrients in vegetables by preventing oxidation. Whereas boiling broccoli in water would leach its vitamin C by 35 percent, the AX-HC1 retains about 90 percent. This oven costs a hefty 120,000 yen (approx. $1,150), while a microwave oven today is priced at about 20,000 yen ($185). But the product is a hit, says Sharp; it sold 40,000 units in the first four months of sale, compared to the typical 30,000 units of high-end ovens ($1,000) Sharp sells in an entire year.
(Sources: Nikkei Trendy Magazine 02/05; Sharp Japan; MSNBC.com 10/23/04)
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What is Golden Week?

Golden Week is a succession of holidays starting with Japan's National holiday, Midori no hi (Greenery Day) which falls on April 29th. If the holidays include a weekend, Golden week can be very "golden" making traveling ideal. Following is a list of the holidays and their significance.

Midori no hi (Greenery Day) April 29: Celebration of the late Emperor Showa's birthday. After his death in 1989, it was designated as a day for nature appreciation.

Kenpo kinenbi (Constitution Day) May 3: The present Constitution of Japan was put into effect on this day in 1947.

Kokumin no kyujitsu (National Holiday) May 4: It was decided that this day should be a national holiday because it falls between two holidays.

Kodomo no hi (Children's Day) May 5: A day to wish for the health and happiness of children.

* Some companies give employees a day off on May 1, which is May Day.

Golden Week in 2005

April 29 (Fri) Greenery Day
April 30 (Sat)
May 1 (Sun) May Day
May 2 (Mon)
May 3 (Tue) Constitution Day
May 4 (Wed) National Holiday
May 5 (Thu) Children's Day

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Are you still looking for an effective media that reaches the Japanese traveler during the peak summer season? Here is a great vehicle. The Globetrotter June Honolulu Mook issue is still accepting advertising reservations for the upcoming issue.

Read primarily by Japanese visitors who enjoy shopping and dining on their vacation (woman ages 20 -- 40), the Globe Trotter Mook contains information about various activities on Oahu and is designated by Ala Moana Center and Royal Hawaiian Shopping Center, two very popular visitor destinations.

The Mook is sold in all major book stores throughout Japan, making it an easy way to reach the Japanese travel market.

Don't let this important opportunity pass you by. 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:

NOW!	Chikyu No Arukikata -- Guam Mook
NOW!	Chikyu No Arukikata -- Honolulu Mook
3/10/05	Nouveau --Tumon Sands
4/10/05	Nouveau -- Ala Moana
51/05	Aloha Express -- July

Material Deadlines:

5/1/05	Chikyu No Arukikata -- Guam Mook
5/1/05	Chikyu No Arukikata -- Honolulu Mook
4/10/05	Nouveau --Tumon Sands
5/10/05	Nouveau -- Ala Moana
5/1/05	Aloha Express -- July

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

4/29 Midori no Hi -- Green Day
4/29 Golden Week Begins (ends May 5)
5/03 Kenpo Kinenbi -- Constitutional Memorial Day
5/05 Kodomo no Hi -- Children's Day
5/10 Haha no Hi -- Mother's Day
6/19 Chichi no Hi -- Father's Day
7/18 Umi no Hi -- Marine Day

Click here to see entire 2005 year.

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