Japan Market Update - March 2008 Edition

Hi,

Happy White Day!

Japan's White Day tradition, celebrated on March 14, is outlined in this month's "Culture Corner" below. Each month "Culture Corner" features unique and interesting aspects of Japanese life and traditions that help better understand the Japanese consumer.

The economic slowdown in the United States, along with declining investor confidence and sentiment, has pushed the yen to a new high against the dollar. Investors are leaving dollar-based investments, and those hedging risks by purchasing yen are helping support a strengthening of the yen. Yesterday, the dollar fell below 100 yen for the first time since 1995. Now, analysts are suggesting that the yen may rise to 95 according to Citigroup and Japan's Mizuho, Japan's second largest publicly traded bank.

This situation is not good for Japanese corporations exporting merchandise to the United States, who estimate average profitability based on surveys at around Y106. Japanese companies have been posting nice profit gains over the last six years, but a prolonged weak dollar will trigger declines next fiscal year.

However, the strong yen is positive for Japanese traveling to U.S. destinations and/or investing in U.S. property. Travelers who purchase hotel rooms in dollars on-line, for instance, get an "immediate discount" from last week, and especially from last year. Travelers planning to shop will find that they can put away their calculators, as the yen is easier to calculate and shoppers' dollars go further.

Developers, real estate owners, and timeshare operators can enhance their marketing message for the Japanese market: U.S. properties offer more value when purchased in dollars. The U.S. sub-prime crisis, drop in real estate values in most markets, and now the strong yen provide new opportunities for investment by Japanese individuals and corporations. A recent article in Nikkei Weekly notes comments from the president of Mitsue Fudosan, Hiromichi Iwasa, who stated, "The sub-prime problem has enabled us to purchase superb overseas properties that we could not otherwise be able to afford."

During this volatile economic time, PacRim Marketing Group, Inc, PacRim Marketing Tokyo, KK, and our sister company, PRTech LLC, continue to monitor and seek business opportunities for our clients and to assist with generating more market share. Please let me know if I can discuss some of our bi-lingual sales, marketing, advertising, and Internet service/on-line marketing programs with you, or offer new approaches and tools to enhance your current marketing efforts.

Regards,

Dave
derdman@pacrimmarketing.com

*Japan Market News
----- Travel: Hawaii, Guam, Saipan top travel wish-list
----- Business: Japanese households prefer safe deposits
----- Business: Is the government to blame for pollen allergy?
----- Business: Online ad spending up
----- Business: "Try before buying" a win-win concept
----- Trends: Piggy banks that yield big
----- Technology: Sony wins DVD battle
----- Technology: Scientists test rice to replace vaccines
----- Beauty: Demystifying the Japanese skin lotion
*Culture Corner
*Media Of The Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: Hawaii, Guam, Saipan top travel wish-list

Europe, Australia also popular destinations, while pollsters report modest budget
A joint survey by Yomiuri Shimbun, one of Japan's leading daily newspapers, and telecom giant NTT's portal site "goo," showed that 36 percent of pollsters wished to travel to Hawaii, Guam, and Saipan this year. The largest group of those surveyed said their travel budget was 100,000 to 200,000 yen (approx. $970 to $1,940) per person. About 30 percent said their budget was 200,000 to 400,000 yen ($1,940 to $3,880), while 6 percent reported their budget between 400,000 and 600,000 yen ($3,880 to $5,820). Behind Micronesia and Hawaii, Europe ranked second among desired destinations, followed by Australia, N. Korea, Hong Kong,Taiwan, N. America, and Southeast Asia. Despite China's popularity in recent years, only 6 percent expressed a desire to travel there. Meanwhile, 84 percent said they did not wish to go see the Beijing Olympics. About 9 percent of those polled wished not to travel overseas at all this year.

(Source: travelvision.jp 1/25/08)
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Business: Japanese households prefer safe deposits

Riskier investments slowly gaining ground, but safety is top priority
While many Japanese investors have turned to foreign assets like New Zealand bonds and Chinese stocks to try to earn better returns than they can at home, the majority of households prefer the safety of a standard savings account. Japanese deposits are safe but famously low-yield, with average banking interest rates ranging from 0.25 to 0.6 percent. Households with more than two persons held an average of 12.6 million yen (approx. $117,400) of financial assets in 2007, with deposits accounting for roughly half, or 53 percent. Securities holdings such as stocks, bonds and investments trusts made up 19 percent, up from 16 percent the year before. Nearly half the households (46.5 percent) cited safety as the top priority in choosing financial assets, followed by liquidity (28 percent), and profitability (16.5 percent).

