Christmas Culture and Opportunities in

Drafted by: Intern Thais Maemura Edited by: Specialist Yoshiko Okamoto April 2017

Introduction

Christmas is recognized as a worldwide religious, cultural, and now commercial occasion. Famously known as the most wonderful time of the year, the 24th and the 25th of December are days many families, children, couples, dining establishments and retailers look forward to. While the manner in which Christmas is celebrated can be similar in many parts of the world, Japan has put a unique spin on the occasion. One would be surprised to learn that Christmas in Japan is a couple’s holiday, or that Christmas dinner is associated with a bucket of Kentucky and a cake. Looking into Japan’s unique way of celebrating Christmas may prove useful for U.S. businesses interested in the Japanese market.

Historical Context

The first record of Christmas in the land of the rising sun took place around 1552 in Yamaguchi City of Yamaguchi Prefecture, at the southern tip of Japan’s largest island. Jesuit missionary Pedro de Alcacova was documented singing to Japanese Christian converts on Christmas Eve at the Jesuit temple. The group spent the 24th of December listening to sermons on the life of Jesus Christ, and reading religious scriptures. The tradition persisted and as time passed, believers listened to Biblical stories, but also started to exchange gifts.1 The exchange of gifts was not a Jesuit tradition, but one that seems to have emerged naturally in Japan, possibly from Japanese culture.

The Jesuits later started Christmas plays to adapt Biblical stories, possibly as a teaching method. This move was actually an enormous success as both followers and non-followers traveled to watch such plays.2

During 1549 to 1638, several Christian missionaries came from Spain and Portugal to Japan. The missionaries preached in Latin, and gained a noticeable number of followers. By 1587 there were at least 750,000 converts in total. As the group became sizeable, central leadership became concerned, and persecution began.3 Many Japanese Christians were martyred, missionaries were expelled from the country, and contact with the international community was restricted to one

1 Sakurai, Joji. "Japan’s First Christmas." The Japan Times. 24 Dec. 2016. (http://www.japantimes.co.jp/life/2016/12/24/lifestyle/-first christmas/#.WPx0oBS-RhA). 2 Ibid. 3 "The Edicts of Toyotomi Hideyoshi." Asia for Educators. Columbia University. (http://afe.easia.columbia.edu/ps/japan/tokugawa_edicts_christianity.pdf).

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small artificially created island near Nagasaki. However, Japanese Christians did not disappear, and practiced in secret for 300 years surprising missionaries when they finally were able to return to Japan.4

By 1888, commodities such as Christmas cards and supplies started being imported to Japan. This helped to spread the notion of Christmas to non-religious groups. By 1902, Christmas was already considered an annual event in Japan. This likely stems from the so-called modernization period, when the Japanese were eager to prove that they had caught up with the rest of the world through adopting Western lifestyle and practices.5

The first Santa Claus appeared in children’s books in early 1900’s. He was described as hermit- looking old man, carrying a pine tree and gifts, accompanied by a donkey (since reindeers were unknown beings in Japan back then). The story conveys that an eight-year old boy helped an old weary traveler during a journey, and that this man later returned to the boy’s village on Christmas Eve in order to return such kindness.6 This notion of receiving rewards for selflessness, respect to elders, and kindness runs deep in Japanese fables as well. This nicely tied into the notion of well-behaved children receiving presents from Santa Claus on Christmas. Around the same period, a grocery store chain named Meijiya started to sell Christmas decorations in Ginza, one of the fanciest districts in . This idea of decorations was introduced by the founder himself, who had studied abroad in England and been awed by how cities were decorated for the holidays In Europe.7

Such stories show how Christmas was gradually introduced into Japan, and how it became a mixture of local and foreign traditions. The evolution of Christmas would continue, becoming influenced by external cultures and traditions, but developing into something uniquely Japanese.

Christmas In Japan Specific Customs and Traditions

Christmas in Japan, like several other countries, is characterized by both commercial and strategic sides. It can be argued that modern-day Christmas is highlighted by an outstanding commercialism that reaches families, friends, and couples. In Japan, this special date is celebrated mainly among these three group categories. According to The Weather News, as of 2010, when asked about the most exciting aspect regarding Christmas in Japan, 26% answered spending the time with their family. Furthermore, people ranging from 20-30 years old preferred

4 McCurry, Justin. "Martin Scorsese Film Recalls Martyrdom of Japan's Hidden Christians." The Guardian. 24 Dec. 2015. (https://www.theguardian.com/world/2015/dec/24/martin-scorcese-film-silence martyrdom-japan-hidden-christians). 5 "クリスマス いつから日本に定着した?." Nippon Television News. 21 Dec. 2016. (http://www.news24.jp/articles/2016/12/21/07349671.html). 6 Ibid. 7 Ibid.

