Japan Market Update - February 2008 Edition

Hi,

Happy Valentine's Day ! "Kung Hee Fat Choy"!

February is a busy month, full of celebrations honoring various traditions throughout the world. This week, Valentine's Day will be celebrated in Japan as well in the United States. (For an interesting look at Valetines Day in Japan, check out "Culture Corner" in this 74th issue of Japan Market Update). Last week was the official start of the Chinese New Year -- the Year of the Rat!

The Rat Year is a time of hard work, activity, and renewal. The Chinese Zodiac says this is a good year to begin a new job, get married, launch a product or make a fresh start. Ventures begun now may not yield fast returns, but opportunities will come for people who are well prepared and resourceful. The best way for you to succeed is to be patient, let things develop slowly, and make the most of every opportunity you can find.

The travel industry as well as other industries globally will be challenged in 2008 by economic uncertainty and destabilization of markets. Oil prices are causing higher airfares and surcharges. Consumers are cautious. All sounds bad. But in this time of concern and chaos, there are opportunities. For example, PacRim's analysis of client web projects show that Internet commerce from Japan is bustling, with online hotel and activity bookings and service and product sales on the rise. This presents new opportunities in Internet marketing to reach the lucrative Asian and Pacific Rim markets.

To help clients compete in this changing marketplace, PacRim and its sister company PRTech are developing new client programs, services, and products. These include advanced approaches to Japanese on-line content and website development, search engine marketing and paid search programs, podcasts, blogs, and online video content to further tap the consumer direct market. We recently launched client web sites in Japanese, Korean, Chinese (simplified), and traditional Chinese, with the help of our multi-lingual and talented staff.

On March 1, PacRim, in collaboration with Skies America Publishing, will launch a new Korean language, Waikiki-based magazine. The Korean version of the Japanese magazine Pacific Journey-Hawaii is being produced in conjunction with a renewed Japanese-language publication, which has been upgraded and revised to include additional luxury and lifestyle features, including more fashion editorials, and a new real estate and vacation ownership editorial section. Portland-based publisher Skies America, which has been publishing Pacific Journey for over 16 years in Hawaii, has also produced Northwest Airlines in-flight magazine and many custom retail-related and lifestyle magazines in the Pacific Rim region. The Pacific Journey Japanese and Korean publications are distributed on Oahu -- at the Honolulu International Airport arrival area, selected ABC stores through a unique partnership, conceirge desks, and throughout Waikiki. Plans are to produce the publication in Japanese and Korean for other markets -- with Guam and Las Vegas under consideration.

We look forward to introducing our new, innovative, and unique marketing solutions to you to help your organization gain that competitive edge necessary in our ever-changing global market place.

Regards,

Dave
derdman@pacrimmarketing.com

*Japan Market News
----- Travel: Bridal couples toast their parents
----- Travel: Hawaii airfares will rise in 2008
----- Travel: Cooking oil moves gear at Haneda
----- Business: Luxury brands sell despite shaky economy
----- Business: Out with the old at Roppongi Hills
----- Fashion: Gorgeous nails a major fashion statement
----- Technology: Japan Rail to harvest energy
----- Technology: Japan gets cell phone "sommeliers
----- Society: "Red" symbolizes mood again for 2008
----- Society: Campaign aims to authenticate Japanese cuisine
*Culture Corner
*Media Of The Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: Bridal couples toast their parents

Watabe and JALPAK present "appreciation ceremony" for overseas weddings
Watabe Bridal, Japan's largest overseas wedding company, will offer newlyweds a chance to show gratitude to their parents in a special "appreciation ceremony" included in the standard bridal package. Japan Airlines' tour arm JALPAK helped develop the new promotion, inspired by a deep tradition in Japan to celebrate milestone anniversaries, as well as the growing trend among young couples to feature their beloved parents during weddings. Parents of newlyweds approaching their 35th anniversary - the coral jubilee - will receive additional services, including a special photo session and album gift. The appreciation ceremony option costs 35,000 yen (approx. $330), and will be available at seven of Watabe's wedding destinations in Hawaii, Guam, Australia, and Europe.

