Japan Market Update - May 2005 Edition

Hi ,

Golden Week is now behind us-and, from the "coconut wireless" it seems as if it was positive for many businesses, while not living up to original forecasts. DBEDT Hawaii issued an update that showed non-stop passenger volume from Japan increased 16% in the seven day period ending May 8. Travel Journal International noted that because of the longer, extended holidays, more travelers chose to travel to the US Mainland and Europe. Despite this, JAL added two flights to Hawaii from Japan during the period.

For an incisive, insider look at the surprising reality-and the amazing potential-of Japan's multi-trillion dollar service economy, plan to attend a mini-seminar luncheon meeting co-sponsored by PacRim Marketing Group, Inc. and the Honolulu Japanese Chamber of Commerce. The event will be held at the Japanese Culture Center, Manao Ballroom, on Tuesday, July 26. The program will feature former Hawaii resident, Tim Clark-author, entrepreneur and current Senior Fellow for the Tokyo-based venture capital firm, SunBridge. Tim's presentation follows the publishing of his new book, "Saying Yes to Japan: How Outsiders Are Reviving a Trillion Dollar Services Market. For reservations or information, call 949-5531(Honolulu Japanese Chamber of Commerce) or click here for on-line reservations to hold your seat. The price is $30 for the lunch program. Hope you can join us.

This week, PacRim Marketing Group, Inc. welcomed Marcus Ito to our team as Vice President of Sales and Marketing. Previously with Ritz Carlton Maui and the Halekulani, Marcus will lead our media and marketing efforts for Japan and Asia. He comes to us highly recommended for his understanding of the Asia markets and superior service standards for which both the Ritz and Halekulani are known. Marcus can be reached at mito@pacrimmarketing.com.

*Japan Market News
-----Travel: Survey: Hawaii and Guam are "top brand" locations
-----Travel: Record Golden Week travel likely
-----Business: Survey: Sony ranks first among "career women"
-----Society: Japanese food to join space station menu
-----Technology: Yahoo Japan banks record year
-----Politics: First Korea, now China
-----Trends: New face soap fuels anti-aging boom
-----Trends: TOTO unveils its newest "porcelain goddess"
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: SURVEY: HAWAII AND GUAM ARE "TOP BRAND" LOCATIONS

Reputation, safety, and short travel time among components that measure destination "brand equity"
Hawaii, Guam, South Korea, Australia, and France were ranked the top five "brand" destinations in terms of infrastructure, overall experience, and reputation, according to a survey by Japanese public relations giant Hakuhodo Inc. Hawaii, Guam-Saipan and South Korea scored the highest infrastructure value, which is based mainly on the destinations' accessibility, quality of accommodations, and likeliness to fit varying travel budgets. Hakuhodo noted an interesting finding on infrastructure value that greatly affected brand assessment; the level of safety and hygiene of a destination was considered more important (87.2 percent) than convenient access (66.8 percent). In other findings, Hawaii was the most popular destination and ranked first overall; it also ranked first by all respondents in all generations. Hawaii also ranked at the top for travel with a spouse, while New York was most popular for traveling alone, and South Korea first for travel with friends or in a group.
(Sources: Travel Journal International 4/16/05; Hakuhodo News Release 1/31/05)
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TRAVEL: RECORD GOLDEN WEEK TRAVEL LIKELY

Japanese agency estimates unprecedented increases in post-war, post-SARS overseas travel
Golden Week 2005 will surpass travel industry expectations in many ways, according to a recent JTB survey of bookings and customer profiles. Firstly, overseas travel is expected to reach a record 602,000 passengers this year, 13.8 percent higher than last year, and nearly triple the number of travelers during the same period in 2003. Secondly, it's the first Golden Week since 1999 that the number of travelers, average travel expenditure, and estimated travel spending are all expected to surpass prior-year levels. The survey also revealed more travelers (16.7 percent) plan to spend more money while on vacation this year compared to last year, and fewer travelers plan to cut back. JTB largely attributes the healthy travel climate to a long Golden Week conducive for long-haul travel such as to Europe and North America. JTB also estimates Hawaii travel will increase 15 percent to 53,000 departures compared to last year's 46,000, and Guam travel will increase 8 percent to 43,000 during Golden Week.
(Source: Japan Travel Bureau News Release 4/5/05)
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BUSINESS: SURVEY: SONY RANKS FIRST AMONG "CAREER WOMEN"

Brand awareness survey reveals favorites among working women in their 20s and 30s
A sweeping survey of young working women, considered to have the biggest impact on Japan's consumer trends because of their active purchasing power, revealed the nation's most loved and recognized brands. The results were based on five markers: brand recognition, "likeability," quality, desire to purchase, and loyalty. Two-hundred-fifity brands were ranked for each marker, then tallied for overall results. Cosmetics giant Shiseido was ranked the most well-known; tea and beverage maker Itoen the "most liked;" Sony was ranked top for both quality and "desire to purchase;" snacks and candy maker Meiji swept the "loyalty" poll with 64.1 percent claiming to be repeat consumers. A couple of foreign imports were among the overall top 20 ranking: Levi's ranked seventh, Starbucks 11th, and Nike 16th.

