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:

Models Momo Eri and Tsubasa Masuwaka at the campaign launch

During the Nihon Bara-Iro Keikaku, or Japan Rose-Color Project, customers who buy a Quarter or Double Quarter Pounder Cheese get a pink badge and scratch-card, with the opportunity to win one of 50 free T-shirts. Early in the campaign, the T-shirts were also on sale at the McDonald’s on Center Gai, the upper floor of which was turned into a store reminiscent of a pink Graniph or UT. Some of the Ts were emblazened with tongue-in-cheek messages, such as “I Have Not Been Trading Stocks.”

In this way, behind the rosey color, the campaign makes a deeper pitch at consumers’ sensitivities. Members of the fan club can submit “Big Mouth” comments about the state of Japan today, including hopes, worries and messages of encouragement, such as from ‘Kenta’ in Oita Prefecture to people looking for jobs: “To change the current Japan, it does not take a person with good education, but with the spirit to challenge everything.” Or from ‘Chibisuke’ in Chiba to people who hate their overcrowded commutes: “Leave it to me! I’ll make the trains bigger. I already finished the designs.”

Singer Amuro Namie was chosen as the campaign model, reflecting the personal struggles she has overcome with the death of her mother, divorce and personal reinvention as an artist. The television commercial shows her fighting with herself in a video game, and tells viewers to “Keep Winning for Yourself” and “Laugh at Everything.”

The new bottle holds 520ml of water, but weights just 12 grams when empty, or 40% less than other Coca-Cola PET bottles. The bottle, cap and even label weigh less. Over a year, that would reduce the amount of carbon dioxide produced in the manufacturing process by 3,000 tons, equivalent to the offset of a 950 hectare forest, according to the company.

For Japanese consumers, used to measuring their environmental impact in terms of the volume of waste they produce (always carefully separated into burnables, non-burnables and recyclables), the bottle creates a new disposal ritual to reinforce the “green” brand proposition (see video below). It can easily be twisted by hand to make it thin and easy to throw away, a “1-2-3″  action Coca-Cola Japan encourages consumer to follow in its marketing campaign:  1. buy (!), 2. drink, 3. remove-label-twist-and-discard.

Of course, the ritual still ends with discarding (a non-biodegradable object). However, the manufacturer has undeniable tapped into consumers willingness to take small steps toward “greening” their daily lives, but without making major sacrifices (Part Time Greens).

Not only that, Coca-Cola Japan is betting consumers are willing to pay a premium to be (or be seen as) green: ILOHAS retails in vending machines for 130 yen for a 520ml bottle, an 18% premium to other brands like Crystal Geyser. (As a launch campaign, the water retailed in convenience stores for 105 yen.)

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

“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 potential spending power of young, wealthy city-dwellers is well-documented. Eighty percent of wealthy Chinese are under age 45, according to a recent McKinsey report entitled The Coming of Age: China’s New Class of Wealthy Consumers. That’s compared with 30% in the US and 19% in Japan.

The economic crisis has shaken the assumptions of the Chinese middle class like anyone else. They are less likely to take risks, spend unnecessarily, or change jobs on a whim than they were a year ago. However, individual confidence – belief in oneself – remains remarkably high, especially among females.

Female consumers in their late teens and early 20s interviewed for the research have clear plans for their futures, which involve 1) early 20s: marriage, 2) mid-20s: having a child, and 3) late 20s: returning to work.

Rather than being a hindrance to a career, the young marriage age increases the opportunities for urban women, who expect to have their child (only one child) by their late 20s. The presence, normally, of four sets of grandparents mean that childcare is free and easy to find, so women don’t have to give up their careers, and most don’t want to. Unlike for previous generations, or for people living in rural areas, these women see work not only as a right they are not willing to give up, but also an escape from the pressures of home and family.

With these social/familial obligations taken care of at a relatively young age, but both men and women retain a sense of adventure and personal belief that might for people in the West or Japan peak in their 20s. This enthusiasm is often channeled into a career, the primary means of achieving money, status, friends and personal freedom.

