Rebirth Tokyo 1986

Chapter 325: Can’t Copy Everything
After Masato Takeshita decided on the development direction of Matsumoto Manufacturing, he immediately turned his attention to the most promising food industry of Xinghai Life.

"I've read your plan, and I feel your plan for the food company is a bit conservative."

"Hey, President, you say."

Kobayashi Hiroaki sat there, bent over slightly, and quickly took out his notebook to write down the president's suggestions.

Before your leader tells you what's not right, don't immediately think about refutation. Instead, write it down quickly and respectfully.

If there is a big mistake, it is not too late to refute it tactfully. You cannot just ignore it.

"First is the energy drink segment, which is the most important part of the company. The goal of 10 billion cans worldwide is good, but you are ignoring the Chinese market."

"I received news that China will carry out a new round of reforms in January next year. The RMB will be devalued significantly, from the original 1 USD to more than 1 RMB to 5 USD to more than 1 RMB."

The exchange rate reform in 1994 had a profound impact on China in the 92s, second only to the southern tour in .

The RMB depreciated by more than 30%, which not only greatly stimulated the export trade of domestic enterprises, but also greatly increased the amount of foreign investment. Since then, China has embarked on a path of rapid development.

At the same time, Thailand, which likes to play with finance and real estate, is becoming increasingly hollowed out. Countless foreign companies have given up on Thailand and other Southeast Asian countries and are ready to embrace larger and more potential markets.

“China’s exchange rate is going to be lowered?”

"That's right. In the future, the manufacturing costs there will be even lower. Our company needs to make changes as soon as possible. In the future, for all products suitable for long-distance transportation, more than 60% of the production will be placed in China, 25% in Japan, and the rest in other countries."

If he didn't want to consolidate his position in the domestic market, Masato Takeshita would have wanted to place all his production capacity in China.

As for the remaining small amounts, they are basically made for the big market to see, and there is no thought of making money at all.

For example, mobile phones developed by Xinghai Electronics currently have a 17% market share in the United States.

In order to stabilize its position in the United States, Xinghai Technology symbolically invested in an assembly plant with an annual output value of approximately 4% in California, USA by Xinghai Manufacturing.

"Hey, I see."

Hiroaki Kobayashi first wrote 25% under Xinghai Food, but quickly crossed it out.

Finished snacks, especially beverages, are not suitable for large-scale cross-border transportation and basically require factories to be set up near the sales location.

On the contrary, Xinghai Clothing and the soon-to-be-renamed Xinghai Manufacturing are more suitable for investing and building factories in China.

Of course, the most suitable one is Xinghai Manufacturing Electronics Factory.

In the past, China gave birth to countless well-known electronics factories, and more than 70% of mobile phones and more than 80% of computers completed their final production in China.

It would be a fool for Xinghai Manufacturing not to enter China.

Masato Takeshita would naturally not make such a low-level mistake, and he informed Chambers and Aoji Yoshizawa about the exchange rate depreciation early on.

Xinghai Manufacturing will also make large-scale investments in China next year to reduce the production costs of mobile phones and computers.

"Well, let's put the manufacturing industry aside for now and continue talking about Xinghai Food."

Masato Takeshita found that his content had gone a little off track, and quickly pulled it back.

"What I mean is, taking advantage of the depreciation of China's exchange rate, we will massively expand our food business in China."

"Except for a few remote provinces, every province should have at least one instant noodle factory and one beverage factory."

The biggest part of the food industry is transportation, and the best way is to produce nearby, which can greatly reduce production costs.

At the same time, local production is also conducive to winning support from local governments.

The food industry has a relatively low threshold and anyone can easily enter, and the competition is very fierce.

If you don't build a factory locally to produce, create employment and pay taxes for the local area, why would others let you make money here?

It is very easy to switch to a company of the same type that is willing to build a factory locally.

"Also, we should purchase more local brand products. On the one hand, we can use the existing workers and equipment to directly produce, and on the other hand, we can slow down the development speed of the two Cokes."

It is impossible to replace the two Cokes in the Chinese carbonated beverage market, but it is not a problem to slow down their expansion speed and then take over a small part of the market.

"Local governments may prefer giant companies, and it is difficult for us to compete."

Both Coca-Cola and Coca-Cola are giants, and are honored guests of the government wherever they enter. Xinghai Food is just a newly established company with a little fame, and cannot be compared at all.

