Japan Marketing News

Starbucks Japan brews up new approaches

A couple of months ago, the international papers were buzzing about Starbucks' woes in the U.S. Analysts have been worried that the American market has been saturated, and this has been reflected in the stock price, which is down almost 50% versus last year.

The situation is somewhat different here in Japan. The market is not quite saturated and the brand continues to grow. Nonetheless, a number of threats loom on the horizon and the brand isn't going to be enjoying a cakewalk going forward.

Besides the ongoing encroachment of competing chains like Doutor, Excelsior, Tully's and Seattle's Best, McDonald's has also joined the fray in earnest by launching its McCafe shops which feature a broad lineup of specialty coffee drinks. Additionally, the burger chain recently introduced a better quality brew called Premium Roast at its regular restaurants for just 100 yen per cup (about $1).

But that's not all.

Louis Vuitton brands Mother Nature

So, you're wondering what to get your gal for White Day?

If you're short on ideas but long on cash, you can always stop by Louis Vuitton for a monogrammed white rose. That's right. LV is actually selling live roses imprinted with their famous logo.

Intrigued? Well, if you want yours, don't delay. They're only available today through Sunday, and only at the Omotesando, Roppongi Hills and Ginza Namiki Doori flagships.

The price? 4,000 yen apiece.

New mega outlet mall to open near Tokyo

While outlet malls have been around in the US since the 1980's, they didn't make an appearance in Japan until 1993. Since then, more than 20 have opened nationwide, supported by enthusiastic Japanese consumers who enjoy bargain prices and the American-style open-space shopping and dining experiences these facilities offer.

The two largest developers of outlet malls in Japan are US-based Chelsea, which focuses on high-end brands in their Premium Outlets, and Mitsui Fudosan, whose Mitsui Outlet Parks comprise mostly mid-level brands with a few accessible premium outfits mixed in. At present, each company has six malls, but that's about to change next month.

On April 10, Mitsui is slated to open Mitsui Outlet Park Irima, a mega mall with 204 stores, restaurants and other offerings. Amongst the foreign brands to be represented there, some of the better-known include Banana Republic, Cole Haan, Tommy Hilfiger, Coach, Diesel, Eddie Bauer, Bruno Magli, and Furla (go here for a full list of shops).

If you're interested in visiting, access will be fairly easy from Tokyo. By train, you catch a special express from Ikebukuro that takes a little over 30 minutes to reach Irima-shi Station (using the Tobu Ikebukuro train line). From there, it's another 15 minutes by bus. Full access info here (in Japanese).

He nose if you've been bad or good. . .

So, you're looking for a little something to spruce up your Japanese home or apartment at Christmas this year—are you willing to splurge a little?

How about indulging in a limited-edition box set of luxury tissues?

Known as the Sei Naru Cho Hana Celeb promotional two-pack, Oji Nepi a is releasing just 5,000 today through the online retailer Rakuten Ichiba. Featuring intricate holiday designs, the set contains "Silent White" and "Holy Black" and goes for a mere 3,000 yen ($26).

If you'd like a closer look at the packaging, visit the special Hana Celeb website.

But if you're thinking of buying, don't dawdle. Oji Nepia released a similarly priced special box set in February—and all 3,000 sold out on the same day.

Tokyo holiday window displays, 2007

It's that time of year again.

For those of you interested in holiday window displays in Japan, here are four examples of the efforts of some high-end retailers in the Omotesando / Aoyama area of Tokyo. They were photographed last week.

Dior's display is elegant. Bulgari's is understated. Tag Heuer's is clean and simple. And Kate Spade gets the enthusiasm prize for going all out on its flagship.

With luck I'll get around to posting a few more examples before Santa makes his rounds. . .

Takeo Kikuchi introduces new accessories brand

In stark contrast to the stagnation seen in portions of Japan's fashion and lifestyle markets, some areas of the jewelry and accessories sectors have continued to grow. In response a number of brands have been broadening their offerings or taken steps to enter the arena for the first time.

Takeo Kikuchi, one of the best known of the many labels belonging to Japanese fashion powerhouse World, is no stranger to non-apparel fashion. For years, the brand has sold some of the best-designed, moderately priced men's bags and wallets (bags up to around ¥35,000, wallets up to ¥25,000). But sensing new opportunities, TK has now launched a full array of bag and accessories products in stand-alone shops dubbed Editool Takeo Kikuchi. The first of these opened on September 8 in Sendai, the largest city in Japan's Miyagi Prefecture.

According to a press release on World's website, Editool's product breakdown is as follows: leather bags and leather products (wallets, card cases, etc.): 30%, neckties: 20%, business bags: 15%, belts 10%, casual bags: 10%, others (hankerchiefs, umbrellas, stationery, cuff links, etc.): 15%. The company hopes to open multiple locations in coming years; in optimal circumstances they'll be located next to or near Takeo Kikuchi apparel shops to generate cross-purchases from those after an integrated TK look.

A deluge of boots for Japan's rainy season

Anybody with even a passing interest in Japanese fashion soon notices that Japanese women exhibit an exceptional fondness for boots. And things that are cute.

Putting the two together, you get the mini-boom of this rainy season: cutsie bootsies.

