Japan Market Update - December 2005 Edition

Hi ,

The holiday season is upon us and, we at PacRim, wish you well during this busy season. With regard to your marketing efforts to Japan, there is good news: Japanese consumer confidence is up, as the Nikkei stock market peaked at nearly 15,000 points recently.

In a show of strength and a sign of change in the tourism industry in Japan, JTB announced its purchase of R&C Tours, a prominent tour operator throughout the Pacific region and on the U.S. West Coast. JTB's surprise announcement has the biggest impact on Guam and Saipan, where R&C dominated market share in the tourism industry. The acquisition could result in JTB controlling more than 40% of the tour operator business from Japan to Micronesia. We can anticipate more consolidations and new partnerships in the tourism industry that could result in new media and on-line travel related companies emerging.

Other changes to watch for in the Japanese travel market involve the heightened role that technology is taking--as with GTO, a company developing dynamic packaging solutions (see the report below for details). Our report below also takes a look at trends in Japanese society--such as why Japanese women don't want more children--which can impact travel and purchasing decisions.

One of the quickest ways to connect with Japanese travelers during the holiday season is online marketing. We've listed some online marketing opportunities as well as important Japanese holidays below. If you did not get a 2006 Japanese and U.S. holiday calendar, or if you need additional copies, please call or e-mail me at derdman@pacrimmarketing.com.

Let us know how we can help you with your marketing efforts during the remainder of the year and into 2006. We have solutions for reaching the Japanese travel market.

*Japan Market News
-----Travel: Northwest starts Guam and Saipan routes
-----Travel: JTB to sell longer Hawaii stays
-----Travel: Passengers' shoes disinfected for bird flu
-----Business: Sumitomo unleashes Expedia-like travel site
-----Business: TBS dumps Rakuten for Amazon Japan
-----Technology: City at your fingertips
-----Technology: Buy albums on-the-go
-----Fashion: Grab bag season approaches
-----Society: Why Japanese women don't want more kids -- Part four in a series
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: NORTHWEST STARTS GUAM AND SAIPAN ROUTES

Airline and travel agencies push promotional efforts to revamp new routes
Northwest Airlines launched daily nonstop flights from Osaka to Guam and Saipan, as Japan Airlines wrapped up its final flight to Saipan after suspending the route for logistical and financial reasons. Both the Osaka-Saipan and Osaka-Guam flights began October 1. On November 1, NW also introduced daily nonstop flight between Guam and Nagoya. The new flights are welcome news to the Commonwealth of the Northern Marianas Islands, which was projected to lose up to $216.2 million in annual economic output following JAL's cancellation of the Saipan route. Meanwhile NW stepped up sales efforts, offering bonus miles and reasonably-priced cabin upgrades on their new flights. Travel agencies are increasing their Guam and Saipan tour products, dedicating entire brochures to flying with NW. Namely Kinki Nippon Tourist is promoting NW's World Business Class seats, targeting senior and honeymoon markets with upgraded Guam and Saipan travel.
(Sources: Travel Journal International 10/5/05; The Saipan Tribune 06/21/05, 6/22/05)
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TRAVEL: JTB TO SELL LONGER HAWAII STAYS

Hawaii hotel, suppliers, and JTB collaborate to offer affordable, lengthier trips
JTB World Vacations will try to break the mold of the short, whirlwind Hawaii vacation typically associated with Japanese travelers, offering four long-stay packages ranging from eight days to two weeks. The average length of stay among Japanese is currently 6.3 days, according to JTB. Each package highlights perks such as bigger rooms with city views, room credits, lounge and gym access, meal and spa discounts, and free rental car parking, with prices ranging from 155,000 (approx. $1,293) to 192,000 yen ($1,602). Free trolley bus rides and optional tour discounts are also anticipated to draw travelers who prefer longer stays. The concept targets a niche market, as JTB says 87.8 percent of all JTB customers who travel to Hawaii choose five- to seven-day packages. However JTB says it is committed to providing non-traditional choices for customers who prefer a more relaxed itinerary and a longer vacation. JTB plans to create similar packages next year for popular destinations such as Paris, Italy, and California.
(Source: J-Wing Travel 11/21/05)
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TRAVEL: PASSENGERS' SHOES DISINFECTED FOR BIRD FLU

