Japan Market Update - November 2006 Edition

Hi ,

I just returned from our Tokyo office, which assisted Japan-based Seven Signatures with VIP events and a press conference for Donald Trump and his Trump International Hotel & Tower Waikiki Beach Walk project. While announcing the condominium unit sales selection event-to be held simultaneously in Tokyo and Waikiki next week-Mr. Trump spoke of the project's unique location and how it is attracting high net worth investors from Japan. He also recognized the state of Hawaii for its support in making the project possible. Saying he was pleased to be in Japan, Trump noted that on his one-day stopover he was hoping to get a "sneak preview" of the new Gucci Flagship store in Ginza, due to open this week.

The cell phone battle is on in Japan. Number portability service allowing cell-phone users to keep the same number despite changing phone companies was introduced this past Friday, October 24, with mixed success. Softbank Mobile, Corp, the third-largest cell phone carrier in Japan, was forced to stop accepting new applications for switch-overs during the weekend, when its computer systems got overwhelmed by the number of new subscribers. Even though cell phone users in Japan can keep their numbers when switching companies, they lose their cell phone email address-impacting email marketers. Meanwhile, Softbank, which has the lowest cell phone market share (16%), has started a rate war by introducing flat monthly rates as low as US$27 for unlimited calling and free calls to other Softbank phone users. Japan's cell phone wars are spurring new services and should be watched for new marketing and business opportunities.

In other news, the battle is on the baseball field as the MLB (Major League Baseball) All-Stars play the Nippon Professional Baseball League stars in the Nichibei Yakyu event. An initial exhibition game was played in Tokyo yesterday with the Yomiuri Giants, and a five game series will be played in Tokyo, Nagoya, and Osaka beginning today. In Japan, this is the dream series, with top U.S. players competing against the top players from Japan. Japanese players now in the United States will have a huge following when they return home for the week-long series. The MLB team will include U.S. stars Kenji Johjima and Tadahito Iguchi.

November is when we think about holiday activities and final year-end plans. It's also the perfect time to have PacRim Marketing Group, or PRTech, our sister company, help you with your 2007 plans for integrated marketing solutions, including Japanese language advertising, marketing, sales, and Internet programs and services. With our new Tokyo office open, we are offering additional services to help you see sales results in Japan. Let me know how I can assist or if you would like to meet.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: JAL marks 35 years of Guam service
-----Travel: Hawaii tourism committee proposes action plan
-----Business: Japanese yen cheapest currency
-----Business: YouTube, cult status help Nike Japan success
-----Politics: Japan places sanctions against N. Korea
-----Technology: NTT equips phones with breathalyzers
-----Technology: Rural areas to get high-speed Internet service
-----Technology: Free video-sharing boom expected
-----Society: Young couples prefer "cheap date"
-----Fashion: Monotone looks sharp for fall
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

TRAVEL: JAL MARKS 35 YEARS OF GUAM SERVICE

Guam governor appreciative, JAL chairman positive about airline's commitment to Guam
Despite soaring fuel prices and recent restructuring of Guam routes, Guam Governor Felix Perez Camacho applauded JAL as an important business partner that had continuously invested to support Guam through operating its routes over the last 35 years. Addressing Guam's industry representatives, JAL Chairman Toshiyuki Shinmachi asked for understanding as the struggling airline streamlined its operation, alluding to its suspension of the Saipan route last year, and JAL's 2003 reduction of Guam routes from twice daily to once daily. However, he noted the history and importance of JAL's service to Guam, and the airline's promise to retain Pacific routes whenever possible. Shinmachi also encouraged the travel industry to shift their marketing focus from young adults to active seniors, and to offer higher-end products that yield a wider profit margin. JAL also said it aims to collaborate with Guam Visitors Bureau on tourism development. Meanwhile, in commemoration of the 35th anniversary, Guam International Airport announced it will waive landing charges from October 2006 to September 2007.
(Sources: Travel Vision News 10/10/06; www.arukikata.co.jp )
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TRAVEL: HAWAII TOURISM COMMITTEE PROPOSES ACTION PLAN