Kobayashi Hiroaki did not have that confidence and felt it would be difficult for his team to win.

"Be confident."

"Hi!"

Takeshita Masato had a serious expression and said in a dissatisfied tone: "Why can't you think of some solutions? Think about our advantages. I'll give you 15 minutes to think about it."

After saying this, the young man walked out of the office so as not to disturb his thoughts.

Looking at Masato Takeshita leaving, Kobayashi Hiroaki knew that his president was angry.

If he can't think of a good solution, things will probably be bad.

However, after thinking for seven or eight minutes, he only thought of the fact that his president had a good relationship with the other party's senior management.

"This, I am really stupid."

Kobayashi Hiroaki slapped his head and immediately called John Scully, the president of Xinghai Foods.

In this kind of situation, the president of PepsiCo is far more professional than him.

15 minutes passed quickly, and when Masato Takeshita saw John Scully, his expression returned to normal.

"It's OK. Not too stupid."

He thought so in his heart, and then responded to the greeting from the head of his food company with a smile on his face.

"Well, hello to you too, John."

After a casual greeting, the young man simply said, "Xiaolin-san should have told you, do you have any good suggestions?"

Compared to Kobayashi Hiroaki, who had a blank mind, the former Pepsi president had many strategies in mind.

He responded confidently: "I think our biggest advantages are four points."

"First, the president has made free donations to the other party many times, and this behavior has been going on all the time. Even from a utilitarian perspective, they will agree to our partial acquisition request."

When Takeshita Masato heard this, he thought it made sense. He nodded, and then asked unconsciously.

"Well, what else?"

"The second is the relationship between you, the president, and the main leader of the other party. If you have a good personal relationship, you can always get more convenience."

John also knew that this one was easy to guess, so he continued quickly.

"Third, our company is small but growing rapidly. We can guarantee the brand name will remain, and layoffs will not exceed 10%. The two major cola companies can't do that. They will definitely shelve their brands, and the layoffs will be very drastic."

"This is great. It can really be used as a killer weapon in the fight for companies."

If it were Coke and Coke, they would never allow the acquired company to retain its own soda brand.

Xinghai Food is different. Its product line and product scale are not good, and its main energy drinks are destined to be niche. It even hopes to maintain its brand name and continue to develop.

Under the same conditions, even if the boss takes a tough stance, the factory employees’ opinions should be considered. Factory employees, especially the old ones, naturally prefer to keep their own brands.

This is a product they have been working on for more than ten years, or even decades, and they have developed a deep affection for it.

As for layoffs, Xinghai Food actually doesn't care at all.

If you are not worried that the acquired company may have troublemakers or people who understand the connections, then it does not matter if you keep all of them.

Kobayashi Hiroaki also thought that the view made sense and continued.

"I think it's great too. Most people would prefer to keep the brand if they can."

John also echoed: "Yes, that's what I think."

Then he went on to say: "As for the last point, our company has more sufficient funds, and we can afford a higher premium." Before top talents like John choose to join a company, they naturally have to investigate carefully to avoid falling into a trap.

Knowing that Xinghai Group has sufficient funds and energy drink products with extraordinary potential, he chose to join despite the ridicule of public opinion.

Speaking of which, it’s all thanks to John that Pulse has recently seen a resurgence of its popularity in the United States.

When the American media learned that such a well-known figure with mixed reputations had joined a small company, they immediately mocked him in various ways.

He said that no one wanted him anymore and he had no choice but to work for a small company.

Of course, where there is ridicule, there will naturally be news outlets that choose to help defend it.

Then energy drinks became more widely spread in this process, and everyone knew that this was a product that could fight fatigue.

Those who often work overtime will naturally not be stingy about spending $1 to try out the effect.

It didn’t matter that I tried it. I immediately found that it was really effective and I have been a loyal customer of Pulse since then.

In addition, many people choose to try it out of curiosity.

A few people can't stand it, most people don't feel it, but some people fall in love with the smell.

Naturally, Mizone energy drinks saw a surge in sales during this craze.

Of course, all of this was planned by John Sculley himself.

Masato Takeshita would not use his employees' pain points for marketing, as he could easily be backlashed by public opinion.

It’s different if John does it himself, and everyone knows about it and won’t think otherwise.

