Japan Market Update - June 2007 Edition

Hi ,

I recently returned from the ICSC (International Council of Shopping Centers) Spring Convention in Las Vegas. Showing how huge the retail industry is on a global basis, this year's convention drew a record number of attendees-over 50,000-and was the most "international convention" ever, attracting participants from as far away as Abu Dhabi. The biggest international contingent came from Mexico, followed by Japan.

At the convention, PacRim Marketing Group teamed up with Bedrock Brand Consultancy, ChaneyBrooks, a Honolulu real estate investment advisor and leasing agent, and developer RECRM Research Japan to market and exhibit a new retail development called, "The Paradox." Opening in Tokyo's trendy Harajuku area, "The Paradox" offers interested U.S. retailers and restaurants and opportunity to enter the Japanese market. See story: http://starbulletin.com/2007/05/22/business/story02.html or PBN's (5/21/07) issue.

Speakers at the convention noted trends in various markets: Japan offers unique venues for American retailers and restaurant owners who seek to enter one of the world's largest consumer markets; China also offers U.S. retailers opportunities, with numerous shopping center projects in the planning stages or being built, but research and trusted partners will be critical for business success in China.

While Asian markets are offering an increasing number of opportunities to U.S. businesses, here in Hawaii, Guam, and Las Vegas, new and exciting retail centers, dining establishments, and entertainment will help increase visitor satisfaction. News about the new shopping, dining, and entertainment should be included in destination marketing messages-especially when aimed at the Japanese, for whom shopping is an important part of their overall travel experience and satisfaction.

A recent HTA and DBEDT Survey, "Visitor Supplemental Retail Survey," rated the Hawaii retail experience highly. The survey also noted that Guidebooks still ranked as the top way to learn about shopping destinations, while over one-third of Hawaii's visitors learned about shopping alternatives on the Internet.

Over our 17 year history, PacRim has helped retailers in the Pacific Rim area with marketing services including public relations, assisting with media advertising choices, retail tenant or shopping center marketing strategy and positioning, and market entry programs. Drop me a email note if we can assist with your projects.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: "Open Skies" policy could allow Haneda-Honolulu route
-----Travel: Guam Visitors Bureau urges image upgrade
-----Travel: Continental adds seasonal Guam and Saipan flights
-----Business: Sake scores big at wine competition
-----Business: "Eco-life" affects consumer culture
-----Fashion: Casual clothes hit new high
-----Fashion: T-shirts send messages of love
-----Society: Miss Japan wins Miss Universe title
-----Society: Cell phones keep dieters on track
-----Society: Tea and water preferred in Japan
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: "OPEN SKIES" POLICY COULD ALLOW HANEDA-HONOLULU ROUTE

Government looks into aviation reform as key to expanded service to Pacific region
Haneda Airport, Tokyo's "second gateway," may become a launching pad to popular East Asian and Pacific destinations, pending the results of a government committee pursuing a liberalization of Japan's stringent aviation regulations. "Open skies," a policy currently effective between the U.S. and U.K., and within the EU, encompasses bilateral or multilateral aviation agreements with less government restrictions on route rights, frequencies, and capacity, among other provisions such as cooperative marketing and liberal charter arrangements. Under the proposed policy, Haneda - currently servicing domestic and select international charter flights - would also cater to popular destinations such as Beijing, Hong Kong, Honolulu, Mumbai, and Shanghai. The committee has suggested that international flights from Haneda - both scheduled and chartered - may launch within the next two years.

(Source: Travel Vision News 5/14/07; wikipedia)
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TRAVEL: GUAM VISITORS BUREAU URGES IMAGE UPGRADE

New campaign will target luxury, wedding, group, and senior markets
Yuji Mitsumori, Japan representative of the Guam Visitors Bureau, told a seminar group of Japanese travel agents that GVB seeks to strengthen Guam's branding efforts over the next few years. Explaining that Guam is no longer just a destination for the young, Mitsumori emphasized that 17 percent of Guam visitors are age 50 and over. He also pointed out that package tours prices are rising, and bargain packages are losing popularity, suggesting that now is the time to ride the wave of Guam's rising value, and upgrade its image. Guam has steadily increased its first-class accommodations, having added the five-star Sheraton Laguna Guam in April. And in December, the five-star Hotel Okura Guam will finish renovating its Tower guest rooms, and open its brand new Villa, a VIP accommodation featuring limo services to and from the airport, a personal welcome from the general manager, a designated lounge, and butler services, specifically targeting wealthy baby boomers and high-rolling wedding parties. GVB plans to launch online promotions and overhaul its tourism web site in line with new marketing efforts. And to ensure Guam's high-class image begins at its gateway - and in direct response to tourist requests - GVB hopes to train airport customs and immigration personnel on manners and guest service.

