Lotte and Suntory have collaborated to release a chocolate bar flavored with premium 12 year old single malt Suntory whiskey from Yamazaki Prefecture. In time for Valentine’s Day, a gift set including a bar of the chocolate and a miniature bottle of Yamazaki 12 Year, is being released for a limited time.

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Shoppers browse in Japan

When Swedish fashion retailer H&M opened its first Japanese store in the upscale shopping district of Ginza, more than 5,000 people lined up to be the first in Japan to wear H&M goods. The fashionable, yet reasonably priced clothing has scored a hit with cost-conscious savvy savers admist an economic downturn in Japan. Now that H&M has opened a store in the street fashion center of Harajuku and is planning a third in the nearby youth mecca of Shibuya, many are wondering about the effect it will have on smaller, pricier Japanese brands.

On September 13th, H&M, the popular Swedish fashion chain, opened the doors of its first store in Japan, located in Tokyo’s Ginza district. After having conquered Europe, North America and large areas of Asia and the Middle East, taking on the Japanese market next seemed the logical next step.

Shoppers show their excitement on H&M

Established in 1947, H&M currently has over 1,500 stores in 28 countries, making it the world’s No. 3 clothing retailer, but it has taken the fashion giant over half a century to break into the Japanese market. Most analysts attribute this to the historically exclusive attitude of Japan’s fashion-crazed consumers.

While Louis Vuitton and other big name labels were able to cash in on the obsession with designer brands that came with the bubble era of the late 1980s and early 90s, it is only recently that discount chains have been able to find their niche in Japan.

With jeans priced at 3,290 yen and men’s tailored suits coming in at under the 30,000 yen mark, H&M will be competing with other international chains such as Gap and Zara from Spain, as well as the local favorite UniQlo. With the Japanese and world economies suffering a downturn, consumers are turning to retailers such as these to satisfy their hunger for the latest trends without breaking the bank.

H&M’s CEO Rolf Eriksen was in Tokyo on Thursday for the opening “shopping” party of the new Ginza store, and he confirms that the company has grand expectations for its new market. Two more stores are slotted to open in Harajuku and Shibuya within the next year.

Kelly Wetherille

The latest in a series of mineral water products popular in Korea.

In September, Jinro released Aqua Blue, positioned as a premium grade in its Seoksu mineral water line. The new products come during a time when mineral water sales are booming in Korea as the sale of bottled tea drinks slip.
Aqua Blue is made from desalinated deep sea mineral water extracted from 1,032 meters below the surface or Kangwon Province’s Yang Yang Bay. The water boasts 50 varieties of minerals found in deep sea water, and a pH level of 7.3-8, which is claimed to add in it being easily absorbed into the body. The blue gradation on the bottle is designed to represent the ocean getting darker at lower deepths.

This new premium line comes at a time when mineral water is booming in Korea. Bottled tea drinks, which peaked in 2004 during a wellness trend, with some hit products enjoying 40% sales growth per year, have stalled, and this market is predicted to begin shrinking by 10% per year.

Meanwhile, the mineral water market has skyrocketed from 3.5 billion won ($2.5 million) in 2006, to a projected 4.5 billion won ($3.2 million) in 2008. Many of the popular brands such as Blue Marine, Momejouenmul, and Ulleung Minewater are, like Aqua Blue, produced from desalinated deep sea water. Blue Marine, a premium water line by Lotte Chilsung, is enjoying sales success despite a price of 1,400 won($1) per .5 liter bottle, about 40% more than the market average. Ulleung Minewater sells for 2,000 won for a smaller, 330 milliliter bottle, which was recently redesigned to give it a more premium look.

The move from bottle tea to mineral water might be linked to a recent consumer backlash against genetically modified ingredients, which appear in some tea drinks. Mijin An

Ulleung Minewater is one the more expensive products on the market, as has new package design with a premium look.

A few years behind Pocky, Lotte has released their own product targeted at men, a bitter, salty version of the Toppo chocolate snack said to leave a spicy aftertaste!

Bandai has teamed up with Lotte to release a range of bath tablets in 6 of their popular gum flavours including blueberry, green mint and coffee.

