Japan Market Update - September 2007 Edition

Hi

I hope you all had a great summer, and found some time to relax. PacRim Marketing Group and PRTech have been busy this summer developing new products and programs to assist our clients with their sales and marketing efforts in Japan and Asia.

Yesterday our E-Marketing Team launched the renewed and rejuvenated Japanese language portal site for Hawaii called Hawaii-Arukikata.com. The site boasts over 16,000 daily visitors and page views of over 600,000 per month. The site was a true pioneer effort, first launched over eight years ago as an in-depth specialty commercial web-site portal for Hawaii. Today the site has a suite of powerful advertising and promotional opportunities for companies desiring to reach the travelers in the planning stages of vacations to Hawaii. The site also offers hotel bookings for FIT travelers and is powered by JpRes, a proprietary bi-lingual on-line software booking system created by PacRim Marketing Group, Inc.'s sister company, PRTech, LLC.

Two weeks ago PacRim, Orbitune Inc. Japan, and Nickong Enterprises launched the "Official Hawaii Podcast" to Japanese listeners. What's a Podcast? Its like a radio program with specialized content. The Hawaii Podcast is a 20 minute weekly program about Hawaii, which can be downloaded to your computer or an MP3 player each Friday Japan time from hawaiipodcast.jp. The content includes the "best" Hawaii has to offer in food, special events, shopping, music, culture, lifestyle, celebrity interviews, and activities. The podcast is hosted by two DJ's, one in Japan, and one from Hawaii. Music and creative direction is given by Kamasami Kong, the famous DJ previously from Hawaii and on FM 802 in Osaka, and now airing on Tokyo FM. Click here to read more about the podcast and the team of partners creating the project.

The Official Hawaii Podcast has created marketing, promotion, and advertising opportunities for businesses trying to reach a tech-savvy traveler. Next step: "Destination Podcasts" and custom podcasts for hotels, activities, shopping centers, or retailers. Let us know if you have ideas or needs.

Next week PacRim's Creative Services team will add two new staff to oversee our video production projects. This summer we launched our bi-lingual video production services for companies that want to stream video on their Japanese web sites, or want to create quick Japanese advertising campaigns using video for portal sites or for posting on sites such as YouTube. Our Creative Services team also has expanded its capabilities and is now offering full service design, graphics, video, and audio production for the bi-lingual markets. pacrimcreative.com

In addition, PacRim recently teamed up with Karlton Tomomitsu, CEO of JFinders, Inc., to now add recruiting services for companies looking for bi-lingual staff in Tokyo, Hawaii, Guam and Micronesia. Our searches range from post-graduates with work experience, to middle management and executive level candidates in sales, marketing, operations, customer service, technical services, and management.

With all of our new services and activities, PacRim can help enhance your 2008 marketing programs aimed at the Japanese and other Asian markets. Please contact us to discuss your marketing needs.

Warmest regards,

Dave Erdman

derdman@pacrimmarketing.com

P.S. The 2008 US and Japan Holiday Calendar is being printed. Holiday dates for US and Japanese holidays for 2008 are posted at: pacrim holiday calendars.

*Japan Market News
-----Travel: Summer bookings up for ANA
-----Travel: Peninsula hotel opens in Ginza
-----Business: Isetan comes out on top over Mitsukoshi
-----Fashion: Experts rank quality fashion goods
-----Travel: JTB sued over cancelled wedding
-----Business: McDonald's opens McCafe
-----Business: Westin to offer "cranial" relaxation
-----Technology: Poll: Most Japanese Internet users have "Googled"
-----Technology: Earthquake monitors for the home available soon
-----Society: Poll: "TV, breakfast, coffee" key words for Japanese morning
*Culture Corner
*Media of the Month
*Important Dates

TRAVEL: SUMMER BOOKINGS UP FOR ANA

North America, China, and Asia remain hot-ticket destinations
ANA reported record bookings for its summer vacation season last month, which covered the highly-traveled "obon season" between August 13 and 17. Despite lukewarm domestic sales, ANA's international flights scored an 82.3 percent booking rate overall, while the number of seats sold rose about 12 percent. North America bookings spiked most this year, up 31.4 percent, followed by Asia (up 17.9 percent), and China (7.6 percent). Meanwhile, rival JAL saw a slight dip in bookings - 4 percent from last year - with a booking rate of 73.6 percent. Guam bookings went up sharply (44.6 percent), due mainly to increased air capacity. Korea bookings rose 12.9 percent, while Hawaii bookings dipped one point despite a high booking rate of 94 percent.