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to spend this day with their significant other, whereas people from the ages of 10-20 believe that receiving gifts is the most exciting factor.8 In fact, gift exchange is an indispensable tradition in Japanese Christmas. The estimate of budgets spent on gifts overall was an average of $121 per gift as of 2013.9,10 Children in Japan tend to receive present as opposed to how Christmas is in the United States. Usually, the present is one nice gift from the whole family to the child, and it is often presented to the child on Christmas Eve during dinner. Married couples or adult family members are not expected to exchange gifts at this time. Young females may exchange gifts between friends at large parties or in closely knit groups, but the concept of present giving seems to mostly be between adult family members to children, and between couples.

Gift exchange during Christmas time in Japan is taken very seriously, especially by couples. For instance, purchasing a Tiffany necklace for one’s significant other is not out of the normal range in Japan even if one has been dating for less than a year. Rings are another type of gift that couples seek during this season, and some even take the opportunity of a romantic Christmas atmosphere to propose to their significant other by investing in a Tiffany or Harry Winston rings.11 A Christmas Eve proposal at a romantic restaurant overlooking the bay, in a high rise hotel room overlooking the city lights, or at Disneyland watching the parade, are all considered extremely thoughtful and well planned proposal ideas.

The average price range couples spend on each other seems to be a bit high; for instance, married couples spent an average of $132 for dinner and $167 for gifts as of 2012.12 This can likely be attributed to several factors. Many young Japanese live at home, and commute by public transportation. Without such expenses, they have more disposable income to spend on one-time presents. Furthermore, university students tend to have easy course loads, and many opt to work part-time. Their salaries can be directly diverted into their past times, which usually include their romantic partner. It is not unusual to see Japanese traveling internationally for extended periods of time over spring breaks, or seeing them invest in nice brand name products. Without tuition (usually paid by parents), housing, car insurance, or living expenses, many have the pleasure of spending on trips, luxuries, dinners out, and presents.

The tradition of giving others, usually a romantic interest, nice gifts started in the late-1980s, when Japan was experiencing the so-called Bubble Economy. This period of inflated dreams,

8 "クリスマス調査." Weather News Center. 20 Dec. 2010. (https://weathernews.com/ja/nc/press/2010/101220_2.html). 9 "クリスマスプレゼントの予算." The Weather News. 25 Dec. 2013. (http://weathernews.com/ja/nc/press/2013/131225.html).

10 This report uses a 1 USD = 109,067 JPY currency exchange rate

11 "クリスマスプレゼントベスト10." Kakaku. 2016. (http://kakaku.com/okurimono/seasonalevent/xmas/).

12 "クリスマスの過ごし方に関する意識調査." Wedding Gnavi. 21 Nov. 2012. (https://wedding.gnavi.co.jp/howto/1590/).

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salaries, and expenses led to heated consumption, elaborate gifts, and ornate buildings and theme parks that are now abandoned today. Millennial refer to adults from this generation as “bubbly”, usually characterizing the generation as still used to spending beyond their means, and being used to elaborate lifestyles.

The generation after the Bubble has pointedly become more frugal. However the Bubble period made its mark, and still seems to be the impression people have of Japan, where the world saw the Japanese buying real estate in New York and sporting luxury bags, was characterized by waste, opulence, and exaggerated spending and lifestyles. The gift giving tradition has continued to the current generation despite their more frugal everyday lifestyles. Louis Vuitton may have been replaced by Kate Spade, but the Japanese still are in awe with Tiffany lineups, and still purchase expensive gifts for each other for Christmas.

Food

An indispensable aspect of Christmas celebration in Japan is food. Many American may associate Christmas with ham, Mexicans with butter cookies and chiles en nogada, the British with fruitcake, and Brazilians with a turkey feast. Canada has chicken bones candy, Spain turkey with truffles, and India coconut cookies. Each country has created a celebratory food with local influences and ingredients. However, Japan has taken a different route, as the Christmas foods used in Japan have no connection to Japanese ingredients or culture whatsoever. In fact, these foods are considered American while not being staple products of any American Christmas dinner.

