Japan Market Update - JUNE 2006 Edition

Hi ,

This month's Japan Market Update highlights data on airlines, Golden Week, and multi-generational travel trends. You'll also find fashion and beauty updates, such as what the latest "hot sellers" are at Japan's department stores and what Japanese women of different age groups want from their traditional Japanese bath.

PacRim Marketing Group, Inc. is pleased to announce that our staff which manages our Japanese language commercial destination web site, Hawaii-Arukikata.com, just completed its 1000th in-person interview with Japanese visitors to Hawaii. Each week we take requests on-line for a 30 minute interview. Appointments are set, and the guests meet our reporter at a designated location, either at our Ohana Waikiki Beachcomber Hotel travel desk, or in front of the police station in Waikiki. There, we conduct interviews and ask about hotel stays, restaurants, and attractions visited. Interviewees are asked to give a candid report and to rank their experiences. They also report on how much they spent in Hawaii, or plan to spend, and what they will buy. Plus, they provide their complete itinerary.

All of this data goes on the Hawaii-Arukikata.com web site and is the most accessed information on our site, according to RTMetrics. The site is popular with Japanese travelers to Hawaii who want to see what other visitors experienced and get any tips they have. Each interview is linked to the hotel the guest stayed at, a restaurant, attraction, bank, etc. visited to help web users learn more about individual companies.

The guest's photo is featured on the site, accessed by over 15,000 unique users a day. This is a popular feature Japanese tourists share with family and friends after they return home from Hawaii.

The data collected from the interviews is one of the ways PacRim Marketing conducts research to track trends and changes in the market; much of what we report here comes from ideas on our site.

If you are interested in learning more about prospective visitors to Hawaii or another destination, our team can custom design an on-line market research program for you attached to your web site or on our portal site. We also can help you develop a stronger Japanese Internet presence. Contact us to learn more.

Enjoy the start of the summer season.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

TABLE OF CONTENTS

*Japan Market News
-----Travel: Mixed results in profit for Japanese airlines
-----Travel: Multi-generation travel ultimately "to make parents happy"
-----Travel: Golden Week picked up for airlines, but slowed for Hawaii
-----Business: Summer bonuses second highest ever
-----Business: Weather hits vegetable prices
-----Sports: Fans brace for football fever
-----Technology: Merger signals new mobile era
-----Fashion: Department stores gear up for wet months ahead
-----Beauty: Bath time is "me" time for Japanese women
-----Beauty: Anti-aging frontline Japan's newest beauty boom
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

Check out our latest media opportunity! Click here for more information!

JAPAN MARKET NEWS

TRAVEL: MIXED RESULTS IN PROFIT FOR JAPANESE AIRLINES

2005 a good year for ANA as JAL sees red again in the wake of rising fuel costs
All Nippon Airways posted record earnings in all business segments for fiscal 2005, with operating profit up 14.2 percent from last year to 88.8 billion yen (approx. $801 million). ANA expects only modest growth of about 4 percent in revenue for 2006, due to rising fuel costs estimated to increase by 45 billion yen ($405 million). Meanwhile Japan Airlines ended 2005 with a net loss of 47.2 billion yen ($425 million), down from a net profit of 30 billion yen ($270 million) in 2004. Although total operating revenues actually rose by 2.2 percent, JAL lagged in operating income, citing fuel costs and sluggish passenger traffic amid safety concerns among consumers. JAL Pack, the tour planning arm of JAL Group, also blamed lackluster sales to the restructuring of routes to popular resort destinations.
(Source: The Travel Vision News 5/15/06)
Back to top

TRAVEL: MULTI-GENERATION TRAVEL ULTIMATELY "TO MAKE PARENTS HAPPY"