(Source: J-Wing Travel 8/13/07)
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TRAVEL: PENINSULA HOTEL OPENS IN GINZA

Luxury hotel features glamorous rooftop restaurant, high-tech guestrooms, and legendary service
Following in the footsteps of Roppongi's five-star Grand Hyatt Tokyo and The Ritz-Carlton Tokyo Hotels, The Peninsula Tokyo opened in Ginza, promising glamour and high-class service to the world's most discerning guests. While the Grand Hyatt and Ritz-Carlton are part of multi-use complexes - Roppongi Hills and Midtown, respectively - The Peninsula is the first freestanding luxury hotel to be built in Tokyo in more than a decade. Neighbor five-star, the Four Seasons Hotel, is also part of an office building, and adjacent to Tokyo Station. The 314-room Peninsula is located opposite the Imperial Palace, central to the financial district of Marunouchi, and poised to become an accommodation of choice for well-heeled business travelers. To serve that clientele, Peninsula boasts rooms among the largest and most technologically advanced in Tokyo, specifically equipped with phones that can be formatted to transfer incoming mobile phone calls, as well as a second portable phone that functions anywhere within the hotel. Designed also as a glamorous gathering place, The Peninsula features Japan's first Chantecler -- jewelry store to the stars -- as well as the swank rooftop restaurant, Peter, which offers dazzling, 360-degree views of the city.

(Source: field report; Yahoo Asia News 9/3/07)
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BUSINESS: ISETAN COMES OUT ON TOP OVER MITSUKOSHI

"Little brother" Isetan outvalues Mitsukoshi in upcoming tie-up
Despite declining profits, Mitsukoshi Ltd., Japan's oldest and fourth-largest department chain, initially thought its brand recognition and real estate value put the company at equal standing with its merger partner, Isetan Co. Isetan, the younger and smaller company, has higher stock price and aggregate market value. But based on a third-party assessment, the two sides settled on a one-to-0.32 ration, putting Isetan's value at triple that of Mitsukoshi. Industry experts expected negotiations to stall at that point, complicated by the fact that Isetan's president, Nobukazu Muto, was junior of Mitsukoshi's Kunio Ishizuka at the same high school. The vertical relationship (i.e. junior vs. senior) among business partners can cause conflicts in Japan, but in this case sources say Muto and Ishizuka's union was based on trust and an amicable past. Industry sources also said the merger was also a sound defense strategy against foreign buy-out, although both company presidents have denied such claims.

(Sources: Daily Yomiuri 8/27/07)
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FASHION: EXPERTS RANK QUALITY FASHION GOODS

Wallets, shoes, jeans, and other men's essentials that have stood the test of time
Japan's "Begin" magazine - a men's trend and fashion publication - recently featured must-haves adored for at least 10 years by Japanese fashion industry insiders. The quality-obsessed panel of designers, buyers, retail operators, CEOs, writers, and artists unanimously chose Britain's Whitehouse Cox as the top wallet brand. The hand-crafted wallets are created with authentic bridle leather, known to last "indefinitely," while maintaining a beautiful, ever-changing luster that grows richer with wear. Middleborough, Mass. - based Alden was selected the top shoes and boots brand, notably for its craftsmanship and attention to detail, as well as for its variety, ranging from rugged work boots (for which the company was originally known), to elegant calfskin oxfords. Levi's 501s topped the poll as the most classic and versatile pair of jeans, despite the popularity of luxury denims in Japan such as Seven For All Mankind and Chip & Pepper. "Lots of new denim brands got their big breaks in the last decade, but none is as timeless as Levi's," the panel said. Finally, Converse and Adidas tied for the favorite pair of sneakers; Converse, for its "cheap and chic" canvas sneakers, and Adidas' plain white leather sneakers for its nostalgic, yet classic design.

(Source: Begin magazine 9/07)
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TRAVEL: JTB SUED OVER CANCELLED WEDDING

Groom blames travel agency for passport snafu
A Japanese man irate over missing his wedding ceremony in the Philippines, has filed for 3.8 million yen (approx. $33,000) in damages against travel agency giant Japan Travel Bureau Corp. The man was on his way to wed his fiance on Mindanao Island, when he was not allowed to board his flight from Osaka because his passport was not valid for at least another six months. The suit claims that JTB failed to tell him that six months' validity was required on his passport to enter the Philippines, and therefore the agency should compensate him for losses that include cancellation fees for his wedding and accommodations.

