Rebirth 1977 Great Era

Chapter 1207 Kobayashi Pharmaceutical extends an olive branch, joining forces to break Tsumura's monopoly? (Bonus chapter for monthly votes: 4K chapters)

Fang Yan composed himself. He knew that Kobayashi Pharmaceutical was a famous Japanese pharmaceutical company that mainly engaged in the research, development, production and sales of pharmaceuticals, medical devices, daily necessities and food.

In 1886, founder Chubei Kobayashi established the department store and cosmetics shop "Kobayashi Seidai-do" in Nagoya, thus beginning the history of Kobayashi Pharmaceutical.

In 1940, the pharmaceutical division of Kobayashi Pharmacy became independent and became Kobayashi Pharmaceutical Co., Ltd.

In 1970, Kobayashi Pharmaceutical established a business partnership with Block Pharmaceuticals, becoming its general distributor in Japan.

In 1976, the two parties established a joint venture, Kobayashi Block, with each party contributing 50% of the capital. They produced and sold unique products such as Polizan denture cleaning tablets, Polizan denture stabilizers, and Sensodyne anti-sensitivity toothpaste, achieving rapid growth.

Kobayashi Bruck is still in a period of rapid development this year. Sales of Polizan denture cleaning tablets alone reached about 70 billion yen in the year before the joint venture was dissolved. Including other products, Kobayashi Bruck's total sales reached about 100 billion yen, which made a significant contribution to the overall growth of Kobayashi Pharmaceutical.

These are all data provided by the market research conducted by Lao Hu's American professional managers in Japan.

According to the dialect's memory, Kobayashi Kazuya, the fourth generation, was the one who transformed Kobayashi Pharmaceutical Co., Ltd. from a family-run wholesale distributor into a modern listed company integrating R&D, production, and sales, which is how it grew so large.

You could say he's a very capable guy.

However, they still cannot compare with Tsumura. In 1978, the Japanese domestic Kampo medicine market had already reached 200 billion yen, and at that time, Tsumura Pharmaceuticals dominated the Japanese Kampo medicine market. In addition, Kobayashi Pharmaceuticals could not compete with it in terms of international sales.

"Mr. Fang Yan?" Seeing that Fang Yan didn't react, Kobayashi Ichiya thought that her Chinese wasn't fluent enough, so she spoke to Fang Yan again:

"Mr. Fang Yan, I have long admired your unique research on the Treatise on Febrile Diseases. This is a replica of the Tang Dynasty edition of the Treatise on Febrile Diseases, which is in the collection of the Imperial Household Agency's Archives and Mausoleums Department. I brought it with me today, and I hope you will accept it!"

"Oh, thank you, Mr. Kobayashi," Fang Yan said, snapping out of her daze.

Fang Yan took the brocade box and touched the cool embroidery on the surface. The doubt in her heart had not yet dissipated.

The name Kobayashi Kazuya appeared more than once in the information about Japanese pharmaceutical companies provided by Lao Hu. How could the fourth-generation president who turned his family's wholesale business into a modern pharmaceutical company appear in the delegation as a researcher of "ancient prescription verification"?
He lifted a corner of the brocade box, and inside was indeed a yellowed replica, densely covered with tiny characters, looking almost like a replica of the original.

But this only made him more suspicious:
Kobayashi Pharmaceutical mainly deals in daily necessities and Western medicine preparations. How did they suddenly start getting involved in Kampo medicine literature?
"Mr. Kobayashi also studied the Treatise on Febrile Diseases?" Fang Yan closed the brocade box and asked casually, but his gaze fell on the badge on the other man's suit sleeve. The badge was a simplified "Lin" character, which was vaguely similar to the early logo of Kobayashi Pharmaceutical in the documents.

Kobayashi Kazuya smiled and adjusted his glasses:

"It's not really research; I just occasionally flip through some old books left by my family elders. I heard that Mr. Fang mentioned the differences in origins between Kampo medicine and traditional Chinese medicine in a Hong Kong newspaper?"

He knew who was behind the Hong Kong newspapers; he knew who was behind them.

This statement, seemingly discussing academic matters, accurately points out the previous clashes between dialects and Tsumura.

Fang Yan had an idea and deliberately steered the conversation toward business:

"Beyond the source, standards are even more important. For example, your country's daily necessities, such as Polika, have a very good system for setting standards. I wonder if Mr. Kobayashi has studied this?"

He emphasized the words "PolyClean," which is Kobayashi Block's core product. Logically speaking, an ordinary researcher might not be familiar with this denture cleaner.

As expected, Kobayashi Ichiya's smile widened, and he nodded and asked, "Mr. Fang is also interested in daily chemical products? Polini is indeed a good product, produced by a joint venture under our group."

"Under the group?" Fang Yan understood now; this guy was the big boss of Kobayashi Pharmaceutical.

He pretended to be surprised:
"So Mr. Kobayashi not only researches academic papers, but also manages businesses?"

The question was so direct that everyone around fell silent.

Everyone realized that the guy who gave the gift seemed to be someone of importance.