Travelers from bird flu-affected countries requested to have shoe disinfected upon arrival in Japan
As the worldwide death toll for the avian flu topped 60, Japan is taking measures to prevent the potential threat from entering through its airports. Travelers arriving at Narita, Chubu, Kansai, and Fukuoka airports from China, Russia, Mongolia, Indonesia, Vietnam, Laos, Cambodia, Thailand, Kazakhstan, Turkey, and Romania, will be asked to have their shoe soles disinfected on antiseptic mats upon arrival. Although the request is nonbinding -- meaning passengers can refuse to participate -- Japan's Ministry of Agriculture, Forestry, and Fisheries hopes people who visited poultry farms in affected countries will voluntarily stop by quarantine areas set up at the airports.
(Source: Kyodo Japan 11/22/05)
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BUSINESS: SUMITOMO UNLEASHES EXPEDIA-LIKE TRAVEL SITE

Dynamic packaging modeled after "cut the middle man and save"
Global Travel Online (GTO) Inc. became Japan's first Internet agent to sell cut-rate air- and hotel-only packages without being associated with a travel agency outlet, eliminating operational costs and passing the savings onto customers. Pioneered by U.S. sites such as Travelocity, Expedia, and Orbitz, dynamic packaging allows customers to select a destination, length of stay, number of passengers, preferred airline and cabin class, displaying a selection of pre-priced packages. GTO, a wholly-owned subsidiary of Sumitomo Corp., currently carries an inventory of 178 participating hotels (minimum four-star) and most major airlines with services to nine destinations: Seoul, Guam, Saipan, Honolulu, Maui, Bali, Taipei, Bangkok, and Phuket. GTO projects 250 billion yen (approx. $2.5 billion) in annual sales by 2010, with hopes to reach 250,000 customers per year. It also plans to include cities in mainland China, Oceania, Australia, and North America.
(Sources: asahi.com 11/02/05; GTO Press Release 10/11/05)
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BUSINESS: TBS DUMPS RAKUTEN FOR AMAZON JAPAN

Broadcast company eyes new media opportunities, but prefers tie-ups to takeovers
One of Japan's major broadcasting companies, Tokyo Broadcasting System Inc., rejected Internet retail portal operator Rakuten Inc.'s merger proposal in favor of more horizontal business alliances with various Internet companies such as Amazon.co.jp, a subsidiary of Amazon.com Inc. But to avoid a riff with Rakuten -- its largest shareholder -- TBS is expected to collaborate with Rakuten on certain e-commerce ventures. Meanwhile TBS and Amazon's newest tie-up, a concept called "TV e-commerce" was rolled out for popular daytime TBS program, "Ohsama no Brunch" (King's Brunch), a live broadcast that features the latest trends in books, movies, music, dining, and city living. Currently a pilot program that may soon redefine TV shopping, the broadcast simultaneously appears on the TV screen with an Amazon page displaying the featured product, while viewers can purchase the item or navigate through details and reviews using the TV remote control. Additionally, viewers can accumulate "mileage points" based on how long they watch the program, which can then be redeemed for prizes. TBS, which also collaborated with advertising giant Dentsu Inc. on this venture, says the project is a win-win situation for all involved -- TBS builds revenue from fees paid by Amazon and ad agencies, Dentsu rakes in viewership, and Amazon collects on viewer purchases, all the while expanding brand awareness. TBS says it wants to expand into the digital age by building similar alliances with other Web service providers.
(Sources: Nikkei Business 11/1/05; Daily Yomiuri 11/20/05; TBS Japan)
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TECHNOLOGY: CITY AT YOUR FINGERTIPS

