Japan Market Update - July 2008 Edition

Hi,

New media, including the increasing number of popular blogs and podcasts (downloadable audio files), has had an immense impact on how messages are communicated - especially in Japan where new media is well received. For example, an average of 20,000 people are now downloading the Japanese language Official Hawaii Podcast http://www.hawaiipodcast.jp/ each month to hear Hawaiian music, news and entertainment updates, and interviews with celebrities and Hawaii residents. The podcast is created by PacRim Marketing Group with our partners at Orbitune and Nickong Enterprises.

What's new? Digital video is now becoming the hottest online format for effectively reaching and engaging consumers - who now expect to see videos on the best web sites. Digital video's rapid growth is the result of higher broadband penetration allowing more people to view video (especially in Japan). Videos on our award winning website, www.hawaii-arukikata.com have been viewed more than 100,000 times, an average of 1,000 times per video.

PacRim Marketing Group's video team has just uploaded its 100th video on the popular website. This 3-minute benchmark video is a compilation of all of the site's videos, and highlights cultural events, fashion shows, new restaurants, retail and shopping center grand openings, and hotel and tour activities and events. All 100 videos are between 30 seconds to 3 minutes in length and are posted on our hawaii-arukikata.com video page, as well as on Google Video and YouTube. We have also created our own channel for Hawaii content videos.

What's next? PacRim Marketing Group will launch a new cell phone site called: myhawaii-mobi.jp on September 1. Our soft opening will be in August. With the excitement surrounding today's launch of the Apple's iPhone in Japan, and the strength of the cell phone market in Japan, we will now be able to assist you with developing websites for cell phones used in Japan and by Japanese tourists in Hawaii, Guam, or other areas of the US. (with the use of a 3G like the new Apple iPhone).

New media channels will grow and provide more marketing opportunities for companies to capitalize on·or risk falling behind. PacRim Marketing Group, Inc. and its sister company, PRTech, LLC, are positioned to assist you and your organization with harnessing the power of this dynamic marketplace. We hope to work with you directly to create your online presence through sponsorships, engaging videos, and other means to showcase your business or organization.

Regards,

Dave
derdman@pacrimmarketing.com

*Japan Market News
----- Travel: Wireless Internet most important hotel amenity
----- Travel: JAL announces biofuel demol
----- Business: Japanese household spending drops
----- Business: Supermarket plans electric car chargers
----- Business: "Two-in-one" a key phrase for hit products
----- Society: Bread is Japan's breakfast of choice
----- Society: Japanese twins debut as hula dancers
----- Fashion: Hip to wear art
----- Technology: New camcorder to detect smiling faces
----- Technology: iPhone to launch as early as July
*Culture Corner
*Media Of The Month
*Upcoming Magazine Deadlines
*Important Dates

Travel: Wireless Internet most important hotel amenity

Wi-Fi crucial for happy travelers; Japanese businessman lists Internet-friendly hotels
Wireless Internet is the most important technology amenity hotel guests ask for, according to a study by the American Hotel & Lodging Association. The study shows that 82 percent of guests rank wireless Internet as their top amenity, followed by in-room entertainment (48 percent) and airline check-in kiosks (38 percent). A 2008 lodging survey indicates that 91 percent of hotels offer wireless Internet access, up 35 percent from just four years ago. In Japan, where despite a proliferation of mobile Internet, laptop computers are gaining popularity, a web site listing Internet-friendly hotels around the world has recently become a buzz-worthy online resource. The site, www.bbhotel.net, was launched by a Japanese businessman, who began blogging about hotels he'd visited during his travels. Though mostly covering domestic properties, the site features U.S. hotels such as Hawaii's Ilikai Hotel and Le Parker Meridian in New York City.

(Source: bizjournals.com 6/24/08; bbhotel.net)
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Travel: JAL announces biofuel demo

JAL will be first Asian airline to test biofuel flight
Airlines affected by rising oil prices are working with jet makers to test alternatives to burning fossil fuel to fly their planes. Following the lead of Virgin Atlantic Airways, Air New Zealand, Continental, and JetBlue Airways, Japan Airlines announced plans to flight test one of its 747s on a blend of conventional fuel and sustainable biofuel. The biofuel to be used by JAL has not been selected, but in February, Virgin flew a 747 from London to Amsterdam with one engine running on a 20 percent blend of biofuel made from babassu and cocunut oil. Air New Zealand plans to use biofuel made from jatropha, an inedible oil plant that grows on arid land and does not compete with food supply for resources. Algae-based biofuels are also in the works, with Boeing co-chairing the recently formed Algal Biomass Organization, which spearheads research for biofuel in the aviation industry..

(Source: aviationweek.com 6/08)
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Business: Japanese household spending drops

Monthly survey indicates economic slump affecting both salary and consumer activity
Average Japanese monthly spending a fell 2.7 percent in April from a year ago to 310,695 yen (approx. $2,933), according to the Ministry of Internal Affairs and Communications. The average monthly income of salaried households came to 469,774 yen ($4,435), down 1.6 percent. Household spending figures are a key indicator of personal spending, which accounts for about 55 percent of Japan's gross domestic product. The ministry's report reflects overall business pessimism among both manufacturers and service sectors, caused by weak domestic demand and the impact of rising prices for raw materials. The Tankan, a monthly survey that monitors the sentiment of Japan's business condition, is expected to fuel recession concerns already mounting in the world's second-largest economy.

