Japan Market Update - October 2007 Edition

Hi,

This autumn brings with it many changes. The weather in Japan has gone from hot and humid to cooler temperatures. Children have gone back to school. Fall fashions are on display in department store windows. And yes, even the Prime Minister in Japan changed! See the newsletter below for updates on fall news and trends.

Fall has been a time of change here at PacRim Marketing Group and PRTech as well. We are pleased to announce the October 1st re-location of our Tokyo office to the Shinjuku Ward in central Tokyo. Our investment in the three story POSH Building is the latest step in our efforts to enhance our commitment to Asian marketing and sales programs supporting our clients.


POSH Building

Our Tokyo staff is working with the Japanese media on a daily basis, pitching stories and supporting our clients' advertising needs. The team in Tokyo can assist you with trade missions, seminars, presentations, and product and/or service launches. Our showroom on the ground floor of the POSH Building is available for product presentations on a daily or monthly basis.

Joining our Tokyo team as Director of Business Development, Japan and Asia, is Karlton Tomomitsu. Karlton worked on Japan-focused marketing in Hawaii and Japan for more than 20 years and in the recruiting business in Tokyo for the past seven years. He has owned his own recruiting firm there since 2003, assisting Tokyo-based companies in recruiting highly qualified bi-lingual candidates. PacRim will collaborate with Karlton to support our clients' bi-lingual staffing needs in Japan, Hawaii, Micronesia, and the U.S. Mainland.

At our Hawaii office, Brian Newman, has been hired as Account Manager, Sales and Business Development, for PRTech and PacRim Marketing Group, Inc. Brian has more than ten years of sales and account management experience in Japan and China, as well as a Ph.D in Japanese literature.

Also joining PacRim in Hawaii is Katja Silveraa, or "Kat". Originally from Sweden/Finland she speaks seven languages and currently learning Japanese. She is our new Assistant Manager of advertising and media sales. Katja comes from working in fine art sales, advertising, and writing/editing for a publication. She earned her BSBA/Marketing and MA/Communications where she focused on color perception in print ads created in Hawaii but intended for the Japanese consumers.

Joining her is Minsun Chang, who previously worked in sales and account management for one of Hawaii's premier visitor attractions on Oahu. Minsun's main role will be to support client marketing needs on the renewed hawaii-arukikata.com, hawaii's premier web portal site in Japanese language. Minsun is fluent in Japanese and Korean.

Other news this fall: The Aloha Express Quarterly series of publications, as well as the annual yearbook, have been given designation status again from Ala Moana Center. This is good news as the publication has been rated highly by the global brands and Hawaii-based retailers on all islands targeting pre-arrival messages to light/heavy repeaters (particularly those in Hawaii's prime target market of 30's to 45 years of age).

Enjoy the many topics of fall in the newsletter below.

Warmest regards,
Dave Erdman
derdman@pacrimmarketing.com

*Japan Market News
-----Travel: HTJ introduces new slogan for 2008
-----Travel: Guam tourism on the right track
-----Travel: JAL tour offers special Honolulu Marathon charter
-----Business: Japanese TVs made in eastern Europe
-----Business: Cosmetics market stable
-----Business: Cosmetics market focuses on hair thinning
-----Politics: Abe resigns, Fukuda appointed as new PM
-----Fashion: Dresses, leggings, boots lead fall trends
-----Fashion: Men's mag ranks top ten must-haves
-----Beauty: Japanese all smiles over face fitness
*Culture Corner
*Media of the Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: HTJ introduces new slogan for 2008

Bureau to pitch "upscale experience" to seniors and families
"So Much More Hawaii..." will be the follow-up slogan to last year's "Discover Aloha," in the hopes of enticing Japanese travelers with the notion that there's "more to Hawaii" than meets the tourist's eye. Hawaii Tourism Japan plans to push an upscale vacation that also meshes hands-on experiences such as lei making, Hawaiian quilt making, hula, and ukulele lessons, and sports activites. HTJ plans to work with leading travel agencies to upgrade brochures to include detailed event calendars and lists of local activities so that potential travelers can easily pinpoint areas of interest throughout the year. Hawaii Tourism Authority also reiterated the importance of targeting Japan's baby boomers and "active seniors" markets, the wedding and "romance" market, and multi-generational families such as mother-daughter travelers and young families traveling with parents.