Rank	Company Name		Industry
1.		Sony		Electronics
2.		Itoen		Food & Beverage (tea)
3.		Meiji		Food & Beverage (confection)
4.		Kagome		Food & Beverage (juice)
5.		Mujirushi Ryohin		Consumer Products & Apparel
6.		Kirin		Food & Beverage (beer)
7.		Levi's		Apparel
8.		Wacoal		Women's Lingerie
9.		Suntory		Food & Beverage (beer)
10.		Panasonic		Electronics

(Source: Japan Brand Strategy News Release 2/4/05)
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SOCIETY: JAPANESE FOOD TO JOIN SPACE STATION MENU

Astronauts soon to be treated to rice, fish, ramen noodles, and green tea
Eating ramen noodles in zero-gravity may be tricky, but in a couple of years astronauts should see a variety of Japanese food on the menu at the International Space Station. An international panel of medical experts recently voted on the change, not only to accommodate Japanese astronauts, but also to give astronauts healthier food options. Operated by Russia, U.S., Japan, and 13 other countries, the ISS often hosts astronauts for as long as six months at a time. Currently the ISS menu only offers American and Russian fare. The medical panel has recommended 35 Japanese food items including musubi, chicken curry, miso-marinated mackerel, broiled salmon, and rice porridge. Sources say they hope to have the menu fully installed by 2007, when Japanese astronauts are scheduled to launch an experiment module to be added to the ISS. In 2003, Japan's ubiquitous "Cup Noodle" maker Nissin Food Products Co. and the National Space Development Agency developed special "Space Ram" instant ramen noodles suitable for consumption in space.
(Sources: Mainichi Shimbun 04/23/05; web-japan.org 9/24/02)
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TECHNOLOGY: YAHOO JAPAN BANKS RECORD YEAR

Internet advertising, auction sites, and broadband help revenue and net profit soar
Japan's leading Internet portal and largest online auction operator reported a revenue of 117.8 billion yen (approx. $1.1 billion) for the fiscal year ending March 31, with net profit rising 47.1 percent to a record 36.5 billion yen ($348 million). Revenue from Net-based advertising alone surged 74.8 percent to 38.9 billion yen ($371 million). "Our online advertising business did better in the fourth quarter than we had earlier thought," said CEO Masahiro Inoue, underscoring the increased awareness among nationwide advertisers of the impact of the Internet, who are boosting their online ad placements. Yahoo Japan now boasts over 1.03 billion page-views a day. The company is 41.9 percent owned by Japan's Softbank Corp., and 33.5 percent by Sunnyvale-based Yahoo! Inc.
(Sources: Yahoo! News 4/20/05; The Japan Times 4/21/05)
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POLITICS: FIRST KOREA, NOW CHINA

Geopolitical squabble blows another chill over Asia
As tension continued to brew between Japan and Korea over sovereignty of the Dokdo islets, parts of China uprose in massive anti-Japanese protests reacting to Japan's approval of textbooks that China says downplays Japan's wartime atrocities against China. Despite a public apology by Japanese Premier Junichiro Koizumi over Japan's World War II exploits, Chinese President Hu Jintao said Japan needs to seriously reflect on "the strong reaction of the Chinese people and the concerns of people from other Asian countries." Media reports have pointed to reasons other than text books to explain China's beef with Japan; China is allegedly opposing Japan's bid for a seat in the United Nations' security council, and also wants Japan to take a stand against Taiwan's independence in favor of a "one-China" policy. Meanwhile economists and financial analysts worry that the latest riff is already adversely affecting trade between Asia's two largest economies. Last year, China surpassed the U.S. to become Japan's biggest trading partner, accounting for 20 percent of its trade.
(Sources: The Japan Times 4/20/05; Bloomberg News 4/25/05) Back to top