Mothers and daughters tend to feel less obliged, travel in pursuit of common interests
A recent survey by industry research group Japan Tourism Marketing Co. showed that nearly 80 percent of couples traveling as a three-generation family - with their children as well as their own parents - ranked "making the parents happy" as the no.1 reason for the trip. Among mother-daughter pairs, children also cited "making my mother happy" as the top reason for traveling, although half of the respondents also said they "feel at ease" traveling with their mothers, and because traveling with their mothers is enjoyable. Multi-generation families most often chose summer holidays, Golden Week, and New Year's to travel, while mother-daughter groups preferred cheaper, off-peak and weekday travel. Possibly another incentive for families to travel with Grandma and Grandpa, 36.5 percent said their parents foot the entire bill, and an additional 23.8 percent said their parents paid "most" of the bill. More mothers and daughters shared the expenses, however, with only 25.6 percent of moms paying for everything. In both groups, the younger generation did the bulk of the planning, with more mothers and daughters planning together (40 percent) than couples with their parents (25 percent).
(Source: Japan Tourism Marketing press release 5/25/06)
Back to top

TRAVEL: GOLDEN WEEK PICKED UP FOR AIRLINES, BUT SLOWED FOR HAWAII

Hawaii traffic stagnant during busy travel holiday despite increase in Japan's flight passengers
Economic optimism and the decrease of anti-Japanese sentiment in China boosted Golden Week travel, with All Nippon Airways reporting a 21.3 percent increase in passenger load compared to last year. China and North America destinations saw the biggest jump in numbers, and according to Chinese press, the media was abuzz with the unexpected influx of Japanese tourists this year. On the other hand, Japan Airlines - which holds about 60 percent of the Japanese travel market to Hawaii - struggled to exceed last year's numbers due to a 10 percent decrease in airlift capacity to popular destinations Honolulu and Guam, resulting in a 2.8 percent fall in overall travel numbers for the week. And while many Hawaii merchants summed Japanese business "slow" this Golden Week, other factors may have been to blame: fewer hotel rooms available to Japanese tourists, $200 fuel surcharges, aggressive marketing by other destinations, and savvier travelers planning trips for other parts of the year. Japan's Fuji Sankei Shimbun, a mainstream business daily, called this year's outgoing tourism activity during Golden Week a "positive shift" for Japan's transportation companies, owing largely to a favorable succession of public holidays that allowed many Japanese to maximize their vacation days.
(Sources: Fuji Sankei Business-i.jp 5/9/06; The Honolulu Advertiser 5/6/06)
Back to top

BUSINESS: SUMMER BONUSES SECOND HIGHEST EVER

Automakers and manufacturers earn top reward for great performance
Summer bonuses at Japan's leading companies will rise on average by 2.5 percent, to approximately 877,191 yen (approx. $7,900), the second-highest amount since 1959, according to the Japan Business Federation. The biggest winners will be steelmakers and automakers for the second straight year; steel industry bonuses will rise by the biggest margin - 15.5 percent - to 950,578 yen ($8,500). Automakers' bonuses will exceed the million-yen mark again, gaining 1.2 percent, to 1.1 million yen ($9,900). "Bonus amounts have been moving at high levels in recent years, backed by greater performances at business companies," an agency official said. Bonuses for small- and mid-sized businesses, as well as civil servants, are expected to rise 2.3 percent to 421,062 yen ($3,800).
(Sources: Daiichi Seimei Newslette 4/3/06; Nihon Keidanren Report 5/06; Kyodo News 5/25/06)
Back to top

BUSINESS: WEATHER HITS VEGETABLE PRICES

Three weeks of gloomy weather stunts veggie growth, spikes wholesale prices
The prices of staple vegetables in Japan such as cucumbers and eggplants are almost doubling due to record low amounts of sunshine resulting from bad weather since the Golden Week holidays. Tomatoes, cabbages, and green onions are also being affected by the price hikes, up 300 percent in some regions. "I didn't know cucumbers could cost this much," griped one female shopper, who bagged a few at 300 yen per kilogram (approx. $1.20 per pound), nearly double of what cucumbers usually cost a year earlier. Wholesalers and consumers alike are fretting over Japan's sub-standard vegetable production, especially since the summer months are supposed to yield more variety and volume, and therefore ease the price of produce in a typical year. Some local companies are fighting back, crafting campaigns to keep consumers in the mood to buy more vegetables. For example, to assuage discouraged shoppers, nationwide supermarket chain Jusco launched a campaign to offer vegetables at a bargain every Tuesday, selling popular vegetables such as cucumbers and broccoli in 99 yen ($0.90) portions. Jusco hopes to generate sales volume, and keep their price points at par with last year's levels.
(Sources: Mutsu Shimpou News 5/27/06; Mainichi Interactive 5/30/06)
Back to top