Seven steps outline ways to boost Hawaii tourism
Hawaii's sub-committee under the U.S.-Japan Tourism Export Expansion Initiatives offered seven plans of action for promoting Hawaii travel to Japanese travelers, all of which call for the collaboration of the three major bureaus that affect Hawaii promotion to Japan: Japan Association of Travel Agents (JATA), Hawaii Tourism Authority (HTA), and Hawaii Tourism Japan (HTJ): 1. Promote value-added tour packages related to Hawaiian history and culture to senior tourists. JATA has proposed six- and eight-day theme packages surrounding Hawaii's history, a Big Island luxury stay, and island-hopping between the Big Island and Honolulu.
2. Travel agents, rental car companies and tourism offices should collaborate on promoting "Fly and Drive" campaigns.
3. Airlines should increase charter flights, immediately increasing air lift capacity to Hawaii. JAL announced it will operate 40 return charter flights from Honolulu to Japan by the end of March 2007.
4. Focus promotions on different age groups. Cruise packages should target baby boomers; Fly & Drive should target the younger generation; wedding packages should effectively target women in their 20s and 30s; sports activities promotions such as marathons, triathlons, and golf should be diversified to target each generation.
5. Promote long-stay programs, as developed by Hawaii HTA
6. Develop educational programs, per HTJ
7. Support sales activities and customer service
(Source: J-Wing Travel 10/10/06)
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BUSINESS: JAPANESE YEN CHEAPEST CURRENCY

Merrill Lynch poll indicates yen as most undervalued, U.S. dollar most expensive, world currency
A rising number of fund managers believe the yen is the world's cheapest among major currencies. A monthly Merrill Lynch survey of 210 fund managers showed that in October, 68 percent of respondents voted the yen as the most undervalued currency, up 4 percent since September, and up 8 percent since August. The U.S. dollar was considered the most overvalued currency, by 46 percent of respondents. The currency with the largest percentage of inflated funds is the euro, at 21 percent, though down from 28 percent in September.
(Source: Reuters Japan 10/17/06)
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BUSINESS: YOUTUBE, CULT STATUS HELP NIKE JAPAN SUCCESS

Witty characters, a sense of mystery, and low-cost distribution results in overwhelming feedback
An off-key short film named "NikeCosplay" (short for "costume play") has received over 250,000 views in about a month, creating persistent buzz around a new line of customizable sneakers promoted by Nike Japan. The sneakers are called "Nike iD," available in 38 vibrant colors, includes a pocket for an iPod nano, and can have a personalized message or name stitched on the heel. The Nike iD marketing team at Nike Japan is the genius behind the low-brow campaign, which features 38 "Power Ranger"-type characters decked out in flashy costumes and subtle, Nike iD peds, chasing evil-doers (who in this case are dull, poorly-dressed salarymen) through the streets of Akihabara, Tokyo. The "Akiba-man" characters transform said salaryman into an oddly hip, happy passer-by. Comments like "Hilarious!" and "LOL!" have poured in from around the world, and Nike Japan is now experiencing a high volume of online orders. The marketing success behind Nike iD hinged on the likelihood that the short film and its kooky characters would generate enough buzz to draw attention to the Nike iD web site, thus increasing page views and raising sales volume. Nike embraced the risk of focusing on YouTube as the primary media as opposed to TV and print ads, and countered them with low-budget production and zero-cost distribution (YouTube is free). Now that the word is out, Nike iD plans to continue upgrading contents on its portal site and improving banner ads. "We hope parody versions of [this ad] will come out, like a French "Power Ranger"-type chasing someone through the streets of Paris," spreading brand recognition of Nike's new sneakers, said a marketing team member.
(Source: itmedia.co.jp 10/23/06)
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POLITICS: JAPAN PLACES SANCTIONS AGAINST N. KOREA

Sanctions on luxury items will stay until Pyongyang abandons nuclear program
Under new leadership spearheaded by Prime Minister Shinzo Abe, Japan is taking a tough stance against N. Korea's most recent missile test. The Cabinet announced financial and economic sanctions will remain until Pyongyang drops its nuclear arms initiative. A six-party talk involving the two Koreas, China, the U.S., Japan, and Russia - as advised by the United Nations - will be merely a "starting point," the Cabinet's chief secretary said. The government planned to ban the export of luxury items, such as automobiles, liquor, and cigarettes, which sources say are distributed by N. Korea's leader, Kim Jong Il, among high-ranking officials to draw favor and thus maintain his grip on the dictatorship. With total exports to N. Korea worth 6.8 billion yen (approx. $57 million) last year, the Japanese government hopes the embargo will affect the ruling powers in Pyongyang.
(Sources: Kyodo News 10/27/06; The Daily Yomiuri 10/18/06)
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TECHNOLOGY: NTT EQUIPS PHONES WITH BREATHALYZERS

