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Japan Market Update - January 2008


Happy New Year!

All of us at PacRim Marketing Group, Inc. and PacRim's affiliated technology and multi-lingual on-line and web systems development company,PRTech, LLC hope you had a successful "Year of the Boar" with abundance and good fortune as predicted. 2008 is the "Year of the Rat," a time of hard work, activity, and renewal. During this year, we hope to assist you and your organization in gaining a greater level of success in your marketing programs for Japanese and other Asian markets.

This issue of Japan Market Update offers you a recap of some of 2007's top products and concepts, and a quick look at some emerging trends at the end of the year. Our Culture Corner gives you insight into sights, sounds, and tastes of the New Year in Japan.

Each day our Honolulu Headquarters and Tokyo staffs monitor the Japanese marketplace to track new technologies, media headlines and news, fresh talent and celebrities, and how these trends are impacting consumer decision making. We use this information to help our clients tap potential new business opportunities.

Of note in the Japan Daily Yomiuri on January 1, 2008: U.S. Blog survey company Technorati Inc. noted that Japanese became the most common language used in blog posts in the forth quarter of 2006, accounting for 37% of all blog posts, eclipsing English with 36%. Incredible, when only 1.8% of the population speaks Japanese, and Japanese account for just 7.1 % of global on-line population. What are the characteristics of Japanese blogs and why is the Japanese blogging culture so different from the United States and the rest of the world? What is the power of a blog in Japan? One blogsite in Japan, written by a women about a cat, gets 110,000 accesses a day. U.S. blogsites are more journalistic, less like diaries. 66.2 % of those using blog services with Rakuten Inc. are women, while "housewife" is the most common category of blogger.

These are areas we will report on in future Japan Market Updates; we'll also help our clients understand how to tap this media and other new technology.

Warmest wishes,

Dave
derdman@pacrimmarketing.com


TABLE OF CONTENTS
*Japan Market News
----- Travel: Rakuten offers Guam travel perks
----- Travel: Holiday bookings double for Rakuten Travel
----- Society: Cram school spending up
----- Business: Tokyo ranks first in Asia, fourth in the world
----- Business: Green burials gain momentumn
----- Business: Hottest trends of 2007
----- Business: Toyota to develop senior-friendly cars
----- Fashion: Hello Kitty marketed for men
----- Technology: iPhone continues global launch
*Culture Corner
*Media Of The Month
*Upcoming Magazine Deadlines
*Important Dates

Check out our latest media opportunity! Visit Upcoming Magazine Deadlines for more information!


JAPAN MARKET NEWS

Travel: Rakuten offers Guam travel perksm
Smart Pass gives travelers shopping, restaurant, and optional tour benefits
Rakuten Travel, the travel arm of Japan's largest Internet mall operator, launched the Smart Pass - a card offering special perks at about 100 shops and restaurants in Guam - for subscribers who booked Guam hotel and/or tour reservations at the Rakuten Travel web site. Travel agency giant JTB and credit card companies such as JCB offer similar services in Guam, but Rakuten's privilege service boasts a larger number of partner retailers. Rakuten Travel is Japan's no. 2 online travel site, slightly behind no.1 Yahoo Travel.

(Sources: Travel Journal International 12/26/07; Nikkei News 12/22/07)
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Travel: Holiday bookings double for Rakuten Travel
Expanded hotel networks and real-time availability keys to success
Rakuten Travel said its bookings doubled for the period between December 29 and January 3, possibly the nation's busiest travel season next to Golden Week. Airfare, hotel, and package bookings increased by 114.2 percent - more than double - compared to the same period last year. By destination, Taiwan led the biggest increase in airline ticket sales with 253 percent. For hotel bookings, Hawaii, Micronesia, and Oceania bookings increased by 145.5 percent. Rakuten credits the mainstream use of online bookings as the main reason for the big jump. An expanded network of regional hotels, as well as new technology that turns over more accurate room availability also contributed to Rakuten's success, the company said.

