Chapter 215 Costs Don't Disappear: A Qualified Leader
Saori Yamada was destined to have a sleepless night.
This is how miserable working life is.
Who told her to be the store manager and the person in charge of Eino Yu in Japan?
Middle-level managers are in an even worse situation; the sunk costs are too high, and they don't even have the courage to abandon their responsibilities.
An hour later, at 10 p.m. in Tokyo, her PR proposal was faxed to Wang Xiao and immediately rejected.
"In the 1930s, Japanese goods were synonymous with inferior products, and European and American products were the most popular in Japanese stores. The idea that the Japanese public can give Chinese goods a chance now, just as they did back then, is useless and should be discarded. From a consumer's perspective, why should I give you that chance? Humans admire the strong and don't easily empathize with those perceived as inferior. When the strong show weakness, it creates contrast and easily garners public sympathy. When the weak show weakness, it only reinforces the public's stereotype—'You really are no good.'"
Yamada Saori couldn't refute the argument that it was precisely because the Japanese people perceived China as poor and backward that they reacted so strongly to Chinese goods.
If it's a European or American product, especially a big brand luxury item, people can be more forgiving even if the quality is poor, and they even consider it normal.
This is an unsolvable problem, involving a variety of factors such as culture and national identity.
But the boss doesn't care: "Think about it again, consider the issue from the consumer's perspective. Everyone has a hard time making a living, and people don't have that much sympathy and tolerance."
Yamada Saori racked her brains and, after thinking for a long time, finally came up with Plan B. She started with Michael Jackson's Moscow concert, emphasizing that the uniform support outfits worn by the fans that day were produced in the same Chinese factory.
She thought her idea was brilliant, but her boss rejected it without hesitation.
"First, not all Japanese people are Michael Jackson fans. Second, Japanese people may not be willing to wear the same clothes as Russians."
Secondly, because there were many Russian colleagues in the room, Wang Xiao was too embarrassed to elaborate.
To put it simply, Chinese people like Section Chief Fang keep calling the Russians "poor Russians," and they feel all superior on other people's turf. What about those who are truly wealthy and powerful, who, just a few years ago, wanted to buy up all the Japanese in the world?
If Plan B is implemented, the only message Japanese customers will receive is—I'm dressed the same as the Russians.
They are unlikely to be happy about this.
Even though Wang Xiao spoke cryptically, Ivanov still understood her implication.
However, his businessman instincts outweighed his national pride, so at dinner time, he specifically asked Wang Xiao, "Has she come up with a new public relations plan? God, this is a huge challenge."
At least for now, he doesn't know what the most appropriate course of action is.
Indeed, although Japanese people seem to be very cheerful and humble, he felt that they were actually very cold and arrogant at heart, and generally lacked empathy.
Are Japanese consumers currently consumed by anger at being deceived?
"Your Majesty," his eyes sparkled with curiosity, "how are you going to deal with this crisis? If you don't handle it well, will it affect your expansion plans?"
That's a bit of a pity, but the pity is only so-so.
The booming sales of fleece products brought him real benefits, so he didn't really care about this small loss.
Wang Xiao glanced at him and said seriously, "If we want to run a good store in Japan, we can sell ten million fleece items in Japan alone each year."
Ivanov immediately felt uneasy; money, all of it was money.
The Japanese have a much stronger purchasing power than the Russians.
He pressed on impatiently, "Your Majesty, what exactly do we need to do?"
"Let's see if Yamada Saori can handle it." Wang Xiao scooped a spoonful of tomato and beef stew broth and mixed it with rice. "If she can't, then we'll deal with her."
Ivanov immediately turned to look at Lyuba.
He didn't believe that Wang hadn't done any preparation.
Public relations has time limits; once a certain time limit is exceeded, even the best public relations efforts will be ineffective.
Because the focus has shifted, everyone has already formed a strong first impression.
Lyuba pretended not to see the male boss's gaze; her client was Miss Wang, and she didn't care about anything else.
Wang Xiao picked up another piece of pounded chili and preserved egg with his chopsticks. Oh my, these are all amazing dishes to eat with rice! They make rice taste so good.
Ivanov lost his appetite, his curiosity making him scratch his head: "Your Majesty, how exactly should we handle this matter?"
Wang Xiao didn't even put down her chopsticks, but sincerely suggested to him, "After you eat, you can take a walk and then take a nap. When you're about to sleep, you might come up with a solution. When you wake up, you might have a result."
But Ivanov had no such intention.
Once a person's curiosity is unleashed, it grows like wild grass, unquenchable even by wildfire.
When he was out for a stroll with his bodyguards, he would seriously discuss with someone what to do.
Unfortunately, these mediocre people prioritize quality over quantity, and the special agents' training didn't include business crisis management. Well, to put it another way, they're actually better at creating crises.
Ivanov wandered outside for half a day, until he was shivering from the cold, but he still couldn't figure it out. He could only shiver and go back inside, intending to take a shower and then go to sleep.