(Sources: Reuters Japan 2/27/08)
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Business: Is the government to blame for pollen allergy?

Haplessly planted cedar trees now fuel a multi-billion-dollar industry
Japan is said to have an estimated 240 million pollen allergy sufferers (that's 20 percent of the entire population), who each year help fuel an industry valued at over 1 billion dollars in anti-allergy products ranging from face masks and eye drops to special teas and even hypoallergenic clothing. Additionally, medical care and lost labor in connection with pollen allergy costs the nation about 3 billion dollars each year, according to a year 2000 study by the nation' ministry of science. Ironically, the Japanese government may be largely to blame for this annoying malady, which is said to be on the rise especially among children. The cause - imported cedar and cypress species - were planted en masse in war-ravaged Japan, under a poorly regulated domestic policy designed to rebuild the nation's forests and lumber yield. Over the next 50 years, about 30 percent of Japan's forests became populated by cedar and cypress trees. Because the woods are soft and were ultimately unsuitable for building, the man-made forests have been left untouched, exacerbating the pollen problem. The government is now working to improve the situation by introducing a new species of cedar seedlings genetically modified to produce less pollen. It is also working with the building industry to make cedar suitable for housing material. The change may come too slow for most, according to a recent survey by Glaxxo Smith Kline; pollen allergy sufferers said they would pay an average of 330,000 yen (approx. $3,200) to become symptom-free today. And for a lifetime free from allergies, almost half of those polled said they'd even give up a BMW.

(Sources: Yahoo Japan 3/2/07; eco.goo.ne.jp 2/08; Mainichi Shimbun 2/27/08)
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Business: Online ad spending up

Internet growth, upcoming Olympics boost ad spending
Ad spending by Japanese corporations rose 1.1 percent to 7.01 trillion yen (approx. $68 billion) in 2007, according to a survey by Dentsu Corp., Japan's leading advertising and marketing agency. Online ad billing grew 24.4 percent to 600.3 billion yen ($5.8 billion) from a year earlier, replacing magazines as a medium for the third spot behind television and newspapers. Television advertising fell 0.9 percent to 1.99 trillion yen ($18.4 billion), while newspapers posted its third straight decline, 5.2 percent to 946.2 billion yen ($9.2 billion). Dentsu projects that overall ad billings will climb 1.7 percent to 7.13 trillion yen ($69.1 billion) in 2008, due to increased demand in IT and telecommunication, home electronics, transportation, and leisure industries, as well as the summer Beijing Olympics.

(Source: Dentsu news release 2/20/08; rttnews.com 2/20/08)
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Business: "Try before buying" a win-win concept

From stockings to Thai curry, store encourages shoppers to sample them all
On a busy street corner in Harajuku, Tokyo's famed fashion district, a throng of willing shoppers await their turn to enter the Sample Lab, a store that displays over 100 brand new and yet-to-debut products ranging from food and supplements to cosmetics and pet care. Once inside, shoppers who have paid a token $13 annual membership can pick out up to five items to sample at home. Dedicating an entire store space to "tryvertising" was the brainchild of Japanese firm Mel Posunetto, which specialized in direct marketing but found reaching target consumers by distributing samples and surveys difficult and inefficient. By drawing in consumers directly to sample products, the firm not only collects user feedback and monitors product popularity, but sparks word-of-mouth advertising. Since opening last July, Sample Lab has scored over 40,000 members, and now runs a popular web site with product rankings, as well as a schedule for upcoming product line-ups.

(Source: field report; samplelab.jp)
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Business: Chinese food scare rocks the nation

Conspiracy theories abound as dozens fall sick from poisoned dumplings
News that a child fell into a coma after consuming Chinese-made dumplings has prompted a nationwide scare over imported food. Investigators found traces of insecticide on the packaging of six bags of frozen dumplings among millions being recalled after a tainted batch sickened dozens of people in western Japan. So far, the insecticide has only been found in the packaging - not in the dumplings - leading investigators to believe the products were tampered with after production. Whereas some Chinese officials are claiming the packages were tainted in Japan, others have rumored the bag were deliberately poisoned by disgruntled Chinese employees. Meanwhile thousands of shops and restaurants in Japan are appealing to consumers by printing posters and letters stressing they do not sell Chinese-made dumplings. A Reuters poll following the incident showed 75.9 percent of Japanese consumers said they "will not use Chinese food from now on," but a population that loves Chinese food doesn't just give up dumplings; they turn to more trusted sources instead. Dumplings made from local ingredients are selling out daily in Chinatown, as are dumpling "skins" from grocery stores, as more consumers turn to making their own.