SPORTS: FANS BRACE FOR FOOTBALL FEVER

World Cup soccer in Germany grips Japan as national team prepares to face fierce competition
"Pain the town 'Samurai Blue,'" is the slogan loud and clear among millions of Japanese soccer fans bracing for the national team's - the Blues' - showdown at the 2006 FIFA World Cup in Germany. Currently the highest-ranked Asian national team in the official FIFA world rankings, Japan are in Group F, along with Croatia, Australia, and defending champion Brazil. Soccer was famously overshadowed by baseball and sumo wrestling as the nation's favorite spectator sport, but its popularity skyrocketed after J. League (Japan League) was formed in 1993. J. League took off after humble beginnings (at their first World Cup appearance in 1998, they lost all three matches), and the support of inspired, compassionate soccer enthusiasts around the country fanned by expert marketing and merchandising of the J. League brand. Japan are now a soccer heavyweight in Asia, having won three of the last four finals, against principal rivals South Korea, Iran, and Saudi Arabia. Japan will be the underdog going into the tournament, grouped among the international soccer powerhouses. Their samurai spirit will be put to the test on May 30 when they face their first friendly match against hosts Germany, considered championship favorites.
(Sources: Kyodo News 5/29/06; JFA Official Site; Wikipedia; FIFAworldcup.com)
Back to top

TECHNOLOGY: MERGER SIGNALS NEW MOBILE ERA

Softbank and Vodafone joint venture will likely shake up Japan's competitive mobile market
British mobile carrier Vodafone PLC and Japanese Internet services company Softbank Corp. inked a joint venture deal valued at 11 billion yen (approx. $100 million), positioning the new company - to be called Softbank Mobile Corp. - as a revamped contender in Japan's competitive mobile market currently led by NTT DoCoMo and KDDI. The deal combines Vodafone's expertise in handset technology with Softbank's success in developing content, thus creating a mobile powerhouse capable of dishing out advanced 3G cell phones and software, as well as videos and games for the new platforms that may eventually be licensed to other wireless operators. Softbank Mobile will be emerging in the nick of time before the implementation of MNP (mobile number portability) this November, considered the first dynamic shift in Japan's mobile market in years. Until now, the Big Three carriers (DoCoMo, KDDI, and Vodafone) have run their networks independently, meaning users could not keep their mobile phone numbers, transfer data (i.e. email addresses and phone numbers), nor continue to use the same handset. MNP is expected to engage the competitors in a price war, as well as in a race to offer better technology and service to capture and solidify their customer base.
(Sources: www.redherring.com 5/18/06; Wireless Watch Japan Newsletter 5/22/06
Back to top

FASHION: DEPARTMENT STORES GEAR UP FOR WET MONTHS AHEAD

Stylish boots, pumps, and umbrellas displayed earlier than usual for imminent rainy season
Summer in Japan - it's the time of year when many residents wish they could skip town and escape the four to six weeks of rain - called "tsuyu" - only to be followed by at least another four to six weeks of tormenting summer heat. The good news is "rainy season goods" for women are more fashionable this year than ever, with fancy footwear being offered by most major department stores. Keio department store in Shinjuku is offering rain boots (5,145 yen; approx. $46) in 60 colors and variations - triple what was offered last year - featuring current design trends such as modern paisley and Madras plaid patterns. Low-heeled ballet-style pumps have also gotten the waterproof makeover, with mostly feminine styles retailing at around 13,000 yen ($117). At Takashimaya department store, the buzz of the season is compact umbrellas with interchangeable handles (4,725 yen; $43); clear, acrylic handles encasing digital prints of colorful flowers, animals, and even beach motifs, are paired with solid-colored umbrellas, creating a one-of-a-kind shield from the wet weather. The bad news is that these goods are being sold early for a reason - the month of May has been unseasonably rainy this year, and weather experts are guessing "tsuyu" will arrive sooner than expected.
(Sources: Tokyo Shopper 5/12/06, 5/19/06; Daily Yomiuri Online 5/25/06)
Back to top

