Japan Market Update - July 2006 Edition

Hi ,

I hope you enjoyed the Fourth of July celebrations!

Soccer captured attention in Japanese this June. Retailers, cell phone companies, manufacturers (especially of flat screen TV's) the travel industry, and advertisers got behind the enthusiasm for the competition. Hotels in visitor destinations competing with the World Cup events in Germany staged pre-promotions to notify Japanese travelers that they could view the World Cup live at their travel destination. Some properties created parties and special functions to help the Japanese cheer on their team. In the end, the Japanese public was disappointed (see below for story).

Summer in Japan is hot and humid and the public service CoolBiz campaign, that attempts to get Japanese business people to dress cooler as an energy saving measure, is creating some new opportunities (story below). I am in Japan this week working in our Tokyo office and with our media contacts. From my viewpoint, CoolBiz is still difficult for many Japanese, and even foreigners, to accept when we are so used to the "white shirt and tie" culture. However, Japan is changing and adapting to new ideas, sometimes quickly, and sometimes very slowly.

Marketers are pulling out all the stops to generate business to U.S.-based travel destinations. VISA is running a promotion in Hawaii and Guam in conjunction with GlobeTrotter Publications, which publish travel guides. JCB is running a campaign in Hawaii and Guam, and the U.S. government is supporting increased spending to convince Japanese travelers to visit the United States.

With destination, hotel, and retail competition on the rise, getting your marketing message to the right audience is more essential than ever. PacRim is ready to help you get your message out and gain market share.

Have a "cool" month and contact us if you have any questions.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: JCB launches part two of Guam campaign
-----Business: Fukuoka among Newsweek's Top Ten Boomtowns
-----Business: Cold Stone is red-hot in Japan
-----Fashion: Japan hosts first Louis Vuitton show
-----Fashion: CoolBiz propels Okinawa fashion
-----Society: Japanese psychiatrists discover "neophilia"
-----Sports: World Cup loss spurs drama
-----Technology: Net TV free of charge, free of ads
-----Technology: KDDI beats NTT
-----Technology: Fiber Optics reaches new heights
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: JCB LAUNCHES PART TWO OF GUAM CAMPAIGN

"True Guam Campaign" will run till next January to promote tourism and shopping
Japan-based credit card company JCB launched the second phase of its Guam campaign, which will run from July 1 until January 31, 2007. The first phase of "True Guam Campaign," which ran from last December through May 31, promoted Guam as a destination to JCB's 56 million card members through various sweepstakes. Guam Visitors Bureau, a co-promoter of the campaign, reported the number of JCB card users during the campaign period through April increased by 6,500 compared to the same period last year. Though far from the target of 10,000 visitors, sales volume increased by about $4.3 million. According to a survey released by the bureau, a Japanese tourist spent an average of $675 per visit on Guam last year, while JCB says its cardholder spent about $1,600 on average. The second phase also includes a sweepstake, with grand prize round-trip tickets for two to Guam, and over 13,000 prizes from participating Guam businesses including DFS, Micronesia Mall, Tumon Sands Plaza, Hard Rock CafŽ, and Guam Marriott Resort & Spa.
(Source: Pacific Daily News 6/21/06; japancorp.net 6/20/06)
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BUSINESS: FUKUOKA AMONG NEWSWEEK'S TOP TEN BOOMTOWNS

Newsweek votes southern isle city as one of the world's most important economies
While Nagoya spent the last two years as Japan's newest "it" city, dishing out the Aichi Expo and the trendiest in culture, fashion, and food, U.S. periodical Newsweek selected Fukuoka as Japan's next great offering in terms of current economic development and future potential. Based on United Nations data Newsweek obtained specifically for this survey, Fukuoka was among other "second cities" like Munich and Las Vegas, which showed growing economies, upswings in population, and high employment rates compared to metropolises with declining numbers such as New York City and Tokyo. Located on the northern tip of Kyushu, Fukuoka was also noted for being a gateway to the rest of Asia, with its Hakata port now handling 50 percent more cargo than it did six years ago. In addition, Fukuoka is home to the world's no. 2 automaker, Toyota, and is often described as "silicon island" or "car island."
(Sources: Yahoo! Japan 6/26/06; Kyodo News 6/26/06)
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BUSINESS: COLD STONE IS RED-HOT IN JAPAN