(Source: travelvision.jp 5/24/07; plaza.rakuten.co.jp 5/25/07)
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TRAVEL: CONTINENTAL ADDS SEASONAL GUAM AND SAIPAN FLIGHTS

Package tours will accommodate summer surge in Japanese travel to the Marianas
Travel agents in Japan's Kansai region are gearing towards a hot summer for package tour travel to Guam and Saipan, supported by Continental Airlines' addition of daily flights between Kansai International Airport (KIX) and Guam, and KIX and Saipan. Following last summer's success, Continental decided to add the flights during the peak travel season from August 1 to September 3.

(Source: The Travel vision News 5/14/07)
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BUSINESS: SAKE SCORES BIG AT WINE COMPETITION

Japan's national drink takes a leap towards international recognition
While "sake tastings" and "sake bars" have popped up over the last decade in cosmopolitan cities such as New York, L.A., and Chicago, Japan's rice wine is still far from being recognized for its complexity and regional nuances. Tides may be changing, though, according to 400 judges at the 2007 International Wine Challenge in London. At the world's largest blind wine tasting featuring 9,358 wines from 35 different countries, 130 of the 228 Japanese sakes entered won awards, including 10 gold medals. Sam Harrop, co-chairman of the competition and a sake connoisseur himself, hopes the international accolades will win more sake enthusiasts in the future. "There are 600 million Japanese meals consumed outside of Japan every year," said Hopp, "How about having a glass of real sake of good quality with it instead of a bear of wine?"

(Source: Kyodo News 5/22/07)
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BUSINESS: "ECO-LIFE" AFFECTS CONSUMER CULTURE

Disposable becomes passé, as reusable chopsticks, bottles, and bags rule
In Japan, where even Starbucks requires customers to pour out their left-over latté and separating the lid from the cup before disposing in appropriate trash bins, the motto of "reduce, reuse, recycle" is visibly penetrating consumer culture. Following last year's gangbuster sales of "furoshiki" kimono cloths, which became a fashionable alternative to shopping bags, the popularity of reusable goods are soaring. The Tokyu Hands department store in Nagoya, for instance, added an entire eco-products section in April. Sales of "my hashi" (portable chopstics) and "my bottle" (portable, insulated drink bottles) doubled in May, boosted by female consumers snatching up "kawaii" (cute, in Japanese) designs. Nagoya is also seeing an increase of tea and coffee shops offering discounts to customers who use their "my bottle" instead of paper cups. And as the ban on free plastic bags spreads across the country, the popularity of "my bags" are expected to rise.

(Source: 6/3/07 Tokyo Shimbun)
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FASHION: CASUAL CLOTHES HIT NEW HIGH

Women seek design, value, and comfort in casual fashion
According to a survey by Dentsu, Japan's leading advertising agency, "business casual" is becoming more common among Japan's working women. Otherwise known as "real clothes" in Japanese fashion talk, dressed-down business attire means an increasing number of women are spending more money - and scrutiny - selecting their everyday wardrobe. Asked what they look for in casual clothes, women ranked design (64.5 percent) as the most important element, followed by value (56.8 percent), and comfort (38.8 percent). Not surprisingly, design and value were most important among younger age groups, whereas comfort and "ease of laundering" ranked higher among older age groups. Large-scale clothing chains ranked most popular overall, but the 20s age group specifically chose shopping malls and "eki-biru" (malls connected to major train stations) as their favorite shopping locations, adding that their selection has become more fashionable in recent years. In other findings, the majority of online shoppers were young moms in their 30s, many of whom cited clothes-shopping with small children "cumbersome." As for top-spenders, women in their 50s spent the most - 15,444 yen (approx. $127) per month, while the average overall was 13,158 yen ($108).

(Source: Dentsu Trend Box Survey 4/26/07)
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FASHION: T-SHIRTS SEND MESSAGES OF LOVE

Takashimaya to feature charity Ts throughout their store for two-week campaign
Original T-shirt designs by 190 brands will go on sale at all 20 Takashimaya department stores nationwide, with portions of the sale going to an anti-poverty charity group. Sales for Takashimaya's "Love T" campaign are expected to be brisk for the exclusive shirts, which will be sold in men's, women's, and children's floors. Shirts will fetch anywhere from 6,090 yen (approx. $50) for a reindeer-themed original T by artist Chinami Kamishima, to 11,550 yen ($95 ) for a form-fitting cotton T by popular brand Theater Products.

(Source: Tokyo Shimbun Shopper 5/21/07)
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SOCIETY: MISS JAPAN WINS MISS UNIVERSE TITLE

20-year-old ballet dancer takes the crown for the first time since 1959
Riyo Mori, Miss Japan 2007, won the Miss Universe 2007 beauty pageant title in Mexico City, beating out Venezuela, Korea, Brazil, and U.S.A. in the top five. Mori is only the second Japanese woman to ever win the Miss Universe title; in 1959, Akiko Kojima became the first Miss Universe from Asia. Mori stood out in the evening gown presentation, opting for a long-sleeve, black-and-violet dress with multiple layers, rather than sequined, skin-bearing dresses favored by most contestants. She also set herself apart from the competition with her seemingly unrehearsed, honest representation, saying "what you see is what you get" when asked what she wanted judges to know about her. Her victory raised some virtual eyebrows, however, with a few blogs suggesting her crown was heavily influenced by Mikimoto pearls - a Japanese company that provides the winner's tiara - being a major sponsor of the competition, which is co-owned by Donald Trump and NBC.

