The news in Japan is dominated by headlines of economic malaise and political incompetence. Spending money frivolously is definitely not in fashion. SAVVY SPENDING is in. As such, the other two key elements in The Hunting! concept are “young women empowering themselves” and, less high-minded, “tracking down those must-have items at TGC!”  Must-haves this season will feature masculine images such as armor to promote “strong women”, according to a press release.

The event is organized by mobile fashion site GIRLSWALKER.COM and, as in previous years, the clothes worn by models in the show will be available for purchase immediately via the site. TGC released data from its own research that says Japanese in their late teens and early 20s it surveyed currently spend almost 100 minutes a day using the mobile Internet, 10 minutes more than a year ago. About 65% shopped online using their mobiles over the last year.

New this season is TOKYO GIRLS PARADE, a website where users can pull a fashion slot machine to create Nintendo Mii-like avatars dressed in random fashion looks from Tokyo. (The website is currently avaialable only in Japanese.)

Here’s a clip from last season’s TGC:

MAGASTORE will launch first on the iPhone

One of Japan’s most powerful companies, Dentsu, is trying to extend its control of traditional media to the mobile arena with a new application that will force users to pay for online magazines and maintain its dominance over their ad space.

For years the advertising behemoth has been sitting pretty, thanks to its near-monoploy over media buying and the commissions that go with it. Last week, Dentsu announced the launch of MAGASTORE, a downloadable app that will sell access to magazines on mobile phones.

In fiscal 2008, the digital publishing market was estimated at ¥46.4 billion (US$500 million), up ¥10.9 billion from the previous year. Of that, mobile publishing accounted for more than ¥40 billion, according to research by Impress Holdings. Digital comic books are selling especially well, thanks to improvements in cell phones, with larger screens, faster Web access and simpler billing systems.

MAGASTORE, a collaboration with mobile software provider YAPPA Corp., will begin as an application for the iPhone on the Softbank network this summer, and later be made available to other handsets and carriers. After downloading the application, users can purchase magazines and store them to read anytime. Users will pay ¥115 to for the application and then ¥115 to ¥600 per magazine.

YAPPA has made one-off solutions for magazines in the past, such as Shufuntomo’s éf magazine. But Dentsu’s bundled app will be cost-effective for publishers. They will get access to viewer data as well as an online settlement system and, according to the company, “a new advertising solution combining the characteristics of magazine contents and the technology of mobile advertising.”

Among the publishing houses that have signed up for MAGASTORE are Asahi Shimbun, Fusosha (Numero, Spa!), Condé Nast Japan (Vogue, GQ) and a host of niche publishers of titles about everything from skateboarding and kimono to salt-water fishing.

The control of content by powerful corporations remains solid in Japan, even in mobile, where providers like DoCoMo and KDDI strictly control who gets access to users’ menus. (The App Store model developed by Apple for the iPhone fits nicely with this strategy.) When it comes to the question of whether online content should be free or paid, Japan clearly veers toward the latter. Consumers don’t expect mobile content to be free, and by the same token are more willing to pay for it.

Although the list of participating publishers in MAGASTORE is by no means comprehensive at this stage, Dentsu’s intention seems clear: to control the mobile publishing market by controling the delivery system, its model in print and television for decades, and one that has served the company well, if not the consumer.

“What’s different this time is that consumers aren’t simply looking only for low prices, they’re being more selective and hunting for higher quality and more fashionable products,” according to economist Teruhiko Mano. And analysis of Internet search data bears this out.

A review of keywords that experienced a surge on Yahoo! Japan in May leads to several sites that allow people to save on normally high-price items. (Of course, flu fears and the usual celebrity and sports news also featured heavily.)

Searches soared for “5.5 million yen house,” a keyword used by real estate agency Aqura Home for a new service offering made-to-order houses for 5.5 million yen, around US$55,000.

In mid-May, there was a huge volume of searches for sisyokukai.jp a new service that promotes new restaurants. Users receive discounts of 50-80% for meals in exchange for providing feedback to the restaurants, who are trying to perfect their service.

This week, there has been a large number of searches for “kane no tamago service,” which introduces consumers to apprentice nail artists and hairdressers, who provide manicures and cuts for large discounts or even free.

One luxury item that did enjoy increased search interest was the Segway, as the transport device is rumored to soon become legal on the streets of Yokohama.

The campaign gives specific examples of when to drink Oranomin C

In a highly segmented and overcrowded marketplace, time-bereft consumers need to be spoon-fed if they are to understand what differentiates one product from another. This collaboration does just that for both Oronamin C energy drink and Navitime.

Otsuka Pharmaceutical organized direct marketing for businesspeople outside train stations in central Tokyo this month, handing out samples along with a detailed 8-page booklet designed like a personal notebook. The company helps consumers plan the product into their daily routine, such as before a business meeting, while waiting for a train, or to recharge during a work break.

The campaign, co-branded with Navitime, a GPS-based mobile maps and listings service. There are similar suggestions for incorporating Navitime into your routine too, such as to get to a meeting on time, planning a journey or looking for a restaurant.

