Japan Market Update - June 2005 Edition

Hi ,

With summer nearly upon us, travel and retail experts in Pacific Rim destinations are anticipating a positive season, supported in large part by Japanese travelers. However, a recent trend in Japan is to book travel plans and activities later and later. This impacts their chances of finding available rooms, tours, and activities in high occupancy destinations like Hawaii. This summer, many Japanese could find that even optional tours and activities are sold out due to high demand.

Therefore, PacRim's newest marketing programs focus on encouraging prospective travelers from Japan to book much earlier to ensure destination of choice, as well as desired type of accommodations, activities, and tours. Our new on-line marketing system and marketing programs support pre-booking of optional tours and activities and encourage advance booking of hotel rooms due to tight inventory. See PacRim's updated web site for more information on our services-(http://www.pacrimmarketing.com) or call/email me.

Japan Airlines has announced tentative, major schedule changes that affect Hawaii, Saipan, Guam, and other destinations in the Pacific Rim. We hope to see other carriers, including charter flights, consider routes dropped by JAL to meet demand in these gateway cities where lift is so critical.

This newsletter also looks at some travel data over the past six months, as well as some of the specific travel segments-including women and families. We will keep you posted on trends by market segment and demographics, as well as airline and route lift developments in our next few issues.

Check out our "Media of the Month" below for ideas on marketing to the Japanese. Please note that July, August, and September have various Japanese holidays. Those are listed below and on PacRim's web site, where all media opportunities, as well as the full year's Japanese holiday calendar, are listed.

P.S. Don't miss out! On Tuesday, July 26, PacRim and the Honolulu Japanese Chamber of Commerce will co-sponsor an event featuring Tim Clark, who will speak on "Saying Yes to Japan"-an interesting perspective on opportunities in the Japanese service sector. Register today at(http://www.pacrimmarketing.com/news/current/494.html).

*Japan Market News
-----Travel: Golden Week scores modest gains
-----Travel: 2004 marked near-record outbound traffic
-----Travel: Continental adds Japan-Guam flight
-----Economy: Japanese wages rise
-----Business: Suntory's million-yen (plus tax) whisky gone in a flash
-----Technology: Online shopping experience up
-----Society: Japanese urged to ditch stuffy suits
-----Society: More Japanese women go solo
-----Fashion: Wacoal unveils cream-of-the-crop lingerie
-----Fashion: Women want "the perfect rear"
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: GOLDEN WEEK SCORES MODEST GAINS

Japanese arrivals increased 8.5 percent from previous year
Arrival numbers issued by the Department of Business, Economic Development, and Tourism showed that almost 3,000 more Japanese visitors traveled to Hawaii during Golden Week than last year. The 8.5 percent increase undercut the expectations of Japanese travel agencies such as JTB, which anticipated increases of up to 15 percent based on robust bookings leading up to the travel season. Nevertheless the ten-day period between April 26th and May 5th drew 51,000 Japanese travelers to Hawaii, peaking during the weekend of April 29th, with over 7,000 on both Friday and Saturday. Daily arrivals never hit 7,000 during Golden Week last year. Hotel occupancy buoyed above 70 percent during the busy travel week, and May arrival numbers rose 5 percent above the previous year.
(Source: Department of Business, Economic Development, and Tourism)
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TRAVEL: 2004 MARKED NEAR-RECORD OUTBOUND TRAFFIC

Women and family travel resurge, boost numbers to pre-SARS level
The number of women traveling abroad in 2004 rose 28.7 percent to 7.3 million, boosting the total number of outbound travelers by 26.6 percent to 16.8 million. That's the second-highest tally since 2000, when outbound traffic reached a record 17.8 million. Data compiled by the Japanese Ministry of Justice also showed that the women's market posted double-digit gains in every age group; the biggest increase was seen in the 60s age group (41.3 percent) and 70s age group (43.4 percent). The 20s and 30s age groups rose by 17.6 percent and 26.5 percent respectively, emphasized by an increase in mother-daughter travel among daughters in this group and mothers in their 60s. Family travel also rebounded to resort destinations such as Hawaii and Guam, raising the number of underage travelers by 27.3 percent in the 0-9 age group, and by 37.3 percent in the 10-19 age group. The number of school trips jumped 68 percent, reflecting not only a returned confidence post-SARS, but also an increase in overseas school excursions among private schools seeking to boost enrollment.
(Source: Travel Journal International 5/1/05; Ministry of Justice)
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TRAVEL: CONTINENTAL ADDS JAPAN-GUAM FLIGHT