Kobayashi Kazuya said:
"To be honest, Mr. Fang, Kobayashi Pharmaceutical is indeed a family business. I came with this delegation for two reasons: first, to learn about ancient prescriptions from you all, and second, to see the potential for modernizing traditional Chinese medicine preparations... After all, medicine and pharmaceuticals are inseparable."

The last sentence completely revealed the answer.

Fang Yan understood immediately. No wonder this guy was in the delegation; he was using academic exchange as a pretext to probe the details of the Chinese medicine industry's industrialization.

He weighed the brocade box in his hand and smiled:

"I see. So, Mr. Kobayashi, how do you plan to explore the modernization of traditional Chinese medicine preparations this time?"

Kobayashi Ichima's smile remained polite:
"I believe my sincerity will allow me to see what I need."

"Oh?" Fang Yan became interested in what Kobayashi Ichiya said. What sincerity?
Judging from the current situation, Fang Yan feels that the other party doesn't seem to have much "sincerity" to move her.

Zhao Xiwu, who was standing nearby, sensed the unspoken meaning in their conversation and knew that this was not the time to discuss such matters, so he promptly changed the subject:

"It's sunny outside, let's go inside and talk."

As they walked further in, Fang Yan caught a glimpse of Kobayashi Kazuya subtly giving Tanaka, who was accompanying him, a wink. The shrewdness in that look was more like a businessman's scrutiny than that of a researcher.

He had a plan in mind.

This isn't some ancient formula researcher; it's clearly the head of Kobayashi Pharmaceutical personally scouting the area.

It seems that Tsumura isn't the only one eyeing the Chinese medicine market; cross-industry giants like Kobayashi are also interested.

Fang Yan thought to himself, "Today's trip is much more interesting than I expected."

Under Dean Zhao Xiwu's arrangement, everyone moved to the research institute's reception room.

Next, everyone began the familiar pleasantries and took photos.

The atmosphere became very formal for a moment.

But in reality, nothing was said.

After the meeting lasted for more than two hours, everyone went to a private room in the research institute's cafeteria.

We'll have lunch here; the food on the table was prepared by the state banquet chef who was specially invited today.

At this moment, Kobayashi Ichiya smiled and spoke to Fang Yan:
"Mr. Fang, your country's recent achievements in the modernization of traditional Chinese medicine are astonishing. Especially in the international market, you have truly changed the market landscape! Tsumura Pharmaceutical has been defeated by you in a series of defeats... Hahaha... I've heard about it."

Fang Yan raised an eyebrow, and everyone else looked at Kobayashi Ichiya.

Kobayashi Kazumasa deliberately paused to observe the dialect's reaction.

Then he continued:
"Forgive my bluntness, but Tsumura monopolizes nearly 70% of the Japanese Kampo medicine market, and its pricing power even surpasses the efficacy of the medicine. This situation is really not conducive to academic progress."

Fang Yan paused, wondering what it meant.
Is this some kind of attempt to put eye drops on Tsumura Pharmaceutical?
"Mr. Kobayashi, please feel free to say whatever you have to say!" Fang Yan said to Kobayashi Ichiya.

"It's like this..." Kobayashi Kazuya picked up his teacup, took a small sip, as if savoring the aroma of the tea, or perhaps carefully choosing his words.

Although the food smelled delicious in the private room of the cafeteria, the atmosphere suddenly became somewhat subtle.

Finally, Kobayashi Kazumasa put down his teacup, his gaze sweeping over the Chinese representatives at the head of the table, finally settling on Fang Yan, and he said with a smile:
"Since Mr. Fang has asked, I will be frank... My company and Kobayashi Pharmaceutical are by no means like some conservative monopolists who are closed off from the future and regard market share as their exclusive domain." "We have always believed that only healthy and benign competition can truly promote the progress of medical science and ultimately benefit patients."

Fang Yan narrowed his eyes; these words were somewhat beyond his expectations.

This clearly indicates that he doesn't approve of Tsumura Pharmaceuticals' business model. What does that mean? The dialect is a bit inexplicable.

Not only was he confused, but everyone else around him was equally bewildered.

Even Professor Wang Yuchuan is the same.

He looked at the few familiar people from Kyoto University, who all maintained their smiles, seemingly unconcerned about what Kobayashi was saying.

At this moment, Kobayashi Ichiya continued:
"Your country's achievements in the modernization of traditional Chinese medicine, especially in compound preparation technology, standardized quality control, and overseas market development, are admirable."

"In particular, your company has broken the old pattern in the European and American markets, allowing the world to rediscover the value and potential of traditional Chinese medicine... This has greatly inspired our company."

He leaned forward slightly, his tone tentatively eager:

"In contrast, the Japanese Kampo medicine market, despite its long history, is dominated by a very small number of companies that control pricing and distribution channels, resulting in inflated prices and preventing many high-quality Kampo preparations from becoming widely available. This environment effectively stifles innovation."

"Although our company started with daily necessities and Western medicine, we have always had a strong interest in and high expectations for traditional Chinese medicine preparations with profound cultural heritage and definite curative effects."

Fang Yan composed himself and said to Kobayashi Ichiya:
"What do you mean?"

