Japan Market Update - April 2006 Edition

Hi Ernest,

I just returned from a business trip to Japan, where it is apparent that the Japanese economy is booming and a more "connected," well-traveled, and sophisticated Japanese consumer is emerging. An air of confidence in Japan is exemplified by new development and a new way of thinking about the "next life adventure" on the part of baby boomers.

Cranes rise over construction sites throughout Tokyo and its suburbs as Japanese developers raise the bar to meet higher living standards expected by Japanese consumers. New towns and apartments are springing up along the route of the new Tsukuba Express train--creating more investment and living opportunities for Japanese and foreigners. And the just-built residential complex called Omotesando Hills epitomizes the latest housing trend--"the urban lifestyle complex"--with 38 apartments and 90 stores from around the world like Dunhill, Dolce & Gabanna, and Quicksilver. Its trendy restaurants offer a variety of beverages and meals, from wines by the glass (more than 80 choices) and sake shots at a stand-up bar to "Ramen Concept" meals costing the equivalent of US$55.00. And I never thought Ramen would cost more than US$8.00!

With Golden Week nearly upon us and summer less than two months away, it is time to activate any last minute efforts to attract the Japanese traveler and time to start planning programs for 2007. Keeping abreast of trends in Japan helps identify where business opportunities are. Let us know if we can help you tap the potential of a changing Japan.

Enjoy this month's Japan Market Update news below and be sure to contact us at PacRim Marketing if you have any comments or questions.

Enjoy your holiday weekend.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: JCB launches widespread Hawaii promotion
-----Travel: Two-thirds of Guam visitors buy guidebooks
-----Business: Japan's household assets rise to 1.5 quadrillion yen
-----Business: Optimism fuels consolidations and M&A's
-----Business: Spreading the wealth of multi-grain health
-----Technology: Poll: Internet beats newspapers for news
-----Fashion: Bulgari plans ten-story Tokyo flagship
-----Beauty: Finding the perfect foundation
-----Society: iPod, shredder, and agar-agar make "Best of" list
-----Society: Men and women not-so-divided on wants and hopes of 2006
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: JCB LAUNCHES WIDESPREAD HAWAII PROMOTION

Discover Aloha Hawaii Project pitches prizes, shopping, free rides, and charity
JCB International, the only Asia-based international payment brand, launched a year-long Japanese visitor promotion expected to increase cardmember spending by $45 million over the previous year. Japanese visitors spent about $2.1 billion in Hawaii last year. Perks offered to JCB's 56 million members include: entry for a Hawaii trip sweepstakes; JCB Shopping & Dining Passport listing 124 stores, restaurants, and merchants participating in special cardmember discounts and premiums; free rides on select Waikiki Trolley routes; and a donation to a Hawaii environmental protection organization. The campaign runs from April 1, 2006, until March 31, 2007.
(Sources: Honolulu Advertiser 3/14/06; Yahoo Finance 3/14/06)
Back to top

TRAVEL: TWO-THIRDS OF GUAM VISITORS BUY GUIDEBOOKS

Survey shows most shopping and dining choices based on media purchased in Japan
An annual Japanese media study for the Guam market conducted by Qmark Research & Polling showed that in 2005, pre-arrival media such as guidebooks and magazines (66 percent) topped the list of resources Japanese travelers use to help make shopping and dining decisions in Guam. Travel agents ranked a distant second at 26 percent, while the Internet and other resources (i.e. free magazines in Guam and in-flight magazines) each garnered less than 10 percent of the overall sample. Japanese visitors acquired an average of 2.7 publications, including pamphlets on Guam shopping, dining, attractions, and other entertainment, nearly twice as many from the prior year. DFS Galleria Magazine had the highest readership (64 percent) of the publications tested, followed by Micronesia Mall (27 percent), Guam Food Today, Guam Shinbun, and Wave (all three 13 percent), suggesting that Guam-based media circulation is high among Japanese visitors. But publications with the highest satisfaction scores in terms of helping to make shopping decisions were first-ranked Chikyu no Arukikata Guidebook, followed by Guam Island Guide Map, and Chikyu no Arukikata Mook. For dining and entertainment decisions, visitors were most satisfied with Guam Food Today, followed by Chikyu no Arukikata Guidebook and Chikyu no Arukikata Mook.
(Source: QMark Research & Polling for Guam Visitors Bureau)
Back to top