Telcom giant helps transit businesses promote safety behind the wheel
Japan's advanced mobile phone technology has packaged capabilities to chat, play back music, watch streaming video, browse the Web, use email, take high-quality photos and videos, and pay for groceries. It can also measure your sobriety, thanks to a new breathalyzer-equipped 3G (third-generation) phone by NTT DoCoMo, Japan's leading mobile telcom operator. First, the user makes a video phone call to his employer and breathes into a miniature analyzer installed within the mobile phone. The alcohol concentration data is transmitted to the company and confirmed by computer. A red warning sign indicates an excessive blood-alcohol level; the video image confirms the transaction. Bus and transport companies regularly use breathalysers for drivers prior to their shifts. However, companies have found it impossible to keep tabs on long-haul drivers, and those who work odd shifts. The feedback has been positive, says NTT, with numerous back-orders for the system. Since its debut in June, 15 companies have purchased the 270,000 yen system (approx. $2,200) - which includes 10 breathalysers and software - a relatively small price to pay for safety on the road. Breathalyzer technology is currently being tested in Japanese cars, where an engine will not start if an excessive blood-alcohol level is detected from the driver.
(Source: m-net.net.nz 10/16/06; Sankei Shinbun 9/26/06)
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TECHNOLOGY: RURAL AREAS TO GET HIGH-SPEED INTERNET SERVICE

NTT to test next-generation high-speed bandwidth in massive roll-out
More than 100 cities with a combined population of 50 million in western Japan will get wireless, high-speed Internet service in a massive network deployment from NTT West Corp. and California-based Strix Systems, Inc. The mesh network will operate in the 4.9 to 5.0 GHz frequency, a high-speed bandwidth often designated for fixed and mobile wireless services that support public safety. A wireless mesh network relies on all the devices within the network to "propagate" signals, thus extending the network's base station transmission by relaying the wireless signal from one active device to another. The technology has long been used by military for use on battlefields, but has become available today for personal computers.
(Source: Nikkei.net Press Release 10/12/06; Strix Systems Press Release 10/16/06)
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TECHNOLOGY: FREE VIDEO-SHARING BOOM EXPECTED

Widespread broadband usage boosts popularity of video-sharing sites on the Web
An Internet poll by "goo Research," a joint venture by research arms of NTT Corp. and Mitsubishi Group, showed the rate of Internet users regularly visiting video-sharing sites at 30.7 percent, and rising. The high numbers are not surprising in Japan, where fast-speed broadband subscriptions have been rising rapidly over the last decade. The proliferation and affordability of FTTH (fiber-to-the-phone) to both businesses and residences have also supported high-bandwidth Internet usage such as gaming and video-streaming. One unexpected finding was the popularity of U.S.-based YouTube, which according to the poll, is the most popular video-sharing site among Japanese Internet users (59.3 percent), followed by Yahoo! Video (38.4 percent), and Google Video (23.1 percent). As for how users found YouTube in the first place, most answered "coincidentally, through a search engine" (42.5 percent). Others found YouTube links in blogs (27 percent), 23.4 percent heard about it through "buzz," and 21 percent were forwarded links by friends. Less than 5 percent learned about a YouTube link through conventional media such as TV and magazines. Goo Research also predicted that video-sharing sites will increase in popularity, beyond tech-savvy age groups in their teens to 30s. Among men and women in the 40s, 50s, and 60s, roughly 20 to 30 percent expressed interest in visiting video-sharing sites, if they haven't done so already.
(Source: goo Research 8/30/06)
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SOCIETY: YOUNG COUPLES PREFER "CHEAP DATE"

Young men and women seek more couples-only services
According to research by advertising and marketing leader Dentsu Corp., an ideal date for both men and women in their 20s and 30s is "down time" with their partners - such as relaxing at home - without spending too much money, over money-consuming activities like golf and attending concerts. A close second was "active time," also ideally without spending too much money, such as taking walks, window shopping, and enjoying the outdoors. Here are more findings:
-49 percent of couples "go Dutch" on dates, or take turns paying for meals and activities.
-71.3 percent of couples chose birthdays as the most special day of the year to date.
-22.3 percent of couples spent between 10,000 and 15,000 yen (approx. $84-126) on birthday presents for their partner, followed by 15.3 percent who spent between 30,000 and 50,000 yen ($152-420). The most popular gifts for women were jewelry and accessories, perfume and cosmetics, and flowers. For men, the most popular items were wallets, day planners, key cases, fashion accessories, and watches.
-When asked what types of products or services they wish they had on a date, many pointed out private, couples-only hot springs and spas. Others sought massages and reflexology treatments that could be enjoyed together, or meal- and DVD-delivery services that would allow them "dinner and a movie" at home.
(Source: Dentsu Trend Box survey 9/28/06)
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FASHION: MONOTONE LOOKS SHARP FOR FALL

