Rebirth Tokyo 1986

Chapter 200: Exploitation at all levels
As time went by, the number of guests gradually decreased.

"Sorry, it's almost time. I have to go now."

The briefing was about to begin and the guests were basically seated.

The person involved, Masato Takeshita, naturally had to step forward first.

"Well, get busy. The three of us will definitely guard the best station."

"That's right, go ahead and don't keep everyone waiting."

"We have no problem here, let's go to the meeting and attract more customers."

Toyoshima Akio and the other two naturally had no objection, and they even hoped that Takeshita Masato would arrive at the venue earlier.

"OK!"

Masato Takeshita took one last look at the three seniors, took a deep breath, and walked towards the center of the podium in a steady and generous manner.

The briefing sessions, which later became IPO roadshows, have many differences in form between Japan and the United States.

The United States is more unrestrained and likes to gather major investment institutions together and then brag about the strength of their own products and companies.

The Japanese are more reserved and are more accustomed to visiting every household in person.

Founders and underwriters present their company to investors in person, similar to a one-on-one sales pitch.

The young people chose the American road show.

He doesn't have so much time to visit every household, nor does he need to visit every household.

The company has sufficient confidence and it will be a loss for investment institutions if they do not buy it.

Such a good company is still in the bubble stage and can easily rise by more than 20%.

With the arrival of Masato Takeshita, the lights in the hall gradually dimmed, leaving only the front desk brightly lit.

In addition, the discussions in the conference hall began to gradually subside.

As you all know, the highlight of tonight is about to begin.

"Ladies and gentlemen, I am Masato Takeshita, the president of Matsumoto Manufacturing, and I am very happy to meet you all tonight."

Masato Takeshita, who stood tall and straight, briefly introduced himself, then bowed politely to everyone to express his gratitude for coming.

At this moment, large areas of flash lights flashed across both sides of the stage.

The density is terrifying, far exceeding that of normal roadshow companies.

On the one hand, Matsumoto Manufacturing is large in scale and can attract more investors.

On the other hand, Masato Takeshita is a very popular topic, and basically any news about him will arouse the interest of readers.

Of course, this is also related to the fact that young people rarely show up in public.

This young president of a large company is too mysterious on weekdays, and he is basically nowhere to be found.

But young people are indeed popular among the people.

Naturally, this public appearance would require a lot of photo-taking.

Although the media reporters were very enthusiastic, Masato Takeshita still carried out the company's briefing, or roadshow, step by step.

"Matsumoto Manufacturing has a history of several decades. However, before 1986, the company had only a few hundred employees and was considered a small and medium-sized enterprise."

"In 1986, after I took over, I first injected the patent for the trolley suitcase into the company, and then began to expand on a large scale."

"To this day."

"Matsumoto Manufacturing has grown rapidly into a giant company with more than 2.5 employees, sales revenue of more than 800 billion this quarter, and profits of more than 300 billion."

Here, Masato Takeshita used a trick to include the workers in Shanghai as his own employees.

Then the young man did not give everyone time to discuss and continued talking.

"In addition to the expansion of enterprise scale and profits, the company's business has also achieved new growth."

"Matsumoto Manufacturing has entered the clothing market, forming a new model of Chinese manufacturing and Japanese sales."

"Compared to Japan, wages in China are lower, and Matsumoto's low-priced clothing strategy has been very successful, and it has occupied a part of Japan's low-end market."

The landlord has no spare money.

The economic carnival during Japan's bubble era was mainly caused by a huge explosion of assets among the wealthy class.

The lower class people have not benefited much and have to endure the pain of soaring prices.

With the help of this favorable trend, Matsumoto Manufacturing successfully entered the low-end clothing industry.

Of course, Matsumoto Manufacturing's choice of simple and fashionable style is also a key to its success.

If life is too extravagant, people will start to yearn for simplicity.

It's a bit like recalling the bitter past and thinking of the sweet past.

When life is good, people like to be nostalgic.

I also started to miss foods like steamed corn bread, which I once hated so much.

"We have achieved good results not only in the clothing industry but also in the food industry."

"The company not only successfully won the Chinese authorization of McDonald's, but also established 10 fast food restaurants in Beijing, Tianjin, Shanghai, Yangcheng and the Special Economic Zone in China."

"Every business is very hot, and people are even lining up to buy."

American fast food is a fashion in China and represents the advanced Western lifestyle.

So even though the price is very expensive, many Chinese people want to try it once.