(Source: travelvision.jp 1/16/07)
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Travel: Hawaii airfares will rise in 2008

Hikes linked to normal inflation, not just rising fuel costs
Normal airfares from Japan to Hawaii, North America, and the Caribbean, will increase 13 percent, based on a decision by the International Air Transport Association. Japan Airlines may raise fares by as early as April, pending approval by the Ministry of Land, Infrastructure and Transport. Fuel surcharges, which for business class fares between Narita and Honolulu stand at 60,000 yen (approx. $565), will remain unchanged. Meanwhile, travel agencies are monitoring the likelihood of lower fuel surcharges, given that the rate hikes are high this year.

(Source: Travel Journal International 1/23/08)
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Travel: Cooking oil moves gear at Haneda

Airport refines restaurant leftovers for biofuel used on airport grounds
What good is a pot full of oil after cooking 50 batches of tempura? Good enough to run ground transport vehicles at Haneda airport, thanks to an on-site processing plant that helps turn cooking oil into reusable energy. With over 100 restaurants that serve Haneda's one million daily passengers, left-over oil has always been plenty, which prompted airport engineers to blend it with biodiesel. It's not a new concept, as private companies in many of Japan's urban areas now collect post-consumer cooking oil for processing biodiesel, which fuel low-emission buses. Haneda's technology, however, is attracting the attention of transport officials from neighbor countries such as Laos and Thailand, who now visit Haneda to gain knowledge of its fuel-processing facilities. Haneda officials are aiming to double the output of cooking oil-derived biofuel within two years.

(Source: NHK News 1/24/08)
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Business: Luxury brands sell despite shaky economy

Japan's nouveau riche fuels market for the world's finest fashion and cars
Porsche sales rose 15 percent, Maserati by 21 percent, and Ferrari by 11 percent over the last year, testament to recent reports that Japan's "super-rich" are spending despite a sluggish economy. In fact, the winners of Japan's economic reforms - successful growth company managers, stock speculators, and real estate investors - are members of some 60,000 households in Japan whose savings average about 500 million yen (approx. $4.7 million), according to a recent survey by Nomura Research Institute. "It is phenomenal how enthusiastic the Japanese are when they are offered good quality, perfect products," says Peter Kesselman of German luxury watch manufacturer A Lange and Sons. In Ginza, the most popular section of Tokyo for luxury brand flagships, the new Armani Ginza Tower (inaugurated by Georgio Armani himself last November) received 20,000 visitors on its first weekend alone. The 11-story glass-facade structure showcases Armani's various fashion and home collections, as well as a spa, restaurant, and private penthouse club.

(Sources: International Herald Tribune 1/6/08; earthtimes.org1/31/08; Armani Ginza Tower press release)
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Business: Out with the old at Roppongi Hills

Emphasis is on jewelry and men's accessories during anniversary year
On its fifth birthday, Tokyo's largest, and possibly hippest, urban complex will get 50 new retailers and 20 renovated stores in a massive overhaul designed to give Roppongi Hills a fresh new face for the next few years. Surprisingly, some of the big-name exits are Versace, Coach, Cole Haan, and Folli Follie, plus 51 other retailers, restaurants, and kiosks that either didn't make the cut for a renewed lease, or are bowing out for better opportunities elsewhere. Meanwhile Kate Spade, Hugo Boss, Vivienne Tam, Birkenstock, Diesel, Baccarat, and 17 other stores will renovate and reopen between spring and summer this year. New additions to the Hills include Tiffany & Co. The Men's Store, French tableware brand Cristofle, Japanese toymaker Bornelund, and luggage label Zero Halliburton. On the dining front, Philadelphia-based Genji Sushi N.Y. will open its first Japanese outlet, introducing American-style sushi rolls and rice bowl favorites to the nation's discerning palates. In a press release outlining visions for the future, Roppongi Hills listed "seven elements to urban living:" a stronger link between sports and fashion; a more luxurious "family time" out in town; jewelry for both everyday and special occasions; a town rich with premier goods for men; fashion-forward selections for women in their 30s; a more exciting and comfortable nighttime dining scene; brands for the well-heeled woman with a keen aesthetic sense.