Christmas Cake

The must-have item for a Christmas dinner in Japan is a Christmas cake. The purchase and consumption of Christmas-themed cakes might be one of the most unique and popular Christmas traditions in Japan. The cakes are sold in traditional pastry shops, department stores, neighborhood supermarkets, and even convenience stores such as Seven Eleven. Advertisements to pre-order such cakes are everywhere, and the combined marketing effect succeeds in making one feel compelled to join the tradition. Famous pastry shops or hotel bakeries will have a different Christmas cake each year, and fans of specific stores will pre-order cakes to ensure they have a taste of such limited edition options. Often the father’s sole job is to bring home a Christmas cake for the family dinner. Stores will set out tables to sell cakes to last minute buyers.

The most popular and typical Christmas cake is strawberry shortcake with white frosting that sells for an average of $36 for a diameter of 165-170mm. This cake usually has some type of decoration on it, usually a small Santa figure possibly accompanied by a small Christmas tree and sled with reindeer. This standard cake is what is expected for families with children, but couples and older families can opt for options including the Buche de Noel (yule log cake), or fine crafted options from Pierre Marcolini, Qu’il fait bon, Godiva, Demel, or the Ritz Carlton. Naturally the price range is rather large, with some cakes retailing for $400 dollars. In fact,

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according to a statistic provided by Human Data, 70.4% of Japanese ate Christmas-themed cakes as of 2015. 13

So, just how did this tradition get started in Japan? The company behind the trend is , a Japanese confectionary chain founded in 1910 in Yokohama. Known for its cute mascot Peko- chan, the company has a chain of confectionary stores selling parfaits, cakes, and confectionary product lines at supermarkets and convenience stores. The President of what later became Fujiya was known as Rinnemon Fujii, and he first ventured to the United States at the age of 25 to study confectionary making. He later debuted a modified Japanese version of the American strawberry shortcake, and sales took off around Christmas of 1922. The cake became associated with the occasion, and this was said to give birth to the Christmas cake tradition.14 The American cake that inspired a Japanese confectionary maker created a profitable company, and a new so-called American tradition in Japan.

Kentucky Fried Chicken

Another surprising food tradition in Japanese Christmas is that of Kentucky Fried Chicken (KFC), which entered the Japanese market in 1970 as a joint venture between and American parent company. The Business Insider estimated that 3.6 million Japanese families ate KFC during Christmas season as of 2016.15 People are so engaged with this tradition, in fact, that they pre-order the meals. If one does not pre-order, the options are waiting for hours in line, or not having chicken for Christmas at all. Again, bringing home pre-ordered chicken also becomes the responsibility of the father, so failure to bring back chicken can be seen as failing in family duties for this occasion.

This nationwide tradition started with Mr. Takeshi Okawara, the first manager of Kentucky Fried Chicken Japan. In 1970, after overhearing a couple of foreigners in the store talking about how they missed having the traditional Christmas feast with turkey, Okawara came up with the brilliant idea of selling a Christmas “party barrel” inspired by American Christmas feast - however, with fried chicken instead of traditional turkey.16

Japan did not yet have any traditions associated with Christmas dinner, as the country’s Christian population was about 2%. This new promotion quickly filled the vacuum as it promoted an image of an American Christmas that the Japanese were eager to replicate. The promotion jump-started in 1974 with the slogan “Kentucky Chicken for Christmas,” and soon Kentucky Fried Chicken became a synonym for Christmas traditions in Japan. Some of the

13 "2015 年 クリスマスケーキを食べる割合 アンケート結果 統計." Human Data. 4 Nov. 2015. (http://human-data.com/archives/1455).

14 "不二家の歴史(明治から終戦)" Fujiya. (https://www.fujiya peko.co.jp/company/company/history.html). 15 Taylor, Kate. "How KFC Made Christmas All About Fried Chicken — in Japan." Business Insider. 23 Dec. 2016. (http://www.businessinsider.com/how-kfc-became-a christmas-tradition-in-japan-2016-12). 16 Barton, Eric. "Why Japan Celebrates Christmas with KFC." British Broadcasting Channel. 19 Dec. 2016. (http://www.bbc.com/capital/story/20161216-why-japan-celebrates christmas-with-).

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popular KFC Christmas meals today contain not only fried chicken, but also cake, ribs, roast chicken with stuffing, and even wine.17 For instance, in December 2016, KFC was selling their dinner packages for $34 and a premium whole-roasted chicken and a sides package for $52.