More details of this and nine other consumer shifts are available in Five by Fifty’s China Shifts 2009 report. For a sample, contact us.

A woman relaxes after a work out in a germanium bath.

The era when a sports gym could get by with an array of exercise machines and perhaps a pool is over in Japan, where people are taking a more holistic approach to wellness. Innovative sports clubs are responding with with an array of new services.

Bodies, a women-only fitness club with 20 locations around Japan, features relaxation stations where women can soak their arms and feet in hot water infused with germanium, a popular treatment claimed to boost the immune system and combat free radicals that speed the aging process.

Recently opened in the trendy Daikanyama area of Tokyo, known for its quaint cafes and fashion boutiques, is Athlonia, Japan’s first sports gear shop specializing in triathlon equipment. The shop recently launched a triathlon school, held in collaboration with fitness club chain Tipness, and an adjoining Hawaiian cafe selling dishes with healthy ingredients such as avocado and brown rice.

Bodies also started a women-only running club, a decision it took after talking to its members as well as users of ABC Cooking Schools. There is a running studio in Marunouchi, an area of Tokyo home to a large number of female office workers. Women pop into the studio to change, then run 5km around the nearby Imperial Palace grounds, then return to the studio for a shower.

The club, which is open to beginners, advises members on improving themselves on several levels through running, fashion and beauty. The club’s website features “Beauty Recipes” for do-it-yourself health drinks, as well as organizing tours to the Honolulu Marathon.

Contact us for our ethnographic research on women’s changing attitudes to wellness.

Students at Athlonia's triathlon school.

Students at the ABC Cooking School in Marunouchi.

As we previously reported, the fact that men are behaving more like women makes them an increasingly attractive target for product developers and marketers, and some multinational corporations are responding accordingly. This shift is happening around the world, but especially in Japan, as well as South Korea and Greater China.

Here are some more examples of the shift in action in Japan, offering inspiration for other markets:

ABC Cooking Schools, with locations around Japan, is training an army of amateur chefs. Until two years ago, they only accepted female students. As the Baby Boomer generation began retiring, the competition began offering men-only classes for retirees. ABC took the step of starting co-ed classes at locations with a high density of corporate workers, such as Ginza and Marunouchi. The number of male students has quickly risen to around 600 at the schools.

Another service associated with women that has begun to patronized by men can be found at the 48 nail salons throughout Japan operated by Nail Quick. The number of male customers has risen to the level that the salons now offer a “men’s course” costing 2,940 JPY, and including disinfecting the hands, removing cuticles, and applying clear or colored polish.

One of more surprising hit products comes from underwear maker Wishroom, which has unveiled a men’s bra, which quickly became a top seller on the online shopping site Rakuten. The Wishroom store on the site claims the bra can give men a “calm, relaxed feeling”.

Click here for more insights on shifts in male behavior or ask for a sample report.

S. Korean cosmetics retailer The Face Shop

One air-traffic route that hasn’t slowed amid the recession has been the one between Japan and South Korea. In February, Japanese tourist arrivals in South Korea were up 70% from a year ago, accounting for 48% of all visitors. Numbers were also up from China and Southeast Asia. The primary attraction is shopping, especially cosmetics.

Until now, the reason was the exchange rate, with the won tumbling and the yen soaring, making Seoul an attractive shopping destination. Although the exchange rate has since leveled off, South Korea remains attractive for Japanese, who see it as accessible and safe, and because many South Koreans in retail and hospitality speak Japanese.

The most appealing products are cosmetics, with Korean brands such as Missha, The Face Shop, Skin Food and Nature Republic selling high-quality products at affordable prices for Japanese. At the Nature Republic store in the Myeong-dong shopping area, around 80 percent of customers in April were from Japan, according to the JoongAng newspaper.

In February, the Korea National Tourism Organization chose IKKO, a Japanese transgender makeup artist, as an official ambassador. IKKO has advocated Korean cosmetics in the past.