(Sources: travelvision.jp 9/7/07/9/11/07)
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Travel: Guam tourism on the right track

Japan bureau chief stresses positive shifts and upcoming promotions
"This is not the Guam of yesteryear," appealed Yuji Mitsumori, chief Japanese representative of Guam Visitors Bureau. Addressing hundreds of travel industry insiders at the annual JATA (Japan Association of Travel Agents) World Trade Fair, Mitsumori challenged assumptions that Guam is a weekend destination, pointing out that nearly half (47 percent) of Japanese travelers spend at least four nights or more. In other positive news, August arrivals rose 3 percent to 95,700 despite fewer charter flights. October outlook is also looking up, with large tours of 500 to 1,000 participants in the books. Mitsumori commended Japan's regional travel agencies for promoting GVB activities, for which he attributed a 20 percent jump in bookings from a single agency in Hokkaido. Addressing recent declines in the family market, however, Mitsumori expressed plans to develop new, region-specific promotions to attract families. GVB also plans to introduce a new ad pitch around December to replace the current "Do you know the real Guam?" slogan.

(Source: jata-wtf.com; travelvision.jp 9/18/07 )
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Travel: JAL tour offers special Honolulu Marathon charter

"Honolulu Marathon Plan" includes tour of marathon course
JAL's package tour subsidiary Jalpak will offer a limited-time package called "AVA Special Hawaii 7 Days," which will depart on JAL charter flights from Haneda Airport on December 6, 7, and 8. Sure to be a hit among first-time Honolulu marathoners, an optional "JAL Honolulu Marathon Support Plan" ($158 per person) includes a pre-race tour of the marathon course, a customized recording of the race called "My Marathon DVD," and privileges at the AVA tour desk during the marathon weekend. JAL plans to sell 200 tour packages, which are priced from 156,800 yen ($1,365). The packages should especially appeal to Tokyo travelers, since Haneda airport is 30 miles closer to the city center than Narita airport. Haneda, Tokyo's secondary airport, caters mostly to domestic, short-haul, and charter flights.

(Source: travelvision.jp 9/28/07)
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Business: Japanese TVs made in eastern Europe

Experienced labor, low tariffs fuel manufacturing boom
Japanese electronic giants such as Sharp, Sony, and Matsushita (Panasonic) are shifting flat-panel TV production from eastern Asia to eastern Europe, due to increased favorable tax clauses and a wealth of inexpensive, yet experienced labor. Poland, Slovakia, and the Czech Republic have seen the greatest influx in Japanese manufacturers. Japanese automakers also began tapping into the region's labor market two years ago. According to JETRO (Japan External Trade Organization), the number of Japanese companies with manufacturing quarters in eastern Europe jumped from 16 in 1994, to 175 in 2005. By the end of 2007, that number is expected to surpass 200. With its accessibility to both Japan and eastern Europe, Germany has quickly grown into a critical hub for these Japanese manufacturers. DŸsseldorf and Frankfurt in particular have become popular cities for Japanese manufacturers seeking European headquarters. Western European nations, as well as S. Korea and China have also begun to shift production to eastern Europe, heavily increasing commerce traffic through Germany's gateways. In preparation for fierce competition among exporting manufacturers, China, Japan, and S. Korea have been reported investing heavily in port upgrades in northern Germany and Croatia.

(Source: Fuji Sankei Business News 9/25/07)
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Business: Cosmetics market stable

Drugstore brands, China expansion remain keys to profitability
Moody's Investment Service, a leading U.S.-based investment research firm, gave Japan's cosmetics industry a thumbs-up based on steady demand, but gave warning on recurring challenges. Rising competition and rapid changes in diversified sales channels require cosmetics companies to enhance their brands and manage their sales channels in order to protect their market positions, the agency said in its report titled "Japan Cosmetics." Japan's drug store channel, which distributes a gamut of affordable cosmetics and skin care products, remains one of the industry's most solid and profitable functions, although effective spending on advertising and sales promotion will be key to maintaining competitive advantages. A Moody's analyst also said an overseas strategy is key to realizing high growth, citing Shiseido's aggressive expansion into China through department stores and cosmetics specialty stores.

(Source: forbes.com 9/19/07)
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Business: Cosmetics maker focuses on hair thinning

Responding to needs of boomers, company hits jackpot with new line of hair product
A small Japanese cosmetics maker became a big player in the nation's multi-million dollar hair care industry following the gangbuster sales of a hair tonic that stimulates new hair growth. "Rerege" was first introduced in 2002, at the dawning of Japan's retiring boomer generation. It has since exceeded 1.1 million units in sales, and now makes up more than a quarter of the company's 900 million yen (approx. $7.7 million) annual earnings. Fuji Sangyo Inc., the small-size company based in Kagawa Pref., credits its success on anticipating the anti-aging revolution early, mobilizing a product development team consisting of specialists in medicine, agriculture, and biology. The team tested over 130 nature-derived elements before discovering a white yam in Brazil, which yielded a property that successfully stimulated new hair growth. Rather than investing in distribution and advertising for placement on store shelves, Fuji Sangyo channeled sales through TV commercials and phone orders.