Kobayashi Kazumasa tapped his finger lightly on the edge of the table, finally revealing his hand:
"Therefore, one of the core objectives of our trip is to establish a mutually beneficial strategic partnership with an institution like yours that truly possesses the core capabilities for the modernization of traditional Chinese medicine."

"You and...us?" Fang Yan looked bewildered, wondering if Kobayashi Ichiya had been drinking fake alcohol.

However, judging from his wording, he had already prepared his remarks in advance.

They might have even written a draft before speaking fluently.

Kobayashi Kazumasa nodded and said:

"Specifically, Kobayashi Pharmaceutical is willing to leverage its well-established sales network and channels in Japan, as well as the brand reputation and consumer recognition we have accumulated over many years in the daily necessities sector, to fully represent some of your flagship products and enter the Japanese market."

He emphasized:

"We are not seeking simple procurement, but rather hope that with your support, we can invest resources in localization and promotion, and even explore deeper cooperation models... such as jointly investing in the construction of a production line that meets Japanese GMP standards, or jointly developing new dosage forms and new compound preparations that are suitable for the usage habits of Japanese consumers."

Fang Yan frowned but remained silent.

Kobayashi Ichimashi's eyes became unusually clear, and he added:

"Our goal is clear: to work together to break the monopoly and provide Japanese consumers with more modern Chinese medicine products that are of high quality and reasonably priced and from authentic sources."

"This is not just a business deal; I believe it also aligns with your vision of promoting traditional Chinese medicine culture and expanding your global influence."

"Of course, Kobayashi Pharmaceutical also has the understanding and support of some friends behind it... All parties are happy to see this change in some of the established patterns of the Japanese market."

Fang Yan composed himself and analyzed the information within it.

Simply put, Kobayashi Pharmaceutical wants to become the distributor for Fangyan, using Fangyan's top-selling products to compete with Tsumura Pharmaceutical in Japan and break the latter's absolute monopoly.

Furthermore, he also wanted the dialect group's technical support.

After he finished speaking, the private room fell silent for a moment.

Fang Yan, Zhao Xiwu, and the others exchanged glances, each understanding what was going on.

The other party is a catfish that wants to break into the Kampo medicine market, compete with Tsumura, and has ideas to change the rules of the industry.

The Tang Dynasty edition of the Treatise on Febrile Diseases he brought was a stepping stone; discussing the past and present was a pretext. Ultimately, it pointed to the redivision of the business landscape and the common interests of both sides in the Japanese market.

The dialect can't make the decision on this matter, especially since Zhao Xiwu is also here.

Fang Yan simply gave Zhao Xiwu a look, signaling him to take over.

Zhao Xiwu was thinking, but after seeing Fang Yan's look, he returned the look, indicating that Fang Yan should stall for time.

After understanding Fang Yan's meaning, he turned to meet Kobayashi Ichiya's gaze, a calm smile playing on his lips, and said in a flat tone:

“I admire your company’s determination to break the old pattern and introduce new choices for Japanese consumers.”

"Our goal is to achieve win-win cooperation and jointly promote traditional Chinese medicine to the world. However, the specific methods of cooperation..."

He deliberately dragged out the melody in his dialect, his gaze equally sharp:

"We need to see not only the sincerity of your investment, but also the strength and determination of your company to challenge the 'established pattern' in the Japanese market. After all, to shake a giant tree that has been entrenched for many years, ideas and slogans alone are not enough."

"Moreover, this happened very suddenly..."

Zhao Xiwu responded appropriately:

"Regarding the specific areas of cooperation mentioned by President Kobayashi, I think it is very worthwhile to explore them in depth."

"The internationalization of modern Chinese medicine cannot be separated from partners with comprehensive strength like Kobayashi Pharmaceutical. However, the details of cooperation are extensive and require a more professional team to conduct a detailed feasibility study."

Kobayashi Ichimasa's smile deepened, knowing that the other party had fully grasped his intentions. He glanced subtly at Tanaka beside him, who understood immediately and said in the same manner:

"That's for sure. Mr. Fang and Dean Zhao are absolutely right. We are willing to cooperate with you with the utmost sincerity in conducting a detailed market survey and feasibility study."

Kobayashi Kazuya's tone was solemn:
"I believe that with your excellent products and R&D capabilities, combined with Kobayashi Pharmaceutical's local execution network... and the understanding and guidance of some friends at the policy level, we will surely be able to open up a new world."

At this moment, Fang Yan couldn't hold back any longer and asked them:

"May I ask one more question: why?"

Kobayashi Kazuya asked:
"Hmm? What does Mr. Fang want to ask?"

He said in dialect:

"Mr. Kobayashi, please forgive my bluntness, but your delegation's trip is ostensibly for Sino-Japanese medical exchange, and the members are mostly renowned scholars and representatives of public institutions. It should be a harmonious and collaborative effort to promote academic development. However, the cooperation you are discussing now is clearly an attempt to use us to engage in a commercial battle with Tsumura, a large corporation that is equally influential in Japan and also represents one of the orthodox traditions of Kampo medicine. I cannot understand this behavior..."

P.S.: I still owe you 21000 words after finishing this chapter.

That's all for today, please come early tomorrow.

(End of this chapter)