IKKO, makeup artist and tourism ambassador

“Korean women have better skin than Japanese women,” IKKO said when appointed to the role. “I want to introduce the lifestyle of Korean women, who constantly detox their bodies and minds, to Japan.”

It’s not only the government that has wised up to the revenue potential. Retailers in Myeong-dong are adding Japanese- and Chinese- speaking staff and signage.

The most popular product is Korea-originated BB cream, short for Blemish Balm, which was Japan’s seventh most popular brand last year, according to the Nikkei newspaper. Some 2.6 billion yen (US$26 million) of BB cream were sold in Japan after its launch in April, according to its manufacturer, Hanskin. Eyeshadow, mask packs, mascara and lip gloss from mid-to-low range local brands like Etude House and Missha are also top sellers. Their focus on natural ingredients is an added appeal.

Photo: JoongAng newspaper

“Whenever I come to Korea, I buy around 10 BB creams and refrigerate them so I can use them over a year or so,” Japanese tourist Yoko Wada, 22, told JoongAng at a Hanskin store in Myeong-dong. The price is about half that in Tokyo.

With South Korean brands seen as increasingly trustworthy and desirable in Japan, and Japanese consumers being increasingly cost conscious, the opportunities for South Korean cosmetics brands are obvious. The exchange rate advantage they have enjoyed since October is evaporating, so instead of waiting for the Japanese customers to come to them, they will find it increasingly necessary to target Japanese consumers on their home turf.

To request a sample of Five by Fifty’s Korean Beauty Report, 2009, contact us.

Your message here? (AP Photo via The Daily Beast)

Without wanting to minimize the seriousness of the health issues at hand, the reality is that people around the world are considering how to protect themselves. The prospect of having to wear a face mask if Swine Flu continues to spread may be no big deal in Japan and Asian countries that experienced SARS in 2003. However, for consumers elsewhere unused to such things, the face mask poses a serious fashion dilemma.

The result is the mask becoming a canvas for personal expression. Individuals in affected areas who want to be victims of neither health nor fashion have begun to get creative and decorate their masks, as this photo gallery from The Daily Beast shows.

Mint Designs' cheeky chimp face mask

Some manufacturers like Kimberly Clark already put out limited numbers of colorful masks decorated with Disney cartoon characters for children. Japanese brand Mint Designs has fashioned a cheeky monkey-style mask, and artist Yoriko Yoshida was recently inspired to create a set of beautiful, witty and sometimes faintly morbid face mask illustrations.

Mt. Fuji face mask by Yoriko Yoshida

What’s next? The face mask covers the most important area of the body for communication, and the natural target of the eyes of others. So if face masks do become de rigueur in some places for a while (and it’s far too early to say that they will), the blank white space will become a unique marketing opportunity for the right brand with the right design and the right message.

Contact us to find out more.

Lyota Yagi, VINYL, 2006 (Copyright: Lyota Yagi/Mujin-to Production)

An exhibition at Tokyo’s Hara Museum of Contemporary Art will document the works of several Japanese artists who came of age in the late 1990s and early 2000s, an era of economic stagnation in Japan, offering a glimpse inside the creative minds of a recession-ready generation.

The exhibition, curated by art critic Midori Matsui, will feature some 30 drawings, paintings and video works by 14 “Micropop” artists. Matsui coined the word “Micropop” to describe the mindset of a new generation of Japanese artists who, the museum says, “rearrange fragments of information and knowledge to give new meaning to the outmoded and banal.”

According to the museum, the exhibition, Winter Garden, “reflects a harsh environment of economic recession and political instability in which artists use cheap materials and simple methods to break down existing structures and uncover the beauty that lies dormant within everyday things. [It explores] a world characterized by increasing uniformity spurred by globalization and individuals faced with the need to find meaning in their own lives.”

Makiko Kudo, "might fly at night" (Copyright: Makiko Kudo/Tomio Koyama Gallery)

Winter Garden: The Exploration of the Micropop Imagination in Contemporary Japanese Art is at the Hara Museum of Contemporary Art May 23-June 20, 2009. See www.haramuseum.or.jp for details.