Japan Market Update - August 2005 Edition

Hi ,

This month's Japan Market Update focuses heavily on the Japanese Internet--for which usage is growing dramatically.

Increasingly, Japanese are booking travel reservations on-line, especially domestic travel. The number of international travel bookings on-line, however, is climbing rapidly.

On-line advertising also is becoming more popular. Nihon Keizai Shimbun (Japan's leading economic newspaper) recently reported that Japanese Internet advertising will "surpass magazine advertising to become the third largest ad vehicle--by early 2007." And, in one of their reports, Japan's biggest advertising agency, Dentsu, predicted that Japan's Internet advertising market will more than double by 2007. (Read more below.)

PacRim can help you tap into these increasingly effective marketing vehicles. Our e-marketing programs, products and strategies--including JpRes (our bi-lingual reservations service), site optimization, and key word advertising in Japanese--are designed specifically to help our clients capture more on-line referrals and commerce from Japanese consumers.

Click on http://www.pacrimmarketing.com/emkt/index.html for information on our e-marketing programs, or call Darin Sato, Director of Business Development at 949-4592 x 821 or toll free 1-800-338-4502 x 821. Now is the time to plan expansion of on-line programs for 2006 and to create short term solutions to boost current business from Japanese consumers!

*Japan Market News
-----Travel: Internet and kiosk bookings soar
-----Travel: Hawaii tourism half-year report card: A+
-----Travel: Hawaii and Guam res up for August, September
-----Economy: Summer bonuses reach record-high
-----Business: Internet ad spending to triple by 2009
-----Fashion: "Seven" sells men's bejeweled jeans
-----Fashion: Custom cowboy boots a fashion trend preview
-----Society: Japanese women splurge on entertainment
-----Society: Japanese women live longest
-----Technology: Banner Ads Entice More Web Users
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: INTERNET AND KIOSK BOOKINGS SOAR

New features boost package tours and airline ticket sales
Internet business is booming, according to Japan's travel leader JTB, which reported 65 billion yen (approx. $618 million) in online sales during the 2004 fiscal year, up 42 percent from last year. Internet sales amounted to 41.6 billion yen ($392 million), up 51 percent, and "kiosk" sales at multi-media terminals installed in convenience stores totaled 13.3 billion yen ($125 million), up 20 percent. More users booked international travel online, where airline ticket sales rose 1.2 points to 12.6 percent, and package tours increased by 3.9 points to 9.4 percent. The bulk of online transactions -- 61.8 percent -- covered domestic travel and accommodations. JTB revamped its Web site with features such as direct online payment for lodging within Japan, a la carte package planning, and a more robust search engine. In a move to compete against online travel giant Rakuten, JTB plans by year-end to sell discounted airline tickets for overseas travel. JTB calculates its Internet exposure at 1.77 million accesses and 137,000 unique users, as well as approximately 17,000 transactions per day.
(Source: The Travel Vision News 7/25/05)
Back to top

TRAVEL: HAWAII TOURISM HALF-YEAR REPORT CARD: A+

State calls June performance for domestic and international tourism "unprecedented"
It's no secret; Hawaii tourism is having a good year. Traffic and crowds of tourists along Kalakaua Avenue is reminiscent of the bustling '80s and early '90s, and rightfully so -- July brought in the highest occupancy rate on record, with Oahu hitting 91.7 percent. The first half of 2005 brought in record numbers, with visitor spending up 6.8 percent to $5.5 billion. In fact June alone brought in over $1 billion in tourist spending, only the third time since July and December 2004 that expenditures have ever topped the billion-dollar mark. Total spending by Japanese visitors increased 2.6 percent to $1 billion for the first half of 2005, and they continue to spend the most on a daily basis at $249 per person. Overall, notable increases were seen in visitor numbers for the conventions and incentives (up 15.4 percent) and honeymoon (up 13.2 percent) markets. Cruises also saw visitor days increase by 55.4 percent compared to the first half of last year. As far as arrivals go, the state is well on its way to reaching its goal of 7 million; as of June, arrivals had totaled 3,587,319.
(Source: DBEDT 7/28/05)
Back to top

TRAVEL: HAWAII AND GUAM RES UP FOR AUGUST, SEPTEMBER

Early and last-minute bookings push Guam up 58 percent from 2004
Japanese travel giant H.I.S. Kanto Area (includes Tokyo) reported a 14 percent rise in late-summer bookings compared to last year. By destination, Guam saw the biggest jump with 58 percent, followed by North America (30 percent), Europe (20 percent), and Hawaii (16 percent). Yet Hawaii remains the most popular destination according to H.I.S., followed by Guam, Bali, Bangkok, London, Los Angeles, New York, Saipan, and Paris. And despite the effects of this year's tsunami, Asian beach resorts such as Bali and Phuket have seen a 30 percent increase in bookings for the same period. H.I.S. attributes the increased sales partly to airlines' steep discounts offered for booking early, seen as a means to counteract recent trends among consumers to wait for last-minute deals. However late bookings are still popular this year, with more charter flights (135 total) leaving Haneda to more destinations, including Hawaii, Guam, Saipan, Bali, Cebu, and Macao.
(Source; The Travel Vision News 7/19/05)
Back to top