BUSINESS: JAPAN'S HOUSEHOLD ASSETS RISE TO 1.5 QUADRILLION YEN

Capital has shifted from old-school cash and savings to stocks, funds, and securities
After a four-year plateau in household assets due largely to a sluggish stock market and high unemployment, Japan's private coffers are brimming again, according to recent figures released by the Bank of Japan. The upward trend began in 2003, when record-low interest rates spurred households to move funds to stocks and other investments. Private shareholding value jumped 48 percent in 2005, boosted by a sharp climb in stock prices when the Nikkei Stock Average soared 40 percent. Investment trust funds held by Japanese households surged 40 percent to a record 51 trillion yen (approx. $435 billion), pushing up the total value of risk assets, including stocks, investment trusts and foreign securities, to 180 trillion yen ($1.5 trillion), or 12 percent of overall household financial assets.
(Sources: Nikkei Net 03/27/06; BOJ 03/25/06)
Back to top

BUSINESS: OPTIMISM FUELS CONSOLIDATION AND M&A'S

Buy-outs lead Japan's business trends as companies stay bullish on nation's robust economy
The value of mergers and acquisitions involving Japanese companies may have dropped 53 percent compared to 2005, but the number of deal announcements - 667 since January, compared to 695 during the same period last year - remain at historically high levels. Toshiba Corp. recently agreed to acquire Westinghouse Electric Corp., and Softbank Corp. proposed a $15.1 billion leveraged buyout - the second-biggest LBO globally - of the Japanese unit of the U.K. mobile giant Vodafone Group Plc., both examples of cross-border acquisitions by Japanese companies that have soared 290 percent on year to $9.3 billion. Locally, retail giants Aeon Co. (no.1 in Asia) and Seven & I Holdings Co. (the holding company of U.S.'s 7-Eleven Inc.) are expected to acquire smaller players; Aeon announced a $585 million stake in mall developer Diamond City Co., and Seven & I recently boosted its profit by 28 percent largely through its acquisition of Millenium, a major department store group. Analysts admit retailers' positive outlooks may not meet the market's inflated expectations, but meanwhile the trend to "team up and survive" by big and small retailers alike, are expected to continue throughout the year.
(Sources: Reuters Japan 4/4/06; marketwatch.com 4/3/06)
Back to top

BUSINESS: SPREADING THE WEALTH OF MULTI-GRAIN HEALTH

Healthy grains are in, as zakkoku boom inspires experts and a new "wafu" style deli
Hearty "zakkoku" multi-grains long known for their healthfulness, such as millet, quinoa, oats, barley, and black rice, aren't just driving Japan's health boom. These complex carbohydrates rich in vitamins, minerals, and iron, offer such a wide variety of health benefits, that they inspired the creation of the Japan Millet Association, which in turn are training multi-grain experts, or "sommeliers," whose role will not only be to dispel the complexity behind Japan's 15 most commonly consumed grains, but to help consumers incorporate them into their daily diet. Once seen only in health food stores, zakkoku foods such as pre-blended rice and multi-grain snacks are now easily available, even at convenience stores. At Printemps Ginza department store, the Japanese-style "Wa Deli" opened amid much buzz, featuring 10 different grains and apothecary-like zakkoku experts who can customize a specific blend of grains based on the consumer's preferred health benefits (735 yen/100g; approx. $6). The deli also targets the lunch crowd in the busy downtown district, offering healthful bento boxes prepared with brown or multi-grain rice (seven types, from 577 yen; $5).
(Sources: Tokyo Shimbun Shopper 3/03/06; www.allabout.co.jp 12/27/04)
Back to top

TECHNOLOGY: POLL: INTERNET BEATS NEWSPAPERS FOR NEWS

Yahoo! News rules as news source leader for Japanese users
A survey of Internet users ranging in age from 18 to 70 showed that the television was the most frequently used news source (44 percent), followed by the Internet (28.7 percent) and newspapers (20.3 percent). Of those who chose the Internet as the primary source of news, 93 percent used Yahoo! News, indicating Yahoo! Japan's growth from being one of the nation's most popular search engines, to becoming Japan's leading news portal. Only 4 percent of those polled said they used television and the Internet because they are free; rather, the vast majority of users reasoned "ease of use" as the key to choosing a news source, with 38 percent indicating their source "fits their lifestyle;" "easy to read, view, listen to" and "abundance of information" were equally important at 20 percent.
(Source: japan.internet.com 3/2/06)
Back to top