(Source: Travel Vision News 12/19/07)
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Society: Cram school spending up
Fees also higher, but most children still get supplementary education
Education spending by Japanese families have hit record highs again, despite public criticism of cram schools. The average annual cost of cram schools for public primary students is now 142,000 yen (approx. $1,300) per child - up 10 percent from a decade ago - and for public middle school students, about 246,000 yen ($2,250) - up 30 percent. The efficacy of cram schools, called "juku," and whether supplementary education is necessary for Japanese students to score higher on entrance exams, have been widely debated. But 71.6 percent of public middle school students, and almost half of public primary school students still attend cram schools. Japan's Ministry of Education, Science, and Technology, which conducts the bi-annual survey, also found that disparities in children's learning opportunities are widening along with growing differences in household incomes, a concern since the trend defeats public education's essence of equality. Parents of pubic school children with an annual income of 12 million yen ($109,000) or more spent an average of 271,000 yen ($2,500) per child per year, or almost triple that of households with income of less than 4 million yen ($37,000), which spent an average 98,000 yen ($900) per child.

(Source: yomiuri.co.jp 12/22/07)
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Business: Tokyo ranks first in Asia, fourth in the world
Economic and cultural significance puts Tokyo in top ranks
London, New York, Paris, and Tokyo. It's the order of the world's most influential cities, according The Independent, a British daily newspaper. A team of researchers scored 60 cities on data derived from 14 criteria including population, the number of World Heritage cites, and the city's stock market capitalization. Less conventional measures were also used to gauge a city's significance, such as the number of Google results after typing in the name of the city, the number of individual guidebooks on a city at a London bookstore, and the number of symphony orchestras. Tokyo was named Capital of Asia, certainly boosted by the fact that it is the world's biggest population and Asia's busiest airport, and also because its "citizens appear to embrace an interest in all things cosmopolitan. From Indian restaurants and American musicals to French art exhibitions and Italian design stores, the city is a den of global flavours." For the complete list, click here

(Sources: Kyodo News 12/23/07, travel.independent.co.uk 12/22/07)
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Business: Green burials gain momentum
Cardboard caskets, planted tree monuments becoming popular final wish
In the U.S. and U.K., biodegradable caskets and zero-embalmment burials are becoming increasingly popular among eco-minded citizens, who are choosing proverbially to return to the earth - as compost -- rather than being embalmed with toxic chemicals and nailed into an indestructible coffin. In Japan, where the dead are traditionally cremated, ecological trends are also fueling changes in the industry. Funeral service company Serio, based in Iwate City, developed an easily combustible cardboard casket that not only uses 66 percent less resources than the traditional wooden casket, but also requires half the fuel during cremation. Carbon monoxide and other toxic fumes are also reduced to a third of the traditional process. Serio went mainstream in the fall of 2007, when their caskets became featured items in Japan's "Seikyo" shopping network, a co-op with over 60 million members across the country. "Surprisingly, funerals [and burials] have great impact on our environment. We want to minimize that impact," said a Seikyo spokesperson, adding that Seikyo also began offering organic, biodegradable candles and paper announcements as part of their funeral service packages. The caskets have been a hit, even among older consumers who were expected to hesitate the idea of a cardboard coffin. In the same city of Iwate where the eco-caskets were born, a local temple converted a lush hilltop into a natural burial ground sans gravestones. Instead, ashes are buried in a shallow grave, above which a tree is planted bearing a plaque with the name of the deceased. About 1,400 of the 3,000 possible plots have been sold, half of them to people in Tokyo, Kanagawa, and Chiba (about 300 miles away). Motivations for buying tree burial plots vary, with some liking nature or the low costs, while others don't have children to maintain a family grave.

(Sources: wikipedia, Morioka Keizai Shimbun 11/21/07, Kyodo News 12/24/07)
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Business: Hottest trends of 2007
E-money, Billy Blanks, deodorant, leggings were last year's greatest hits
Japan's popular "Trendy" monthly magazine recaps last year's blockbuster hits:

1. E-money: nanaco and Pasmo revolutionized Japan's e-money movement this year. Behind the success of the nanaco card, lay Seven & I Holdings' (owner of Japan's Seven-Eleven stores) wide network of stores, e-money's first point perks program, and incentives given to stores for enrolling new members. Passengers within Tokyo's sprawling bus and train network also snatched up over 5 million Pasmo cards in less than 6 months, thanks to the cooperation among private transportation companies to streamline the fare system.

