Rebirth Tokyo 1986

Chapter 393 Logistics and Infrastructure

The manufacturing principle of USB flash drives is relatively simple, and Xinghai Electronics produced a finished product within a month.

Upon learning the news, Masato Takeshita immediately rushed to the laboratory.

After a simple experiment, he immediately turned his head excitedly and asked, "If we produce 500 million units, how much would each one cost?"

"If it's 4MB, the cost can be reduced to $35. For 8MB, the cost can be reduced to $60."

"Oh, so cheap?"

Masato Takeshita was a little confused and didn't understand what had happened.
"Yes, according to the company's estimates, costs will remain roughly in this range."

Last time, none of us were professionals, so it was difficult to accurately predict the precise price.

This time it's different. After calculations by professional staff, the cost can definitely be reduced to this level.

“Good, good, then apply for a patent and launch it directly.”

"Yes, President."

Hideyuki Hasegawa was equally excited, because this was a huge market with an annual output value of several billion dollars.

Even if USB flash drives cannot completely take over the market share of floppy disks, and even if Xinghai Electronics cannot monopolize the USB flash drive market, Xinghai Group can still take the largest market share by virtue of its first-mover advantage.

In the promotion and sales of electronic products, Xinghai Group is now on par with industry giants such as Sony, Panasonic, and Toshiba.

The development of USB flash drives is simple, and their production is also very simple.

Soon, USB flash drives became available to people in Europe, America, Japan, and South Korea just before Christmas.

Inside a chain store specializing in electronics in New York City, a 20-year-old who wasn't particularly interested in the latest news in the electronics industry politely inquired.

"Hello, give me two Sony floppy disks."

"Are two floppy disks enough? Or should we take a look at the USB flash drives that are all the rage these days?"

Xinghai Group offered high commissions to store owners and employees specifically for promoting the USB flash drives.

In this way, the store staff will be more proactive in promoting the products.

"USB flash drive, what's that?"

The young man happened to have some free time, so he asked out of curiosity.

"Similar to floppy disks, they are tools for storing various types of data. However, USB flash drives have a larger storage capacity, with the largest reaching 32MB."

"In addition, USB flash drives are beautiful and durable, unlike floppy disks which are easy to break."

"Come on, let me show you."

The shop assistant noticed the young man's interest and immediately became even more enthusiastic in introducing the product.

He then proceeded to demonstrate the product, clearly eager to sell the USB drive.

"This is connected via an external interface, how convenient!"

"That's right, USB flash drives are very convenient to use, and they're even faster than floppy disks."

"Come on, you should try it too."

The sales assistant felt there was a very high chance of success and immediately gestured for the customer to try it.

"Oh, is that alright?"

"Of course, it's our pleasure."

"Okay, then I'll give it a try."

The young man felt that a USB flash drive was more suitable for him because the metal casing looked less likely to break.

He didn't want his hard-earned data to be ruined by moisture.

"It's really useful, I wonder how much it costs?"

The young man was quite taken with it and made up his mind. If the price wasn't too high, he would buy one.

“那个，价格有点小贵。8MB的60美元，16MB的100美元，32MB的200美元。”

"It is indeed very expensive."

After a quick calculation, the young man decided to buy an 8MB card.

How long is the shelf life?

"Shelf life is 3 years, and you can come and get it replaced anytime if it breaks."

"Then, I'll buy it."

"Okay, here's your USB drive. Do you still need a floppy disk?"

Even a mosquito's leg is still meat, and besides, a floppy disk isn't exactly a mosquito's leg, so the shop assistant naturally had to continue pushing the product.

"No, this is enough."

The young man shook the USB drive, which could be kept with his keys, and refused to make any further purchases.

This scene unfolded in countless electronics retail stores, and USB flash drives quickly became popular worldwide.

Faced with the booming sales of USB flash drives, Hideyuki Hasegawa excitedly placed another large order.

"We need another 1000 million units. Please make sure your company does so as soon as possible."

"No problem, don't worry."

In addition to promotion by store clerks in electronics retail stores, Xinghai Group also tried advertising on the internet.

It costs very little, but the results are fantastic.

Because these days, many people who have internet access need storage devices and are generally better off financially.

Of course, as Xinghai Internet Cafe has spread throughout the world, the income level and overall quality of netizens have begun to decline sharply.

Even so, online advertising remains a very cost-effective way to promote products; even Yahoo only spends a few hundred thousand dollars a month on advertising.

