Japan Market Update - December 2007 Edition

Hi,

Happy Holidays!

Please enjoy this 72nd issue of Japan Market Update on travel, business, technology, and fashion trends in Japan.

The holiday season is a time for all of us at PacRim Marketing Group, PacRim Tokyo, KK, and PRTech to pause and reflect upon our many blessings. We are grateful for our clients, vendors, and company friends. We truly appreciate your business, support, and your referrals! Thank you.

Marketing and public relations have changed on a global basis. The Internet has ushered in new ways of communicating with prospects and customers, enabling direct dialogue with them. Now, strategic use of blogs, podcasts, and other communications channels are an essential part of any integrated marketing plan. One of our roles is to monitor marketing advances and recommend the best approaches to our clients doing business internationally.

Since 1990, our focus at PacRim Marketing Group-and now at our related companies-has been on driving sales performance and creating a customer following for medium sized to international organizations in Pacific Rim markets. Our multi-lingual and multi-cultural teams of marketing and technical specialists use their experience and expertise to support and create efficient, integrated, leading-edge multi-channel sales and marketing solutions. For example, our most recent client project was a simultaneous launch of four web sites that we call "The Next Generation of Web Interactivity." The client sites are in Japanese, Korean, and Chinese (both simplified and traditional). We will optimize the sites and use them to support client marketing programs and to generate leads. See recent news article on Midweek.com.

Now is a terrific time to look for opportunities to tap Pacific Rim markets. We can help you develop an efficient, integrated marketing and sales program to reach the Japan market, as well as other Pacific Rim markets.

Our best wishes to all of you for a holiday season filled with joy and happiness. Thank you again for all that you have done to help our firms.

Warmest wishes,

Dave
derdman@pacrimmarketing.com

*Japan Market News
----- Travel: Luxurious yet unpretentious Guam
----- Travel: Hawaii ranks high on travel list
----- Travel: Continental to halt Hawaii service
----- Travel: Japan satisfaction drops slightly
----- Business: Winter bonuses drop a point
----- Business: Michelin publishes Tokyo guide
----- Business: Mismanagement drives Nova out of business
----- Technology: Japan's newest cell phone carrier: Disney
----- Technology: Broadband usage widespread
----- Fashion: Color tights the "it" item this season
*Culture Corner
*Upcoming Magazine Deadlines
*Important Dates

Travel: Luxurious yet unpretentious Guam

"Touch the GUAM" campaign airs on TV commercials in major cities
Guam Visitors Bureau launched two new television ads targeting viewers in Tokyo, Osaka Nagoya, featuring a former Olympics medalist as well as a famous prima ballerina. The campaign slogan "Touch the GUAM" portrays an image of Guam being upscale yet accessible, and merely a three-hour flight away from Japan. In one segment, internationally acclaimed ballerina Tamiyo Kusakari is inspired by Chamorro dancers. And in another episode, Seoul Olympics synchronized swimmer - and repeat Guam visitor - Mikako Kotani pursues Guam's unexplored natural territory GVB hopes to highlight Guam's nature and rich culture as key attractions, naming Kusakari Guam's cultural ambassador to Japan, and Kotani as this year's nature ambassador.

(Sources: Travel Vision News 11/27/07)
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Travel: Hawaii ranks high on travel list

Mother-daughter poll ranks travel wish-list, plus a "no-thanks" wish list
In a survey of destinations mothers and daughters would like to visit together, Japan's northern-most city, Hokkaido, and cultural capital Kyoto ranked first and second. Hawaii placed third, followed by Okinawa, Kobe, and Kanazawa. Other international destinations in the top 15 were Korea (7), Bali (10), Hong Kong (11), Guam (12), Taiwan (13), Singapore (14), and Saipan (15). Another survey compiled - in good humor - the least appreciated souvenirs from Hawaii: (1) hula girl statue; Hawaiiana-etched plates, hula costume, surf brand plaques, muu muus and aloha shirts; shell accessories; leis; baseball caps; tiki dolls; golf balls; coconut shell bowls; "I LOVE HAWAII" and other Hawaii-logo t-shirts; shell photo frames; scarves; ukuleles; Hawaiian quilt trivets; Lassen artwork; Hawaiian CDs; watches and clocks; and souvenir pens.

(Source: ranking.goo.ne.jp)
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Travel: Continental to halt Hawaii service

Fuel costs, airport fees, fewer passengers plague Chubu gateway
Continental Airlines announced it will suspend its daily Honolulu flight originating from Chubu Centrair Airport. The airline plans to use its aircraft for more profitable Atlantic routes. In addition to unrelenting fuel costs, Centrair's airport usage fees rose to at least 50 percent more than that of neighboring Nagoya Airport, cutting into the airline's profitability. Centrair's aggregate airlift capacity has also bubbled far beyond actual demand - an increase in 120,000 seats versus a rise in only 40,000 passengers. To lessen the impact on travelers, Continental decided to wait until the end of the first quarter in 2008 to suspend the Honolulu route. Interest in the Honolulu route remains strong, and the airline said it would like to reinstate the service once demand picks up and an appropriate aircraft becomes available. After United Airlines suspended its Kansai - Honolulu route in October, the only airlines to service the Kansai/Chubu regions will be Jalways (JO), which services both airports, and Northwest Airlines, which flies out of Kansai.

