Japan Market Update - May 2008 Edition

Hi,

We hope you are enjoying the myriad of May festivities, from Lei Day in Hawaii, to Cinco de Mayo and Mother's Day. (See below to learn how Mother's Day is celebrated in Japan). In Japan, Constitutional Memorial Day, Green Day, and Children's Day were celebrated as part of the "Golden Week" holidays.

Japanese travel over Golden Week to major destinations like Guam and Hawaii was sluggish this year, mostly due to the line-up of holidays that was not good for overseas travel. Despite this, the prospective Japanese traveler is still indicating a passion for Hawaii, in particular, according to our on-line analytics that show a spike in the number of downloads of the Official Hawaii Podcast and steady traffic on Hawaii-arukikata.com . More than 20,000 people downloaded the Japanese language Official Hawaii Podcast in March and April (up from an average of 14,000 downloads in prior months); and more than 600,000 people viewed Hawaii-arukikata.com , PacRim's Japanese language web site about Hawaii, which just won an e-Biz Award for Excellence in the "BEST OF WEB" category (announced recently by Technology Newsbytes).

Keeping in step with quality programming, and in coordination with The Mountain Apple Company, this week The Official Hawaii Podcast will contain the WORLDWIDE PREMIERE of The Brothers Cazimero's first album released in four years, titled "Destiny." Podcast episode 38, to be released Friday May 9 (today in Japan), will feature the track "Pua Laha'ole" from the new Brothers Caz CD....don't miss this sneak preview! For more information on this new album please go to http://www.mountainapplecompany.com/caz/.

With summer just around the corner, PacRim Marketing Group will continue to woo the Pacific Rim markets with entertaining news and features, music, and interactive capabilities on our website with video, podcasts, blogs, and other new media. Our media programs also are available to companies and destinations outside of Hawaii catering to the Japanese, Korean, and other Asian visitors. A weakened U.S. dollar, plus new marketing methods using targeted new media, will encourage travel to U.S. related destinations, and spending at your business or organization.

All of us at PacRim Marketing Group, Inc. and PRTech, LLC, believe that staying in touch with Pacific Rim markets and continuing to give them reasons to visit is the best marketing strategy during uncertain economic times. Let us know if you are interested in advertorial or sponsorship opportunities on Hawaii-arukikata.com or on the Official Hawaii Podcast, or if you'd like our help in developing your own new media channel to reach your target market. Feel free to contact me directly at (808)469-4833.

Regards,

Dave
derdman@pacrimmarketing.com

*Japan Market News
----- Travel: Guam campaign targets newcomers
----- Travel: JAL, ANA raise fuel charges
----- Business: Visa perk for Japanese-speaking foreigners
----- Business: French wine mogul eyes Japan
----- Business: Denny's to close 130 restaurants
----- Business: Yahoo brings back ebay to Japan
----- Business: Japanese whisky wins top honors
----- Technology: Fiber-optic finally beats ADSL
----- Technology: Most young women own video games
----- Beauty: Aesthetic salons remain a steady market
*Culture Corner
*Media Of The Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: Guam campaign targets newcomers

Promotions designed to attract first time visitors, especially from rural areas
The Guam Visitors Bureau announced a new summer promotion to attract Japanese consumers who have never been to Guam. First-time visitors made up about 64 percent of Japanese arrivals in Guam in 2006, and untapped markets may yield 1 to 2 percent more Japanese visitors on an annual basis. According to GVB data, visitors from areas outside Japan's urban centers consist of only a 10 percent market share. The "Summer Happy Guam Campaign" will feature seminars held by a Tokyo University associate professor, a popular "fish expert" and public figure, especially among children. The seminar will focus on Guam's rich marine culture, as well as building a friendly image for first-timers. Japanese visitors to Guam during the first quarter of 2008 were down 3.6 percent from the previous year.