FASHION: BVLGARI PLANS TEN-STORY TOKYO FLAGSHIP

Ginza intersection to become home to world's top-three jewelry brands
Bvlgari announced plans to create its biggest store ever, a 10-story-tower, in a popular Ginza area known for similar boutique towers opened by fashion houses Chanel and Dior in 2004. More notable is that Bvlgari will literally be a stone's throw (two doors down) from Tiffany's, and directly across the street from Cartier. Scheduled to open at the end of next year, the building will also serve as headquarters for Bvlgari Japan. Like the Chanel building, the Bvlgari tower will include a rooftop garden, VIP rooms, a restaurant and a bar, in addition to 10,247 square feet of retail space. The glass fa�ade of the building will simulate a jewelry display case.
(Source: Yomiuri Shimbun 3/11/06; www.luxist.com 3/16/06)
Back to top

BEAUTY: FINDING THE PERFECT FOUNDATION

"Base makeup" is the most critical step in a makeup routine, magazine readers say
Base makeup, often called "shitaji" in Japanese (literally meaning "base") is big business, as anyone would guess by the sheer volume of foundation ads - TV or magazine - showcasing the creamy, poreless complexion of Japan's favorite celebrities, as if the advertised product would actually attain such perfection. But a reader poll conducted by popular women's lifestyle magazine, "Orange Page" showed that Japanese women are indeed serious about creating even an illusion of flawless skin. While liquid foundations paired with powder (loose or pressed) are the norm among American women, Japanese women have long preferred the "pancake" style makeup (called "powder foundation"), applied with either a wet or dry sponge. The prep work before the foundation is applied, however, is often a meticulous routine involving a cleanser, toner, sunscreen, and pore minimizer. The poll results below, however, refer to the popular powder foundation:

When choosing makeup, of which item are you most selective?
78.6% Foundation
11.2% Lip makeup
8.3% Eye liners, shadow
1.2% Eyebrow makeup


Which part of the makeup routine "makes or breaks" a youthful appearance?
62.6% Base makeup
14.7% Eyes
14.7% Eyebrows
5.1% Lips


Are you satisfied with your current foundation?
50.6% Yes
49.4% No


What don't you like about your foundation?
1. Doesn't provide a natural enough "sheen"
2. Not enough coverage
3. Melts too easily


What "imperfection" do you wish to cover most with your foundation? (In order of relevance):
1. Pores
2. Freckles/age spots
3. Dull skin tone


What skin benefit do you want in your foundation?
1. Moisturizing
2. Whitening
3. Oil control
4. Lifting


What's the "finish" you look for in a foundation?
1. Translucence
2. Natural glow
3. "fits" to the skin
4. Overall coverage
5. Hides small wrinkles

(Source: Orange Page Petit 2006 Spring Beauty Book)
Back to top

SOCIETY: IPOD, SHREDDER, AND AGAR-AGAR MAKE "BEST OF" LIST

Trend-watcher magazine picks up obvious and not-so-obvious hits of 2005
Last year's media buzzed with the blockbuster sales of Apple's iPod Nano, the historic six-month run at the Aichi World Expo, and the explosion of blogs among Japan's Internet generation, all of which were ranked by Nikkei's monthly "Trendy" magazine as the top three runaway hits of the year. Other topics covered by Japan Market Update, such as the steam-operated oven (7), "Third Beer" (11), Coenzyme Q10 (22), and cell phone wallets (24) also made the top 30 list. Some of Trendy's picks reflected Japan's social climate, namely a survival manual (9) featuring a Tokyo road map to help people find their way home by foot in case of a major earthquake or other emergency. And with identity theft crimes on a rapid rise in Japan, the in-home paper shredder (11) became a must-have household appliance, quadrupling in sales compared to the previous year. For the first time in history, agar (10), called "kanten," disappeared from store shelves, making it the biggest surprise hit of 2005. A seaweed extract often used in Japanese desserts and delicacies for its gelatinous texture, agar is harvested and distributed once a year, after which it typically takes 12 months to sell. However in 2005, a media buzz surrounding agar's potential fat-burning properties caused the otherwise unassuming pantry staple to sell out within a month. While trends come and go, two of 2005's hit products looked to have some staying power: a PHS comeback spearheaded by telecom company WillCom Inc. (5), which introduced an economical minutes-sharing calling plan, plus free mobile-to-mobile calls and emails; in other cell phone trends, "Chaku-uta," (6) or ring-tune downloads continued to move the mobile market. The steady shift in popularity from downloadable ring-tones, to ring "melodies," to full-length songs, suggests that cell phone downloads will be popular for a while.
(Source: Nikkei.net Trendy Hit Products Archive 2005)
Back to top