(Source: Travel Vision News 11/13/07)
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Travel: Japan satisfaction drops slightly

More visitors say they want to try different destinations, but would recommend Hawaii
A first-quarter survey by the Department of Business, Economic Development & Tourism revealed that most visitors were highly satisfied with their overall experience in Hawaii. Japanese visitor satisfaction (47.9 percent), however, was the only sector that dropped for the first time in two years. This is in contrary to U.S. West, East, and Canadian visitors, who gave Hawaii their highest rating since the first quarter of 2005. The number of Japanese visitors who said they would not revisit Hawaii also increased 2.5 percent, 71.2 percent of whom cited the desire to visit somewhere else. Another concern was the flight being "too long," expressed by 23.7 percent of those surveyed. Japanese visitors who were very satisfied with Oahu, felt similarly for the Big Island and Kauai. In other findings, 63.6 percent of Japanese visitors who used the Internet in trip planning used it to find accommodations - the most common means of using the Internet among Japanese visitors.

(Source: DBEDT First Quarter Report)
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Business: Winter bonuses drop a point

Big business bonuses still rising, while mid-sized companies scale back slightly
For the first time in four years, the average winter bonus for Japanese workers will drop one percentage point, according to the nation's Ministry of Health, Labor, and Welfare. Economy experts have cited various reasons for the shift: mass retirement among baby boomers has lowered the number of seniority-based bonus packages; an increase in the part-time workforce has increased the number of smaller bonuses and hence lowered the average; corporations in general are shifting their focus on shareholder satisfaction from employee satisfaction. Meanwhile big corporations are still raising their semi-annual bonuses, though up a modest 0.69 percent to 901,000 yen (approx. $8,160) this winter. Civil service employees got the biggest boost of 2.5 percent compared to last year, to roughly 700,000 yen ($6,341). The average salaryman will likely score about 430,000 yen ($3,896).

(Source: asahi.com 11/3/07; Nikkei.co.jp 11/2/07)
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Business: Michelin publishes Tokyo guide

Tokyo -- "a world leader in gourmet dining" -- scores most stars in the world
The creators of the famed Michelin Guides awarded 150 Tokyo restaurants with a total of 191 stars, more than any other city in the world, including New York City and Michelin's own Paris. Paris still has the most top-rated restaurants, with 10 total, while eight Tokyo restaurants including two sushi eateries, received the publisher's highest three-star rating. A team of three undercover European and two Japanese inspectors spent a year and a half visiting 1,500 of Tokyo's estimated 160,000 restaurants to compile the ratings. The famed guidebook series, which began in France in 1900 as a guide for motorists, rates restaurants on excellence in cooking, service, dŽcor, and upkeep. Some Michelin purists have defied the three-star rating of two sushi restaurants - Sukiyabashi Jiro of Ginza and Sushi Mizutani of Shinbashi - which despite their sought-after sushi, are cramped quarters and famously unrefined when it comes to service and comfort. Some critics also said Sukiyabashi Jiro was unfairly favored because it happened to be a favorite sushi restaurant of French restaurateur, Joel Robuchon. But local food experts were glad to see credit given to deserving Japanese restaurants, despite their lack in "western-style" comfort.

(Sources: yomiuri.co.jp11/23/07; edition.cnn.com 11/20/07)
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Business: Mismanagement drives Nova out of business

No. 1 language school chain goes bankrupt, leaving staff and students in the dust
About 7,000 Nova staff - including 4,000 foreign teachers - and 300,000 students are without pay and classrooms, after the nation's biggest English language school finally filed for bankruptcy amid cash flow bungles and an inability to enroll new students. The Osaka-based "eikaiwa" (English conversation) school expanded rapidly in the 1990s, when it took advantage of the robust bubble economy, acquiring classrooms at low cost. Expansion didn't slow down even after the post-bubble slump, and the chain continued to invest huge chunks of its resources on eye-catching, celebrity-heavy TV commercials. In the last fiscal year, Nova spent 7 billion yen (approx. $63.5 million) on ads, or about 12 percent of its total sales of 57 billion yen ($517 million). Nova president Nozomu Sahashi was notoriously extravagant, and experts blame poor fiscal management as the key to the company's demise. Meanwhile disgruntled Nova students had sued the company for unfair cancellation policy, for which the Japanese Courts ruled against Nova in April. Bad press soon followed, causing enrollment to plummet and the company's bottom line to quickly cave in. The now defunct Nova has been partially salvaged by English school chain G. Education Co., which plans to resume satellite classes using TV-phone technology in early December. The classes will be initially offered to students at 18 cram schools and later to students enrolled with the original Nova chain.