(Source: Travel Journal International 4/30/08)
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Travel: JAL, ANA raise fuel charges

Unrelenting oil prices cause yet another hike in airfare
Just three months after announcing overall increases in international airfare, both Japan Airlines and All Nippon Airways have requested fuel surcharge hikes to the country's transportation ministry. The increase will affect tickets issued between April 1 and June 30. Hawaii surcharges will increase to 19,800 yen (approx. $188) round-trip on ANA, and 25,000 yen ($238) on JAL. Guam surcharges will increase to 12,000 yen ($114) on ANA, and 15,000 yen ($143) on JAL.

(Sources: travelvision.jp 2/18/08)
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Travel: Visa perk for Japanese-speaking foreigners

Japanese proficiency may help foreign workers obtain longer stays
Foreign workers on visas in Japan may benefit from language proficiency, as the Japanese government announced plans to lengthen the period of stay to five years. Currently, the government issues one- and three-year visas to skilled foreign workers, descendants of Japanese immigrants in Latin America, and a low-paid labor force typically from other Asian countries. The proposal to revise Japan's immigration law can be seen as one strategy to deal with the country's population decrease. Meanwhile, the number of foreign residents in Japan is on a steady rise. The proficiency level required for the long visa is not expected to be very high, although details on how to measure such ability will only be decided after the bill to revise the immigration law is submitted and approved next January.

(Source: Bloomberg.com 5/01/08)
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Business: French wine mogul eyes Japan

Businessman is first French winemaker to buy vineyard in Japan
A French billionaire bought 2.5 acres of a vineyard near Mt. Fuji, with expectations to yield some of the best white wines in the world. Bernard Magrez, a self-made winemaker and property magnate, has either bought or established over 30 vineyards in seven countries so far. He bought a portion of the vineyard in Katsunuma, Japan, because he's confident it makes top quality white wines, defying Japan's reputation as a second-class winemaking country. Japan's climate is often considered too damp for growing good wine, but Magrez believes the traditional Japanese method of growing vines on high, overhead frames, works to reduce the moisture in the grapes. Magrez also has a joint venture label with another Katsunuma Winery, which limited production label "Magrez-Aruga Koshu Isehara 2007" will hit the domestic market soon.

(Source: Associated Foreign Press 4/12/08)
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Business: Denny's to close 130 restaurants

Restaurant chain cut-back considered a medium-term business plan for parent company
Seven & I Holdings Co., Japan's largest retailing group, plans to close about 130 of the roughly 570 family restaurants run by the Denny's Japan brand. The restaurant closings are among other measures to turn around its struggling restaurant operation, hard-hit by lower consumer spending and the growth of an aging population. Investors are not surprised, seeing Seven & I's "cost-cutting mode" a trend among large retail companies, which do not see further growth potential in urban areas. Both Seven & I and rival Aeon Co. Ltd., have reported sluggish sales, but both expect profits to rebound as both companies cut costs and close unprofitable stores.

(Sources: reuters.com 4/09/08; Nikkei.com 4/07/08)
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Business: Yahoo brings back ebay to Japan

Joint venture with auction giant opens site to Japanese online shoppers
U.S.-based eBay and Yahoo! Japan have jointly launched "sekaimon.co.jp," a Japanese-language site that allows users to view and buy products through eBay. All U.S. eBay items are translated in Japanese, and Sekaimon also fields any questions between buyers and sellers. Transaction fees are 15 percent of each successful bid, and purchases can be made in yen. Despite eBay being a global auction site active in 29 countries, eBay Japan had in fact closed in 2002 due to competition from Yahoo Japan's successful auction site, as well as unfavorable economic conditions at the time. Sekaimon will be operated by a subsidiary of online shopping site netprice.com. Sekaimon will most like streamline its operation with Yahoo Japan in the near future, so that eBay items will be available through the Yahoo auction site, and eBay users can bid on Yahoo auction items.