(Source: Yomiuri Shimbun 8/25/07)
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BUSINESS: MCDONALD'S OPENS MCCAFE

Burger chain enters Japan's coffeehouse market with 15 McCafes across the country
Burger chain enters Japan's coffeehouse market with 15 McCafes across the country In an effort to gain a share of Japan's gourmet coffee market, fast-food chain McDonald's simultaneously opened its cafŽ version, McCafe, at 14 locations in the metropolitan Tokyo area, and one in Kobe. At the McCafe in Ebisu, Tokyo, enthusiastic early birds lined up outside the restaurant prior to the grand opening on August 29th. McDonald's introduced the concept in 1993, and have since launched the successful deli-style cafes in 33 countries including Canada, Europe and across Asia. McCafes are either annexed to larger McDonald's restaurants, or are stand-alone cafes. In Japan, a cup of McCafe's gourmet espresso is priced at 170 yen ($1.50) - almost 50 percent less than Starbuck's 260-yen ($2.25) brew. As such, McCafe is quickly building a steady reputation as a steal among coffee lovers. McCafe also focuses on healthy, light meals including vegetable soups, croissant sandwiches, and an exclusive selection of baked goods from around the world, sold for 100 yen (approx. $0.90) each.

(Sources: Fuji Sankei Business 8/30/07; japantoday.com 8/31/07; McDonald's Japan)
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BUSINESS: WESTIN TO OFFER "CRANIAL" RELAXATION

Hotel chain will merchandise its own brand of "sudoku" games for guests
Westin's famous "heavenly bed" may be a lovely place to rest your head, but the company is going deeper by offering to massage the brain through its own line of "sudoku" number puzzles. Westin will partner with Japanese company Nikoli Co. Ltd., which trademarked "sudoku" in the 1980s, to create original versions of the logic-based games targeted for business travelers seeking to destress and unwind. Historians say variations of sudoku (which loosely translates to "there can only be one number" in Japanese), have been available in newspaper puzzles sections across Europe for at least the last century, long before daily readers in Japan, U.S., and U.K. became obsessed with them and pushed sudoku to mainstream popularity in the last decade. The USA Today called sudoku "morning brain breakfast for millions of commuters" in the U.S., while the book, "Su Doku for Dummies" shot to the top of the paper's Best-Selling Books list in 2005.

(Source: Travel Vision News 8/24/07; USA Today 8/24/05)
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TECHNOLOGY: POLL: MOST JAPANESE INTERNET USERS HAVE "GOOGLED"

Search engine's recognition continues to rise
Although Yahoo has been the search engine leader among Japan's mobile Internet users, Google is making a niche for itself as a widely-recognized Internet service. Most notably, a recent survey by Internet.com and the research arm of Central Japan Railway Co. has shown that Google's newest services, such as Google Earth, Gmail, and Blogger, are gaining recognition among Japan's Internet users. In fact, of the 88.1 percent of pollsters who have used - or regularly use - the search engine, 75 percent have already tried Google Earth, which provides real renditions of global satellite maps. However Gmail usage among those surveyed stood at 23 percent, just 5 percent more than poll results from the year prior.

(Source: japan.internet.com 8/07)
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TECHNOLOGY: EARTHQUAKE MONITORS FOR THE HOME AVAILABLE SOON

Japan takes earthquake preparedness to the next level with home alert devices
Imagine knowing an earthquake is coming, moments before it happens. In a few critical seconds, one can turn off gas, open windows, and find cover. These steps don't stop the inevitable, but can save lives, which is why a commercially-available technology to alert pending tremors is becoming available for home use in October. In Japan's last big tremor in July - the 6.8-magnitude Chuetsu-oki Earthquake - the alert system successfully enabled trains to stop seconds before the quake hit. Ultimately the earthquake was blamed for 11 deaths and billions of dollars in damages, but in an attempt to stem such casualties electronics leader NEC, telecom giant NTT, and scores of companies specializing in seismic detection are developing alerting devices for the home. Although exact prices have not been released, a home alert system by 3SOFT Japan is expected to cost about 100,000 yen (approx. $850), in addition to few thousand yen in monthly charges for the alerting service and connectivity. However, industry experts believe the alert system will soon become bundled into existing home media, such as home security systems, IP phones, cable TV, and even mobile phones. Mobile carriers NTT DoComo, KDDI, and Softbank are in fact all working on a distribution system for earthquake alerts. The challenge among tech companies, scientists, and lawmakers will be how to regulate the information - if that's even possible - and moreover how to educate the public not to panic, should the alert system go mainstream.

