Massive Scale on Single Items

“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.”

“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.”