These Christmas packages, in fact, account for approximately one third of the chain’s annual sales. According to the British Broadcasting Corporation, daily sales at some KFC shops can be 10 times their usual take during Christmas season.18 KFC Christmas promotion also makes use of the beloved . During the season, he is attired as Santa Claus and many find that his welcoming presence is another element for the company’s success given Japan’s high senior population and affinity to Santa Claus. In the end, Okawara received due credit for his idea, as he became CEO of the company for 20 years.

Entertainment

How one celebrates if often tied into local history and religion. For Japan, neither is the case as the Japanese have taken external influences to make their very own Christmas traditions. Japan’s unique way of celebrating, and its Christmas specific entertainment options are quite interesting as they feature several U.S. players.

Disney Culture

While millions celebrate Christmas with Christmas-themed cakes and Kentucky Fried Chicken, others in Japan treat it as a romantic holiday similar to Valentine’s Day. One of the prime destinations during this time of the year is Disneyland and Disneysea. The latter, in particular, is highly targeted by couples since it has been marketed in Japan as a more mature version of Disneyland.

It might sound odd for the outsiders, but going to Disney parks on Christmas has also become a tradition in Japan - especially for couples. In Japan, planning a Disney park date involves more than just buying tickets. Men must first reserve the hotel, and not just any cheap one. For instance, Hotel MiraCosta is a five star luxury hotel inside Disneysea, which costs an average of $300 per stay. Furthermore, men have to think of what rides to get on, the order to ride them in, select a seat for the parade show, and find the right place for dinner. Couples also go to the parks with matching clothes, or Disney-themed hats and accessories. Thus, a Christmas Disney date is extremely calculated and Japanese couples take this day very seriously.

Disneyland and Disneysea have special seasonal events for Christmas, Christmas Fantasy and Christmas Wish, respectively. Both start in November and finish on the 25th of December giving plenty of time for eager couples to enjoy the festivities. As of 2016, approximately 66,000 people went to Disneyland on the 24th of December and 50,000 on the 25th; whereas more than 55,000 people went to Disneysea on the 24th and 35,000 on the 25th. Indeed, the number of people who went to both parks on the 24th was higher than any other day of the month.19

17 Taylor. (http://www.businessinsider.com/how-kfc-became-a-christmas-tradition-in-japan-2016-12) 18 Barton. (http://www.bbc.com/capital/story/20161216-why-japan-celebrates-christmas-with-kfc) 19 "混雑予想カレンダー." (http://www15.plala.or.jp/gcap/disney/).

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Christmas Lights

Another form of Christmas entertainment in Japan is seeing Christmas lights. Such lights are known as “illumination” in Japan. Although this is done all over the world, this type of Christmas entertainment in Japan stands out. Similar to Disney parks, seeing such illumination light displays is another romantic Christmas tradition in Japan. For instance, as of 2015, 52.1% of respondents said that they appreciate illumination displays the most when asked where couples would prefer to go for a romantic Christmas night.20 The reasons for this include the fact that people can appreciate the display in a low price, as well as the fact that it conveys romantic vibes.

Some of the most famous places that have good displays include the Luminarie in (Hyogo Prefecture), which attracted around 3 million visitors last year; and Winter Illumination in Chiba Prefecture, which attracted 600,000 visitors last year.21 Prices range from $4.5 to $9, sometimes being even free, making it very cheap, accessible, and thus attracting more and more visitors every year.

Christmas Market

Recently in Japan, Christmas Markets have been making their slow debut at high scale malls in urban centers such as Roppongi or Hibiya in Tokyo, as well as in other provinces such as Kanagawa, , and Fukuoka. Similar to the European markets from which they have their roots, they maintain mostly a German style structure. They are outdoor markets with stalls selling decorations, food, and drinks and many like to pass by after work to feel as though they are in Europe. Those dropping by indulge in German sausage and Glüh Wine, watch performances, and occasionally purchase holiday trinkets.

Business Opportunities

It is clear that Christmas season in Japan can be very profitable. Christmas is celebrated differently in Japan, but with an emphasis on American products and traditions. Albeit, some of these have morphed into something uniquely Japanese, but given the interest in this holiday, there is room for a committed businessperson to explore new opportunities.