(Sources: japanprobe.com 2/10/08, asahi.com 2/8/08, Shuukan Gendai 2/08; Nikkei bp.co.jp 2/14/08)
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Trends: Piggy banks that yield big

Straightforward and fun, Japanese learn to save money the old-fashioned way
What began as a toy for children has become highly popular among Japanese adults. It's not the Playstation Wii, or Nintendo DS. It's a simple, tin piggy bank which, when filled to capacity with 500 yen coins, yields a million yen (approx. $9,700). Available in black, silver, or gold for about 1,000 yen ($9.70), the only thing written on it is in bold: "A bank that will hold one million yen." The toy has become a hit, even among celebrities and TV personalities who now consider piggy-banking a hobby, or for some, an obsession. For the not-so-ambitious, there are tin banks sized for saving half a million yen, or a modest 100,000 yen ($970). And for those who need serious motivation to save, the Banclock by Dreams Inc. combines snoozing and saving by requiring a coin deposit to turn off the alarm. The Banclock can hold up to 50,000 yen (approx. $485) in 500 yen coins or 15,000 ($145) in 100 yen coins.

(Sources: field report, web-japan.org 2/25/08)
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Technology: Sony wins DVD battle

Next-generation Blu-ray format backed by Hollywood, Wal-Mart, and Panasonic
Sony came out on top in a video-formatting battle eerily similar to the VHS-Betamax war played out in the 1980s. This time around, Toshiba and its HD (High Definition) DVD format have conceded to Sony's Blu-ray disc technology. Toshiba said it will no longer develop, make, or market HD DVD players and recorders, meaning an estimated one million HD DVD machine owners around the world are stuck with products that will inevitably become obsolete in due time. Both HD DVD and Blu-ray deliver crisper, clearer high-definition pictures and sound compared to existing video technology, but are incompatible with each other, and neither plays on older DVD players. HD DVD was supposed to be cheaper, but Blu-ray's victory was backed by bigger recording capacity, five major Hollywood studios committed to recording current and future pictures on Blu-ray, and a recent decision by Wal-Mart Stores Inc., the largest U.S. retailer, to sell only Blu-ray DVDs and hardware.

(Source: Mainichi Shimbun 2/19/08)
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Technology: Scientists test rice to replace vaccines

Genetically modified rice may distribute drugs in safe increments
Researchers at Tokyo University's Institute of Medical Science are working with experts in the fields of drugs, agrobiology, and genetics to see if a strain of rice can deliver drugs used to vaccinate against diseases such as cholera. Scientists have so far been able to alter rice to include cholera proteins which, when fed to lab mice, caused them to develop antibodies in the same way a vaccination would work. If successful, research suggests that important drugs may be delivered in rice that can be cooked and eaten, rather than being delivered through injection or oral medication. Other diseases and foods are also being tested, such as the influenza vaccine in rice, as well as anti-cancer interferon drugs delivered through strawberries.

(Sources; digitalworldtokyo.com 3/3/08)
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Beauty: Demystifying the Japanese skin lotion

Lotion is central to a Japanese skin care routine, but why?
Skin lotion, called "kesho-sui," is a staple in a Japanese woman's skincare routine, but seems to be one of the hardest items to find at cosmetics counters in western countries; not to be mistaken with toners and astringents, which are generally used to make skin squeaky clean and tighten pores. But rather than wiping off anything excess, the Japanese beauty regimen calls for immediate moisturizing. Thus the Japanese lotion - most often applied by cotton and patted onto the skin - theoretically locks moisture into the skin and preps it for the final stage of moisturizing with either a cream or emollient (milky) lotion. "Kesho-sui," which literally translates to "beauty water," was historically just that - water used to mix make-up powder into paste. But today, just about every cosmetics line in Japan markets a skincare routine that includes lotion, following a cleanser and preempting a moisturizer. In recent years, the "lotion pack," or facial mask, has been the buzz, a beauty tip popularized by former Guerlain beautician-turned-best-seller-author Chizu Saeki. She recommends a three-minute mask twice to three times a day, using tissue-thin cotton saturated with high-grade lotion. The products she recommends retails for 8,000 to 10,000 yen (approx. $78 to $97) per bottle, which last about two weeks with liberal use. But lotions are actually available in a wide price range, with 500-yen (approx. $5) bottles including the same general ingredients - 80 percent water, 10 percent alcohol, and the remainder a combination of glycerin and/or other moisturizing agents, therapeutic ingredients (i.e. aloe, Coenzyme Q10, vitamin C, salicylic acid, etc.) with fragrance and stabilizers. Bottom line, Japanese lotion adds moisture where toners strip excess oil. For a female population obsessed with younger-than-thou skin, moisture seems to be the key.

