Japan Market Update - March 2006 Edition

Hi ,

In Japan, consumer confidence is helping companies regain profits after years of drought. The key to further economic growth is for corporations to continue restructuring efforts and the use of technology and to avoid complacency now that certain financial goals have been met. In a consumer environment that is evolving and becoming more sophisticated, there is a greater need than ever for Japanese companies to monitor consumer trends and offer services and products competitive with global alternatives.

Likewise, U.S. companies targeting Japanese consumers need to research and understand their market. Consistent feedback, surveys, and in-depth research are critical to benchmarking changes and tracking consumer needs and wants. For example, research shows that guidebooks are the top resource for Japanese tourists visiting Guam. With this information, marketers can target their audience accordingly by placing ads in the most popular destination guidebooks. See more in the Japan Market Update below.

This month's Japan Market Update also features the latest consumer trends in Japan and highlights Banana Republic and its expansion into Kobe and suburban Tokyo. In addition, it focuses on new retail and condominium developments in Tokyo. Some key strategies and efforts being used in the Japanese market by Hawaii Tourism Japan this year are also noted.

PacRim Marketing Group's JpResearch - an on-line tool for tapping into the Japanese market-can provide you with greater feedback from existing customers and help you learn about your potential customers. PacRim can assist you with your market research needs with both new and traditional research methods. If we can be of assistance, please contact me at 949-4592, ext. 833.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: HTJ unveils Japan ad campaign
-----Travel: Guam guidebooks top resources for tourists
-----Travel: 2005 Marathon pumped $100 million
-----Business: Japan thirsty for Big Island seawater
-----Business: Tokyo unveils new urban landmark
-----Business: Starbucks Japan finally turns a profit after four years
-----Fashion: Banana Republic expands in Japan
-----Fashion: Detox and anti-aging boom in Japan
-----Society: Koizumi pauses on "empress" issue
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: HTJ UNVEILS JAPAN AD CAMPAIGN

"Discover Aloha" encourages new experiences, longer stays, and higher spending
With 1.52 million Japanese arrivals to Hawaii, 2005 marked the second consecutive year of growth for Hawaii tourism despite tight airlift capacity and a room crunch on Oahu. Hawaii Tourism Japan, run by Japanese ad giant Dentsu Corp., hopes to repeat last year's success with its $7.8 million "Discover Aloha" campaign for 2006, focusing on marketing Hawaii as a culturally rich destination with plenty of unexplored, exciting discoveries for even the well-heeled traveler. The campaign hopes to appeal to repeat travelers who want to experience Hawaii beyond Waikiki and Oahu. HTJ says one of this year's challenges will be to market Hawaii as a destination of high value, rather than of a low-budget vacation. The latest expenditure study for December 2005 indicates a trend towards "quality over quantity," as Japanese visitors spent 4.9 percent more per day ($259.70) than in the year prior, and stayed a slightly shorter period of 5.82 days, down 2.6 percent from the same month in 2004. HTJ will also focus on niche markets that saw double-digit increases in 2005, such as the wedding and honeymoon groups, the meetings, conventions, and incentives (MCI) sector, as well as an expanding band of hula enthusiasts. Baby Boomers, set to retire en masse (projected at 6 to 8 million between 2007 and 2011), is another key market, as a majority of Boomers are expected to travel overseas to celebrate their retirement.
(Sources: Honolulu Star Bulletin 2/8/06; Hawaii Tourism Authority; HTJ Newsletter 2/17/06; Pacific Business News 2/08/06)
Back to top

TRAVEL: GUAM GUIDEBOOKS TOP RESOURCES FOR TOURISTS

Tourists rely on print and Internet media pre-arrival, and on local staff post-arrival
A January survey conducted for the Guam Visitors Bureau showed that a majority of Japanese tourists relied on guidebooks (64 percent) as the top pre-arrival and planning resource, followed by brochures (46 percent), the Internet (43 percent), and knowledge from a prior trip (36 percent). Once in Guam, a majority of Japanese tourists (63 percent) turned to local tour staff as the primary source of information. Hotel employees ranked second at 27 percent, and signage came in at 15 percent. When asked to recall marketing material, most Japanese visitors (79 percent) were not able to spontaneously remember Guam-related promotions in the last three months, but with some visual help (being shown an image), 55 percent were able to recall an ad that showed Ritidian Point. Japanese visitors were most likely to recall the image from a magazine display (31 percent), followed by travel agency signage or brochures (28 percent), and the Internet (17 percent).
(Source: Guam Visitors Bureau January 2006)
Back to top