Another U.S. chain attempts to whet the appetite of Japan's ice cream-loving population
A country that celebrates Ice Cream Day (May 9) every year must take their ice cream seriously. But it can't just be any icy cold treat - it has to be the good stuff. So it surprised no one (except maybe the competition), when throngs of people lined up around the clock to get a taste of America's latest import - Cold Stone Creamery. And while Cold Stone's dozen or so flavors may not stack up to Baskin Robbins', the company's signature "mix-in" strategy and 30 add-in ingredients have Japan's ice-cream lovers hooked; so much so that Cold Stone was able to open its first Japan store at the posh Roppongi Hills complex in the dead of winter this year, with eager customers grabbing their waffle cones with gloved hands, and hundreds more waiting outside in frigid temperatures. Today, Cold Stone's total of five Japan stores are attracting about 1,000 customers a day, who spend $35,000 a week. And while Baskin Robbins spent 30 years to build its chain of 750 stores in Japan, Cold Stone wants to open 1,010 shops by 2010. Competitors Baskin Robbins and Haagen-Dazs have their doubts, but for the time being, Cold Stone's got the edge.
(Source: Cold Stone Creamery Japan; cnnmoney.com 6/9/06)
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FASHION: JAPAN HOSTS FIRST LOUIS VUITTON SHOW

Full-scale runway show a "landmark" presentation for Vuitton's Asia audience
"It may be the only one," Vuitton chairman Yves Carcelle said as he addressed hundreds of Japan's fashion elite at a packed dome-shaped tent in Yumenoshima Park, just east of Tokyo, where the fashion house's first-ever overseas runway show was held on June 7. The Tokyo show was an exclusive event for Vuitton, as a means to create enough buzz and to reach its Asian audience, but so as not to saturate the fashion scene with more international presentations. Vuitton chose Japan because of its "renaissance in terms of creativity, inventiveness, sophistication, and high style," with Carcelle adding that Japan is a brewing ground for the future in high fashion. That is not to say, however, that Vuitton is sidelining Japan's aging population. Vuitton plans to expand in Japan and hopefully keep a stronghold on its main vein, with an emphasis on retaining older clientele. For this runway, however, Marc Jacobs showcased autumn-winter ready-to-wear fashion featuring thick sweater dresses and wide-leg pant suits in natural and slate colors - creations Jacobs said were inspired by "poetic, melancholy, mysterious" natures of women, and a contrast to the feminine and light-hearted fashion trends that have dominated women's fashion in recent years.
(Sources: AFP 6/7/06; sawfnews.com 6/8/06)
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FASHION: COOLBIZ PROPELS OKINAWA FASHION

Japan's own "aloha shirt" thrust to the limelight with successful CoolBiz campaign
Clothing makers in Okinawa are enjoying an unexpected surge in business these days, thanks to the Cool Biz campaign. A traditional Okinawan garment called kariyushi - a short-sleeve, open-collar shirt similar to a Hawaiian aloha shirt - has been in continuous high demand since the launch of last year's national energy-saving initiative. Since last summer, kariyushi shipments have jumped sevenfold to about 300,000 shirts, compared to only 40,000 in fiscal 1997, according to the Okinawa Apparel Sewing Industrial Association. While the CoolBiz campaign has been largely met with public optimism - if not enthusiastically endorsed by Prime Minister Junichiro Koizumi - a good majority of Japan's bureaucrats have yet to bare their arms. "Efforts should be made to develop shirts of more conservative designs," said Chiken Kakazu, senior vice minister of the Cabinet, suggesting the kariyashi may be a welcome alternative to casual "beachwear" attire often associated with CoolBiz fashion.
(Source: The Japan Times 6/20/06)
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SOCIETY: JAPANESE PSYCHIATRISTS DISCOVER "NEOPHILIA"