ECONOMY: SUMMER BONUSES REACH RECORD-HIGH

Bonuses close to reaching million-yen milestone at top companies
For the second straight year, summer bonuses at Japan's leading companies rose to a record high, reaching an average 859,097 yen (approx. $8,100) according to the Japan Business Federation. That's up 3.63 percent from last year's 830,000 yen ($7,900). The biggest winners were steelmakers, whose bonuses rose 35.8 percent to 999,605 yen ($9,520). Automakers, whose bonuses exceeded the record million-yen mark last year, dropped nearly a percent to 1,006,048 yen ($9,580). So where does the money go? A 2004 survey showed that 35.3 percent of summer bonus recipients sent the money to their savings, and 29.2 percent planned to pay back loans. When asked what they would actually consume with the money, 28.5 percent said they would use it for travel, followed by home appliance purchases (20. percent), and clothing (13.7 percent).
(Sources: Kyodo News 7/20/05; www.taxcom.co.jp 8/02/04)
Back to top

BUSINESS: INTERNET AD SPENDING TO TRIPLE BY 2009

Internet will overtake magazines as third-biggest advertising medium in as soon as two years
Online advertising expenditures rose a sizable 53.3 percent in 2004 to 181.4 billion yen (approx. $1.7 billion) while magazine ad spending fell 1.6 percent to 397 billion yen ($3.7 billion), according to a report by the Dentsu Communication Institute. In connection with this trend, the business daily Nihon Keizai Shimbun reported that the Internet will surpass magazines to become the third-largest advertising vehicle -- behind television and newspaper ads -- in as early as 2007. Dentsu's report forecasted that the Internet ad market will more than double by 2007, and reach 566 billion yen ($5.3 billion) by 2009. The institute also foresees the most growth in the areas of mobile and Web ads (including banner ads), while email advertising will more than likely plateau over the next four years. For the full Dentsu report, click here.
(Sources: Dentsu Communication Institute 7/19/05; AFX News 7/21/05)
Back to top

FASHION: "SEVEN" SELLS MEN'S BEJEWELED JEANS

Department store expects super-exclusive jeans to sell out in days
"Bling" is still in, and Japanese men won't be left out of it. Seventy pairs of limited-edition jeans for men by popular brand Seven For All Mankind will soon hit store shelves at Mitsukoshi department stores. Seven's signature stitch on the back pocket will be subtly decorated with rhinestones, tasteful enough to be the look for men's denim this fall and winter. Earlier this spring, similar limited-edition Seven jeans sold out at Mitsukoshi's Ginza and Osaka stores within a month. Now that the word is out on the street, Mitsukoshi anticipates these seventy pairs, which retail for 28,140 yen (approx. $260) each, to sell out completely in record time.
(Source: Tokyo Shimbun Shopper 6/27/05) Back to top

FASHION: CUSTOM COWBOY BOOTS A FASHION TREND PREVIEW

Department store gears up for fall fashion with made-to-order boots
Despite the sweltering summer heat, Takashimaya department plans to get an edge on this fall's fashion trend by selling custom-made cowboy boots for women. Shoppers can choose these store originals from five base colors -- black, dark brown, beige, bordeaux, or dark blue -- with a fleur de lys accent available in ten different colors that include white, red, and turquoise. The boots take about 45 days until completion, and retails for 27,300 yen (approx. $260). To add to the buzz, orders will only be accepted at ten Takashimaya stores over a one-week period at each store until mid-September.
(Source: Tokyo Shimbun Shopper 7/12/05)
Back to top

SOCIETY: JAPANESE WOMEN SPLURGE ON ENTERTAINMENT

The general trend -- women go out, men stay in
Japanese baby boomer women spend more money on entertainment than men do, tend to seek entertainment outside the home, spend additional money to primp up for going out, and prefer the company of friends rather than their spouses. These are parts of a baby boomer profile, according to a recent Internet survey by Hakuhodo Inc., one of Japan's largest public relations and advertising firms. The survey revealed women spend upwards of 193,791 yen (approx. $1800) per year on entertainment, while men spend an average of 178,074 yen ($1,680). Men spend more money on music, books, and comics than women, while women spend more on theme parks and tickets to theater, art, and sports events. Women also spend on incidentals related to their outside entertainment, such as a new outfit for the special event and a nice meal before the show. Above all, up to 75 percent of women choose to go out to these events with their friends rather than with their husbands. But men and women spend roughly the same amount of money on movies. They also ranked movies, books and comics, and music as their favorite forms of entertainment, in the same order.
(Source: Travel Journal International 7/06/05)
Back to top