Internet portal submits merchant information and discounts to IC-enabled mobile phones
Japanese Internet portal Urahara.org, a site dedicated to the latest and trendiest in Tokyo's Harajuku neighborhood, teamed up with system application provider TechFirm Inc. in a project to help vitalize the hip district famous for its counter-culture flair. The project is supported by telecommunications giant NTT DoCoMo, and has equipped over 300 retail stores and restaurants with wireless kiosks that transmit the stores' Web site information onto IC (integrated circuit)-enabled mobile phones. By November, participating merchants will be able to send e-zines and discount information to registered mobile phone users. The "wallet phones," or "osaifu keitai," are now being released by KDDI, Vodafone, NTT DoCoMo, and Hitachi. They are expected to become one of the hottest trends (and marketing tools) for 2006, packed with camera, video, digital music player, web browser, navigation system, e-money -- and now -- ads and coupons.
(Sources: Nikkei.net 08/04/05)
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TECHNOLOGY: BUY ALBUMS ON-THE-GO

High stakes in Tower Records will give NTT DoCoMo customers an edge in buying music
With plans to give their customers the ease of buying their favorite CDs without paying upfront cash, Japan's largest mobile service provider, NTT DoCoMo Inc., will soon become the largest shareholder of Tower Records Japan Inc. The 10-billion-yen (approx. $83 million) alliance gives DoCoMo a 40 percent stake in Japan's largest music retailer. DoCoMo intends to use the business alliance to expand the number of subscribers using its cell phones equipped with electric money (e-money) and credit card functions through music stores across the nation run by Tower Records, sources said. The phones will enable DoCoMo subscribers to purchase CDs and receive discount vouchers at stores without using cash.
(Source: Japan Today 11/06/05)
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FASHION: GRAB BAG SEASON APPROACHES

Leading department store gears up for New Year's grab bag sales with unique themes and products
Department stores nationwide are gearing up for New Year's grab bag sales, creating fresh, new, eye-catching ideas to sell as many bags as possible. Ginza's Printemps department store was among the first to reveal their plans. In keeping with the continued popularity of Hollywood glam, Printemps plans to put together "celeb favorites" grab bags including clothes, jewelry, and cosmetics. Another theme follows one of this year's biggest style trends "mote-kei" (loosely translated as "popular with the boys"), a feminine, yet trendy look accentuated by designer accessories. Printemps also plans to create bags including duds for the "aisare-kei" (or "fit to be adored") style, a more refined look popular among Japanese OLs (Office Ladies) in their 20s and early 30s. Bags will retail for 10,000 - 20,000 yen (approx. $85-$185), with about three to five time the value of content in each bag.
(Source: Tokyo Shimbun Shopper)
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SOCIETY: WHY JAPANESE WOMEN DON'T WANT MORE KIDS -- PART FOUR IN A SERIES

In the fourth and final part of this topic series, we shift the focus onto the other sex, and how their desires to procreate -- or lack thereof -- affect the women's choice not to have children.
An online poll at popular Web site allabout.co.jp showed that nearly 30 percent of Japanese men surveyed had trepidations about having and raising children. A promising 77 percent of men have or had desires to have children, but once they were born, only 60 percent agreed that child-rearing is pleasurable. That means 40 percent don't enjoy raising their children. Furthermore, 15 percent said child-rearing is too stressful and prefer not to get involved.

What drives men to feel this anxiety toward raising children can be traced to two fundamental factors: the emotional and the financial. Japanese society is finally coming around to recognizing that many men need as much emotional support in welcoming and raising a baby as women. The term "paternity blues," referring to the helplessness, and sometimes depression, that men experience during or after a pregnancy, is also surfacing as a significant topic within the medical community. Experts point to the fact that most men are not informed enough of the joys -- and potential hardships -- of what lies ahead of a pregnancy, and that they are often catapulted into reality after the birth occurs. Men also face the challenges of feeling ignored by his wife as her attention shifts from him to the baby, of sacrificing what used to be his leisure time to caring for the baby, of losing sleep, and of feeling disconnected as husband and wife as a result of the new family dynamic.