TRAVEL: 2005 MARATHON PUMPED $100 MILLION

First island event to hit the mark, third consecutive year of growth in economic impact
Out-of-state runners, walkers, and families of those who participated in the 2005 Honolulu Marathon and the Race Day Walk contributed over $100 million to the Hawaii economy and generated $4.4 million in taxes -- not including hotel room tax -- according to an annual study by Hawaii Pacific University. Honolulu now ranks second in economic impact from a national marathon behind New York City, which experienced a $150 million boost during its 2004 marathon. The Honolulu event drew 26,426 participants from outside Hawaii, 82 percent of them from Japan, indicating a 4.2 percent increase from 2004. Expenditure, however, jumped 10 percent from the $90.7 million reported last year. The study also showed that Japanese participants spent an average of $240 per day, and 90 percent said they would return to Hawaii for purposes other than the marathon.
(Sources: Associated Press 2/16/06; honolulumarathon.org)
Back to top

BUSINESS: JAPAN THIRSTY FOR BIG ISLAND SEAWATER

Exotic water said to cleanse the body and increase overall health
Deep seawater pumped from the Kona Coast is driving a booming industry on the Big Island, where sales reached nearly $17 million dollars last year, making it one of Hawaii's hottest exports. After the water is pumped to the ocean surface via a pipeline that dips 3,000 feet under the surface, it is desalinated, bottled, certified "authentic" by Hawaii's National Energy Laboratory, and exported mainly to Japan, where it is sold for roughly $6 per bottle (1.5 liters, or about 50 fl ozs.). Branded in Japan as "Mahalo Super Deep Seawater," the water is supposedly gaining popularity among the nation's top athletes and celebrities. According to www.water-factory.com, a Japanese distributor of specialized water, the particular mineral balance of Kona's deep seawater makes it easier for the body to absorb than regular water, thus enhancing its cleansing effect. Continued consumption is touted to increase circulation and maintain a healthy digestive system.
(Sources: Associated Press 2/16/06; www.water-factory.com)
Back to top

BUSINESS: TOKYO UNVEILS NEW URBAN LANDMARK

Omotesando Hills opens in fashionable Harajuku neighborhood
A 34,000-square-meter (8.4 acres) commercial-residential complex opened on February 11 as Tokyo's newest landmark in the ritzy Omotesando district, famous for its lustrous, tree-lined boulevard and luxury boutiques, as much as it is known for the bohemian, counter-culture atmosphere of Harajuku. Designed by world-renowned architect Tadao Ando and developed by property tycoon Minoru Mori, Omotesando Hills features six floors above ground and another six below. Similar to its urban sibling, Roppongi Hills, the seismically correct building contains 38 residences and 93 retail outlets including retail shops, top-fashion boutiques, and gourmet restaurants. The Mori project was controversial from the get-go, beginning with Ando's contemporary design and public outcry against the razing of the historical, culturally iconic Dojunkai Apartments to make space for the new development. Mori, who owns 127 commercial and residential buildings in Japan, hopes to pioneer more urban redevelopment projects -- namely five more Roppongi Hills-style developments in Tokyo -- over the next 15 years.
(Sources: www.yokogawa.com; www.crisscross.com 2/13/06)
Back to top