(Sources: CNETNews.com 2/26/02; trendy.nikkei.co.jp 04/08)
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Business: Japanese whisky wins top honors

Japanese brands whisk first-place titles for both single malt and blended varieties
Single malt "Yoichi 1987" produced by Nikka, a renowned Japanese whisky distiller, became the first variety produced outside Scotland to win the coveted World Whiskies Award, an international competition held annually in Glasgow. Yoichi 1987, which retails for 20,992 yen (approx. $200), was selected over a blind tasting of more than 200 of the world's finest varieties. The judges believed Japan's variable climate assisted in the whisky's maturation process, helping to create a purer whisky with a heightened aroma. Traditional distilling apparatus such as coal-fired pot stills, still used widely in Japan but rarely seen anymore in Scotland, was also praised for producing a superior dram. Meanwhile, Suntory, Japan's biggest spirits company, was voted best in the blended whisky category for its "Hibiki" label.

(Sources: timesonline.co.uk 4/27/08; nikka.com press release)
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Technology: Fiber-optic finally beats ADSL

Large majority of Japanese households now connected to the Internet by broadband
The number of households using fiber-optic lines for Internet connection has exceeded that of households using ADSL for the first time in Japan. Fiber-optic line users at the end of last year accounted for 31.3 percent of households polled in January, up 4.1 percent from the previous year. Fiber-optic lines, also called FTTH (Fiber-to-the-home) can provide download and upload speeds of 100 Mbps, or 20 to 100 times faster than standard ADSL. The percentage for cable Internet connection also increased 4 percentage points, to 16.6 percent. The Internet diffusion rate is now 80.8 percent for the southern Kanto region, which includes Tokyo. Along with the widespread use of the Internet in Japan, download traffic has also almost tripled within three years.

(Sources: tmcnet.com 4/18/08; internet.watch.impress.co.jp 2/21/08)
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Technology: Most young women own video games

Long-time female gamers surprisingly widespread
A survey found that 74.3 percent of women aged between 15 and 29 have their own electric game consoles, the most popular being Play Station 2, followed by Nintendo DS, and PSP. Over 50 percent of the women polled also own portable game machines, such as Nintendo DS and Game Boy. About 90 percent of men surveyed said they have their own game consoles, of which 86.4 percent have stationary game machines, and 77 percent have portable units. One in four respondents said they play with portable game machines everyday. Most pollees played games at home (81.5 percent), whereas 14.2 percent played their portable games on trains. The survey also revealed that many own or have owned PS, the predecessor to the popular PS2, suggesting that women have been gaming long before PS2 and Nintendo DS revolutionized the mainstream gaming industry over the last few years.

(Source: mdn.mainichi.jp 4/15/08)
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Beauty: Aesthetic salons remain a steady market

Growth in market shows more demand for men's and baby boomer services
Japan's multi-billion-dollar aesthetic salon - or beauty spa -- industry may have reached saturation, according to a survey by Yano Financial Institute, but remains a strong area of consumer spending despite an uncertain economy. The market peaked in 2005, when it surpassed $4 billion in earnings, and fell back slightly in 2006, down to $3.9 billion. Spas that specialize in facials account for 28.2 percent of the market, followed by "body slimming spas" (22.1 percent), and hair removal (7.6 percent). Men's salons, despite its 8.5 percent market share, showed the most growth, up 4.5 percent from the year prior. In comparison, the women's market shrank by 1.2 percent. In other findings, mail order (--) most often advertised in women's magazines -- was the second most popular method to purchase cosmetics (46 percent), behind drug stores (61 percent), and followed by department stores (26 percent), and specialty cosmetics stores (18 percent). The survey underlined a shift in the beauty market, as women tend to spend slightly less on beauty during an economic slump. But earnings are still buoyed by a growing beauty awareness among men, and an anti-aging trend fueled by aging baby boomers.

(Source: research.goo.ne.jp 04/08)
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CULTURE CORNER

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Happy Mother's Day!



As in the United States, Japanese celebrate Mother's Day on the second Sunday of May. The origin of Mother's Day in Japan comes from the United States, where Mother's Day started when an American woman handed out white carnations, her mother's favorite flower, in memory of her.

On Mother's Day in Japan, kindergarten and nursery school students make presents for their moms. In many elementary and middle schools a "mothers' visiting day" is planned to celebrate Mother's Day.