2. Billy Blanks: Tae Bo may be a fad of the past in the U.S., but the energy and charisma of Billy Blanks and his "boot camp" videos shot the fitness guru to instant stardom in Japan. Over 1.5 million copies of Blanks' box-set DVDs (14,700 yen; approx. $130) had sold by July 2007, and his popularity skyrocketed further after multiple TV show appearances in Japan.

3. Axe Deoderant: Another American import, Axe "fragrance body spray" for men, turned an otherwise unsexy subject matter into a national interest. As displayed in its U.S. commercials, Axe was touted for its lustful and aphrodisiacal image, which distributor Uni-Lever Japan credits for doubling sales volume within the men's deodorant market. Between its March debut and the end of summer, Uni-Lever had shipped out over 6.5 million bottles of Axe.

4. Leggings: As continuously reported on JMU, leggings were the hands-down fashion hit of the year for women. Paired with heels and a dress, leggings became the ultimate feminine statement this fall and winter.

(Sources: trendy.nikkei.co.jp 1/08, field report)
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Business: Toyota to develop senior-friendly cars
Cars of the future may monitor brain and emotional activity
Prof. Ryuta Kawashima, a Tohoku University scientist who helped create "brain stimulation" games for Nintendo, is now working with Toyota to build smart cars for seniors. Under development are technologies that can, for example, slow the car if it senses the driver is hitting the gas pedal for no reason, and a navigation system with temperature controls that help drivers stay alert. "Ultimately, we hope to develop cars that stimulate brain activity," Kawashima said. Toyota has yet to set a timeline for the production of senior-friendly cars, announcing only that brainstorming sessions with Kawashima have been completed, and that new technologies are now on the drawing table. Kawashima said some of the technology could appear in five years.

(Source: livescience.com; Associated Press 12/19/07)
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Fashion: Hello Kitty marketed for men
Sanrio's trademark cat will don T-shirts, bags, watches for young men
The cute, white cat with the red ribbon, usually seen on toys and stationery for girls, will soon appear on shirts and accessories targeting young men. Hello Kitty, a globally known trademark, has graced a wide variety of products ranging from dolls and toys to real cars and jewelry, but this is the first time Sanrio will market the cartoon cat to men. Sanrio is betting on a generation of young men who grew up with Japan's myriad of cutesy, character goods, and see the humor in donning an otherwise girlish symbol. In fact, a limited edition line of Hello Kitty men's clothing collaborated by local designers proved popular, said a Sanrio spokesman. Hello Kitty for dudes loses its dole-faced look, and instead has the name "hello kitty" printed across her all-famous, bubble-head silhouette. A black T-shirt is expected to retail for $36.

(Source: Associated Press 12/28/07)
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Technology: iPhone continues global launch
Apple and NTT in discussions over bringing iPhone to Japan
Apple Inc. is negotiating with NTT DoCoMo, Japan's top mobile phone carrier, to launch the iPhone in Japan, though the high revenue percentage Apple is demanding has been a sticking point. NTT DoCoMo had nearly 53 million subscribers and commanded more than half of Japan's mobile phone market at the end of September, but has struggled to add new users amid fierce competition from KDDI Corp. and Softbank Corp., which have slashed rates and launched aggressive sales promotions. If a deal with NTT DoCoMo falls through, Apple is also talking to rival Softbank. The introduction of the iPhone to the world's second-largest economy would be a tremendous boom for Apple, which has sold 1.4 million iPhones since launching in June 2007, and hopes to sell about 10 million sets by the end of 2008. However, in past reports, the Japanese media and general public have been unimpressed with the iPhone, which features fall short of most mobile phones in Japan that already have built-in TVs and GPS (navigation) capabilities. Apple currently operates with AT&T Inc. in the U.S., O2 in Britain, T-Mobile in Germany, and France Telecom's Orange wireless arm in France. Apple is also in talks with China Mobile, China's biggest mobile services operator with nearly 350 million subscribers, to bring the iPhone to China.