(Sources: forbes.com 6/19/08; morganstanley.com 6/20/08)
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Business: Supermarket plans electric car chargers

Drivers may be able to recharge their electric cars while shopping
Rising fuel oil prices and concerns for the environment are pushing more Japanese consumers to contemplate electric cars. But given their limited output - about 200 km (approx. 120 miles) per charge - a nationwide charger network is necessary for electric cars to proliferate. With over 500 large-scale shopping centers in operation, Japan's no. 1 retail chain, Aeon Group, is working with car companies to set up battery chargers at mall parking lots. Mitsubishi Motors and Fuji Heavy Industries Ltd. are currently backing up plans to set up Aeon's first charger at a mall in Saitama Prefecture, a densely populated suburb adjacent to Tokyo. Mitsubishi and Fuji are considered to have high stakes in the popularity of these mall chargers, as both car companies are scheduled to launch new electric cars in 2009. Recharging electric cars using household power outlets take about seven to 14 hours, whereas the mall charger can recharge a car in less than an hour - a time frame well-suited for shopping.

(Source: Kyodo News 6/22/08; japantimes.co.jp 6/22/08; icsc.org)
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Business: "Two-in-one" a key phrase for hit products

Veggie cocktails, therapeutic laundry, two-generation toys top hit list
Japan's monthly Trendy magazine zoned in on a possible theme for this year's hit consumer products: reaping two benefits from one item. Beverage maker Asahi, for instance, launched a canned tomato juice cocktail "Tomate," and a mixed fruit-vegetable cocktail "Vegete," both made from 40 to 50 percent real juice. With about a 5 percent alcohol content - equivalent to an average beer - Asahi says the new products have sold briskly among both the health-conscious and the casual, daily drinker; Tomate and Vegete pack more flavor -- and vitamins -- than just a fruit-flavored cocktail. To lift the spirits of busy housewives, household product maker Lion Corp. introduced a laundry detergent that doubles as aromatherapy. "Fresh Camomile" became an instant hit among young housewives who, according to Lion research, desired everyday household products that satisfied the senses. "One might as well enjoy her housework," was also a popular sentiment among the same group of women. And finally, toy companies are developing products that are as functional to busy moms as they are fun for kids. Toy maker Bandai Co. most recently sold 1.5 million units of a sushi-roll maker, designed for kids, but requires real ingredients. Although the toy needs a little help from a grown-up, Bandai says more moms want to be included in kids' play, and more kids want to get involved in the kitchen - the sushi-roll maker fulfills both needs. Following this success, a crepe-maker is scheduled for September.

(Source: trendy.nikkei.co.jp 6/08)
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Society: Bread is Japan's breakfast of choice

On-the-go breakfast is popular, but Japanese display otherwise healthy eating habits
Japanese pollsters on a private online survey voted bread as the most commonly consumed breakfast item (73.1 percent), followed by rice or rice balls (57.3 percent), and coffee-based drinks (39.2 percent). The result comes as no surprise, as the Japanese diet has become increasingly westernized, and the national lifestyle more hectic, making a quick western breakfast a convenient choice over rice and all its fixings. This is despite skyrocketing prices on bread, caused by increasing wheat cost, as well as a nationwide shortage of butter. But the government is stepping in and urging a return to rice, citing in particular an endemic rise in "metabolic syndrome," a blanket term for a gamut of health risks such as high blood pressure, high cholesterol, and obesity. On a positive note, the survey showed that a good majority (70 percent) of those polled ate breakfast everyday, and an additional 10.6 percent sat down for the day's first meal at least five or six days a week.

(Source: whatjapanthinks.com 6/19/08; field report)
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Society: Japanese twins debut as hula dancers

Identical pair becomes media sensation at popular Hawaiian spa resort in Japan
Ai and Mai Watanabe, 18-year-old identical twins, are brewing a bit of media frenzy in Japan. The pair will debut as hula dancers at the Spa Resort Hawaiian, an island-themed amusement park in Iwaki City, about two hours from Tokyo. The former cheerleaders enrolled in the spa's in-house dance school, after graduating high school this spring. The twins will join a pedigree of hula dancers trained at Spa Resort Hawaiians, which opened in 1965 as one of Japan's largest amusement parks at the time, largely as a means to revitalize a deteriorating mining town. While skeptics doubted tourists would travel to Iwaki City for a make-shift Hawaiian vacation, over 1.5 million visitors had poured in by 1970. It remains a huge out-of-town attraction in Japan, featuring hot springs, a water park, a golf course, and entertainment. The resort's colorful history was illustrated in the movie "Hula Girls," which became a blockbuster hit in Japan, fueling new interest in Spa Resort Hawaiian, as well as in Hawaiian hula and culture.

