Rebirth 1977 Great Era

Chapter 1209 Old Hu's Attitude: "Let's take a risk and try it out!" (Bonus Chapter for Monthly Tickets)

After he finished speaking in dialect, everyone looked at him.

No one expected that dialects would come up with a solution so quickly. Although it's not a complete solution, it has basically taken most of the potential problems into account.

Old Cheng said with a smile:

"This young man is quick-witted!"

The others laughed as well, and Zhao Xiwu said:
"Fifty members of parliament signed the petition! Excellent, excellent, that's a good idea. If the list is inflated, the cooperation is null and void on the spot!"

Professor Wang Yuchuan also said:

"Yes, reverse engineering recourse clause! That's the key! This is a good idea!"

Seeing that Wang Yuchuan had also agreed, Zhao Xiwu said:

"Then let's formulate a detailed strategy. If the higher-ups agree to do it, at least we'll have a plan."

Everyone nodded in agreement, and then the detailed discussion began.

Based on dialect strategies, many detailed strategies have been developed.

The discussion continued until 5 p.m.

As Fang Yan was leaving, Zhao Xiwu said to her:

"The strategy is basically finalized now. Go back and discuss it with Mr. Hu to see if he has anything else to add."

Nodding in dialect:

"it is good!"

As he was about to leave, speaking in dialect, Old Cheng reminded him:
"By the way, take a look at the book that Kobayashi Ichiya gave you. Maybe there's something good in it."

Fang Yan paused, remembering the Tang edition of the Treatise on Febrile Diseases in his hand.

“Okay, I’ll go back and take a look!” Fang Yan replied.

That being said, I don't think there's anything worth mentioning about the dialect.

After saying goodbye to the dean and the others, Fang Yan returned home.

Today, Director Feng from the neighborhood committee came to visit Fang Yan's home. It turns out that recently, due to the hot weather, many people in the neighborhood have been suffering from heatstroke, diarrhea, and other similar issues. He came to ask Fang Yan to conduct a health promotion campaign.

Upon hearing this, Fang Yan immediately thought of the group of somewhat idle medical staff in the inpatient department of Peking Union Medical College Hospital.

So they agreed to Director Feng's request.

"At that time, I will arrange for someone from the Traditional Chinese Medicine department to come and connect with you, and have them conduct free clinics and promotions at the street office."

This kind of simple task certainly doesn't require the use of dialects, but it can give the people in the department something to do.

That's also a good method.

Director Feng was naturally quite pleased to hear the dialect spoken.

Speaking in dialect:

"Oh my, you've really been a great help. It's been terribly hot these past few days. Several people have fainted from heatstroke, and the elderly and children are suffering from diarrhea. If you could get the doctor to come, it would be a real lifesaver for everyone."

The college entrance examination has just ended, and many young people are still waiting for their admission notices at home. Director Feng is helping everyone solve their problems in order to maintain stability in the neighborhood.

Fang Yan smiled and waved his hand:

"You're too kind. It's nothing we should do. It's a good opportunity for the young people in our department to get some experience. Community outreach is also a good way to train them."

Director Feng smiled and nodded. Then, it was time for dinner at Fang Yan's house. Director Feng said, "I'll go back and make room," and started to leave.

Fang Yan quickly called her back. Director Feng usually helped Fang Yan's family a lot, although they were all small things, but they added up and solved many of Fang Yan's family's problems.

Since it's already mealtime when we arrive, it's necessary to have a meal together.

"Oh dear, my family is waiting, so I won't eat," Director Feng said politely.

Upon hearing this, Fang Yan said:
"That's perfect, let's invite our family over to eat together."

Director Feng was eventually persuaded to stay, and he brought his wife and children to fill a table.

The crowd chatted about everyday things in the street, creating a lively atmosphere.

After finishing dinner and seeing Director Feng and his family off, Fang Yan finally told Lao Hu about what had happened that day.

He was somewhat surprised to hear that Kobayashi Kazuya, the president of Kobayashi Pharmaceutical, had personally come to seek cooperation.

“My American manager in Japan just sent a telegram a few days ago, saying that Kobayashi has quietly increased his holdings of his own pharmaceutical shares on the Tokyo stock market. It seems he’s serious.”

Fang Yan was also taken aback when she heard the news.

I didn't expect there to be such new information. It seems that Kobayashi Ichiya has something going for him.

Fang Yan wiped his hands and sat down, recounting in detail the matters discussed after the afternoon's negotiations, and added at the end:
"Professor Tamagawa felt the risk was too great, fearing we'd be used as pawns. But I think this might be our only chance to break into the Japanese market."

Old Hu poured Fang Yan a glass of plum juice, then poured one for himself, and continued:

"The Japanese market can be simple or incredibly complex, so it's always good to be cautious. Last year, the Japanese Kampo medicine market was worth 200 billion yen, with Tsumura taking the lion's share and smaller manufacturers taking the rest. It's true that it wasn't easy to grab market share in the past, but people's wallets are getting richer... This year, Tokyo's per capita income has increased by 12% year-on-year, and the middle class is eyeing health-related consumption, which is a blue ocean."

"Kobayashi's advantage lies not in traditional Chinese medicine, but in its distribution channels. All 46 of his directly operated pharmacies are located in core business districts like Ginza and Shinjuku, next to drugstores selling Policotin. When an elderly lady buys denture cleaner, she can also pick up a box of our stomach medicine. This kind of 'daily chemical products plus medicine' scenario is something that old pharmacies like Tsumura can't replicate."

Fang Yan recalled what Xiao Lin had said about "a 400% increase in monthly sales of traditional Chinese medicine products per store," and a thought struck her: "You mean, his channels can indeed compete in a differentiated manner?"

"It's not just a misalignment, it's a dimensional reduction." Old Hu chuckled.
"Tsumura's distribution channels rely on its association with traditional Chinese medicine practitioners, selling what is passed down through generations; Kobayashi, on the other hand, can sell medicine through supermarket displays and television commercials, turning traditional Chinese medicine into a fast-moving consumer good."

He pointed to the television in the main hall and said:

“Unlike in China, in 1978 Japan, the television penetration rate was almost 90%. This kind of strategy is not applicable to us in China, but sooner or later their own companies will use it in Kampo medicine.”

Fang Yan suddenly realized, "That's indeed it."

Then Lao Hu stroked his chin and said:

"However, the risks are indeed quite high."

He also seemed a little hesitant.

Fang Yan asked him:
"So, do you think it's worth the risk?"

Old Hu was silent for a moment, then said:
"My manager also said that the Takeshita faction and the Fukuda faction within the Liberal Democratic Party are fighting fiercely."

"If the leg that Kobayashi is holding onto is real, then whether he can stand firm will depend on the parliamentary vote next month."

"And then there are those 154 independent pharmacies. Last year, Tsumura spent 17 billion yen on rebates to the distribution channels alone. Kobayashi wants to stabilize them with exclusivity agreements, but he has to spend real money... His factory in Tokyo Port has a considerable appraised value, and the fact that he dared to mortgage it shows that he is really desperate."

He paused and said:
"So I think it's still worth the risk."

“Japan’s pharmaceutical law is more lenient than that of Europe and the United States, but its standards system is in line with international standards. If you can sell your products there, you can avoid detours in Europe and the United States. Tsumura is blocking the door and not letting you in, but now Kobayashi is handing you the key. Even if the key has barbs on it, you have to hold on to it.”

PS: I got another 100 monthly votes, so after finishing this chapter, I still owe everyone 21000 words.

(End of this chapter)