Brands are using black as the main color in package design and brand identity.

Premium cosmetics brands such as Clinique and Shiseido have been using black as the main color in package design and brand identity for their men’s cosmetics and beauty lines. In 2006, MUJI brought this concept to the consumer when it launched its affordably-priced range of men’s cosmetics and beauty products in a distinctive black package design – an especially clever step considering that not only women’s cosmetics but also most other MUJI products are finished in a clean, shiny white.

New Frisk Black Mints.

Possibly fueled by the 2006 launch of the black version of Apple’s MacBook, the trend has now spilled over into other categories. Coca Cola Zero – the no-calorie Coke targeted at men – was launched in a black can in June 2007. Lotte’s fragrant chewing gum Otoko Kaoru also comes in a distinct black packaging. Although not explicitly targeted at men, competitor Glico has just introduced a black mint flavor for its Breo mints, and even Frisk has moved away from its signature white packaging and released a black version.

While we could attribute the gloomy economy as the reason for the popularity of black, there could be another factor in play too. Until recently trendy urban men in Japan were only too happy to occupy the metrosexual space their Western brethren had most resolutely deserted to become the more masculine ‘ubersexual’. Perhaps only now do Japanese men feel it is socially acceptable to be fashionable, into beauty but purchase these products in a way that appeals to them – in black, conservative packaging that dresses up what essentially a consumer product also aimed at women.

UCC Black coffee in a new black package.

Xlylish gum in versions aimed at men and women.

For a maker of a general item such as chewing gum to exclude 50% of a potential market would seem like an ill-advised move. But there are male and female versions of fragrances, so why not separate versions of gum?

Major Japanese makers such as Lotte and Meiji are offering two versions of packaging for their popular lines, one with more feminine designs, and the other with more masculine color schemes, or creating completely new products with names such as “Glamatic” or “Male Fragrance.” The gum flavors are also designed to suit male and female tastes. Glamatic has a fruity taste geared toward women, while Male Fragrance contains a rose/menthol combination that is said to curb body odor by adding a whiff of rose the consumer’s perspiration.

Glamatic itself is divided into two package designs, mirroring the most noted fashion styles of young women in Japan: pretty and pink for “Lolita” fashion, and black and burgundy for “Goth” fashion. Convenience stores have caught on the this new twist in marketing by putting male and female gum on separate shelves.

The second annual Tokyo Marathon was held yesterday.

The second annual Tokyo Marathon was held February 17th 2008, beginning at the Tokyo Metropolitan Government building and tracing a course past historic temples and the Imperial Palace grounds, as well as the capital’s most modern landmarks. 30,000 participants were selected by lottery draw from applicants all over the world.

The first Tokyo Marathon in 2007 was marked by foggy, rainy weather, while this year’s runners enjoyed clear skies. The event was also better organized this year, with thousands of police officers redirecting traffic and hundreds of employees from the sportswear maker ASICS positioned alongside the course. There were also thousand of well-wishers along the route. The popularity of the marathon is evidence of the increased interest in running in Japan, as well as part of the build up to the 2008 Olympic Games.

A new series of Ginza Cocktail drinks made by Suntory in collaboration with Kagome.

With more and more Japanese consumers demanding premium quality, authenticity or the opportunity to display connoisseurship, manufacturers are discovering collaboration as a way to develop products that meet those needs.

Suntory has been one of the pioneers with Ginza Cocktail, a line of premium ready-to-drink cocktails using high-quality fruits selected by specialist retailer Senbikiya released in 2006. In September 2007, Asahi and Kagome went one step further and released Tomate, a tomato juice-based cocktail drink that was developed jointly and features both company names with equal weight on the package. Vegete, the follow-up and based on vegetable juice is set for release in February.

Also in fall 2007, Suntory launched a spicy soup in collaboration with Tohato and its popular Bo-kun brand of spicy snacks.

Koume soda produced by Suntory in collaboration with Lotte.

Suntory has also increased its collaborations with Lotte, resulting in the plum-flavored softdrink Koume Soda based on Lotte’s Koume candy, and will release a limited edition set of Whisky and chocolate for Valentine’s Day.