Japan Market Update - June 2008 Edition

Hi,

Yesterday's breaking news in Japan's technology sector was that Softbank, the third-largest wireless operator in Japan, has been selected to sell the new 3G iPhones there. This came as a surprise, because Apple had been negotiating with NTT DoCoMo, Inc. (see story, "Technology: Japan may get iPhone soon," below). Without a large-scale announcement or news conference, and with the deal being non-exclusive, industry experts are suggesting that Apple could be applying pressure to get NTT DoCoMo to offer concessions. A major announcement is anticipated soon in San Francisco, most likely by Apple.

On a recent business trip to New York City, I used my iPhone to find directions on the GPS, look for restaurants, and search the Internet. I was able to keep up with office emails, download the Official Hawaii Podcast www.hawaiipodcast.jp directly from iTunes, and monitor our Japanese language web site www.hawaii-arukikata.com. On the iPhone, I could review content, suggest changes to the site, and watch our videos posted there. The iPhone technology offers terrific viewing of YouTube videos, which will potentially become an even more important marketing channel when the iPhone is launched in Japan.

This year, PacRim Marketing Group started a video production department to offer clients short clip videos for marketing purposes. The videos, generally less than 1 1/2 minutes in length, feature company updates, new products and merchandise, restaurants, and unique glimpses at what's new in Hawaii. Videos are produced in Japanese or with Japanese subtitles. PacRim has begun to produce videos in Korean as well. All videos use the latest multi-lingual Search Engine Optimization strategy for gaining natural search rankings in marketing channels on the web. Most are posted on the award winning web site, www.hawaii-arukikata.com , which is viewed nearly 20,000 times a day in Japan.

This is a good time to consider gaining Japanese or Korean market share using Web 2.0 strategies and other new approaches that reach tech-savvy consumers. Please feel free to call me directly at 949-4592, ext 833, or email me at Derdman@pacrimmarketing.com to discuss the newest approaches to reach your target market.

Regards,

Dave
derdman@pacrimmarketing.com

*Japan Market News
----- Travel: Agencies report summer bookings upswing
----- Travel: Haneda preps for new terminal
----- Travel: Venture company offers "living abroad" experience
----- Travel: Robert De Niro launches Japan-themed hotel chain
----- Business: Sweden's H&M plans multiple Tokyo openings
----- Business: Retailers start carbon labeling
----- Technology: McDonald's tests e-coupons
----- Technology: Japan may get iPhone soon
----- Sports: Bulgarian sumo wrestler makes history
----- Fashion: One-of-a-kind bags feature recycled materials
*Culture Corner
*Media Of The Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: Agencies report summer bookings upswing

Some gains for Guam and Hawaii, as yen maintains strength and China travel dwindles
Travel Bureau's LOOK brand, and Skytour - are seeing bookings pick up for July, especially for Hawaii, Guam, and Saipan. LOOK JTB and Skytour marked overall double-digit gains from the same time last year, citing earlier product launches and high family tour demand for the upswing. In the wake of the big earthquake in China's Sichuan province and subsequent infrastructure dangers, China bookings have slowed considerably, the agencies said. Increased summer travel would be a welcome break for Guam and Hawaii; Japanese arrivals to Hawaii decreased 4.2 percent for January and February, while Golden Week arrivals plunged 15.6 percent compared to last year. Guam saw an 8.8 percent drop in Japanese arrivals during the first quarter. But despite a shaky economy and soaring fuel prices, it's not that the Japanese are not travelling; during Golden Week, for instance, a choppy alignment of holidays meant more travelers chose short-haul trips to two-hour-max destinations like S. Korea and Hong Kong. At least the Hawaii Tourism Authority knows now is not the time to skimp; HTA has pumped an additional $400,000 to its $7.8 million annual budget to market the islands in Japan.

(Sources: bizjournals.com 4/10/08, 5/14/08; Travel Journal International 6/3/08; visitguam.org 4/08)
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Travel: Haneda preps for new terminal

Runway demand high for airlines serving East Asian countries
A groundbreaking ceremony held in early April marked Haneda's second expansion in less than a decade, despite an overall downturn in overseas travel influenced by a sluggish economy. A fourth runway is already under construction, while the new terminal is slated for completion in October 2010, according to the Ministry of Land, Infrastructure and Transport. And while Haneda will continue to serve regional routes, the Ministry plans to allocate 30,000 departure slots annually to international flights. Often called Tokyo's second hub - next to Narita - Haneda largely serves short-haul flights to domestic and East Asian destinations, in addition to charter services for Hawaii and Guam. The new five-story terminal was designed with the concept of a convenient and comfortable "urban style international airport," with retail and service outlets occupying at least two of the top floors.