BUSINESS: STARBUCKS JAPAN FINALLY TURNS A PROFIT AFTER FOUR YEARS

Seasonal products and economic recovery boosted turnaround
More customers are ordering food and drink items together instead of having just a cup of coffee, Starbuck Japan said, after reporting a 30 percent rise in nine-month net profit after year-on-year falls for four years. Though the Starbucks brand was highly reputed and recognized in Japan, its popularity had waned over the years in favor of smaller, national brands that had waged a price war against the Seattle coffee giant. But thanks to Japan's recovering economy and the brisk sales of high-margin products such as Christmas gifts and music CDs, as well as seasonal drinks and food, Starbucks is forecasting at least a 14 percent rise in full-year earnings for the coming fiscal year. Starbucks Japan operated 587 directly-owned stores as of December 2005.
(Source: Reuters Japan 2/7/06; www.starbucks.co.jp)
Back to top

FASHION: BANANA REPUBLIC EXPANDS IN JAPAN

Two more stores to open this month in Tokyo and Kobe
Just six months after launching three Banana Republic stores in Tokyo and one in Yokohama, parent company Gap Inc. announced it will open two additional stores in the prominent Tamagawa Takashimaya Shopping Center in Tokyo, and at swanky department store The Forty Fifth in Kobe. Japan was the brand's first market outside of North America, and continues to be a significant long-term growth market for Banana Republic, according to Gap President and CEO Paul Pressler.
(Source: www.ddimagazine.com 2/7/06; www.fox21.com 11/18/05)
Back to top

SPORTS: JAPAN TAKES OLYMPIC GOLD IN FIGURE SKATING

Shizuka Arakawa "surprised" with unexpected win
The final hour of women's figure skating at the Olympic Games in Turin took a dramatic turn of events as gold-medal favorite Sasha Cohen and reigning skating champion, Russia's Irina Slutskaya, both stumbled during their long programs. Arakawa performed a near-perfect routine to boot, resulting in an untouchable score that earned her the first Japanese Olympic gold at Turin, and more importantly, the first-ever Olympic gold won by an Asian woman. The 24-year-old Waseda University graduate, who represents the Prince Hotels skating club in Japan, hinted at retirement after the Olympics. Back home, however, news of her victory is already igniting an "Arakawa boom," with Japanese bloggers flooding the Internet with commentary on her performance. Japanese media is also taking notice, a precursor to a highly-anticipated endorsement career for the statuesque athlete. Sony Japan has already revamped marketing of Arakawa's previously-released DVD documentary, "Moment."
(Sources: NBC TV 2/23/06; Nikkei Net 2/23/06; Amazon Japan)
Back to top

FASHION: DETOX AND ANTI-AGING BOOM IN JAPAN

Product sales soar as" turning back the clock" prompts new genetic research
Skin whiteners, hair tonics, and skin rejuvenators have long been top-selling cosmetics products in Japan. But the terms "anti-aging" and "detox," made popular by American science, are stirring not only the Japanese cosmetics industry, but are becoming the catch-all phrase for fitness centers, hot springs, spas, cosmetic surgeons, and even for food and restaurants. In the cosmetics market alone, anti-aging product sales grew 154 percent in four years, according to cosmetics maker Shiseido Co. Shiseido's top-selling "Revital Retino Science Lotion AA," (8,000 yen for 125 ml, approx. $68 for 4.2 ozs.) which contains micro-capsules of skin-renewing Vitamin A, boasts dramatic results backed by three years of research and hundreds of experiments. On the medical front, Professor Akira Kubo of Tokai University is working to clarify the framework of aging in Japan, collecting data on some 1,000 middle-aged men and women. By surveying his subjects' hormonal balance, immunity, and blood and artery conditions, among other factors, he hopes to join forces with gene research companies to nail specific genes that advance aging. Meanwhile "detox" (called "kaidoku" or "doku-dashi" in Japan) are headlining the Japanese media, especially in women's magazines. Detox diets, juices, teas, herbs, and specialty spas are gaining popularity, promoting the health and beauty benefits of "extracting" bodily toxins rather than "consuming" certain food and supplements or "applying" topical treatments.
(Sources: Kyodo News 2/20/06; Yomiuri Online 9/07/05)
Back to top