BEAUTY: BATH TIME IS "ME" TIME FOR JAPANESE WOMEN

Majority take daily baths to meditate, contemplate, rejuvenate
A Dentsu survey revealed that a vast majority of Japanese women (85.6 percent) in their 20s and 30s relish a long evening shower or bath everyday. The most likely time of day to take the plunge was between 9 p.m. and midnight, suggesting that young women preferred to unwind during bath time at the end of a grueling day, over a quick morning shower. By age group, Dentsu found that women in their 20s who use bath salts regularly (55 percent), chose products effective for fatigue, rejuvenation, and improving circulation, while women in their 30s preferred "beauty and relaxation" effects such as moisturizing agents. The product preference reflected images of "tired" 20-somethings and "beauty-conscious" women in their 30s. Additionally, more women in their 30s utilized bath time as an at-home spa, applying facial masks and drinking water or vitamin- and mineral-fortified drinks while taking a bath. Those in their 20s preferred to read, sing, think, and brush their teeth during bath time. As for upcoming products women desire in their bathroom, a waterproof television ranked first, followed by "misting sauna" and Jacuzzi. Phones, Internet access, water-resistant book covers, bathroom audio system, and lighting were also among the "want" list, suggesting that women of both age groups want their bath time oasis to be a place of comfort and convenience.
(Source: Dentsu Trend Box 04/06)
Back to top

BEAUTY: ANTI-AGING FRONTLINES JAPAN'S NEWEST BEAUTY BOOM

From soaps to snacks, collagen and hyaluronic acid top active ingredients list
While Coenzyme Q10 and vitamin C still show staying power as two of Japan's favorite anti-aging agents, neither appears in more cosmetics and food than the newest anti-aging buzz: collagen and hyaluronic acid. Collagen has been a mainstay in Japanese cosmetics for some time, but the "in" thing right now is to "consume" it than to just "apply" it. And instead of collagen in supplement pill form (also still popular) it's the leading active ingredient in many common foods like yogurt, soft drinks, and gummy snacks. The lesser known hyaluronic acid - another lubricating, moisture-rich human component that deteriorates with age (pronounced "hialuron-san" in Japanese) - is the emerging anti-aging champion touted by the press as the real "fountain of youth" and is marketed widely in soaps, hair care products, eye drops, and when injected, even as a method of breast augmentation. In the U.S., hyaluronic acid is essentially used by doctors to treat knee injuries and other joint ailments, and its esthetic effects have not been widely studied or publicized.
(Source: Field report)
Back to top

 

CULTURE CORNER

Japanese Superstitions - Part I in a series

Most cultures are superstitious. In America, walking under a ladder or breaking a mirror brings seven years of bad luck. Here are some of the most common superstitions in Japan, many of which are associated with death.

1. It is bad luck to stick one's chopsticks straigh up and down in a bowl of rice. This action is only done during Japanese funerals and symbolizes death.

2. The head of your one's bed or futon should always point south, never north. At Buddhist funerals, the bodies of the deceased are placed with their heads facing north.

3. If one is the middle person in a picture with two others, it is said the middle person will soon die or suffer a terrible tragedy.

4. One should always cover the bedroom mirrors as night for it is said that a woman from another world will come through the mirrors and take you away forever.

5. The numbers four and nine are considered unlucky numbers. In Japanese four is pronounced as "shi"which means death, while nine is "ku," which can mean pain. Hospitals usually do not have a fourth or ninth floor.

Stay tuned for more superstitions in next month's newsletter.


Back to top