(Source: J-Wing Travel 4/14/08)
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Travel: Venture company offers "living abroad" experience

Membership system allows travelers long-term stays in seven global cities
"Kaigai Gurashi" (Living Overseas), a Japanese venture company that plans and supports long-term stays in condominiums around the world, has partnered with the travel arm of transport giant Nippon Express to offer more value-added services to its largely senior market. Over 5,000 members currently take part in Kaigai Gurashi, where they can select to live in condominiums in Chiang Mai, Kuala Lumpur, Australia's Gold Coast, Sydney, Vancouver, Seattle, and Hawaii, for two weeks or up to several months at a time. Support staff at each destination assist members with their travels, equip them with free cell phones upon arrival, and even guide them through daily lifestyle needs such as grocery shopping and using public transportation. A one-time membership costs 10,000 yen (approx. $95), and the annual fee is 24,000 yen ($228); room rates range from 5,000 yen ($47) per person for a two-bedroom condo in Chiang Mai, up to 9,500 yen ($90) for a one-bedroom in Waikiki. The tie-up means Nippon Express can market Kaigai Gurashi to the public, appealing to an increasing number of senior and baby boomer travelers who want meaningful, yet safe, long-stay experiences without buying into timeshares.

(Sources: travelvision.jp 5/27/08; kaigai-gurashi.jp)
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Travel: Robert De Niro launches Japan-themed hotel chain

"Nobu" brand built around business partner's popular restaurant
Hollywood actor and entrepreneur Robert De Niro is leveraging the global appeal of his "Nobu" restaurants, in opening his second hotel property this May, in New York's Financial District. The first Nobu Hotel is scheduled to open this summer in the Israeli resort town of Herzliya. Nobu restaurants is a joint venture with Japanese iron chef Nobu Matsuhisa, who established his classic Japanese cuisine in Tokyo and Los Angeles before teaming up with De Niro to create the famous Nobu restaurant chain. De Niro's hotel chain is making waves because of its concept, in that the hotels are outposts of the restaurant (not the other way around). The rooms will feature Japanese-themed amenities, such as mini bars with green tea and sake, and room service directly from the in-house restaurant.

(Sources: nypost.com 5/1/08; newkerala.com 5/2/08)
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Business: Sweden's H&M plans multiple Tokyo openings

Casual clothes mega-brand to open Shibuya flagship after Ginza and Harajuku
Japan's magazines and blogs have been abuzz with news that Hennes & Mauritz will not only open its first two Japan stores in Ginza and Harajuku this fall, but that construction has begun for a third, flagship location in Shibuya. H&M is known for its inexpensive and fashionable clothing for women, men, teens, and kids. With more than 1,500 stores in 28 different countries, the casual brand competes directly with U.S.-based Gap and Spain's Zara - both extremely popular in Japan. In fact, youth fashion mecca Harajuku will become home to H&M, Gap, Zara, and Uniqlo, all within a 300-yard radius. H&M's famous collaborations with top designers such as Karl Lagerfeld and Stella McCartney sparked the brand's popularity in Japan about five years ago. Online shopping mall Rakuten noted H&M as one of the most sought-after foreign imports in 2004, along with another popular casual brand that has yet to enter the Japanese market - Abercrombie & Fitch.

(Sources: tokyoindicator.com 5/14/07; hm.com press release; field report)
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Business: Retailers start carbon labeling

Consumers can soon compare eco-friendliness before buying products
Japanese retailers are working with the Ministry of Economy, Trade, and Industry on a new system to display the carbon footprint of a product on its packaging. Known as the Carbon Disclosure Project in the U.S. and abroad, Japan's plan appears to be a voluntary system for now, with standardized labeling to show the amount of carbon created to produce, ship, and even market each item. A panel of advisors including representatives from Japan's top retailers Aeon, Seven & I, Seiyu, and Uny plan to discuss implementation and verification procedures. A test phase for the labeling project is scheduled for late-2008, with a full launch expected in 2009. Carbon labeling of supermarket products is currently being tested in other markets in Europe and the U.S.

(Sources: premium.nikkeibp.co.jp 3/3/08; 5/9/08)
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Technology: McDonald's tests e-coupons

E-money success paves way for automatic, electronic coupons
Imagine being instantly rewarded for being a loyal customer, without fishing around for a coupon you received months ago, which may have already expired. Japanese mobile phone users with Sony Felica-enabled phones may be able to do just that, as McDonald's will soon start testing the concept of e-coupons at 175 stores, primarily in the southern cities of Fukuoka and Saga. If successful, the company plans to roll it out in all 3.800 outlets in Japan. The new payment application, called the Kazasu coupon, is downloaded onto a consumer's phone from the McDonald's web site. The consumer can choose the type and quantity of coupons, then place their phones on a reader at the store when making a payment. While point-of-sale coupons have gained momentum as a marketing tool for e-money users, pre-downloaded e-coupons will be a first for Japan's restaurant industry. McDonald's says it expects e-coupons to increase consumer load, but admits the risk that per consumer spending will initially go down as a result of the coupons.