(Sources: iza.ne.jp 6/24/08; wikipedia)
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Fashion: Hip to wear art

Artistic expressions on clothing and bags visible summer fashion trend in Tokyo
Whether upscale or cheap chic, popular artworks are emblazoned on T-shirts this summer throughout the streets of Tokyo. Popular apparel brand Uniqlo sparked the trend with its T-shirt prints featuring pieces by Keith Haring and Michael Basquiat, priced reasonably at 1,500 yen (approx. $16). A frequent supporter of up-and-coming designers and artists, Uniqlo also organizes T-shirt design competitions, following the company's belief that artistic expressions can be enjoyed by both those who wear them, and by those who view them. On the high end, art-inspired fashion by Louis Vuitton and Prada are already hitting the Tokyo streets. Modern artist Richard Prince collaborated with Louis Vuitton on the 2008 spring and summer collections, while Prada's throw-back to the 60s and early 70s with its latest, gothy Art Nouveau designs has struck a favorable cord with Japan's fashionistas.

(Source: trendsinjapan; style.com; field report)
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Sports: Technology: New camcorder to detect smiling faces

Sony video camera will take still shots of smiles while filming
Sony Corp. may have invented just the solution for eager parents doing double duty with both a still camera and camcorder. The new HDR-CX12 compact camcorder is equipped with a "Smile Shutter" function that detects smiling people and automatically takes still photos of them while filming. Due out in July, the video camera is slated to retail at around 130,000 yen (approx. $1,200). In addition to taking still shots with a resolution of up to 7.6 megapixels, the new camcorder can "prioritize" children's smiles over adult subjects, as well as determine the "level," or depth, of the smiles.

(Source: techno.nikkeibp.co.jp 6/20/08)
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Technology: iPhone to launch as early as July

Softbank will absorb some hardware cost, expecting thousands of new subscribers
New subscribers to Japan's no. 3 mobile operator, Softbank Corp., will be able to get an 8-gigabyte iPhone for 23,040 yen (approx. $217) with a new, two-year contract. A 16GB model costs just 34,560 yen ($326), roughly equal to U.S. retail prices, and a lot less expensive than industry reps had anticipated. Most new 3G model mobile phones are in the $500 range even for new subscribers, which means iPhone and Softbank will be seriously undercutting competitor's prices for new phones. Softbank's low monthly subscription cost of 980 yen ($9) will apply to iPhones, and limitless web access will match no. 1 NTT DoCoMo at 5,985 yen ($56).

(Source: mainichi.jp 6/23/08; Softbank.co.jp)
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CULTURE CORNER

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Vegetable and Automobile Vending Machines?



The Japanese are known for their extravagant vending machines that dispense hot ramen, hamburgers, umbrellas, and cigarettes, but lately they have been stepping it up a notch. Recently in Tokyo, vending machines that dispense fresh vegetables have been seen increasingly used by busy city commuters. The vegetables are freshly kept in a refrigerated locker-type compartment and are available for only 200 yen. Simply insert the coins, open the window, grab the vegetable bunch, and go home with your fresh produce. Another fascinating sight is the Smart Car vending machine. Yes, there is actually a smart car inside the machine, and the machine even has two button options for Coupe or Cabrio alongside a bill slot for 20K. Pushing the button on the vendor won't exactly pop out a car, but it does dispense a branded tube containing pamphlets on the new models, dealer information, and a sheet of Smart Car stickers featuring the available colors. This extravagant campaign has caught the curiosity of many Japanese who are positively responding because of the rising gas prices and lack of space. Vending machines for marketing purposes are becoming increasingly recognized as a nice extension of the Japanese love for instant gratification on-the-go. What will they think of next?

(Source: http://www.kilian-nakamura.com)


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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 fall 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 fall 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! Aloha Express (September, 2008)
NOW! Romance Hawaii (October, 2008) (Globetrotter)
NOW! Maui Resort (October, 2008) (Globetrotter)
NOW! Pacific Journey -- Fall (September, 2008)
7/30 Love Hawaii (September, 2008)
8/1 Aloha Express Yearbook (November, 2008)
8/1 Nouveau (Tumon Sands Plaza) (November, 2008)
8/1 Waikiki Mook II (November, 2008) (Globetrotter)
8/1 Guam Guidebook (November, 2008) (Globetrotter)
8/1 Florida Resort (November, 2008) (Globetrotter)

Material Deadlines:

7/25 Pacific Journey -- Fall (September, 2008)
8/1 Aloha Express (September, 2008)
8/1 Romance Hawaii (October, 2008) (Globetrotter)
8/1 Maui Resort (October, 2008) (Globetrotter)
8/29 Aloha Express Yearbook (November, 2008)
8/29 Waikiki Mook II (November, 2008) (Globetrotter)
8/29 Love Hawaii (September, 2008)
8/29 Guam Guidebook (November, 2008) (Globetrotter)
8/29 Nouveau (Tumon Sands Plaza) (November, 2008)
8/29 Florida Resort (November, 2008) (Globetrotter)

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) and http://www.myhawaii.kr

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

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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