SOCIETY: MEN AND WOMEN NOT-SO-DIVIDED ON WANTS AND HOPES OF 2006

Dentsu survey shows women most optimistic about leisure activities, men on money matters
In a recent survey conducted by Japanese advertising giant Dentsu Corp., travel and money topped the list of what men and women in their 20s to 50s consider their hopes, desires, woes, and concerns for 2006. Twice as many women (25.5 percent) ranked travel as their most desired activity, while twice as many men (23 percent) prioritized money and stocks, supporting the generalized tendencies of money-minded men and recreation-driven women. However, the survey showed a rising interest in electronics and technology among women, chipping away at the largely male-centered market structure. The audio visual appliances and electronics category - another genre typically geared towards men - ranked second for both sexes. Another popular male interest - telecommunications and digital appliances (i.e. computers and mobile phones) - ranked third among women, even higher than among men. As for their biggest concern, both men and women of all age groups chose "maintaining their health," followed by work and career in a distant second for both sexes.
(Source: Dentsu Trend Box Report 2/06)
Back to top

MANEKI NEKO



What is a "Maneki Neko"? A Maneki Neko is a cat figurine. However, it is not just an ordinary cat figurine. The one which sits and has its front paw raised as if it is calling for someone is the only cat figurine that can be called a Maneki Neko. The Japanese usually display the Maneki Neko in the house or in their place of business. It is believed that displaying the Maneki Neko invites people into your home or brings luck and good fortune to your business. It works as a kind of lucky charm. Although Japan has many types of lucky charms, the Maneki Neko is the most popular.

There are two kinds of Maneki Neko. One raises its left paw and the other raises its right. The legend states that the one with its left paw raised invites customers or people, while the one with its right paw raised invites money or good fortune. The higher the paw, the more the Maneki Neko invites the customers or fortune. The origin of this legend is unknown.

Maneki Neko come in many different colors. The most popular one is the tri-color cat, which is considered a lucky charm world-wide. The male tri-colored version has been especially revered as a lucky cat by sailors all over the world. The second most popular color is white, signifying purity. Other colors available are black, to ward off evil, gold, signifying wealth and pink, to attract love.


Back to top

Chikyu no Arukikata Maui Resort

With over 100,000 Japanese visiting Maui annually, are you looking for a way to reach this market?

There is only one pre-arrival publication that targets Japanese visitors traveling to Maui, The Globetrotter Maui Resort Guide. More than a traditional "guidebook," the Globetrotter Maui Resort Guide provides the reader with in-depth information on the uniqueness of Maui in a highly visual format. Japanese travelers planning excursions outside the traditional realm, often use it to supplement the Globetrotter Hawaii Guidebook. For less than $500 a month you could be reaching 50,000 Japanese visitor's traveling to Maui.

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 Honolulu Mook
NOW! Chikyu no Arukikata America Guidebook
NOW! Chikyu no Arukikata Guam Mook
NOW! JAL Hawaii Guide
NOW! Aloha Express Quarterly July 2006
6/1 Chikyu no Arukikata Guam with Kids
7/1 Aloha Express September 2006
7/1 Chikyu no Arukikata Romance Hawaii Mook
7/1 Chikyu no Arukikata Maui Resort

Material Deadlines:

NOW! Chikyu no Arukikata Honolulu Mook
NOW! Chikyu no Arukikata America Guidebook
NOW! Chikyu no Arukikata Guam Mook
NOW! JAL Hawaii Guide
NOW! Aloha Express Quarterly July 2006
7/1 Chikyu no Arukikata Guam with Kids
7/10 Aloha Express September 2006
7/1 Chikyu no Arukikata Romance Hawaii Mook
7/1 Chikyu no Arukikata Maui Resort

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

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)
07/17 Umi no Hi-- Marine Day

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

Back to top