(Sources: field report, wikipedia, "Shin Bihaku Kakumei" by Chizu Saeki)
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CULTURE CORNER

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White Day



Spring is on its way. With an ending to winter in sight and a crispness lingering in the air, the nearing of spring is a refreshing and exciting time in Japan, with which many holidays are associated.

One such holiday is White Day - the day when men give gifts in return for Valentines Day gifts they received a month earlier. On March 14, men are expected to give a gift with three times the value of a gift they received, such as jewelry or chocolates. But more important than the gifts value is remembering who you need to give gifts to. Not returning a gift can be seen as inconsiderate and may cause a loss of credibility. As Japanese value wa, or harmonious relationship with others, White Day has become associated with social networking and maintaining good relationships.

In Japan, March also is the end of the school year and symbolizes a time for new beginnings-not only for students but also for those in the work force. Many college graduates entering corporations attend nyusha shiki, or company initiation ceremony, at the end of March or in early April. Promotions and transfers within companies are also common this time of year.

To further celebrate the changing season, popular deejays and television hosts play "graduation music," elevating moods and creating a sense of nostalgia for some. Rankings of popular music in Japan show that songs about cherry blossoms are associated with high school graduation. In fact, many graduation songs have the word, "cherry blossom," in their titles. Although cherry blossoms bloom from late March to early April, not at the time of graduation, cherry blossoms have come to symbolize cherished memories.

(Sources: Oricon Style)


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MEDIA OF THE MONTH

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Pacific Journey New Korean Language version for Hawaii launched! Second edition for Summer (June-September).
Space reservations closing soon!



Blending designer fashion, shopping, dining, adventure, island beaches and more, Pacific Journey targets both the Japanese and Korean visitor. The quarterly post-arrival publication, issued in June, provides travelers with up-to-date information on Oahu, reaching the Japanese and Korean travelers during the summer peak season.

Primarily read by women in their 20s through 40s, Pacific Journey contains luxury and lifestyle features, fashion editorial, real estate and vacation ownership section, along with useful maps. Pacific Journey is distributed at Honolulu International Airport where it is hand delivered to arriving Japanese and Korean passengers. Distribution also include Japanese and Korean tour desks, hotels, conceirge desks, point of purchase at selected ABC Stores (17 locations) catering to the target visitor, and selected street stands, making it a powerful way to reach both of these markets after travelers arrive in Hawaii.

Don't let this summer marketing 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 949-4592 x 803, or Toll Free at 1-800-338-4502 x 803.

For more information visit http://www.pacrimmarketing.com/ad/admedia/c/3553.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! Hawaii Guidebook I (May, 2008)
NOW! Honolulu Mook (Globetrotter)
NOW! Hawaii with Kids Resort (Globetrotter)
NOW! Love Hawaii (Spring, 2008)
NOW! JJ Magazine, Hawaii Book (May, 2008)
NOW! NWA World Traveler (May, 2008)
4/1 Aloha Express (June, 2008)
4/1 Guam Mook (July, 2008) (Globetrotter)
4/15 Pacific Journey - Japanese (Summer, 2008)
4/15 Pacific Journey - Korean (Summer, 2008)
4/21 JAL Guide (August, 2008)
4/30 Love Hawaii (June, 2008)

Material Deadlines:

NOW! Aloha Express Quarterly (April, 2008)
NOW! Hawaii Guidebook I (Globetrotter)
NOW! Nouveau Tumon Sands Plaza
NOW! Hawaii Guidebook I (Globetrotter)
NOW! Love Hawaii (Spring, 2008)
4/1 Honolulu Mook (Globetrotter)
4/1 Hawaii with Kids Resort (Globetrotter)
4/1 NWA World Traveler (May, 2008)
4/15 JJ Magazine, Hawaii Book (May, 2008)
4/25 Pacific Journey - Japanese (Summer, 2008)
4/25 Pacific Journey - Korean (Summer, 2008)
5/1 Guam Mook (July, 2008) (Globetrotter)
5/20 JAL Guide (August, 2008)

Please inquire regarding advertising opportunities on www.Hawaii-Arukikata.com (advertorials, online banners, coupon advertising, online marketing campaigns & research, Official Hawaii Podcast, and video production services).

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

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
May 3 - Kenpo Kinenbi - Constitution Day
May 4 - Midori no Hi - Green Day
May 5 - Kodomo no Hi (Tango no Sekku) - Children's Day (Boy's Day)
May 6 - Kodomo no Hi (Furikae Kyujitsu) - Children's Day (observed)

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

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