(Sources: The Japan Times 11/6/07; newsonjapan.com 11/11/07)
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Technology: Japan's newest cell phone carrier: Disney

Competition among Japan's top three likely to trigger competition in saturated market
If the crowds at Tokyo Disney Resort on any given day - rain or shine - are any indication at all, Japan loves Disney. That love affair should give Walt Disney Co., the no. 2 U.S. entertainment company, a boost when it plans to enter Japan's mobile phone market next spring. High costs of building base stations have prevented foreign entrants into Japan's market, dominated by NTT DoCoMo Inc., KDDI Corp., and Softbank Corp. Disney, however, has tied up with no.3 player Softbank, with plans to lease unused frequencies and jointly develop handsets. Disney aims to win 1 million users by targeting families with an offer of handsets and downloads featuring Disney characters. Walt Disney Japan CEO explained the company's Internet content has been widely accessed and accepted in Japan, warranting a move into the mobile phone market. Sources say Mobile Disney failed to catch on in the U.S. - provided through Sprint Nextel - and will end service in December. Disney should see more success in Japan, where cell phone subscribers are more willing to pay for mobile Internet content.

(Sources: Reuters Japan 11/10/07; japan.cnet.com 11/12/07)
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Technology: Broadband usage widespread

Fiber optics catching up with ADSL in high-speed Internet raceA joint poll by telecom giant NTT's "goo" research arm, and Intenet.com, a subisidiary of Jupitermedia Corp., showed Japan's broadband usage now spans 94 percent of the nation's Internet community, up 3 points from last year. FTTH (Fiber-to-the-home) usage rose 18 points to 38.41 percent, while ADSL consequently scaled back about 20 points to 42.62 percent. FTTH is at least 10 times faster than ADSL, and is quickly becoming the service of choice for an Internet population newly hooked on streaming video sites such as YouTube and "Nico Nico Douga," a video-based social networking site. The poll also revealed that Internet usage began between age 3 and 5; more than half of first graders had experienced using the Internet. In homes with children, more than half of the Internet usage was for playing online games (55 percent), followed by research for school work (49.9 percent), and searches for hobbies and leisure (49.5 percent).

(Sources: japan.internet.com 11/13/07; research.goo.ne.jp 10/23/07)
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Fashion: Color tights the "it" item this season

Leggings selling out fast at department stores
There's a reason why stores nationwide are running out of stockings; they're all out on the streets. Magenta, turquoise, yellow, and fluorescent-colored leggings and tights are highly visible, adding splash and panache to this year's favorite layered look with short shorts, short skirts, tunics, and dresses. In fact, leg wear is so fashionable this season that denim -jeans - typically popular year-round - have taken a far back seat. Department stores - Takashimaya, Mitsukoshi, and Printemps have all seen double to triple the sales in colored tights compared to last year. And because Japanese manufacturers usually complete their annual production in the fall - and they've sold so fast - low inventory seems to have fueled the fervor for leg wear.

(Sources: field report; news.livedoor.com 11/20/07)
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Susuharai - cleaning out all of the dust and evil sprits we have collected throughout the year



December, in Japanese, is also called "Shiwasu," a time when even great monks, teachers, and/or masters do errands. Indeed, December is a busier month than most in Japan. The Japanese people get ready for New Year's and celebrate Christmas, as well as clean their homes, offices, temples, schools, and more. The month of December is literally for cleaning. And there is no cleaning service for this.

This cleaning event is called "Ohsouji," which means "big cleaning." Religiously, it has been called "Susuharai" - "cleaning the dust." Throughout the ages, it was held on December 13th , the day that the Edo Castle was cleaned during the Edo period (1603. A.D. ~ 1867 A.D.). Now days people do their cleaning toward the end of the month.

Christmas in Japan is rather commercialized, with most citizens busy shopping in December. This is due more to the tradition of "Oseibo" than to Christianity. "Oseibo" refers to gift giving, a tradition that started years ago when daughters who married into other families and/or branch family members sent offerings to their biological families. It was believed that their ancestors' souls (Japanese gods as widely comprehended) would come back on New Year's day.

"Susuharai" was done on the 13th of December in order to welcome those "gods" into cleaned homes, and people began giving them gifts. These days, "Oseibo" is similar to a Christmas gift sent to thank friends and families. For those who miss this gift giving opportunity, gifts can still be sent for "O-nenga" (New Year's gift) or for the chilly season (Kanchu Omimai).

Speaking of gifts and money, Japanese businesses take advantage of the opportunity to sell "cleaning goods" during this time. If you search "Ohsouji" on the Internet, you can find all of the convenient and interesting cleaning merchandise available for the season.

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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:

12/14 Chikyu No Arukikata Diving Resort
1/15/08 Chikyu No Arukikata Guam With Children
1/15 Chikyu No Arukikata Guam Guidebook

Material Deadlines:
12/17 Aloha Express Quarterly (February issue)
12/21 Chikyu No Arukikata Excellent Hawaii 2008

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

December 23 Tenno Tanjobi - The Emperor's Birthday
December 24 Tenno Tanjobi Furikae Kyujitsu - The Emperor's Birthday Observed
December 31 Oomisoka - New Year's Eve
January 1 Ganjitsu - New Year's Day
January 14 Seijin no Hi - Coming of Age Day

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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