More importantly, the advertisement is located in the most prominent position, equivalent to the front page headline of a newspaper.

Furthermore, Hideyuki Hasegawa did not waste the resources that Xinghai Group had in academia.

He had long ago used the pretext of testing a new product to send a small number of USB drives to university professors for their use.

As a result, the convenience and security of USB flash drives quickly attracted the attention of university students and technology companies that collaborated with these professors.

Those who have plenty of money naturally chose to buy it.

It can be said that Xinghai brand USB flash drives have gained a foothold in developed countries through various promotional methods.

The first batch of 200 million USB flash drives sold out in less than 10 days.

No wonder Hideyuki Hasegawa was so excited that he immediately placed an additional order for 1000 million yen.

This is a huge market with annual sales potentially exceeding 100 million yuan. Even if Xinghai Electronics adds another 10 million yuan, it still won't be enough for everyone to compete for.

Of course, the annual sales of USB flash drives are unlikely to exceed 100 million at present, and it will take some time to lay the groundwork.

Even so, given Xinghai Group's current promotional efforts, as well as the practicality and security of the USB flash drive, it should be able to sell at least 20 to 30 million units a year.

Even if each one earns $10, it's still a business worth hundreds of millions of dollars.

However, Xinghai Group can only enjoy its profits for a short time, as a large number of competitors and imitators will soon emerge.

With more competitors, profits will shrink.

However, Xinghai Group already has relevant experience, namely brand differentiation.

Xinghai brand USB flash drives naturally maintain a high-end image, using the best materials and thus generating the highest profits.

Mid-range and low-end products are responsible for distribution and increasing sales, creating the perception of being number one in the industry. And the number one company is often looked up to by consumers.

Because most customers are unwilling to spend too much time learning about these electronic products, they buy things based on brand or price.

Since Hasegawa Hidenori was involved in the USB flash drive issue, Takeshita Masato didn't follow up on it further.

He visited the second Xinghai laboratory and discussed the next generation of Xinghai mobile phones with the laboratory director, Ryosuke Takada.

"Did you all understand the requirements I mentioned?" Compared to text, a combination of images and text is better for communication. Therefore, the young man prepared a PowerPoint presentation well in advance to showcase his design ideas for the new phone.

"Understood, I will make the modifications according to the chairman's ideas."

Does anyone have any other ideas?

When Takeshita Masato asked his subordinates, he suddenly thought of the standard feature of many mobile phones in later generations—dual SIM dual standby.

In this mode, users can choose two phone numbers to separate home and work. Alternatively, they can choose a phone number + memory card mode to increase the phone's storage capacity.

It can be said that it has greatly facilitated users' work and life.

"Hmm, never mind, it's too early for that."

However, the concept of dual SIM cards was quickly rejected by Masato Takeshita.

Many people don't even have a mobile phone now, so there's no need for dual-SIM mode; the demand isn't that high.

"Alright, maybe everyone really can't think of one right now."

After regaining his senses, Masato Takeshita waited for a few more minutes, but everyone was still deep in thought.

He was too lazy to wait any longer, so he gave the order directly.

"That's all for today's discussion. We'll continue next Wednesday."

After the break from the cell phone incident, Masato Takeshita called Hiroaki Kobayashi to his office at headquarters.

"I'm planning to set up a separate logistics company. Who do you think would be the most suitable?"

"A specialized logistics company?"

"Yes, it's a logistics company that operates independently, similar to ZJS Express."

As a large company, Xinghai Group naturally has its own logistics department.

However, the logistics departments of the various companies under Xinghai Group are all operating independently. Even among subsidiaries of subsidiaries, there is not much contact.

This will result in some waste of resources.

Masato Takeshita plans to consolidate his operations to some extent next year and establish an independently operated logistics company.

Of course, the emergence of independently operated logistics companies does not mean that traditional corporate logistics systems should be abandoned.

However, the less profitable transportation businesses of the various subsidiaries will be handed over to a new logistics company. Masato Takeshita intends to temporarily place this new logistics company under the Xinghai Life Group.

"If I had to recommend someone, I think Matsui Tamiyasu is a great choice."

"Thanks to Mr. Matsui's efforts, Xinghai Garment's transportation costs are only 85% of those of similar companies."

"Oh, it's so much cheaper?"

Saving 15% on transportation costs is an absolutely remarkable achievement for a clothing company.

After all, Xinghai Clothing's overall nature is what it is, following a low-profit, high-volume strategy.