But fast food restaurants are almost reaching their limit.

Chinese people have limited income and cannot support McDonald's large-scale expansion.

"In addition to the clothing and fast food businesses, Matsumoto Manufacturing is also preparing to develop in the snack food industry such as instant noodles and beverages."

"China is poor in this area. As long as Matsumoto Manufacturing works hard, it will achieve good results."

After saying this, Masato Takeshita quickly operated the computer and showed investors the annual growth of China's two major food products: instant noodles and beverages.

The annual growth rate of over 30% has attracted a large number of investors.

"I didn't expect that Matsumoto Manufacturing has already entered the clothing and food industries."

"I think Matsumoto Manufacturing's plan is very good, and it is expected to achieve good results in the clothing and food industries."

"Indeed. But the most important thing is the luggage industry."

"Matsumoto Manufacturing's achievements in this area are truly dazzling. The patent fees alone are estimated to be tens of billions each year."

Through the PTT presentation, investors discovered clearly.

Trolley suitcases are actually an industry with an annual output value of tens of billions of dollars.

Matsumoto Manufacturing not only occupies the mid-to-high-end market by virtue of its first-mover advantage.

The patent licensing fee of 10% + 500 yen has made all the trolley suitcase manufacturers in the world work for Matsumoto Manufacturing.

The Qualcomm of the future is the Matsumoto Manufacturing of today.

After a round of self-boasting, the next step was the question-and-answer session.

"Takeshita-kun, trolley suitcases are easy to make, how will Matsumoto Manufacturing cope with the fierce competition in the future?"

Takeshita Masato responded with a smile,

"It's very simple."

"In the mid- to high-end market, we have already formed a brand advantage. In Japan, there are even "non-fengya" and "shuying" meaning "not considered a suitcase."

A high-end luggage brand made in Matsumoto that is heavily dependent on the Japanese market.

In Japan, it accounts for more than 70% of the sales of the Fuya brand.

This is also the general situation of the global luxury market at this time.

Japan alone accounts for more than half of the world's luxury goods market share.

This trend did not gradually decline until 2000.

Then China began to take over the banner of purchasing large quantities of luxury goods.

I don’t know why, but East Asians have a mysterious pursuit for Western luxury goods.

Although the suitcases made by Matsumoto are not European or American luxury goods, they are domestically produced cutting-edge products.

So in terms of effect, it is even better than foreign products.

The Japanese people, who are already very keen on high-end products, are even more crazy about it.

It can be said that the Japanese market alone is enough to feed Fengya and Shuying.

It's a bit like Huawei in the future. It doesn't matter if all foreign markets are lost.

By ensuring your own business, you can also obtain very stable profits.

"As for low-end brands, we have OEM factories in Shanghai, China."

"Shanghai has abundant human resources, and the wages are very low."

“So in terms of price, no other factory can compete with us.”

The more forward-looking capitalists are aware of China's huge cost advantages.

If it weren't for the Chinese government's unclear attitude and China's failure to restore its legitimate seat in the WTO.

Foreign investors, especially those on the production side, have long flocked into the Chinese market.

"Trolley suitcases have been around for two and a half years, and the market is becoming saturated. Is it possible for your company to achieve such a huge growth?"

Masato Takeshita answered without hesitation: "Of course!"

"The global production of trolley suitcases has just exceeded 1 million. However, the global demand for suitcases is at least hundreds of millions per year."

“Let alone two and a half years, even if we had another three years, it would be difficult to fill it.”

"In addition, suitcases and other items are consumables and need to be repurchased every few years, which is enough to ensure the healthy development of Matsumoto Manufacturing."

"In the next three years, the luggage industry manufactured by Matsumoto will maintain an annual growth rate of more than 3%."

Currently, the products manufactured in various countries around the world are mainly strong and durable.

For example, Panasonic refrigerators can be used for decades without any problems.

Trolley suitcases are different in that their wheels are consumables.

It can be said that there is almost no difference between them and future products, and they all need to be replaced every few years.

Of course, the quality of Fengya brand suitcases is very guaranteed.

But the Fengya brand focuses on fashion.

Those users who like to pursue fashion will buy a new one even if the suitcase is not broken.

It is somewhat similar to the Apple mobile phone of later generations.

Although it can be used, it is not the latest model, so you have to buy a new one.

"Oh, President Takeshita is full of confidence."

"It's not that I am full of confidence, it's the inevitable development of the luggage industry."