A sign of the times, researchers pinpoint a genetic link to one of this generation's greatest addiction
Psychiatrists at the Yamagata University School of Medicine in northern Japan may have justified the compulsion behind gadget-lovers and fashion-seekers - they can't help themselves; it's in the genes. The research team found that one form of an enzyme called monoamine oxidase A was "significantly associated with higher scores of novelty seeking," suggesting that people who have this enzyme are more genetically predisposed than others to wanting the newest toys and gizmos. The research was recently published in the scientific journal Pshychiatric Genetics and mentioned in the New Scientist magazine, but some sociologists and experts on consumer culture say novelty seeking is unlikely to have a genetic link, because the condition is more likely an effect of modernization.
(Sources: Media Life Magazine 6/18/06; Psychiatric Genetics Vol. 16)
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SPORTS: WORLD CUP LOSS SPURS DRAMA

Underdogs fail to deliver, as fans and players feel after-effect
Japan made its third straight World Cup appearance in Germany, but were eliminated in the first found after a 3-1 loss to Australia, a scoreless tie with Croatia, and a final thrashing by Brazil, 4-1. Head coach, Brazilian legend Zico retired from his position, as was scheduled, warning Asian athletes - Japanese in particular -- that they face an uphill battle making up for their physical shortcomings. Three veteran players chose not to return to Japan with its coach and team, spinning the media -- which gathered among 700 fans at Narita airport -- to buzz that the players were too disappointed to face the fans publicly. Meanwhile a 60-year-old fan committed suicide after sinking into a deep depression following Japan's elimination from the first round. In other World Cup drama, 1,200 fans in Japan were gypped of their chances to see the finals in Germany, after their travel agency canceled their tour upon notification that a sub-contracted Chinese agency had not secured the stadium tickets.
(Sources: crisscross.com 5/31/06; noinvite.com 6/26/06; AFP 6/26/06)
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TECHNOLOGY: NET TV FREE OF CHARGE, FREE OF ADS

Broadcast group USEN signs up 10 million viewers in a little over a year
Mobile Internet. Blogs. Podcasts. Now Net TV joins Japan's media revolution, thanks to Usen Corp.'s GyaO Net TV service, which began broadcasting in April 2005, currently running ahead of competitors such as Yahoo and Dogatch. Like private broadcast stations, GyaO pays for itself through advertising, allowing viewers to watch free of charge. The service regularly broadcasts about 1,500 programs including dramas, variety shows, and movies. GyaO's popularity stems largely from its timely live broadcasts, especially uncut coverage, as it takes less equipment to cover breaking news. Currently, GyaO is hardly profitable for Usen, running 4.9 billion yen (approx. $42.5 million) in the red, caused by initial production and copyright costs versus yet-to-be-maximized advertising revenue. The other bottleneck is actual viewership; a ratings company poll showed less than half the registered users actually watched programs, meaning some may have registered multiple times, or haven't yet used the service after registering. In order to raise its ad rates, Usen will have to first increase its number of actual viewers.
(Source: Daily Yomiuri Online 6/21/06)
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TECHNOLOGY: KDDI BEATS NTT

Telecom giants take turns at the top seat with KDDI nabbing more subscribers in this round
Six months ago, NTT DoCoMo scored its first fiscal-year victory over KDDI in three years. But two quarters later, KDDI has climbed back to the top again, outdoing NTT numbers by about 15,000 net subscriptions (including cancellations), or by 11.2 percent. KDDI's "au" service - most popular for its "chaku uta," or the download of full-length songs, posted the biggest gain of all mobile services, with a net increase of 260,800, while the company's "Tu-Ka" service continued its phase-out with a net fall of 112,100. Vodafone K.K., which was acquired by Softbank Corp. in April, managed to post a net increase of 1,100 for the same period. Softbank plans to work on rebranding the service as its name will change to Softbank Mobile Corp. in October. But by sheer numbers, NTT DoCoMo still takes the lead in the mobile phone market, accounting for roughly 53 percent of Japan's 92 million subscribers, against 29 percent for KDDI and 16 percent for Vodafone. With the nation's population at 127million, these numbers also indicate the mobile market reaching near-saturation.
(Sources: Kyodo news 4/7/06; 6/7/06)
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TECHNOLOGY: FIBER OPTICS REACHES NEW HEIGHTS