SOCIETY: KOIZUMI PAUSES ON "EMPRESS" ISSUE

Government, imperial family, and nation hold their breaths for possible birth of male heir
A bill that would have allowed a woman to succeed Japan's imperial throne may be put on hold following news of Princess Kiko's unexpected pregnancy. Princess Kiko is the wife of Emperor Akihito's second son, Prince Akishino. The Imperial House Law, which currently forbids female heirs to the chrysanthemum throne, has been at stake since no males have been born to the imperial family in over 40 years; nine of the most recent royal children have been girls. Of them is four-year-old Princess Aiko, the only child of Crown Prince Naruhito and considered, controversially, the second-in-line for the throne after her father. The idea of a female heir has been favored by the general public, but argued as treason by hard-core nationalists. Japan has in fact had eight female monarchs during its 2000-year imperial history, but all reigned in emergency circumstances. The debate will undoubtedly resurface if Princess Kiko gives birth to another girl, but Prime Minister Koizumi commented he is now hesitant to proceed with the bill.
(Sources: Kyodo News 2/8/06; www.asahi.com 2/7/06; Reuters Japan 2/8/06)
Back to top

CHERRY BLOSSOMS



The cherry blossom, sakura, is Japan's unofficial national flower. The arrival of cherry blossom season has been celebrated for centuries and plays a very important role in Japanese culture.

There are dozens of different varieties of the cherry blossom tree in Japan. Most of them bloom only for a couple days in spring. The Japanese celebrate this time of year with hanami parties under the blooming trees. Hanami literally means, "flower viewing", however, the term is generally used only used to refer to cherry blossom viewing. It is a time to enjoy the beauty of the flowers and appreciate what nature has provided.

How to throw a hanami party

Hanami can be just a stroll in the park, but it traditionally involves a picnic party under the blooming cherry trees. Hanami parties are generally held in public and private gardens and parks across the country. The most popular hanami spots can get very crowded and are often reserved long before the party is held.

The typical practice is to spread one's picnic sheet early in the morning and mark it with your group's name and your party starting time or to have somebody positioned there during the whole day until the rest of the group arrives after work.

Do you know which PacRim staff proposed to his spouse under the cherry blossom tree during hanami on April Fool's Day?
Back to top

Now with over one million Japanese visitors to Guam annually, here is a great opportunity to increase your exposure to the Japanese market visiting Guam. Chikyu No Arukikata (Globetrotter) Guam Mook is currently accepting advertising reservations for the upcoming issue that will hit the stands in July.

Read primarily by Japanese visitors who enjoy shopping and dining on their vacation (woman ages 20 - 40), the Guam Mook contains information on Guam including activities and accommodations. The Guam 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 Oahu Resort
NOW! Chikyu no Arukikata Saipan Guidebook
NOW! Chikyu no Arukikata Los Angeles Guidebook
NOW! Chikyu no Arukikata West Coast Guidebook
NOW! Aloha Express Quarterly April 2006
NOW! Chikyu no Arukikata Hawaii Guidebook I
NOW! Chikyu no Arukikata New York Guidebook
NOW! Chikyu no Arukikata Honolulu Mook
NOW! Chikyu no Arukikata America Guidebook
4/1 Chikyu no Arukikata Guam Mook
4/20 JAL Hawaii Guide
5/1 Aloha Express Quarterly July 2006

Material Deadlines:

NOW! Chikyu no Arukikata Oahu Resort
NOW! Chikyu no Arukikata Saipan Guidebook
NOW! Chikyu no Arukikata Los Angeles Guidebook
NOW! Chikyu no Arukikata West Coast Guidebook
NOW! Aloha Express Quarterly April 2006
NOW! Chikyu no Arukikata Hawaii Guidebook I
NOW! Chikyu no Arukikata New York Guidebook
4/1 Chikyu no Arukikata Honolulu Mook
4/1 Chikyu no Arukikata America 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.

Back to top

Upcoming Holidays in Japan

03/21 Shunbun no Hi -- Vernal Equinox Day
04/29 Midori no Hi -- Green Day
05/03 Kenpo Kinenbi -- Constitution Memorial Day
05/04 Kokumin no Kyujitsu -- Citizens' Holiday
05/05 Kodomo no Hi -- Children's Day
05/03 Golden Week Begins (ends 05/07)

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

Back to top