The Japanese are eager for additional options for couple present exchange. Making limited Christmas editions for jewelry and watch related products might prove to be a hit, especially if such products are reasonably priced and cater to Japanese tastes (they prefer smaller more delicate pieces). Limited holiday edition gift packages including American candles, soaps, or lotions for young females to exchange as presents amongst each other, video games aimed for release in December that have been properly localized, and a greater variation and selection in decorations for the Japanese to decorate homes, schools, and offices (since Christmas is not

20 "2015 年 クリスマスに恋人と行きたい場所 人気ランキング 統計." Human Data. 17 Nov. 2015. (http://human-data.com/archives/1667). 21 "イルミネーションスポット 2016−2017." Rurubu. 2016. (http://www.rurubu.com/season/winter/illumination/).

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considered a religious holiday there seems to be no concern here about where and what can be decorated), could be in need.

The Japanese also can be guided to adopt, and then localize American products and practices into their own traditions. Similar to couples gift exchange that includes American products, and certain dining habits that someone stemmed from American influences, there could be new Christmas traditions that can be evoked through effective marketing. Perhaps gift exchange will slowly expand to include a greater circle, similar to Valentine’s Day in Japan. Furthermore, perhaps additional Christmas activities could be introduced to a very eager audience.

In order for U.S. companies to take advantage of this special occasion, some considerations should be made. For instance, tradeshows are great references to get a sense of trends, and what has been on the rise. Some Christmas-specific tradeshows include Christmas Expo in Tennessee,22 Christmas Gift & Decor Show in Kentucky,23 and Christmas World in Germany.24 Sizable Japanese delegations come to such shows, so it is important to have a presence or partake in business matchmaking to establish connections.

In Japan as well, there are some tradeshows focused on gifts, such as the International Gift Show in Tokyo, Osaka, and Fukuoka.25 While exhibiting might seem expensive, being at such shows consistently demonstrates interest and commitment to the market, and is appreciated by Japanese partners and consumers. Getting access to the market and support in localizing and marketing will likely be through a great Japanese partner. Once such a partner has been found, then the path forward will involve devising an effective marketing strategy and business plan together. Most do not realize that a partnership in Japan is like a marriage and cannot be entered into or terminated lightly. The distributor world is very small and U.S. companies would run into difficulties securing a new partner if a relationship with a previous partner is perceived to have ended negatively.

We suggest that interested players first come to market and see tradeshows, supermarkets and malls in Japan—preferably during the season. This will give insight into what the quality and service norms are, and signal the depth of Japan specific Christmas traditions. Should one decide to further consider market entry, we then encourage reaching out to our office at [email protected] to initiate consultations. Based on the product focus, the specialist in charge and market entry strategy will differ.

The market is indeed competitive and requires commitment and investment. That being said, for the committed person, there is the possibility for great rewards.

22 http://www.christmasexpo.com/ 23 http://www.louisvillechristmasshow.com 24 http://christmasworld.messefrankfurt.com/frankfurt/en/besucher/willkommen.html 25 http://www.giftshow.co.jp/english/

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References

"2015 年 クリスマスに恋人と行きたい場所 人気ランキング 統計." Human Data. 17 Nov. 2015. . "2015 年 クリスマスケーキを食べる割合 アンケート結果 統計." Human Data. 4 Nov. 2015. . Barton, Eric. "Why Japan Celebrates Christmas with KFC." British Broadcasting Channel. 19 Dec. 2016. . "The Edicts of Toyotomi Hideyoshi." Asia for Educators. Columbia University. . "不二家の歴史(明治から終戦)" Fujiya. . "クリスマスプレゼントベスト10." Kakaku. 2016. . McCurry, Justin. "Martin Scorsese Film Recalls Martyrdom of Japan's Hidden Christians." The Guardian. 24 Dec. 2015. . "クリスマス いつから日本に定着した?." Nippon Television News. 21 Dec. 2016. . "混雑予想カレンダー." . "イルミネーションスポット 2016−2017." Rurubu. 2016. . Sakurai, Joji. "Japan’s First Christmas." The Japan Times. 24 Dec. 2016. . Taylor, Kate. "How KFC Made Christmas All About Fried Chicken — in Japan." Business Insider. 23 Dec. 2016. . "クリスマス調査." Weather News Center. 20 Dec. 2010. . "クリスマスプレゼントの予算." The Weather News. 25 Dec. 2013. . "クリスマスの過ごし方に関する意識調査." Wedding Gnavi. 21 Nov. 2012. .

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