SOCIETY: JAPANESE WOMEN LIVE LONGEST

Japan hangs onto 20-year record for the world's longest life expectancy
The average life span for Japanese women reached 85.59 in 2004, up 0.26 year from the year before, according to data released by the nation's ministry of health. Japanese women have held the crown for longevity since 1985. They are followed by Hong Kong women, whose life expectancy was 84.3 years, followed by Switzerland and France. Japanese men ranked second longest-lived in the world, with the average length of life up 0.28 year to 78.64 years. Icelandic men ranked first with a life expectancy of 78.8 years, while Hong Kong men ranked third at 78.5 years. Life expectancy for Japanese women will increase to 89.22 and men's to 80.95 by 2050 according to a government estimate. Yet Japan has one of the world's lowest birthrates, raising questions about the future of the nation's public pension program, not to mention its economy and industry.
(Sources: Ministry of Health, Labour and Welfare; AFP 7/22/05)
Back to top

TECHNOLOGY: BANNER ADS ENTICE MORE WEB USERS

"Free gift" campaigns and movie promos among most popular ads
According to a periodic survey conducted by Web research site Internet.com and Japanese Web consulting agency Info Plant Co. Ltd., the number of users who have clicked on a banner ad "more than 10 times" in the last three months rose 1.3 percent since April to 17 percent; "more than 60 times" rose seven points to 13.7 percent. On the other hand, users who clicked on ads "less than 10 times" dropped 13.6 percent to 44.7 percent. In other words, more Internet users clicked more frequently on banner ads, and less Internet users clicked less frequently. The clicks are also leading to sales: the survey showed 34.7 percent of users either made a purchase or requested more information as a result of a banner ad, up 2.3 points. Products that resulted in the most click-to-sales were food products (33.3 percent), cosmetics (29.7 percent), and books, CDs, and games (20.7 percent).
(Source: japan.internet.com 7/25/05)
Back to top

THE JAPANESE TEA CEREMONY

The Japanese Tea Ceremony (cha-no-yu, chado, or sado) is a traditional ritual where powdered green tea (matcha) is ceremonially prepared by a skilled tea server and presented to a small group of guests in a serene environment. Guests of the tea ceremony must also have knowledge of the ritualistic gestures, understand when to use certain phrases, know the method of receiving the tea and sweet snacks, and have a general understanding of the entire process of tea ceremony. Cha-no-yu usually refers to a single ceremony or ritual, whereas sado or chado> refers to the doctrine of tea ceremony. Because the tea practitioner must be knowledgeable with the types of tea, kimono, calligraphy, flower arranging, and other traditional artistic disciplines, the study of the tea ceremony takes many years, and often lasts a lifetime. Japanese tea, originally imported from China in the 9th century, had become popular throughout Japan by the 16th century. Sen no Rikyu, a revered master of tea ceremony, introduced the idea of "Ichi-go Ichi-e", which literally means "one time, one meeting." It is believed that "each meeting should be treasured, for it can never be reproduced." His principles of harmony, respect, purity, and tranquility still are an essential part of the tea ceremony and of Japanese society today.

(Source: JapaneseLifestyle.com.au)
Back to top

Here is a great opportunity to increase your exposure to the Japanese market visiting Honolulu and the Neighbor Islands. The Globetrotter November Hawaii Mook is currently accepting advertising reservations for the upcoming issue.

Read primarily by Japanese visitors who enjoy shopping and dining on their vacation (women, ages 20 -- 40), the Globetrotter Mook contains information about various activities on Oahu, Maui, and the Big Island.

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

Back to top

Click here for our Media Request Form or contact us.

Space Deadlines:

NOW! Chikyu no Arukikata Guam Guidebook
NOW! Chikyu no Arukikata Hawaii Mook
NOW! Aloha Express November: Yearbook
9/1/05 Nouveau Tumon Sands Winter 2005
9/15/05 Chikyu no Arukikata Hawaii Guidebook II

Material Deadlines:

9/2/05 Chikyu no Arukikata Guam Guidebook
9/2/05 Chikyu no Arukikata Hawaii Mook
9/9/05 Aloha Express November: Yearbook
9/16/05 Nouveau Tumon Sands Winter 2005
9/30/05 Chikyu no Arukikata Hawaii Guidebook II

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.

Back to top

Upcoming Holidays in Japan

8/13-8/16 Obon Season
9/19 Keirou no Hi -- Respect for the Elderly Day
9/23 Shuubun no Hi-- Automnal Equinox Day
10/10 Taiiku no Hi -- Sports Day
11/23 Kinrou Kansha no Hi -- Labor Day

Click here to see entire 2005 year.

Back to top