Hiroshima schedule will double by summer while JAL plans Saipan route cuts
Residents of Hiroshima, on Japan's southern island of Kyushu, are now a step away from popular resort destination Guam, thanks to Continental Airlines' newest addition to its flight roster. Continental flight 940 can carry 155 passengers twice a week from Hiroshima to Guam. Airline officials expect healthy demand for these seats, and plan to offer four weekly flights by early July. Guam Visitors Bureau said the new flight was the result of successful lobbying by government and airport management officials in Hiroshima, backed by GVB's strong promotional efforts in Japan last year. Japanese arrivals, which account for about 75 percent of Guam visitors, have consistently risen this year, up 7.8 percent to 323,412 as of April. Meanwhile, officials of the Northern Marianas island of Saipan are appealing to Japan Airlines in an effort to stop them from canceling service to the territory. JAL, which currently services nearly half of all Japanese tourists traveling to the Northern Marianas, informally announced it will suspend Japan-Saipan routes due to unprofitability and rising fuel prices.
(Source: Travel Vision News 5/23/05; Guam Visitors Bureau 4/1/05; ABC Radio Australia 6/1/05)
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ECONOMY: JAPANESE WAGES RISE

April salaries rise for first time in more than four years
Winter bonuses were up last year. Now there's more good news for Japan's salaried workers, as the Ministry of Health, Labor and Welfare reported a 0.3 percent rise in the average base salary to 255,607 yen ($2,360). Overtime pay, bonuses, and commuting reimbursement add another 26,000 yen (approx. $250) to the monthly wage. It's the first increase since November 2000, and combined with the lowest unemployment rate (4.4 percent) in six years, is helping the economy rebound from last year's recession. Wages are rising as companies have been steadily hiring more full-time workers in what may be a reversal of the "freeter" -- or part-timer -- trend of the last decade. In fact the number of full-time workers increased by 1.1 percent in April, while the number of part-time workers fell by the same percentage. The ripple effect has been a rise in household spending, a positive marker for economic growth.
(Source: Bloomberg Japan 6/1/05)
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BUSINESS: SUNTORY'S MILLION-YEN (PLUS TAX) WHISKY GONE IN A FLASH

Fifty bottles of exclusive single-malt sell out in less than 24 hours
"Whisky takes years to mature, but whisky fans make quick decisions," commented a baffled Suntory spokesperson after 50 bottles of limited edition whisky sold out in less than a day, with practically no marketing. At 2 p.m. on May 11th, Suntory posted an obscure link on its homepage that linked to information about the exclusive, 50-year-old whisky. Phone and fax orders poured in, and by 11 the next morning, all 50 bottles had sold before ever leaving the factory. For a locally produced whisky, the Suntory's "Yamazaki 50 years" marks the nation's oldest -- and certainly priciest -- product. Processed in the early 1950s in rare white oak barrels with pure Yamazaki spring water, the half-century-old whisky is described as the most delicate and decadent ever produced by Suntory.
(Source: www.asahi.com 5/13/05; www.suntory.com)
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TECHNOLOGY: ONLINE SHOPPING EXPERIENCE UP

Books, CDs, and DVDs top shopping items
According to a survey by Japanese Web marketing company Internet.com, 80 percent of Japanese Internet users have shopped online in the last three months, up 2 percent from the same time a year ago. A majority of those users (52 percent) shopped online two to four times, and 23 percent made online purchases five to 10 times, up from 15 percent last year. Although the survey shows only a modest increase in overall Internet shopping over the course of a year, more users are shopping more frequently. And while clothing topped the online shopping category last year, books, CDs, and DVDs are now the most popular online purchases. Most users (77 percent) are using the Internet to buy items from themselves, although the number of users buying gifts online rose (20 percent), up 7 percent from last year. Here's a ranking of the most popular online purchases:

Rank	Item
1.		Books, CDs, DVDs
2.		Food
3.		Clothing
4.		Cosmetics
5.		Tickets (Concerts, Airline, etc.)
6.		PCs and computer parts
7.		Home electronics
8.		Accessories
9.		Flowers, plants
10.		Furniture

(Source: Japan.internet.com 6/6/05) Back to top

SOCIETY: JAPANESE URGED TO DITCH STUFFY SUITS

Government hopes casual attire will help conserve energy through summer
On June 1st, many of Japan's government bureaucrats left their jackets and ties at home to kickstart the "Cool Biz" campaign, a national effort to reduce energy consumption during the nation's sweltering summer months. Even Prime Minister Koizumi and his Cabinet members will go without ties while on duty until the end of September, and are urging their civil employees (majority of them who were hesitant on Day One) and the private sector to follow suit. Air conditioners in government buildings have reportedly been set to 28 degrees Celsius (82 F) instead of the typical 25 C (77 F); the conservation effort is estimated to save over 80 billion gallons of oil in one summer. The call for new attire also spells green for the economy. At Mitsukoshi department stores, men's shirt sales were up 17 percent in May from the same month last year. The Economy Minister said the effort could raise consumer spending by at least 10 billion yen ($74.25 million), and that it jumps to 600 billion yen ($5.6 billion) if local government and private industry workers are included. For Mitsukoshi, the key so far to selling short-sleeve shirts is hidden snaps or extra buttons to keep the collar upright without a tie. After all, men of convention can't go from spiffy to sloppy.
(Sources: Mainichi Shimbun 6/1/05; Associated Press 5/31/05)
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SOCIETY: MORE JAPANESE WOMEN GO SOLO

Businesses find niche market among independent, savvy, do-it-yourselfers
Financial freedom and an unabashed attitude toward being single are fueling a growing social phenomenon among Japanese women: the ohitorisama. It is a polite way to say "single customer," and more Japanese women -- married or not -- are preferring to enjoy social activities such as dining, traveling, and shopping, by themselves. Businesses are catching on, with jewelry companies targeting single career women, hotels and travel agencies offering special deals for women traveling alone, and restaurants and spas dishing out courses designed for women seeking to indulge themselves. JTB continually offers self-enrichment hitoritabi (single travel) packages geared toward women, such as trips to Hawaii combined with private hula lessons or English-language classes. In fact, tourism surveys showed single female travelers increased 3.8 percent in a year to 17 percent in 2003. Ohitorisama.net, a Web site that promotes ohitorisama activities and single-friendly businesses, boasts 2,000 members and counting. While the spending potential behind women traveling solo may not have garnered much attention in the past, many businesses are reaping the benefits of repeat female patrons who value their personalized services, as well as the rewards of kuchikomi, or word-of-mouth advertising, among women.
(Sources: Travel Journal International 5/15/05; Japan Times 10/15/04)
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FASHION: WACOAL UNVEILS CREAM-OF-THE-CROP LINGERIE

Japanese lingerie maker taps into luxury market with Italy's La Perla
Wacoal itself is synonymous with superb-quality lingerie, famous for its quality lace and sold at high-end department stores worldwide. But the celebrity bug has hit Japan's most reputable lingerie maker, as Wacoal acquired exclusive rights to import undergarments created by Italian brand La Perla. Featured extensively in fashion magazines and adored by Hollywood celebrities, La Perla has often been referred to as Europe's finest lingerie. "We aim to distribute our products upon grasping the sensitivity of the Japanese woman," said La Perla President Alberto Mazotti. The La Perla line will hit store shelves in July, offering 45 styles of bras ranging in price from 5,750 yen to 68,250 yen (approx. $54 - $650) and panties from 5,250 to 28,350 yen ($50 - $270). Despite the hefty price tag, Wacoal anticipates annual sales of 1 billion yen (approx. $9.5 million).
(Sources: Mainichi Shimbun 5/11/05)
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FASHION: WOMEN WANT "THE PERFECT REAR"