Financial "sacrifice" is the other major challenge for men, especially if they have not done some math beforehand. AIU, a major insurance company in Japan, estimates the cost of raising a single child from birth to age 22 at 30 million yen (approx. $250,000). And that's for sending the child to public school. A private school education beginning from junior high school typically adds another 10 million yen ($83,000). The financial setback doubles, triples, or quadruples, as families consider raising multiple children. On the other hand, the same financial sacrifice can be said for families anywhere.

The Japanese government also tries to keep the public from getting discouraged by such figures, and in recent years have actively begun to soften the blow by offering generous incentives for having babies. For example, Japan's social security system awards a "childbirth allowance" of 300,000 yen ($2,500) for each birth. In addition, well-baby check-ups and most medical care for infants are free of charge. Parents can also claim 5,000 yen ($42) per child per month in child support (a third child is eligible to receive 10,000 yen) until the child turns nine years old. Working mothers are also eligible for at least 98 days of maternity leave, and those who don't qualify for maternity leave under their employers' policies, such as part-timers, self-employed workers, and contractors, will still be paid by the government.

All in all, the incentives do add up. But while money certainly does help, unless Japan raises the awareness of men's issues, it can't buy a man's sanity.
(Source: allabout.co.jp 08/05)
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What's Your Blood Type - Part Two in a Series

In Japan, it is widely believed that one's blood type is an indicator of one's personality. This belief is said to have begun in 1916 when some doctors in Japan made a medical report stating that people with Type A blood were generally mild-tempered and intellectual, while people with Type B blood were just the opposite.

To this day, one's blood type continues to be used as a personality-type indicator. The majority of the Japanese population becomes aware of their own blood type upon entering the educational system, where they are required to submit to a physical examination. The results of this simple evaluation live with them for the rest of their lives, showing up as questions on school and job applications in the future.

The most common blood type in Japan is type A and in America, it is Type O. However, many Japanese are amazed to learn that a large number of Americans do not know their own blood types. What's yours?

Type B
People with Type B blood are perceived to be curious about everything. This can be a positive attribute, however, they sometimes have too many interests or may change interests easily. On the flip side, they know which of their interests are really important. B Types tend to excel in things rather than just be average, but they tend to be so involved in their own world or become so carried away that they neglect other things. They have the image of being bright and cheerful, being full of energy and enthusiasm, but some people think that they are really quite different on the inside-- they tend to shy away from contact with others.

Not a Type B? See our next Japan Market Update for Type O.

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Did you know that Hawaii-Arukikata is viewed by 20,000 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.

Starting at less than $100 per month, 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.

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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Space Deadlines:

NOW! Aloha Express Quarterly Spring
NOW! Chikyu no Arukikata Big Island Resort
NOW! Chikyu no Arukikata Excellent Hawaii Mook
1/1 Chikyu no Arukikata Oahu Resort
1/1 Chikyu no Arukikata Saipan Guidebook
1/1 Chikyu no Arukikata Los Angeles Guidebook
1/1 Chikyu no Arukikata West Coast Guidebook

Material Deadlines:

NOW! Aloha Express Gokutabi Hawaii Freestyle Travel
NOW! Chikyu no Arukikata Long Stay Hawaii
NOW! Chikyu no Arukikata Orlando Resort
NOW! Aloha Express Quarterly Spring
1/1 Chikyu no Arukikata Excellent Hawaii Mook
2/1 Chikyu no Arukikata Oahu Resort
2/1 Chikyu no Arukikata Saipan Guidebook
2/1 Chikyu no Arukikata Los Angeles Guidebook
2/1 Chikyu no Arukikata West Coast Guidebook

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

12/23 Tennou Tanjoubi -- Emperor's Birthday
12/31 Omisoka -- New Year's Eve
1/1 Ganjitsu -- New Year's Day
1/2 Furikae Kyuujitsu -- New Year's Holiday Observed
1/2-1/10 New Year's Holidays (many businesses closed)
1/9 Seijin no Hi -- Coming of Age Day
2/11 Kenkoku Kinenbi -- National Foundation Day

Click here to see all Japanese holidays for 2006.
Click here to see all US holidays for 2006.

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