Japanese still splurging on New Year gifts
By Channel NewsAsia's Japan Correspondent Michiyo Ishida | Posted: 05 December 2008 0026 hrs

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TOKYO: Many parts of the world are preparing for the Christmas holidays, but in Japan, it is more about the New Year gift-giving.

Presenting 'oseibo' or year-end gifts to bosses and mentors is a custom in Japan as a way to express thanks. So far, Takashimaya said sales are about the same as last year's.

Another big draw at department stores during this time of the year is the 'osechi' or New Year cuisine – delicacies that are supposed to bring one good luck and longevity.

The most popular 'osechi' choices are priced between US$200 and US$300. Some sets by famous restaurants can cost as much as US$2,000.

Nana Okada, deputy manager, Public and Investor Relations Office, Takashimaya, said: "This time, we've priced some sets at 63,000 yen (US$630), tax inclusive. Initially, we were worried we may have priced it too high, but over 200 sets were already sold in two weeks."

Nonetheless, overall sales at department stores nationwide have been in a bad state. Data that was released in October showed that sales had dropped eight straight months in a row, compared to the year before, especially for items such as jewellery, artworks and luxury bags.

But that has not stopped some stores from promoting luxury goods. A set of wedding rings, an engagement ring and a watch is going for US$21,000 after a 50 per cent discount.

And for those with cash to spare, a 17-day trip to the South Pole for two is priced at US$200,900 to mark the year 2009.

The promotion is part of Mitsukoshi department store's unveiling of its 'fukubukuro' or bags of fortunes, which go on sale on the first business day of the New Year.

Akemi Yamada from Mitsukoshi's Sales Promotion department said the store's Ginza outlet has started preparations for various promotions since August.

Some of the gift trends for young ladies for the year-end season include a branded scarf or dress, a trip to the nail salon, or an undisclosed bag of Italian items worth ten times the price.

It is hoped that the attractive items will help boost sales in the coming year.


- CNA/so