Rebirth Tokyo 1986

Chapter 43 Replanning
"Alas, I guess the low-end and mid-range luggage market will become increasingly difficult to operate in the future."

Although he managed to fool a group of manufacturers who were forcing the emperor to abdicate and vent some of his inner frustration, when he thought about the fierce competition that was about to come for mid- and low-end brands, Masato Takeshita felt very depressed again.

It is difficult for low-end suitcases to form a brand effect. People are more concerned about cost-effectiveness, that is, price. Matsumoto Manufacturing has now begun large-scale patent licensing. For the sake of profit, manufacturers will sooner or later raise the banner of price war.

Yuriko Kagawa understood Masato Takeshita's thoughts and sighed along with her president, "There's nothing we can do. This world doesn't allow people to eat alone."

If it could corner the suitcase market, Matsumoto Manufacturing would certainly be willing to do so.

Unfortunately, this is simply not realistic.

There are antitrust laws in this world. Even Microsoft, which is now at its peak, needs Apple's computer operating system as a competitor.

This is also why, even though Apple's operating system is clearly a competitor of Microsoft, Microsoft has to inject capital into Apple to prevent Apple from going bankrupt.

Sometimes, a fig leaf is important.

Matsumoto Manufacturing does not have the strength of Microsoft and cannot play the trick of only licensing to one or two companies. The low-end market will inevitably fall into the madness of price wars.

The two of them just stared out the window in silence, and suddenly an idea flashed in Takeshita Masato's mind: "What do you think? Should we move the production of our two major brands, Shuying and Linglong, to developing countries?"

"Korea? That should be a good choice."

Although South Korea had gotten rid of its extremely backward situation in the 80s, its economic situation was still far behind that of Japan. So when she heard that her president wanted to move the production line, the first place she thought of was South Korea.

As for mainland China and Southeast Asia, Yuriko Kagawa didn't even think about it because these two places were too backward and no different from African countries.

“No, I mean China.”

“That place is too backward.”

Like many ordinary Japanese people, Yuriko Kagawa has complicated feelings towards China and subconsciously wants to avoid this choice.

"Isn't this great? Suitcases are not technologically advanced, and the cost is mainly raw materials and wages. If we move our production lines to China, we can not only get cheap raw materials, but also pay lower wages. Even if we fight a price war, we will win in the end."

The more Masato Takeshita talked, the more he felt that this was a good choice. Moving low-end production lines to China was definitely the best option to deal with the current situation.

On the one hand, China is a primary industrial country and can provide a large number of qualified and mature workers for Matsumoto Manufacturing. On the other hand, China is very short of foreign exchange and will attach great importance to Matsumoto Manufacturing, which can provide a large amount of foreign exchange.

Various preferential policies will befall Matsumoto Manufacturing.

"But, that's a socialist country. Can we build a factory there?"

"Don't worry, there will be no problem at all. As far as I know, Panasonic, Hitachi, and Toyota have all cooperated with that country many times, and Sanyo even built a wholly-owned factory there."

The Panasonic Group, led by Konosuke Matsushita, is the first Japanese company to cooperate with China after the reform and opening up. However, large-scale cooperation between the two sides will have to wait until next year.

Sanyo was the first Japanese company to set up a wholly-owned factory in China, and it officially established a wholly-owned enterprise in Shekou Special Economic Zone in 1983.

"Building a factory with sole investment?"

"Yes, they are carrying out reform and opening up there, and the window cities and special economic zones of reform and opening up have allowed foreign companies to build wholly-owned factories."

China currently only allows foreign companies to build wholly-owned factories in Shekou, a special economic zone. This is also not allowed in other parts of the special economic zone. They can only develop in the form of joint ventures.

Of course, to him, it didn't matter.

Anyway, even if Masato Takeshita goes to China to build a factory, he will not go to the Special Economic Zone.

He targeted Shanghai, which had China's best workers and the best industrial conditions.

Unlike other entrepreneurs, Takeshita Masato prefers the joint venture model because although the joint venture model reduces half of the equity, it can last for a long time.

The most striking contrast is the operation of Coca-Cola and Pepsi in China. Coca-Cola cooperates with COFCO, while Pepsi is wholly owned. Therefore, Coca-Cola's development in China is getting smoother and its market share is always the first in the country.

If Matsumoto Manufacturing wants to become the Coca-Cola of China and remain rooted in China, it must engage in similar cooperation.

If this is not done, given the level of hard work of Chinese private enterprises, Matsumoto Manufacturing will be crushed sooner or later.

"But, will it work there?"

"Of course," Takeshita Masato answered firmly. He then continued, "Although China is relatively backward now, it is one of the few countries that have completed industrialization. Not to mention simple suitcases, even high-end electrical appliances and semiconductors are no problem."

"That's it."

Masato Takeshita has made up his mind. He plans to find an opportunity to move all mid- and low-end brands to China, and only keep high-end Fengya suitcases in Japan.

"Yes!"

Yuriko Kagawa straightened her body reflexively.

After finding a way out for the two major brands, Shuying and Linglong, Masato Takeshita became more energetic and even walked with a breeze.

"Hello, President!"

"Well, hello, Minister Shimizu."

When Takeshita Masato disappeared, Shimizu Daishi asked curiously, "Assistant Kagawa, what's the president doing?"

"Maybe you're so happy because you solved some troubles."

Yuriko Kagawa is very secretive and responded to Shimizu Daishi vaguely.

At this time, the deputy director of the production department, Kakuda Hiroki, who heard the conversation between the two, came over and said cheerfully, "Is that so? That's great. It looks like it's going to be quite a big problem."

"I don't know about that. Maybe."

Yuriko Kagawa observed a minute of silence for Hiroki Kakuda in her heart, because the best candidate to build a factory in China was definitely the person in front of her.

Zensuke Suzuki is too old to travel to China.

Yuto Matsushita is the successor to Zensuke Suzuki. He is busy with factory production every day and the company cannot do without him for the time being.

Only the deputy, Hiroki Kakuta, is indeed very important, but not that important either. It is just right that he is sent to China to build a factory.

Of course, this is also an opportunity.

If things had continued to develop normally, Hiroki Kakuta, who is about the same age as Matsushita, would basically never be able to be on par with Matsushita in his entire life.

Things are different now. After going to China, Hiroki Kakuda will step into the senior management level in one fell swoop, and he may be promoted faster.

"By the way, how is your production going?"

"It went smoothly. Everyone was very enthusiastic. How about you?"

"It's all the same. There are no problems at all."

Shimizu Daishi is the head of the marketing department and the second-in-command of the entire marketing department. He even worries that if this continues, his subordinates will become useless.

Currently, the marketing department of Matsumoto Manufacturing is completely useless.

Every suitcase produced was sold out, and the marketing department was almost a decoration.

(End of this chapter)