(Source: Fuji Sankei Business Eye 9/25/07)
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Politics: Abe resigns, Fukuda appointed as new PM

New PM retains majority of cabinet members and stays vague on political goals
In a move to assume responsibility for numerous scandals involving his top-tier officials, Prime Minister Shinzo Abe resigned mid-September, making way for his cabinet secretary, Yasuo Fukuda to take his place. Political analysts doubt the 71-year-old Fukuda will emulate the bold diplomacy of Junichiro Koizumi and Shinzo Abe, but admit his role as Japan's longest-serving chief cabinet secretary positions him as a savvy and respected intra-party negotiator. Fukuda's domestic policy is still cloudy, but he has placed at least one time-critical foreign policy on the top of his agenda; he is expected to follow through with Abe's controversial plan to extend the Anti-Terrorism Special Measures Law (SML), allowing the continued dispatch of Japanese Self Defense Forces vessels to the Indian Ocean, where they refuel American, British, and Pakistani ships operating against the Taliban. The law is considered pivotal in maintaining good ties with allies, though protested by lawmakers who want Japan to retreat from the Iraqi War effort. Apart from a desire to "stabilize ties" with Asian nations, Fukuda has been unclear on his stance towards other foreign policies, unlike his pro-military predecessor who took a hard-line approach with China and North Korea.

(Sources: aei.org 9/07, Fuji Sankei News 9/23/07)
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Fashion: Dresses, leggings, boots lead fall trends

Summer tunics transform into layered autumn wear
Summer's popular babydoll dresses and tunics are versatile this year, turning into cool weather-wear when worn with leggings and turtleneck shirts. Fabrics come in a kaleidoscope of colors and prints, from emerald green solids and muted naturals, to bold floral and geometric patterns. Jersey knit, three-quarter sleeves, and puff sleeves are also popular styles. Tops are seen paired with black leggings, although funky hosiery in general have become must-have fashion items during the cooler months. Hosiery specialty stores seem increasingly popular, offering not just nylons but tights in various knits, colors, and patterns. Short and long shirt dresses have also been popular through the summer and into the warmer-than-usual fall months, with crisp tailor-style shirting paired most with wide leather belts.

(Source: field report)
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Fashion: Men's mag ranks top ten must-haves

High gloss, hand-craftsmanship, function, and exclusiveness make these goods special
1. Patent leather shoes by Alden -The Mass.- based shoe company released special-order patent leather oxfords and tassel loafers. Aldens enjoy a faithful following among the quality-obsessed in Japan, where Alden fans are purportedly vying for a pair of these patents with maniacal determination. 2. Black Shoe Cream - high shine is "in" for leather shoes this year. 3. Aritigianale shirt - hand-sewn Italian dress shirt that looks better when slightly wrinkled, giving this year's "dressy casual" an edgier look. 4. Voyage windbreaker - a little bit military, a little outdoorsy, and very gentlemanly, this understated blouson by underground-ish U.S. fashion house Wastetwice boasts a special heavy-duty nylon used for flight jackets worn by the British Air Force. 5. Watch by Android - Designed by a Florida watchmaker, this lesser-known but high-quality automatic watch makes the Rolexes and Tag Hauers look clichŽ. 6. Day Planner by QuoVadis - a sleek leather-bound stationary that lets even penciling in a meeting look stylish. 7. Magic Wheel - think unicycle redesigned, this new ride took Europe (and YouTube) by storm. 8. Glasses by Kaneko - a reproduction of '30s-style glasses using a proprietary alloy called "sun platinum," which is gentle on the skin and "discolors" beautifully with age. 9. iControl watch by Timex - a digital watch that also doubles as a remote control for your iPod. No more digging around the bag or pocket to skip a track. 10. Timberland - anything in the famous "yellow nubuck" style rocks this year, ranging from the classic work boots, to belts, key chains, coin purses, and wrist bands.