(Source: money.cnn.com 12/18/07; field report)
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CULTURE CORNER

Sights, Sounds, and Tastes of the New Years

The preparations for the holiday start with a thorough cleaning of the Japanese home (a Japanese tradition), and making special New Year's holiday foods called "Osechi Ryori" (now days many young people can just purchase these foods with little preparation needed). Typically, families and friends watch TV together on New Years Eve, viewing celebrity-focused TV shows or the NHK special "Kohaku Utagassen," the famous Red and White Song Competition which has been broadcast annually since 1951.

At 11:45 PM, NHK shifts its tunes from song singing to the solemn tolling of the bell 108 times, symbolically driving out the 108 "bonno" (evil passions) which then marks the passing of the year. At midnight, families line up at shrines to offer prayers, drink amazaki (sweet sake-like warm drink) and pull "omikuji" (random fortunes written on strips of paper). The omikuji predicts the person's chances of his or her hopes coming true, generally for matters of health, fortune, life, etc. New Year's Day is a time to enjoy food, friendships, and family, starting by eating "Ozoni" soup, or mochi soup (glutenous rice cake soup), in the morning for good luck. New Year's is celebrated for several days, with food, visits with friends, and often a trip to the store to buy Fukubukuro or "Lucky Bags," with bargain priced items inside.

The Japanese have a custom of sending New Year's Day greeting postcards, "nengajyo," to their friends and relatives. Rather than sending Christmas cards, they send postcards that arrive on January 1. Now a widely-observed custom, the nengajyo started as a way to give faraway friends and relatives tidings from oneself and one's family for the new year.

Most nengajyo have the Chinese zodiac sign of the New Year as their design. The Chinese zodiac has a cycle of 12 years, with each year represented by an animal: mouse, ox, tiger, rabbit, dragon, snake, horse, sheep, monkey, rooster, dog, and boar. The year 2007 was the Year of the Boar and 2008 has welcomed the "Year of the Rat". Even with the rise in popularity of email, the nengajyo still remains a very popular custom in Japan

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MEDIA OF THE MONTH

CHIKYU NO ARUKIKATA GUAM MOOK

Whether shopping, dining at culturally diverse restaurants, or simply relaxing at the beach, visitors to Guam can be sure to enjoy a unique time.

For those that are looking for a complete update on shopping centers with luxury-, American-, and casual brand shopping, including beach wear, Chikyu no Arukikata publishes the Guam Mook, which focuses on Guam at its best.

Guam Mook targets both new and repeat visitors looking for information on the Chamorro culture, restaurants, along with activities, transportation options, and accommodations. Each new issue of Guam Mook is completely revised every year and includes maps and the latest travel information on Guam.

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 or you can call Toll Free at 1-800-338-4502 x 803.

For more information visit http://www.pacrimmarketing.com/ad/admedia/c/1225.html

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UPCOMING MAGAZINE DEADLINES

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

Space Deadlines:
Janurary '08 Book-in-Book
Janurary '08 Aloha Express Quarterly
Janurary '08 Saipan Guidebook
Janurary '08 Guam with Kids

Material Deadlines:
2/1/2008 Book-in-Book
2/1/2008 Aloha Express Quarterly
2/1/2008 Saipan Guidebook
2/1/2008 Guam with Kids

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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IMPORTANT DATES AND HOLIDAYS FOR JAPANESE

Upcoming Holidays in Japan

January 14 Seijin no Hi - Coming of Age Day
February 11 - Kenkoku Kinenbi - National Foundation Day
February 14 - Valentine's Day
March 3 - Hina Matsuri (Momo no Sekku) - Girl's Day
March 14 - White Day
March 20 - Shunbun no Hi - Vernal Equinox 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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This news update is compiled by the staff of PacRim Marketing. We welcome any suggestions you may have to improve our email newsletter. If you are looking for more information about our award winning media, please check our media schedules online at http://www.pacrimmarketing.com/ad/adsched.html. Please feel free to contact us: Tel: 808-949-4592 or Toll Free: 1-800-338-4502, Fax: 808-942-5251. We hope you have enjoyed the latest edition of PacRim Marketing Group's Japan Market Update.


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