(Sources: www.missuniverse.com 5/28/07; Yahoo News 5/29/07)
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SOCIETY: CELL PHONES KEEP DIETERS ON TRACK

Dieters can send photos of meals via camera phone, and get feedback from nutritionist
Keeping a meal log can help dieters take a good, hard look at the food they eat. But a photo takes an instant, and is more accurate, which is why public health insurance offices in Osaka launched a trial "nutritional analysis" service in the hope of stemming Japan's growing cases of obesity. Cardiac, diabetes, and obesity patients have signed for up the trial service, which allows them to email photos of their meal (via cell phone, in most cases) to a nutritionist for analysis. Nutritionists assess photos from one day's meals to several weeks' worth, and send feedback results within three days. Home electronics giant Hitachi Corp. plans to launch its own online support system for dieters, backed by a success rate of 60 percent and an average weight loss of 11 pounds by its own employees who tested the program. Using a PC or cell phone, dieters send baseline data such as height, weight, and age to Hitachi's system, after which daily calorie intake, meal recommendations, and exercise guidelines are sent back to the user. While daily progress is tracked via cell phone or email, a live nutritionist assesses the progress every 10 days, and communicates with each user. Japan's Health Ministry cautioned the nation last year of an endemic rise in metabolic syndrome, which includes obesity, high blood pressure, and type 2 diabetes. The ministry said about 20 million men and women were at risk, and aims for a 25 percent reduction by 2015.

(Sources: cnn.com 5/24/07; yomiuri.co.jp 5/26/07)
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Health-consciousness propels popularity of sugarless drinks at home
green tea, water, and coffee are the top three drinks consumed in the Japanese home, says a survey by "goo," a research company partnered by telecom NTT Resonant Inc. and Mitsubishi Research Institute. The poll of over 1,000 households showed that drinks containing sugar, such as fruit juice and sodas, were consumed in 5 percent or less of the homes surveyed. The most popular choice - green tea - was consumed by 63 percent, while black, or English tea, ranked 5th, with just 9 percent. Milk was consumed by a considerably low 19 percent, ranking 4th behind coffee, suggesting the effect of a dwindling child population.

(Source: japan.internet.com 04/07)
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Omagari in Japan

Every year, 600,000 people come to Omagari in Japan to witness the spectacular fireworks display. On the fourth Saturday in August every year, the top fireworks manufacturers from Japan come to compete for the best fireworks display. The competitors are considered "firework artists", and are selected to be in the competition. Backed by the latest technology, each firework is hand made and packs a powerful punch. There are over 15,000 fireworks featured in the show each year, and manufacturers compete in three different categories including daylight fireworks. The competition is held on the banks of the Omonogawa River, located in Omagari, Akita Prefecture, which adds to the beauty of the fireworks with the mountains and stars as the backdrop. is the earliest fireworks competition held in Japan each year, and is therefore a great place to see what fireworks will be popular throughout the following year.

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Chikyu no Arukikata- Big Island Resort

With over 200,000 Japanese visiting the Big Island annually, are you looking for a way to reach this market?

There is the only pre-arrival publication that targets Japanese visitors traveling to the Big Island, The Globetrotter Big Island Resort Guide. More than a traditional "guidebook," the Globetrotter Big Island Resort Guide provides the reader with in-depth information on the uniqueness of the Big Island 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 the Big Island.

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

Click here for our Media Request Form or contact us.

Space Deadlines:

6/1 Chikyu no Arukikata Big Island Resort
6/1 Aloha Express September 2007
6/1 Chikyu no Arukikata Romance Hawaii Mook
7/1 Chikyu no Arukikata Oahu Resort
7/1 Chikyu no Arukikata Maui Resort
8/1 Chikyu no Arukikata Honolulu Mook 2008
8/1 Chikyu no Arukikata Guam Guidebook

Material Deadlines:

NOW! Chikyu no Arukikata Hawaii Guidebook II
6/10 Aloha Express September 2007
7/1 Nouveau Guam
7/1 Chikyu no Arukikata Romance Hawaii Mook
7/7 Chikyu no Arukikata Big Island Resort
8/1 Chikyu no Arukikata Oahu Resort
8/1 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.

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Upcoming Holidays in Japan

06/17 Chichi no Hi- Father's Day
07/07 Tanabata- Star Festival
07/16 Umi no Hi- Marine Day
08/13-8/16 Obon Season

Click here to see all Japanese holidays for 2007.
Click here to see all US holidays for 2007.

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