Consumers can use a QR code to access a co-branded mobile website and sign up to receive regular mails on business lifestyle themes like “Work-Life Balance”, as well as a free two-week trial of the Navitime service.

The campaign also saw the drink sponsor this week’s R25 (a popular freepaper for men in their 20s), with a spot on the cover and a multi-page survey on how men handle various business situations.

Although Navitime and Otsuka offer two seemingly different products, they have come together to aggressively try and show comsumers that they empathise with and can support them through the challenges of the day at work.

To find out how Five by Fifty helps its clients innovate in the beverage sector, contact us.

In the video game Like a Dragon 3, characters eat ramen to gain strength.

Instant noodle manufacturer Ace Cook is promoting its new product through as tie up with the popular Sega video game “Like a Dragon 3″ (sold in North America as “Yakuza 3″). In the video game, players eat ramen noodles to gain strength before battling opponents.  Ace Cook’s new product is named after a fictitious ramen restaurant that appears in the game. Although the shop does not actually exist, a special section on the Ace Cook website features a map, menu, and reviews.

The Kitson website offers fashions directly from Hollywood films.

Kitson, which operates four boutiques in the LA area, is preparing to launch their first store in Tokyo in March, 2009, with plans to open at least two more in the following 18 months. The Kitson name will be licensed by Xavel, which organizes the Tokyo Girls Collection fashion shows that provide a shopping paradise for trendy young Japanese women twice a year.

Although Kitson’s online shop is available only in English, 20% of order are from outside the US, with Germany and Japan as the top markets. “There’s a quirky-cool appeal to the Kitson branded merchandise that plays well in those markets,” says Kitson owner Fraser Ross.

As Kitson is famous for selling casual fashions that can be spotted in paparazzi shots of Madonna, Britney Spears, Mariah Carey, or in the “Sex and the City” film, its popularity in Japan can be seen an indication of Japanese fashionistas shifting their focus from domestic trend-setters to the casual-chic fashion of Hollywood.

Girls Trendy is a fashion portal site for mobile phones.

It has become commonplace for trendy young Japanese women to utilize their mobiles for shopping. 87% of the users on their mobile portal “Girls Trendy” have made purchases on their phones in the past, according to Xavel, the company that operates the site.

Xavel also presents the Tokyo Girls Collection fashion shows, which have been shaking up the catwalk since 2005, showcasing affordable clothing aimed at girls aged 15-24. Unlike other fashion shows which present apparel that will not be on the market for another six months, at the Tokyo Girls Collection, attendees get photos of outfits e-mailed to their mobile phones mere moments after they appear on the runway, along with a link to purchase the item online. Over 22,000 people attended March’s show, and the concept has been exported to Paris and Beijing.

According to Xavel, Japanese fashionistas can be divided into four categories:

Edgy Girls: Numbering slightly more than 10%, they are always up-to-date on fashion news and have a unique and personal style; willing to cut spending on food but not on fashion

Popular Girls: Equally up-to-date; passes this information along to friends, but also listens to their input. They make up 26% of the total.

Talky Girls: Looks for fashion news from their many friends rather than magazines and news sites. At 31%, the largest group.

Keep-An-Ear-Out Girls: Loyal followers of trends, but not prepared to sacrifice everything for fashion – willing to spend on food and drink. Slightly above 30%.

Not only do Edgy Girls stay ahead of the pack in terms of fashion, but they are also the ones who spend the most when it comes to impulse buying. Is this the new core target group for the mobile retail industry?

Natalie Meyer

Avatars from the Poupee Girl Website.

Poupee Girl, a fashion social networking site operated by Tokyo-based web firm CyberAgent, has won a devoted and quickly growing base of users since launching in March 2008.

After registering on the site for free, users can create avatars named poupee (“doll” in French) by mixing and matching hairstyles, facial features and body shapes that resemble themselves. Users can then dress their avatars with thousands of available garments and accessories, and take a snapshot to post on their personal page on the site.

Users create avatars and dress them virtually.

Poupee Girl has a virtual currency, known as “ribbons,” can be purchased by credit card, or earned by posting new snapshots or commenting on other users’ snapshots. Ribbons can be used to buy virtual fashion item for their avatars. Users can also auction off virtual items they no longer want to other users. Many of the virtual items are based on actual garments, so users can coordinate a look on the site and go out and by the actual outfit.

Users post to the message board every few seconds.

However, Poupee Girl is much more than a virtual fitting room. It is also a social networking site with a rapidly growing base of users. In the “Poupee Cafe,” users can post one-line micro blogs on how they are feeling at the moment, which appear with their latest snapshot. New comments are posted every few seconds, attesting to the popularity of the site. Users can post photos of fashion items bought in the real world from their mobile phone cameras and receive comments and advice from other users.

Users can also post photos of items they actually buy.

The site has collaborated with brands to bring popular Louis Vuitton and Hello Kitty items into the virtual space, helping traffic to double every month since the site’s launch.

Learn more:
Poupee Girl site
News on Louis Vuitton
News on Hello Kitty