(Sources: contactlessnews.com 5/23/08; headlines.yahoo.co.jp 5/20/08)
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Technology: Japan may get iPhone soon

Apple may finally be ready to introduce next-generation iPhone
With bestseller titles like "The Day iPhone touches down in Japan" and "iPhone Shock," it is obvious that Apple-loving Japan has long awaited the likelihood, yet theorized the unlikehood, of the iPhone ever becoming available in their advanced, 3G market. But according to Forbes magazine and industry buzz in Korea's telecom market, Japan's no. 1 mobile service provider NTT DoCoMo Inc. and Korea Telecom Freetel are in the final stages of launching a special joint release of Apple's next-generation iPhone. Steve Jobs' next keynote address in June may finally introduce a 3G iPhone, which had been considered one of the biggest stumbling blocks for finding iPhone carriers in Japan and Korea - two of the world's biggest mobile markets. NTT DoCoMo and Apple were in negotiations last December, but talks fell through when Apple fumbled over developing 3G-enabled phones (the standard in Korea and Japan), and NTT complained that Apple's cut was too high. If the rumors serve true, iPhones may become available in Japan by the end of the year.

(Sources: fortune.cnn.com 5/20/08; amazon.co.jp; computerworld 5/20/08)
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Sports: Bulgarian sumo wrestler makes history

Victory follows trend of rising foreign sumo stars
Bulgarian sumo wrestler Kotooshu became the first European to win the prestigious, annual Emperor's Cup. Kotooshu, an ozeki (one rank below yokozuna), beat out two Mongolian yokozunas to finish the 15-day competition with a 14-1 record. The 25-year-old wrestler has quickly become a media darling, due to his good looks, fit physique, and famously modest temper. Japan's ancient sport abounds with international color lately; 17 out of the 42 sumo wrestlers who competed in the Emperor's Cup were foreigners, hailing from Bulgaria, Mongolia, Georgia, Estonia, and S. Korea.

(Sources: sumo.goo.ne.jp; japantoday.com 5/26/08)
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Fashion: One-of-a-kind bags feature recycled materials

Vintage materials, unearthed vinyl, reused tires prove eco-style is definitely "in"
A long-established Japanese awning company became an unlikely source for this summer's fashion, when a dead stock of French-made tent material found in the factory's storage produced a limited number of exclusive, vintage handbags. Constructed of industrial-strength vinyl and available in seven variations of nostalgic floral and geometric patterns, the bags ranging from 16,000 to 22,000 yen (approx. $150 to $210) will be available by special order only through Ginza's Matsuzakaya department store between June 4 and 24. Discontinued tires and rubber tubes became the muse for Japanese bag brand "Seal," which sells highly popular, black rubber shoulder bags for 19,950 yen ($190) through Tobu department store. One percent of "Seals" bag sales goes to the World Wildlife Fund (WWF). For a fraction of the price, Tobu is also featuring tote bags made from recycled sailcloth (1,575 yen). The concept of recycling sailcloth from yachts and boats have become popular, as the canvas material is durable, as well as being relatively abundant. One of fashion complex Roppongi Hills' newest boutiques Kinoshohampu also specializes in bags and accessories made of reused cotton and linen canvas material, mainly from retired yachts.

(Sources: field report; roppongihills.com; Tokyo Shimbun Shopper 5/23/08)
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CULTURE CORNER

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High Tech Rice Cookers



Rice cookers are everyday kitchen appliances found in nearly every Japanese home. Until recently, they were used solely to make rice. In Japan, these simple devices are quickly evolving into a multifunctional machine that can also be used to cook meat, make yogurt, make bread, or even to bake a cake. The rice cooker has evolved in leaps and bounds since the cast iron boiling days, and now the most basic models have convenient features like a keep-warm mode, a timer, rice firmness setting, and a Teflon coat to minimize waste. With new technologies that incorporate pressure-cooking and steaming, some sophisticated models cost as much as $900 and are selling better than expected, given the abundance of cheaper models that are just as dependable. The popularity of these multifunctional appliances have urged Zojirushi, a top line appliance manufacturer, to create a line of "American designed" rice cookers to invade the west in hopes that it will catch on. These rice cookers even have a button especially for cooking risotto and steaming veggies. In addition, rice cookers are also becoming a means of communication for the elderly who stay at home. Some rice cookers are equipped with a service that sends an email twice a day to a mobile phone that details which appliances have been in use, allowing urban housewives to feel reassured that their country bound elderly parents are up and about, cooking rice and making tea at home.

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


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MEDIA OF THE MONTH

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Pacific Journey




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! Guam Resort (September, 2008) (Globetrotter)
NOW! San Francisco Guidebook (September, 2008) (Globetrotter)
NOW! Longstay Bon
7/1 Aloha Express (September, 2008)
7/1 Romance Hawaii (October, 2008) (Globetrotter)
7/1 Maui Resort (October, 2008) (Globetrotter)
7/15 Pacific Journey -- Fall (September, 2008)
7/30 Love Hawaii (September, 2008)

Material Deadlines:

NOW! San Francisco Guidebook (September, 2008) (Globetrotter)
7/1 Guam Resort (September, 2008) (Globetrotter)
7/10 Longstay Bon
8/1 Aloha Express (September, 2008)
8/1 Romance Hawaii (October, 2008) (Globetrotter)
7/25 Pacific Journey -- Fall (September, 2008)
8/29 Love Hawaii (September, 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

June 15 - Chichi no Hi - Father's Day
July 7 - Tanabata - Star Festival
July 21 - Umi no Hi - Marine Day
August 13 - 16 - Obon Season

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

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