Despite the increasing popularity of Mother's Day in Japan, a recent survey of Japanese moms shows that most mothers receive nothing on that day. In particular, 66.5% of the mothers answering the survey said they did not receive anything from their husbands. For those who received something, clothes, fashion accessories, a carnation, and dining out with family were the most given gifts.

The top survey response from mothers was that the gift they most want to receive is "words of appreciation." They are not looking for expensive gifts. "Thank you" is the best gift to make mothers smile.

(Source: http://www.dentsu.co.jp Trend Box Research vo.100)


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MEDIA OF THE MONTH

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Aloha Express




Primarily targeting females in their late 20s to 40s, and from first-time travelers to repeat visitors, the editorial focused travel publication Aloha Express is exclusively devoted to Hawaii, containing many visual photos and in-depth articles.

Either it is Japanese media-, tour-, and/or travel influencers, Aloha Express series provides the most up-to-date news and information from on-site coverage in Hawaii. Seasonal trends are accommodated with the timely release of each issue. Aloha Express quarterly series reaches 150,000 readers before they arrive in Hawaii and has a loyal following of 6,000 subscribers.

SONY magazines Aloha Express contains the most up-to-date information about the Islands and it is used as a news source for Japanese media. The series include quarterly issues, a Yearbook, and several special issues. In addition to a variety of ad sizes, we can customize your Japanese marketing with unique insert booklet programs and direct mail opportunities. Over 800,000 copies of Aloha Express are printed each year!

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 808-469-4803, or Toll Free at 1-800-338-4502 x 803.

For more information visit http://www.pacrimmarketing.com/ad/admedia/c/1213.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! JJ Magazine, Hawaii Book (July, 2008)
NOW! JAL Guide (August, 2008)
NOW! Love Hawaii (June, 2008)
NOW! Nouveau (Tumon Sands Plaza)(August, 2008)
4/15 Pacific Journey - Japanese (Summer: Jun.-Aug., 2008)
6/2 Guam Resort (September, 2008) (Globetrotter)
6/2 San Francisco Guidebook (September, 2008) (Globetrotter)
7/1 Aloha Express (September, 2008)
7/1 Romance Hawaii (October, 2008) (Globetrotter)
7/1 Maui Resort (October, 2008) (Globetrotter)
7/15 Pacific Journey - Japanese (Fall: Sep.-Nov., 2008)
7/15 Pacific Journey - Korean (Fall: Sep.-Nov., 2008)
7/30 Love Hawaii (September, 2008)
8/1 Guam Guidebook (November, 2008)
8/1 Florida Guidebook (November, 2008)

Material Deadlines:

NOW! Honolulu Mook (June, 2008) (Globetrotter)
NOW! Aloha Express Quarterly(June, 2008 (Globetrotter)
NOW! Guam Mook (July, 2008) (Globetrotter)
NOW! JJ Hawaii Book (July, 2008)
5/18 JJ Magazine, Hawaii Book (May, 2008)
5/20 JAL Guide (August, 2008)
5/30 Love Hawaii (June, 2008)
6/2 Nouveau (Tumon Sands Plaza) (August, 2008)
7/1 Guam Resort (September, 2008) (Globetrotter)
7/1 San Francisco Guidebook (September, 2008) (Globetrotter)
7/25 Pacific Journey - Japanese (Fall: Sep.-Nov., 2008)
7/25 Pacific Journey - Korean (Fall: Sep.-Nov., 2008)
8/1 Aloha Express Quarterly (September, 2008)
8/1 Romance Hawaii (October, 2008)
8/1 Maui Resort (October, 2008) (Globetrotter)
8/29 Love Hawaii (September, 2008)
8/29 Guam Guidebook (November, 2008)
8/29 Florida Guidebook (November, 2008)

Please inquire regarding advertising opportunities on http://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 (808-469-4803 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

May 5 - Kodomo no Hi - Children's Day
May 6 - Kodomo no Hi (Furikae Kyujitsu) - Children's Day (observed)
May 11 - Haha no Hi - Mother's Day
June 15 - Chichi no Hi - Father's Day
July 7 - Tanabata - Star Festival
July 21 - Umi no Hi - Marine Day

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

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