(Source: Begin magazine Nov. 07 issue)
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Beauty: Japanese all smiles over face fitness

Exercising facial muscles the new rage for combating wrinkles and saggy skin
While topical treatments, spa facials, and beauty supplements remain popular skin care regimen in Japan, the latest buzz in anti-aging is "face training," also called "facening." The term was first popularized this summer by a Nintendo DS video game called "Otona no DS Kao Training," which objective is to help users through exercises with the goal of toning targeted facial muscles. A special camera that attaches to the game piece scans the user's face to make sure the exercises are performed properly. While "facening" was ridiculed by members of the U.S. media, scores of Japanese dermatologists, cosmetic surgeons, and scientists have chimed into TV and magazine features on the subject, agreeing Nintendo is onto something. According to these experts, daily exercises, which include squinting and various contortions, can tighten facial muscles and ultimately defy gravity's effect on the face.

(Source: www.inside-games.jp 8/07, Tarzan magazine 9/07)
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Kannazuki - Oh, my gods are gone!


According to the Japanese lunar calendar, October is called "Kannazuki" (pronounced Kan-na-zuki). The Japanese characters (letters) that spell out this name mean, "month without gods." (Kan" comes from "Kami," which means "god" and "Na" means "not existing.") The Japanese attribute this to a belief started in the Medieval Ages that the leading gods in each region had gone to Izumo-Taisha in Shimane for an annual meeting; therefore no gods were available in those regions during the lunar month of October.

In Shimane prefecture, however, where all the gods gather in October, the month is referred to as, "Kami-ari-zuki," or "gods existing month." Izumo Taisha in Shimane is a well known shrine in Japan, famous for housing the leading god of marriage-"Ohkuni-nushi-no-Okami" or "Daikoku-sama" (the more popular name). In the annual meeting, gods discuss people's fates, especially who will marry whom. To this day, Japanese people visit Izumo Taisha to ask the god to guide them to their right partners. The Japanese used to believe that, through his understanding of people's pains and pleasures, he helped citizens create Japan and that he is the parent god of affection and mercy. This is why "Ohkuni-nushi-no-Okami" is believed to be the god of marriage.

The best way of understanding Kannazuki is to remember that it was derived from the word "Kami-no-Tsuki," a month (Tsuki) of gods (Kami), and that it is part of the Shinto religion, which originated in the Japanese worship of agrarian, earthly, and ancestral gods. Shinto gods are collectively known as "yaoyorozu no kami," which literally means the eight million deities.

There is a branch shrine of Izumo Taisha on Oahu and it has a one hundred and one year history. Whether you believe in the myth or not, this month is a good time to visit the shrine with the understanding of its deep history and because "Daikoku-sama" is also the god of chances and destinies in many ways.

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CHIKYU NO ARUKIKATA EXCELLENT HAWAII



Whether through spa treatments, fine dining, shopping or simply relaxing at the beach, visitors to Hawaii can always find ways to indulge themselves. For those that have a taste for the finer things in life, Chikyu No Arukikata publishes the "Excellent Hawaii - Luxury Lifestyle" MOOK, which focuses on Hawaii at its best.

"Excellent Hawaii" targets visitors looking for a high-end, luxury stay during their time in Hawaii. It features Hawaiian culture, nature, brand shopping, Made-in-Hawaii items, accommodations, dining, and targets the repeat traveler who wants more from Hawaii than just a tourists' destination. Each new issue is created from cover to cover and includes the latest from Hawaii.

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

The view this Japanese media profile and schedule visit: http://www.pacrimmarketing.com/ad/admedia/c/1246.html.
To view all Japanese media profiles visit: http://www.pacrimmarketing.com/ad/admedia/medialistname.html.

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Visit www.pacrimmarketing.com/ad/mediareqform.html for our Media Request Form or contact us at ads@pacrimmarketing.com.

Space Deadlines:

11/1 Chikyu No Arukikata Excellent Hawaii 2008
11/1 Aloha Express Quarterly (February issue)
12/1 Chikyu No Arukikata Diving Resort

Material Deadlines:
12/1 Chikyu No Arukikata Excellent Hawaii 2008
12/1 Aloha Express Quarterly (February issue)

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

10/8 Taiiku no Hi - Sports Day
11/3 Bunka no Hi - Culture Day
11/23 Kinrou Kansha no Hi - Labor Thanksgiving Day
12/31 Oomisoka - New Year's Eve

Visit www.pacrimmarketing.com/info/japanholidays07.html to see all Japanese holidays for 2007.
Visit www.pacrimmarketing.com/info/usholidays07.html to see all US holidays for 2007.

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