Retro fashion still going strong through cooler months
This summer's revival of polo shirts among Japan's fashion-conscious may have been the harbinger of retro styles to follow. Monotone fashion seems to move in and out of style roughly every 10 years, but Tokyo streets this fall are abundant with monotone chic, a refined version of black-and-white street fashion made popular in the early- to mid-80s. White shirts are coordinated with black vests, black skirts, and/or black half-calf boots. Meanwhile, in the more bohemian Harajuku fashion district, avant garde looks like "gosurori" (short for Gothic Lolita) and classic punk styles are also vivid in monotone. Female office workers in Ginza have been seen dressed in elegant business casual, pairing white blouses and black cardigans with pants. One notable characteristic of the trend is that it's being embraced by a broad range of people, with young men and middle-aged women going for monotone looks as well.
(Source: Trends in Japan 10/05/06)
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NINJAS -- Part II in a Series
Ninja Weapons

In Japan, ninja (which means "a stealthy person") were agents of espionage, sabotage and assassination during the feudal era.

Ninja are said to have made use of weapons that could be easily concealed or disguised as common tools. The bo and handclaws (shuko, neko-te tekagi), are probably most famous after the shuriken.

Shuriken, or throwing stars, have been popularized by comic book mail order advertisements. Kunai (a gardening tool) were also a popular weapon as they could be hidden easily or carried if the ninja was disguised as a gardener. In popular folklore, ninja also used special short swords called ninja-ken, or "shinobigatana."

One known tool used by ninja is irogome (literally, "colored rice"). Irogome were uncooked rice seeds colored in five or six different colors that would be placed on the ground or handed to a ninja from a ninja. Each combination carried certain meanings like "all clear" or "an enemy check point is ahead."

Ninja also employed a variety of weapons and tricks using gunpowder. Smoke bombs and firecrackers were widely used to aid an escape or create a diversion for an attack. They used timed fuses to delay explosions. Oozutsu (cannons) could be used to launch fiery sparks as well as projectiles at a target. Small "bombs" called metsubushi (literally, "eye closers") were filled with sand and sometimes metal dust. This sand would be carried in bamboo segments or in hollowed eggs and thrown at someone, the shell would crack, and the assailant blinded. Even land mines were constructed that used a mechanical fuse or a lit, oil-soaked string. Secrets of making desirable mixes of gunpowder were strictly guarded in many ninja clans.

Other forms of trickery were said to be used for escaping and combat. Ashiaro are wooden pads attached to the ninja's tabi (thick socks with a separate "toe" for bigger toe; used with sandals). The ashiaro would be carved to look like an animal's paw, or a child's foot, allowing the ninja to leave tracks that most likely would not be tracked.
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Aloha Express Luxury Golf

With the success of Japan's golf phenom, Ai Miyazato, Japan's interest in golf is on the rise. Aloha Express Luxury Golf is the only lifestyle publication in Japan for those interested in golfing in Hawaii.

With features ranging from where to stay, what to eat, and what golfing gear is available to accessorize any lifestyle, to the intricacies of Hawaii's tee-time reservation system, Luxury Golf is not only for the seasoned golfer but also for the fashion-savvy traveler who is looking to experience a different facet of resort life.

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 Luxury Golf Hawaii
NOW! Aloha Express Hawaii Gokutabi (Freestyle Travel Hawaii)
NOW! Chikyu no Arukikata Excellent Hawaii Mook
NOW! Chikyu no Arukikata Barrier Free Hawaii
12/1 Aloha Express Quarterly - February 2007 Issue
12/1 Nouveau - Tumon Sands Plaza
12/1 Chikyu no Arukikata Guam Resort

Material Deadlines:

NOW! Aloha Express Luxury Golf Hawaii
NOW! Aloha Express Hawaii Gokutabi (Freestyle Travel Hawaii)
12/1 Chikyu no Arukikata Excellent Hawaii Mook
12/1 Chikyu no Arukikata Barrier Free Hawaii
12/10 Aloha Express Quarterly - February 2007 Issue
1/1 Nouveau - Tumon Sands Plaza
1/1 Chikyu no Arukikata Guam 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.

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Upcoming Holidays in Japan

11/03 Bunka no Hi - Culture Day
11/23 Kinrou Kansha no Hi - Labor Day
12/23 Emperor's Birthday
12/24 Emperor's Birthday (Observed)
12/31 Oomisoka - New Year's Eve

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

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