This would lower Xinghai Clothing's costs and make it easier for them to expand their market share.

"Yes, Matsui-san is the most capable person I've ever met in the logistics industry."

"Is that so?"

With such high regard from Hiroaki Kobayashi, the young man decided to give Tamiyasu Matsui a chance.

However, to test his mettle, Masato Takeshita decided to swap his position with that of the head of logistics at Seikai Electronics next year.

If they do have the capability, then they can help Xinghai Electronics improve the efficiency of its logistics system.

Even if he lacks the ability, it can prevent him from hindering the development of the new logistics company.

Having made up his mind, Masato Takeshita simply said it.

“No problem. But I need to test him next year by transferring him to Xinghai Electronics for a period of time.”

"Yes, President."

Hiroaki Kobayashi agreed while muttering to himself.

"Matsui-san, this is all I can do to help you. I hope you can show the same talent at Xinghai Electronics."

Hiroaki Kobayashi admired Tamiyasu Matsui's talent in logistics, but he was unaware that Matsui would perform so well in the electronics field.

People who can thrive in different types of companies are the elite of the elite.

Besides Xinghai Life, Masato Takeshita is also planning to establish an independently operated logistics company under Xinghai Technology and Xinghai Communications.

However, the young people plan to implement independent logistics operations for these two companies only after Xinghai Life has achieved success.

Doing too many projects at once can easily lead to a lack of thoroughness and success.

After discussing the establishment of the logistics company, Masato Takeshita moved on to the next topic.

"Any new plans for Xinghai Construction next year?"

"We have a basic plan, but we may need help from our sister company."

The massive infrastructure projects launched by the Japanese government to boost the economy after the bursting of the economic bubble are expected to end next year.

The number of engineering projects that Xinghai Construction can obtain will soon be drastically reduced.

Without that many projects, there's no way to support the new employees recruited during the era of large-scale infrastructure construction; they can only be asked to change companies or positions.

"Oh, even the new positions at Xinghai Life aren't enough?"

"Yes, there are still about 2 people who cannot be accommodated."

Xinghai Life creates a large number of new jobs every year; Xinghai Foods alone adds tens of thousands of new jobs.

However, no matter how many people Xinghai Life's other companies hire, they still can't fill the hole left by Xinghai Construction after the infrastructure project is completed.

The happier they were when they were vying for engineering projects, the more painful it is now.

However, Xinghai Construction is not the most distressed in the industry; the most distressed are the newly established Japanese construction companies.

They take on the toughest, lowest-paying outsourcing jobs, yet face the risk of going bankrupt in the very first wave.

As for established large companies, they do not have these problems.

Because they did not blindly expand their workforce during Japan's massive infrastructure boom, many non-core projects were outsourced to other companies to earn intermediary fees.

Xinghai Construction is backed by Xinghai Group. Although it is an industry newcomer, it could have played this game. However, Xinghai Group is in a period of expansion and can afford to use up these employees after the end of the National Integrated Circuit Industry Investment Fund, so it did not resort to these tricks.

“Okay, then contact Scully and Kenji Ono, they should be able to help.”

Both Xinghai Technology and Xinghai Communications have their own manufacturing plants, and their demand for workers is increasing year by year.

Especially with the booming sales of PHS phones, both companies are frantically expanding their recruitment.

This is a huge market in a developing country, comparable to the mobile phone industry; 2 workers are simply not enough.

Of course, Xinghai Technology and Xinghai Communications mainly recruit in China; they don't have that many factories in Japan.

Even so, it's enough to fit 2 people.

"Okay, that should solve the problem."

"That's good. Xinghai Group can't afford to have large-scale layoffs."

Behind every construction worker is a family. Xinghai Group is committed to being a responsible large company and cannot allow large-scale unemployment due to business adjustments to occur.

Of course, only large and well-established companies can afford to play this game. Therefore, Xinghai Group will not publicize it to avoid attracting trouble.

However, even if Xinghai Group doesn't advertise it, those who are interested can still see it.

Therefore, Xinghai Group will have an advantage in talent recruitment year by year. Even if Xinghai Group's salary is lower, people will probably be more willing to join.

Why do young Japanese people like to take civil service exams these days? Isn't it because they want job stability and to avoid unemployment?

"Yes, President!"

Hiroaki Kobayashi was deeply moved and once again felt proud to have joined the Xinghai Group.

(End of this chapter)