ADSL to peak soon -- Fiber net connections growing at a greater rate in Japan
More than 5.35 million Japanese homes and businesses were using FTTH (fiber-to-the-home) as their main Internet connection as of March this year, according to a survey by Tokyo-based Multi Media Research Institute. That number is expected to almost quadruple in 2 years, says the firm, with fiber subscribers expected to reach 19 million by 2008. Streaming video, Net TV, and other high-bandwidth applications are driving demand for fiber optic networks. While ADSL is limited to downstream speeds of 10 to 30 Mbps , Japan's mainstream FTTH services top out at download speeds of around 100 Mbps. Telecom companies are already working on plans for 1Gbps and 10Gbps fiber Internet. ADSL will probably peak by late-summer 2006 at around 14.65 million subscribers, then start a gradual decline in favor of more FTTH connections. Japan's total broadband subscribers (ADSL, cable, and FTTH) will increase from 37.6 million this year to 27.3 million in 2008, at least 51 percent of which is estimated to be FTTH subscribers. Japan's total population is about 127 million.
(Source: vnunet.com 6/19/06; ja.wikipedia.org)
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JAPANESE SUPERSTITIONS - Part II 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 have the entrance to one's home facing the northeast. It was believed by the Japanese of old that having such an entrance, called "kimon," would conjure a hellish monster called an "Oni."

2. It is forbidden to cut one's toenails or fingernails in the evening or at night. If one does so, then one's spirit will not be with the spirit of one's parents after death.

3. If a hearst drives by, one must hide one's thumbs as it is believed that the spirit of the passing dead will enter your body through one's thumbs.

4. If you whistle at night, then snakes will come to you.

5. If you sneeze once, you are being spoken of well. If you sneeze twice, people are saying bad things about you. If you sneeze a third time, someone loves you. And not surprisingly, if you sneeze a fourth time, you have a cold.
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Chikyu No Arukikata Hawaii with Kids

With more than 25% of the Japanese travelers coming to Hawaii coming with children, the Chikyu no Arukikata Hawaii with Kids Guidebook was created to assist in planning a vacation with activities and travel accommodations that can be enjoyed by the entire family.

Informative travel tips and up-to-date details on dining, shopping and accommodations for family travel make the Hawaii with Kids Guidebook a fitting compliment to the popular Chikyu no Arukikata Hawaii travel series.

Don't let this important opportunity pass you by. If you are interested in finding out more about advertising in this publication please contact Joy Ishiara at jishiara@pacrimmarketing.com

Click here for our Media Request Form or contact us.

Space Deadlines:

NOW! Aloha Express September
NOW! Chikyu no Arukikata Romance Hawaii Mook
NOW! Chikyu no Arukikata Maui Resort
8/1 Chikyu no Arukikata Guam Guidebook
8/1 Chikyu no Arukikata Hawaii with Kids
8/1 Chikyu no Arukikata Hawaii Mook

Material Deadlines:

NOW! Chikyu no Arukikata Guam with Kids
NOW! Aloha Express September
NOW! Chikyu no Arukikata Romance Hawaii Mook
NOW! Chikyu no Arukikata Maui Resort
9/1 Chikyu no Arukikata Guam Guidebook
9/1 Chikyu no Arukikata Hawaii with Kids
9/1 Chikyu no Arukikata Hawaii Mook

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

07/17 Umi no Hi - Marine Day
09/18 Keirou no Hi - Respect for the Elderly Day
09/23 Shuubun no Hi - Autumnal Equinox Day
10/09 Taiiku no Hi - Sports Day

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

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