TRENDS: NEW FACE SOAP FUELS ANTI-AGING BOOM

Cosmetics giant debuts film-type soap claiming to deliver chock-full of collagen
"Skin whitening" dictated Japan's cosmetics industry in years past, but "anti-aging" has been the latest, lasting buzz. Japan's leading cosmetics company Shiseido added a new face soap to its arsenal of anti-aging beauty products; this time a revolutionary facial soap "film" that packs a punch with skin-rebuilding ingredient, collagen. While collagen has long been a popular ingredient in soaps and creams, Shiseido claims the "Elixir Collagenish Film Soap EX" delivers higher concentrations of collagen essence than was ever before possible. One tester reported the film emulsifies into a super-rich lather with just a few drops of water, and leaves the skin clean yet supple -- not "squeaky clean." The portable, plastic compact case delivers a single, fresh sheet at a time when opened. But unlike soaps in tubes and jars, the Elixir Collagenish doesn't hold up well in humid places like showers; the film tend to clump together, which, at 2,100 yen (approx. $20) for 80 sheets, can be a pricey risk.
(Source: Trendy Magazine 03/05)
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TRENDS: TOTO UNVEILS ITS NEWEST "PORCELAIN GODDESS"

Ultra-modern toilet turns the bathroom into a true rest room
Japan's oldest, and the world's largest manufacturer of toilets -- TOTO Ltd. -- wants your bathroom experience to be a complete sensory journey. TOTO's newest toilet goes beyond beautiful design and a warm, happy tush; it sounds and smells good, too. The "NEW Neorest EX3" model is equipped with an aromatherapy component that emits the pleasant fragrance of essential oils, and a remote control programmed with 16 classical tunes including Schubert's "Serenade" and Bach's "Ave Maria." "The pleasant stimulation of sound and smell heightens relaxation in the restroom," claims TOTO, which will sell the new model for 411,1600 yen (approx. $3,700). The newest sensory modules are in addition to TOTO's revolutionary plastic coating and streamlined design that prevents dirt build-up, not to mention the standard, tush-cleaning "wash-let," and water- and energy-saving features. The "hands-free" toilet also opens, flushes, closes, and self-cleans.
(Source: Trendy Magazine 05/05; www.toto.co.jp)
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Spring and Fall are the traditional seasons for weddings in Japan.

Today, a Japanese wedding ceremony can be conducted in a Christian, Buddhist, or Shinto style. Usually only family members attend the marriage ceremony, while non-familys guest go the the reception called "Kekkon Hiroen."

A typical Japanese wedding reception is usually very formal and extravagant. Therefore, if you are a guest attending the wedding reception, the expected traditional wedding gift is Oshuji (cash). The amount depends on your relationship with the couple and the region; sometimes a fixed amount is indicated on the invitation card. The average Oshuji is 30,000yen ($300) for a friend's wedding. The cash is enclosed in a special envelope called Shuji-bukuro.

During the reception, the married couple sits on a stage, observing the guests' speeches and performances. The bride changes her attire two to three times, and sometime more, during the reception. The bride can wear a traditional wedding costume called shiromuku (white kimono) and then may change to a colorful and gorgeous kimono called uchikake or a traditional white wedding dress. The groom usually wears whatever matches the bride's clothing, such as a men's kimono called haori-hakama or a tuxedo. Usually, there are neither bridesmaids nor a best man at a Japanese wedding. An older couple, called Nakoudo, is responsible for managing the wedding and they sit by the couple on the stage.

Guests' seats are usually arranged according to their relationship with the couple. Usually a full-course meal (typically French) is served at the table. When the reception is over, the guests receive favors and gifts called Hikidemono. Hikidemono traditionally includes dried bonito or sugar, which represent happiness. In addition, guests also receive a gift of significant value usually half of the expected Oshuji (cash) received by the guest. Tiffany Japan has a whole department that arranges for Hikidemono gifts for the bride and groom for their guests, which include silverware, stemware, dinner ware and tea ware. Back to top

Aloha Express is the designated media of choice for Hawaii 's Shopping Centers.

As Hawaii's repeat visitor market grows and with so many ways to market to Hawaii's Japanese visitors, smart advertising decisions are more important now than ever. Aloha Express is the only pre-arrival publication that continues to be in the forefront for targeting Hawaii's Japanese traveler repeater market.

This year, Aloha Express has been designated by Hawaii's major shopping centers: Royal Hawaiian Shopping Center, Ala Moana Shopping Center and Kahala Mall.

It is not too late to call us to find out more about these upcoming media releases as we strive to find the best media available for you. Please click here for more details.

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!	Otona no Hawaii [Luxurious/Mature Market Book]
NOW!	Aloha Express July
NOW!	Chikyu no Arukikata Guam Mook
NOW!	JJ Hawaii
6/15/05	Nouveau Tumon Sands

Material Deadlines:

5/20/05	Otona no Hawaii [Luxurious/Mature Market Book]
5/20/05	Aloha Express July
5/20/05	Chikyu no Arukikata Guam Mook
5/27/05	JJ Hawaii
7/1/05	Nouveau Tumon Sands

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

06/19/2005 Chichi no Hi -- Father's Day
07/07/2005 Tanabata -- Star Festival
07/19/2005 Umi no Hi -- Marine Day
08/13 - 8/15 Obon Season

Click here to see entire 2005 year.

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