Masato Takeshita's confidence immediately infected many investors.

After a simple evaluation and considering the great development of the Japanese stock market, everyone suddenly became full of expectations for Matsumoto Manufacturing's stocks.

After the roadshow, Matsumoto Manufacturing immediately served a banquet.

After some conversation, Masato Takeshita held up a cup and quietly walked up to Akio Toyoshima.

"So, do you have any opinions on the price?"

"Not bad, everyone is quite willing to pay 1200 yen."

Toyoshima Akio was very satisfied.

In one roadshow, he sold almost half of his underwriting shares.

If we do it a few more times, they will basically be sold out.

You can easily earn 200 billion yen.

This is the charm of investment banking.

Of course, investors who buy shares from Industrial Bank will not lose money either.

They can sell them to retail investors at 1300 yen, or they can keep them and sell them when the market value rises.

Most people will probably choose the first model and earn a commission.

However, companies such as Yamaichi Securities are expected to choose the second option.

Because Yamaichi Securities is very greedy and will not easily let go of the meat that is delivered to its door.

It is precisely because of this greed that Yamaichi Securities cannot withstand the wind and rain.

"That's good, I hope everyone can get rich."

"Of course!"

Toyoshima Akio was happy, and Yokota Fumu and Nagano Hideaki were even more so.

Because of Matsumoto's exaggerated business, the two people's stock shares were almost cleared out.

If you don’t want to keep part of it until the listing stage, you can go back and take a rest.

The investment institutions are too enthusiastic, which is really unbearable.

This can also be considered as the benefit that the bubble era brought to Matsumoto Manufacturing.

Not to mention large companies like Matsumoto Manufacturing with top-tier revenue and profits, even those small companies that are not that good can win the favor of institutions through PTT and hype.

Stock investors have entered the most frenetic stage.

As long as the story is good enough, the company can go public and see its stock price soar.

Of course, the fanatical thinking of stock investors will eventually pass.

For example, NTT, which went public last year, saw its share price soar several times at first, and its price-to-earnings ratio was exaggerated to reach several hundred times.

But as time went on, NTT's stock price began to fall.

Of course, the story of NTT cannot be told in one go.

Because it is a monopoly enterprise that monopolizes Japan's telecommunications industry.

Coupled with the emergence of the mobile phone industry and the gradual popularization of computers.

Even if many people know that this price-to-earnings ratio is very unreasonable, they will convince themselves to accept it.

Matsumoto Manufacturing is different, its moat is very unstable.

Therefore, even if investors are enthusiastic, they cannot reach the level of NTT. It will be difficult to even reach one-fifth of the level.

The high point after listing could reach 25 times the price-to-earnings ratio, which is a remarkable achievement.

However, these have little to do with Masato Takeshita.

He has to wait until next year to sell the stocks, by which time investors will have long since come to their senses from the new stock issuance.

The stock market value created by Matsumoto will only remain at the average level of the bubble era.

After briefly chatting with the three stock underwriting managers, Masato Takeshita walked over to Keizo Obuchi.

Chatting with Takeshita Noboru was too stressful, so it was more comfortable to stay with this kind-looking uncle.

"Senior Xiao Yuan, what have you been busy with recently?"

"It's still the same as always, helping Takeshita-senpai with some chores."

Keizo Obuchi is usually very humble and cautious, which is also an important reason why he is regarded as his most trusted confidant by Noboru Takeshita.

Both of them focus on getting along harmoniously and handling government affairs through interpersonal relationships.

Of course, the more crucial factor for Keisuke Obuchi being reused at this time was that he was not very ambitious.

If his subordinates, colleagues and superiors had not objected, he would have chosen an easier job long ago.

"As expected of you, you are my senior. You are probably the only one who is valued so highly by the Prime Minister."

"Uh, it's okay, everyone is actually the same."

Obuchi Keisama is very tight-lipped and won't reveal anything about the inside information.

In mid-June, the roadshow, which lasted for more than a month, finally ended.

Matsumoto Manufacturing began a silent period while submitting more information to the Tokyo Stock Exchange.

This is one of the basic rules of stock exchanges around the world.

After a company formally submits its listing report, it is not allowed to conduct any publicity or buy or sell stocks.

I guess it's the stock exchange, which is worried that the company might suddenly cause trouble before going public.

By then, it would be neither right to allow it to go public nor right not to go public.

It is better to keep silent from the beginning so that no unexpected situations arise.

(End of this chapter)