(Source: field report; roppongihills.com; Press Release 1/08)
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Fashion: Gorgeous nails a major fashion statement

Nail salons boom, expo pulls in crowds as young women extend beauty to their fingertips
A self-manicure used to be one of the most painless and least expensive elements of a Japanese woman's beauty regimen, as most of her time and money were spent on her hair, skin care, cosmetics, and fashion. Nail color was also expected to be simple - no frills, just two coats of one color. Nail salons were thus havens for the rich, and a paid manicure was an extravagance. But one of the fastest-growing beauty trends of 2007 and 2008 thus far is the lavish manicure. The look of the moment involves rhinestones, laminate coatings, and vibrant colors. Artificial sculptured nails, also called gel nails, are becoming very popular, as they help create long nails that can resist chipping. The manicures are expensive - starting at around 10,000 yen (approx. $94) - and take about two hours to complete. The cosmetic nail market in Japan is estimated to be worth about 100 billion yen ($900 million) a year, with roughly 8,000 salons in operation and some 30,000 registered manicurists. Last year's Nail Expo attracted a record 39,000 enthusiasts, and featured a nail sculpture contest. The trend was thought to have peaked over the holiday season, as young women prepped their blinged-out nails for the party circuit. But observation holds that the holiday colors are gone, but the rhinestones are here to stay -- like its adhesive -- for a while.

(Sources: Trends in Japan 12/07; field report)
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Technology: Japan Rail to harvest energy

Train passengers' pedestrian activity may generate high volume of electricity
Engineers for East Japan Railway Co. finally concluded how to take advantage of the nearly 800,000 train users buzzing through Tokyo station each day - to help create new energy. JR East will test piezoelectric devices laid down at the station's ticket gates, to produce electricity through vibration created as people walk on them. It is estimated the power generated by one person walking past a piezoelectric floor device will be enough to light up a 100-watt electric bulb by 0.01 second, equivalent to 80 minutes of lighting per day. The electricity produced will likely not be used to power the trains, but used for back-up power sources and ticketing machines throughout the station.

(Sources: Fuji Sankei News 1/18/08; japantoday.com 1/19/08)
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Technology: Japan gets cell phone "sommeliers"

Licensed guides will help consumers get the most out of their mobile phones
Japan's communications ministry authorized a private-sector plan to devise a certification program for cell phone specialists. "We hope they would be able to explain complicated functions and charge systems to consumers, much like wine sommeliers guiding you," a ministry official said. Certified guides will no doubt give an edge to cell phone retailers in hot competition for new subscribers, not to mention a welcome break to consumers needing extra help deciphering the complex fee structures and high-tech handset functions. The ministry hopes cell phone sommeliers will also encourage parents to seek advice on how to install filters on their children's handsets in order to block access to harmful websites. In a nation where a great majority of students either walk or take public transportation to and from school, about one-third of Japanese primary school students use cell phones, while about 96 percent of high school students use cell phones.

(Sources: Associated Foreign Press 1/20/08; k-tai.impress.co.jp 4/26/07)
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Society: "Red" symbolizes mood again for 2008

Travel tops the most-wanted item for a third consecutive year in annual Dentsu survey
Looking back, 2007 was "gray," because of all the fraud and corporate scandals, said a poll conducted by marketing and advertising giant Dentsu Corp. It's a far cry from what pollsters chose as the theme color for last year: a passionate red. But moving forward, the theme color chosen for the new year was red once more, symbolizing - once again - passion and grit, followed by second-ranked orange for its sense of "warmth and stability," and finally blue to represent "a refreshing new start." As for the most coveted items of 2008, travel topped the list at 22.5 percent, almost double that of runner-up home electronics and audio-visual equipment. Stocks ranked third at 11 percent, followed by knowledge/education (10.2 percent), computers, cell phones, and digital gadgets (8.8 percent), and cars, bikes, and bicycles (7.5 percent).

(Source: dentsu.co.jp 12/07)
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Society: Campaign aims to authenticate Japanese cuisine

Ingredients, presentation, and customer service among certification criteria
They promise they're not the "sushi police," but a private group of food experts have launched a global campaign to certify authentic Japanese restaurants in an effort to promote tradition and avoid spreading the wrong image of Japanese food think "California roll". The campaign also serves the important purpose of teaching proper cooking and handling techniques in Japanese cuisine, which in the case of sushi requires careful preparation of raw seafood. The undertaking was ridiculed by critics both at home and abroad as a hypocritical move to govern what is authentic in Japanese cuisine, but the organization plans to compile a restaurant guide for each city, send trained chefs overseas, and offer training in Japan for aspiring chefs. To be certified, restaurants must use Japanese ingredients such as rice and certain seasonings. Customer service, proper hygiene, knowledge of Japanese recipes, and correct usage of dishware are also part of the criteria for authentication.