Of course, this isn't the first year rubber and vinyl "rain boots" have graced Japan's shoe departments—but there does seem to be elevated interest—and I've been seeing broader selections and special displays at shoe shops and department stores all around town.

Products run the gamut in price, design and country of origin (plenty of local offerings too), but pop styles seem to be getting the most attention.

Speaking of attention, high-end brands have been making a splash in this arena as well. Check Japan's retailers along with online sites like Yahoo Japan and Rakuten and you'll encounter styles from Chanel, Gucci, Pucci (no surprise there), Coach and more.

This seems to be one of those little fads that's co-evolving in multiple markets, but given Japan's love for all things cute, I'm counting on seeing some awfully endearing ensembles around Harajuku and Shibuya in the coming weeks.

Now only if it would rain. . .

The heroine wears Prada

Three years ago the animated Japanese adventure film Appleseed was released to wide acclaim both in Japan and 30 overseas markets. In October, the second installment of the Appleseed saga, Ex Machina, is scheduled to open on the big screen here in Japan. Many of the key figures involved in the production held a press conference last week, just down the street from my office—at of all places—the Tokyo Prada flagship store.

Was this merely an attempt to add some panache to your typical run-of-the-mill movie press conference?

Not on your life.

It turns out that the ferocious-yet-feminine cartoon heroine of this John Woo-produced spectacle will be sporting a very special wardrobe designed by Miuccia Prada herself (graphic at right composed of original images here and here). Apparently, the queen of streetwise luxury was impressed by the stunning 3-D graphics of the original film and leapt at the offer to work on this "cool, innovative and edgy" sequel.

But Prada and John Woo aren't the only big names enthused about Ex Machina. A number of talented musicians are also involved, including Academy-award winning artist Ryuichi Sakamoto, plus Towa Tei and Cornelius.

Ex Machina is based on the manga of the same name written by celebrated creator Shiro Masamune (Ghost in the Machine). The movie is directed by Shinji Aramaki and co-produced by Terrance Chang (Face Off). Warner Brothers has picked up international theatrical and video distribution rights and is expected to release the film outside Japan sometime next year.

View trailers for Appleseed and Ex Machina here and here.

Marketing different in Japan? You bedder believe it

So, just in case you're still wondering if things are really done differently over here in Japan. . .

Häagen-Dazs Japan, which regularly develops Japan-only flavors specifically for discerning local consumers, pulled off a unique promotional event the other day that shows just how "other worldly" some aspects of marketing in Japan can be.

On May 1, Häagen-Dazs Japan launched the Dolce Series, a new line of luxury ice creams conceived on the idea of delivering "supreme happiness," or "ecstasy." The new items are distinguishable from regular Häagen-Dazs thanks to a new a new gold-topped package that's smaller and (even) more expensive than the existing line of products (mini-cup: 110ml @ 325 yen vs. 120 ml @ 260 yen). Two flavors are presently available, Tiramisu and Crème brûlée.

Obviously, there's new advertising as well.

True to the "ecstacy" positioning, the ads (which can be seen here) artfully comingle sensuality with spiritual imagery to create the sense that Dolce provides a transcendent experience. They're aimed straight at today's Japanese adult women who are as busy as ever, but are also the richest they've ever been, thanks to staying single and in the workforce much longer. Over the past few years, day spas and lifestyle improvement facilities (providing yoga, relaxation rooms, aroma therapy, etc.) have been springing up all over Japan—to serve the needs of these flush but frazzled consumers who are desperately in need of pampering.

Dolce is all about indulgence—escape to a place that's all relaxing and comforting and sweet and safe (in other words, heaven). Hence the use of halo-like lighting and angelic imagery in the ads, along with Ave Maria as theme music (perhaps blasphemous by some western standards, but this is Japan where these things are absorbed through a different world view).

So what about this buzz-inducing event I've been talking about?

In line with the above, Häagen-Dazs Japan got together with Sealy Japan (that's right Sealy—the mattress manufacturer) to create a jointly sponsored event meant to promote heavenly bliss (and both brands' products).

One hundred couples were invited (by entering a Haagen Dazs prize drawing) to a private concert by three top-notch classical musicians. Häagen-Dazs ice cream was provided for all, as the invitees watched and relaxed, from their very own double beds, which had been laid out instead of seating in the concert venue!

So, was this a dream come true experience?

I can't really answer as far as the concert-goers are concerned (apparently some watched, while some slept), but in some ways it is certainly is a dream come true PR-wise for Häagen-Dazs, as the story was picked by a slew of Japanese media outlets.

Need more information on the above topic? Click here.

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* Copyrights to the above TV commercial, and all others shown on this site, are the property of the organizations and creators which produced them.

* Photo of Dolce event from Jiji Press, linked from Livedoor News here.

Harry Winston opens largest shop in Osaka

Harry Winston, well known as one of the world's most exclusive jewelers, opened its largest shop in the world on April 6 in Osaka. The 485-square meter store, which is located in a Shinsaibashi area building co-occupied by Hermès, is Winston's fifth in Japan.

According to news reports, the brand considers Japan and the United States to be its two most important markets, so we can probably expect to see more Japan openings in the not-too-distant future. Winston has already announced its intention to unveil a new store in Nagoya before year's end. Plans to renovate the brand's Ginza shop may be in the works, as well.

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