As for John himself, he was proceeding with the idea that if he failed, he would die.

His reputation is already bad, so he might as well do something even more drastic.

As long as he can make a comeback, people will only praise him, thinking that his experience at Apple was just a mismatch between the two, and that he himself is still a very good company leader.

He had enough of being called one of the worst CEOs in history.

Of course, Xinghai Group also spent a lot of money on this nationwide marketing.

But in the face of the huge increase in sales, it's all worth it.

After listening to John's simple analysis, Masato Takeshita was very satisfied and he encouraged him with a smile.

"That's a very good point. Just follow this idea and execute it boldly. The group will back you up."

Hearing the president say this, Kobayashi Hiroaki responded with a sense of relief.

"Yes, President!"

As for John Sculley, the mood was very excited.

Although he responded with the same "Yes, President", he was thinking in his heart.

I can finally show my talents.

At this time, the young man thought of another thing.

"By the way, John. If you find a food company with potential, don't hesitate and immediately find an opportunity to invest in it. Maybe one day in the future we will be able to acquire it, thereby further strengthening Xinghai Food's strength."

"Okay, President."

He also agrees with this view that PepsiCo was able to catch up with Coca-Cola by relying on continuous mergers.

Then Masato Takeshita turned his head and looked at Hiroaki Kobayashi.

"Also, Kobayashi-san."

"Well, President, you say."

"Xinghai Construction can now officially expand into China, striving to build the best shopping malls and office buildings in major cities."

Shopping malls in China only have about 20 years to make money, so it is natural to enter early.

If you leave too late, it will be difficult to buy a prime location in the city.

"Yes, President!"

After agreeing, Kobayashi Hiroaki couldn't help but ask a question.

"President, should we wait a little longer until the exchange rate drops a little more?"

"No, just invest heavily. The RMB has already reached, or is even slightly below, its actual value. The early stages of next year will be the most cost-effective investment."

It is true that many people predict that the RMB will continue to fall, but the truth is destined to be in the hands of only a few people.

At the end of the year, the RMB not only did not continue to fall, but also appreciated.

The key point is that while the currency is appreciating, China's foreign exchange reserves are also increasing significantly, which shows that the appreciation is basically a market behavior.

“Also, if there is more funding, it will be taken more seriously.”

For the same investment amount, $10 billion divided into 100 investments is definitely not as shocking as a one-time investment of $10 billion.

Although we have not officially entered the era of the eyeball economy, the attention economy already has a great influence.

"Yes, understand!"

After answering Kobayashi Hiroaki's question, the young man looked at John, the president of Xinghai Food, again.

"How is the development of the company's tea beverage going?"

"The company previously focused on developing sugary tea drinks, which are not selling well in Japan. As for overseas markets, it will officially enter next year."

"My fault was that I misjudged the market. I thought sugary tea drinks would be popular in Japan, but I didn't expect that there would be a sudden craze for sugar-free drinks in China."

For some unknown reason, sugar-free drinks suddenly became popular in Japan. Even carbonated drinks saw a sharp drop in sales, so naturally, as a direct competitor, the situation was even worse.

Without the support of Internet cafes, sales would probably be even worse.

"No, the president might be too focused on the overseas market and therefore didn't notice this trend."

"If you make a mistake, you have to admit it. I just hope there will be a good result overseas."

John confidently advised: "It will definitely have good results, especially in China and Southeast Asia."

Only rich people would consider the health problems caused by eating sugar, such as Japan today.

If you don’t have money, you will only complain that the drinks are not sweet enough.

As for drinking too much sugary drinks being unhealthy, what is that? That is not the question they should consider at all.

"Yeah, I think so too."

Before the era of mobile Internet, iced black tea and iced green tea were very popular in China, and related products were everywhere on the streets.

Later, as the economy improved, people began to pursue health and drink sugar-free tea drinks.

For example, Oriental Leaves, whose sales have skyrocketed in recent years, and Bawang Chaji, which has a stronger tea flavor.

The positive correlation index between economy and diet is very high.

"What about milk tea drinks?"

"The sales volume is pretty good, and it's another new growth point for the company besides energy drinks."

"That's it, that's good."

Masato Takeshita felt much more comfortable after hearing this, as it showed that much of his experience in food could indeed be transferred to Japan.

(End of this chapter)