(Sources: Associated Foreign Press 1/29/07; Fujisankei News 1/20/07)
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CULTURE CORNER

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Japanese Valentine's Day

In Japan, you can say that the Valentine's Day is the most important event that gives a woman an opportunity to start a romance. This is because Valentine's Day is the day when ladies give men in their lives chocolate. Although the origin of this custom is up for debate, Mary Chocolate Co. claims to be the first to have started this custom in Japan in 1958. Their primary attempt was to promote its sale of chocolate as a "Lover's Day" gift. However, the marketers soon shifted their target to women and promoted Valentine's Day as the day where women could give chocolate to men.

A unique thing about this Japanese tradition is that there are two kinds of chocolate gifts: Giri-choco and Honmei-choco. Giri-choco is a chocolate gift given by the woman to any men in her life. This gift giving involves neither romance nor love. For example, a woman may give a small chocolate gift to her male co-workers or male family members. Meanwhile, Honmei-choco is the one gift that showcases the real expression of love. It is not unusual for a woman to confess her love for a man as she tells it is her honmei-choco. Without the explanation, a man may not know if its giri-choco or honmei-choco that he receives.

Then, what will men do in return for this favor? Just receive the gifts and "that's it"?

To give men an opportunity to answer to this warm favor, marketers came up with an idea of White Day (March 14th). This is the day when men give gifts back to women. It is likely that the origin of White Day in Japan dates back to 1965, when it was started by a marshmallow manufacturing company. Although marshmallow is no longer a popular gift item for White Day, the custom of expecting a gift in return with triple value: Sanbai-gaeshi, is. Some of the popular gift items for White Day include candy, flowers, and even underwear.

Starting from mid-January, department stores, supermarkets and convenience stores all set up Valentine's Day decoration, often with unique promotional event such as chocolate-making demonstrations by popular brands. As you may realize, Valentine's Day is a big business opportunity in Japan. A survey conducted by the Chocolate & Cocoa Association shows that approximately 53% of the annual sales comes from the month leading up to February 14th. It is also interesting to note this that the chocolates received by men will eventually be shared with his family members. Since many men like neither chocolate nor sweets, his female family members get to eat most of them, after all.

(Source: Japan Today 2/1/08)


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MEDIA OF THE MONTH

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CHIKYU NO ARUKIKATA HONOLULU MOOK



Chikyu no Arukikata Honolulu Mook targets Japanese visitors who enjoy shopping and dining on their vacation. On stands at selected bookstores throughout Japan in June, the publication reaches the Japanese traveler during the peak season. Primarily read by Japanese visitors (women ages 20 - 40), the Chikyu no Arukikata Honolulu Mook contains information about shopping, dining, and activities on Oahu. Honolulu Mook - a mix between a guidebook and magazine - is sold in all major bookstores throughout Japan, making it an easy way to reach the Japanese travel market.

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.

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/1221.html

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UPCOMING MAGAZINE DEADLINES

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

Space Deadlines:

NOW! Aloha Express Quarterly (April, 2008)
NOW! New York Guidebook (Globetrotter)
NOW! Hawaii Guidebook I (Globetrotter)
NOW! NouveauTumon Sands Plaza
NOW! Saipan Guidebook (Globetrotter)
2/29 Honolulu Mook (Globetrotter)
2/29 Hawaii with Kids Resort (Globetrotter)
2/29 Love Hawaii (Spring, 2008)
4/15 Pacific Journey - Japanese (Summer, 2008)
4/15 Pacific Journey - Korean (Summer, 2008)

Material Deadlines:

2/1/2008 Book-in-Book
NOW! Saipan Guidebook (Globetrotter)
NOW! Hawaii Guidebook I (Globetrotter)
3/4 Love Hawaii (Spring, 2008)
4/1 Honolulu Mook (Globetrotter)
4/1 Hawaii with Kids Resort (Globetrotter)
4/25 Pacific Journey - Japanese (Summer, 2008)
4/25 Pacific Journey - Korean (Summer, 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

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
April 29 - Showa no Hi - Showa Emperor's Birthday

Visit 2008 Japan Holidays to see all Japanese holidays.
Visit 2008 US Holidays to see all US holidays.

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