Denim's dynamic comeback fuels a frenzy to achieve a shapely bottom
In Japan during the '80s and '90s, form-fitting, curves-revealing -- dubbed "body conscious" -- clothes dominated women's fashion. The phenomenon propelled an obsession among young Japanese women to achieve gravity-defying buns; the term "hip up" hence became a billion-dollar marketing slogan that graced merchandise from girdle panties to protein shakes. Today, women have traded their Lycra bodysuits in for the versatile, sexy denim. And as far as the derriere goes, perkiness is no longer the goal. Instead, the words on the street are mote-jiri or "alluring buns," and kojiri" or "small buns," and they're the driving force behind jeans manufacturers designing their merchandise to help the female customer achieve an eye-catching rear-end. According to Printemps department store in Tokyo's fashion district, the fastest selling Something jeans by Edwin has a built-in girdle to help lift and mold the rear-end to form. In fact the hip-shaping effect has been so popular, that five of its 20 styles of jeans now sport the hidden girdle. The jeans retail for 11,550 yen (approx. $105), or at par with Japan's favorite Hollywood celebrity-style denim wear such as Seven for All Mankind and Citizen of Humanity.
(Source: Fujisankei News 5/25/05; www.edwin.co.jp/something)
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Origami is the art of folding paper into a variety of intricate designs.

Derived from oru meaning fold and kami meaning paper, it originated in China in the first or second century. The earliest record of origami in Japan dates back to the Heian Period (794-1185). It was during this period that Japan's nobility progressed artistically and culturally. However, paper was still a rare commodity during that time and origami was only a pastime for the elite. It was not until several hundred years later, during the Edo Period (1600-1868), that origami became popular among the merchant class and common people. Today, it is rare for a Japanese child to have not learned to fold origami, as it is taught in elementary schools across the country. One of the most famous origami designs is the Japanese crane. The crane brings good fortune according to Japanese customs. Legend says that anyone who folds one thousand paper cranes (senbazuru) will have their heart's desire come true. The origami crane (orizuru) has become a symbol of peace because of this legend.
(Source: Wikipedia.com)

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Did you know that Hawaii-Arukikata is viewed by 18,000 unique users in Japan each day and is consistently ranked in the top listings for the largest search engines in Japanese, including Google and Yahoo! Japan? Hawaii-Arukikata is designed to market to the Japanese traveler by providing the most up-to-date information on Hawaii, with features on cuisine, culture, fashion, events, trends and events. The site has more than 6,000,000 page views per month.

If you are interested in targeting 18,000 unique users per day, we have a variety of options to fit your marketing strategy--including banners, advertorials, text links, on-line marketing surveys, a bilingual reservations system, optional tour booking referrals and coupons.

If you are interested in finding out more information and/or would a personal tour of the site, please contact Joy Ishiara at 1-800-338-4502 (toll-free) or at 949-4592 x811 or Lynelle Lingaton at x803.

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Click here for our Media Request Form or contact us.

Space Deadlines:

NOW!	JJ Hawaii
NOW!	Chikyu no Arukikata Guam Resort
NOW!	Aloha Express September
NOW!	Nouveau Hawaii
7/1/05	Chikyu no Arukikata Kauai Resort

Material Deadlines:

6/17/05	JJ Hawaii Insert Book 9
6/24/05	Nouveau Tumon Sands
7/01/05	Chikyu no Arukikata Guam Resort
7/15/05	Aloha Express September
7/29/05	Nouveau Hawaii

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

6/19 Chichi no Hi -- Father's Day
7/7 Tanabata -- Star Festival
7/18 Umi no Hi -- Marine Day
8/13-8/16 Obon Season
9/19 Keirou no Hi -- Respect for the Elderly Day
9/23 Shuubun no Hi-- Automnal Equinox Day

Click here to see entire 2005 year.

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