Face the reality (translated)

“The strong impression of the founder of Giordano It's not just the youth. When dealing with Asian businesspeople, a fervent hunger to grow more and become wealthier comes through. In essence, they're hungry. Hence, the forcefulness with which they engage in their work is completely different, regardless of their abilities. The impression I got from Mr. Jimmy Lai, the founder of Giordano, a SPA (Specialty store retailer of Private label Apparel) I met while working in Hong Kong, was intense. Giordano not only produced its own products but also subcontracted for Limited, which used to be the world's largest SPA. What surprised me was the volume of their production, they produced as much as 300,000 pieces for a single item. When I asked Mr. Jimmy Lai about his background, he said that he had swam from mainland China to Hong Kong, an illegal entry so to speak. However, he did not consider this a disadvantage. Instead, he started a business entirely on his own and went on to become wealthy enough to drive a Rolls-Royce. To put it simply, this man has extraordinary vitality. Everybody in Japan is surprised when I tell this story, but if you go to China or ASEAN, you'll encounter as many people like Mr. Jimmy Lai as you want. That's the reality of rapidly growing Asia.”

“A huge market starving for wealth The biggest factor causing the gold rush in Asia is undoubtedly the four billion population in the region. Considering that the total population of Western countries is eight hundred million, five times as many people are crowded into Asia. Simply put, there are five times as many opportunities as in America and Europe. If we look at these four billion people as a demand, it must be a huge market indeed.”

“Poverty takes away dreams and hopes Among experts who deny economic growth, there are those who say, "It's not necessary to be rich." Isn't that statement somewhat irresponsible? Nothing is born from the "concept of being/remaining poor". Because people want to become richer, they strive to be innovative and keep up their hard work, which leads to growth. The argument that it's okay to be poor if you are spiritually rich is a joke that only those who are rich can make. There is a saying called "poverty dulls the arts". Having a bare minimum to survive in life, can one really lead a significant and fulfilling life?”

“If you don't grow, you die instantly”

“There is no 'information gap' between developed and emerging countries The 'gap' that used to divide developed and developing countries has been completely eliminated. Now emerging countries have no handicap whatsoever. Conversely, it also means that there is no superiority for the developed countries.”

“Japan as number one. We became one of the richest countries in the world. We had nothing to fear. The people and the politicians thought it was the case. However, it was just a temporary bubble economy. As soon as the inflated bubble beyond its substance burst entering the 1990s, the Japanese economy began to shrink rapidly. The Nikkei average stock price, which hit a high of 38,915 yen at the end of '89, plummeted to nearly half in just over nine months. The land prices in large urban areas such as Tokyo and Osaka also fell rapidly. At that point, the Japanese should have awakened from the dream and made up their minds. They should have needed to take the first step towards the future by restructuring companies with excess debt and employees, reconfiguring the old industrial structure, and actively paying the price of the bubble. However, Japan did not do that.”

“Japan as number one. We became one of the richest countries in the world. We had nothing to fear. The people and the politicians thought it was the case. However, it was just a temporary bubble economy. As soon as the inflated bubble beyond its substance burst entering the 1990s, the Japanese economy began to shrink rapidly. The Nikkei average stock price, which hit a high of 38,915 yen at the end of '89, plummeted to nearly half in just over nine months. The land prices in large urban areas such as Tokyo and Osaka also fell rapidly. At that point, the Japanese should have awakened from the dream and made up their minds. They should have needed to take the first step towards the future by restructuring companies with excess debt and employees, reconfiguring the old industrial structure, and actively paying the price of the bubble. However, Japan did not do that.”

“In the 1980s, there was a term called "Japan Bashing." It refers to the bashing of Japan carried out by the United States and European countries, which were frustrated by the strong competitiveness of Japanese products. During the Toshiba-Kokom violation incident in 1987, a member of the U.S. Congress performed a performance of smashing Toshiba products with a hammer in front of the White House. A huge trade deficit with Japan was said to be the background. However, at some point, Japan was bypassed in politics and economics. It's "Japan Passing." Now, even that word has become a thing of the past, and it has come to be ridiculed as "Japan Nothing." Japan has become a country completely ignored by the world.”

“The new frontier is Asia. In Asian countries and regions, including Taiwan, the Chinese region including Hong Kong, Korea, Indonesia, Singapore, and Vietnam, a tremendous amount of capital began to pour in from all over the world around the start of the 21st century. As a result, new industries emerged, regions prospered, and cities developed. Cities attracted people, economic activity became lively, and that in turn attracted more new investments. For people and companies who have ideas and motivation and are not afraid of hard work, Asia today is the same as California in the 19th century. While we Japanese were idly passing the time as if taking a nap during the lost two decades, the neighboring countries were undergoing remarkable transformations. This can be aptly called a "paradigm shift" in the economy. The Industrial Revolution allowed Britain to rule the center of the world. After World War II, the supremacy shifted to America. After Japan's bubble economy, the focus is shifting towards China and India, and other Asian countries, in the 21st century. Historically, China and India have not been at the center of the world only for a very short period. These cradles of civilization have had a massive influence on the world in terms of ideology, religion, academics, culture, and political systems. Of course, Japan is one of the countries that has been strongly influenced by them. If we unravel world history, the Western systems did not become global standards until after the Industrial Revolution.”

“Moreover, it is not just the number that is significant. Just as the Japanese people, who dreamed of a prosperous life after the war, sought after the 'Three Sacred Treasures' of television, washing machines, and refrigerators, these four billion people are hungry for prosperity. Their desire to consume is incomprehensible to today's Japanese.”

“According to a study conducted by the Chinese Academy of Social Sciences called "Research on Social Structure Change in Contemporary China," published in the Beijing Evening News on February 1, 2010, the middle class in China makes up about 23% of the total population, approximately 300 million people. Moreover, it is expected to increase by 1% every year. The middle class, as referred to here, is the layer of society that "has a stable income, owns a home and a car, and can afford to spend money on travel and education." They are primarily engaged in knowledge work. Thus, in China, an estimated 13.5 million people are added to this group each year, even if they stay silent. It is not just China. There is also data that suggests that by 2015, 1.45 billion people in Asia as a whole and by 2020, 200 million people will join the middle class.”

“Along with the reduction in "information disparity," there is hardly any "educational disparity" that once separated Japan and other Asian countries. It used to be that no matter how abundant Asian labor was, all that could be assigned was simple tasks. The quality of products couldn't escape the criticism of "cheap means inferior". "Made in Japan" was thought to be of higher quality than "Made in China." Many Japanese may still have this view. However, that image is completely outdated. As countries develop economically, educational standards have greatly risen. Consequently, the quality of labor has been gradually improving every year. Speaking from my experience, in the past, when I placed an order with a clothing factory in China, there were frustrating situations like delivery dates not being met, or clothes being made with the front and back materials reversed. But now, there is hardly a need to worry about such basic issues. Not only basic education, but the ratio of people receiving higher education is also increasing.”

“On the other hand, Japan's business model was of a 'vertically integrated' type, where manufacturers assembling the final product co-develop and produce with parts manufacturers. However, they have become unable to compete in terms of cost with the business models of Apple and Samsung, which aim for massive scale with overwhelming network scale.”