(Source: trendy.nikkei.co.jp 8/07)
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SOCIETY: POLL: "TV, BREAKFAST, COFFEE" KEY WORDS FOR JAPANESE MORNING

More Japanese wish they had time to jog or read the paper during a.m. hours
In a survey by advertising giant Dentsu Inc., an average morning's top activity is watching TV (72.6 percent), followed by eating breakfast (71.6), and drinking coffee or tea (66.6). But women in their 20s preferred jogging, walking, and fixing a decent breakfast as their ideal morning agenda, while women in their 30s chose stretching and yoga as their activities of choice. Both age groups underlined the desire for a healthy daily start among young women. In other notable results, men in their 30s loathed mornings most, suggesting stress and lack of sleep as most problematic in this age group. Conversely, 80 percent of men in their 60s enjoyed their mornings, noting leisurely hours spent reading the paper, and exercising. Another finding befitting the modern age was the popularity of Internet browsing during the morning hours. In fact, "Internet" and "coffee" were the highest ranked and most wide-spread activities among all age groups except women in their 20s and 60s.

(Source: Dentsu Trend Box Survey 7/17/07)
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Higan-e (Ohigan):


September marks the beginning of Japan's "leisure" season, when delicious foods are served and couples and families drive to mountains, lakes, and hot springs to take advantage of the comfortable weather and view landscapes colored by leaves turning yellow, orange, and red. "Keiro-no-hi" (the holiday will be observed on September 17 this year.) is known as "Respect for the Aged Day." On this day, even young men who are busy sending text messages while riding the train may be attentive to elders and give away their seats.

The other three day weekend in September is "Syuubun-no hi," or Autumnal Equinox Day. This day is celebrated in conjunction with Ohigan.

Ohigan is a week-long Buddhist event, starting September 20, during which people clean their ancestors' altars and visit their graves. Ohigan (Higan-e) is a translated word from "Paramita" in Sanskrit which means crossing over to the spiritually awakened world from the current time with worldly desires and passions.

Celebrated only in Japan, Ohigan is based on Japanese agricultural traditions and the autumnal equinox, occurring around September 22, when the sun crosses the equator, making night and day of equal length on all parts of the earth. Buddhism teaches moderation as the best path in either good or bad situations. No extremes! Hence, the Buddhist event is celebrated in between hot and cold seasons, as this Japanese saying denotes, "ATSUSA SAMUSA MO HIGAN MADE" - the hot season and cold season end by the equinoxes.

To celebrate Ohigan, people place Ohagi (rice with Anko - red beans on top of it) on the alter and also enjoy eating it. The purpose of Ohigan is to look back on your own self/daily life and to take the opportunity to meditate about how to do virtuous deeds. However, young generations may be more concerned about where they are going for a drive during the three day weekend.



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Hawaii no Arukikata website


Just as new and exciting changes are happening in Waikiki and Ala Moana, so are changes happening for Hawaii-Arukikata.com, the largest and most popular Japanese commercial Web site about Hawaii. The site, which is being renovated for better usability and a new overall look, was launched on September 5th.

Hawaii-Arukikata.com is a Hawaii-based Japanese Internet magazine focusing on current Hawaii news and features local cuisine, fashion, events and entertainment. With over 16,000 visits per day, 600,000 monthly page views, and 25,000 e-mail subscribers, the site is a major provider of up-to-date information and in-depth articles about Hawaii for Japanese Internet users and travelers to Hawaii..

This online Web publication offers various modes to reach your potential customers through its advertorial packages, coupons and banners. The new site will also incorporate new media such as Podcasts, which will create more opportunities to reach the Japanese market. Flexible price ranges are available to accommodate your needs.

Don't let this important opportunity pass you by. If you are interested in finding out more about advertising in this publication please contact June Cappiello at jcappiello@pacrimmarketing.com or Junko Sekine at jsekine@pacrimmarketing.com

Upcoming Holidays in Japan

September 23 Shuubun no Hi - Autumnal Equinox Day (actual)
September 24 Shuubun no Hi - Autumnal Equinox Day (observed)
October 8 Taiiku no Hi - Sports Day
November 3 Bunka no Hi - Culture Day
November 23 Kinrou Kansha no Hi - Labor Thanksgiving Day

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

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