As soon as he entered the room, he heard Wang Xiao on the phone: "The videotape you requested will depart from Shanghai at nine o'clock tomorrow morning and fly to Tokyo. Remember to arrange for someone to pick you up at the airport. I've already contacted Toray Industries; you can go there to pick up the materials tomorrow morning. Wish us luck."
Ivanov was completely baffled. What videotape? And why was it being shipped from Shanghai to Tokyo by air? What kind of material was it? And what did it have to do with Toray Industries?
The only thing he could think of was that they bought their fleece-making equipment from Toray Industries.
Oh, Toray also took the responsibility of finding people to train their employees.
Wang Xiao nodded: "Yes, this is the public relations plan."
With that, she stretched, yawned, and wearily shook her neck. "Alright, I should go to sleep now. Goodnight, dear Ivanov, sweet dreams."
Ivanov was almost in tears. "Hey, hey, hey, how can this be? Solving the mystery only halfway is making it even more frustrating. How can anyone sleep like this!"
However, Ivanov forgot the fact that he was a poor student in school; if he had really been that persistent, he wouldn't have been a poor student.
The truth is, he fell asleep within three minutes of lying in bed.
In winter, the wind howls outside the log cabin, the birch forest sways gently, and the cabin is warm and cozy inside—perfect for sleeping.
After Ivanov slept until dawn, he lingered in bed for a long time, successfully realizing the French proverb: "A good night's sleep saves you from eating a meal." He skipped breakfast and went straight to lunch.
Good heavens, it's the weekend, he has the right to stay in bed.
Wang Xiao reached out to greet him: "You've come at the perfect time."
She turned on the TV and gestured for him to watch.
Aha! Ivanov was shocked. Was it a live television press conference? Ha, satellite TV is so convenient.
He savored his sweet and sour pork rice while intently watching the large color TV.
Yes, LED screens should definitely be produced. He now thinks that vacuum tube TVs are too bulky and the picture clarity is weak.
But this did not prevent him from clearly understanding the proceedings of the press conference.
As the store manager of Yi no, Yamada Saori first used a projector to show reporters the sources of clothing costs, emphasizing the important role of labor costs in clothing costs.
Because the sewing industry is difficult to automate, many processes in the garment industry still rely on manual labor. This makes labor the largest production cost after raw materials.
If the quality of the clothing remains unchanged and the raw materials are not replaced, reducing labor costs is almost the only way to lower the production cost of clothing.
"Yiyou's clothing does indeed come from OEM factories in China. To ensure the quality of the clothing, all OEM factories that cooperate with Yiyou have undergone comprehensive renovations under the guidance of craftsmen recommended by Toray Industries, Inc.
Ivanov was taken aback when he saw the videotape playing on site: "Is this the process of transforming the factory? They actually filmed it."
Wang Xiao nodded: "The initial purpose of filming this was to provide a reference for other factories. Later, factories with chaotic management will be gradually removed from the cooperation list because it's difficult to maintain consistent product quality."
On television, Saori Yamada emphasized that all the contract manufacturers were only allowed to accept Inoyu's orders and begin production after they had been properly modified and approved.
This point was acknowledged by representatives from Toray Industries.
The raw materials for the 3,000 yen fleece coat are also imported from Toray Industries. The entire production equipment is imported from Toray Industries, and then Toray sends craftsmen to China to renovate the factory, install and debug the machines, and train the workers.
Toray helped build the factory according to the standards of its overseas factories.
In response to the reporter's question, the Toray representative stated very firmly that with Japan's current labor costs, it is simply impossible to produce a fleece coat priced at 3,000 yen.
The same fleece jacket, even if it's just a single piece, can cost 10,000 yen in a store.
In fact, relocating textile, dyeing, and garment industries to countries like China has long been a consensus within the industry. Only through this means can production costs be controlled.
Saori Yamada emphasized: "There are quite a few Japanese clothing companies that have set up factories or found OEM manufacturers in China, including many well-known brands. It's just that they don't publicize it, so many people probably don't know about it. The reason why E-no-Yu's clothing is beautiful and cheap is not because of the poor quality of the raw materials used, but because we control production costs by using overseas OEM manufacturers."
Upon seeing this, Ivanov suddenly realized: "This is a public relations tactic, revealing everything?"
“Yes.” Wang Xiao ate blueberry yogurt, the kind with a lot of sugar, sweet and sour.
“There’s no need to hide it,” she chuckled. “It’s just the truth. Ever since the Japanese government’s exchange of thread for rope (in Okinawa) in the 1950s, the traditional textile industry has been shrinking step by step. Toray’s main business now is carbon fiber, and they also plan to build a dyeing and printing plant in China. The same goes for the garment industry. A large number of garment factories in Japan have moved overseas, and those that remain have very few Japanese workers; they are mostly illegal overseas workers. That’s the truth. There are reasons why our clothes are cheap, and those who can’t accept it are just deceiving themselves.”
Ivanov looked thoughtful, his eyes fixed on the television screen: "We didn't waste those eight figures in US dollars."
At this press conference, Yui's biggest trump card was the strong support from Toray Industries.
Toray is a long-established Japanese textile company, a true giant in the industry.
It says that the fabric of Yiyou is fine and the quality of the OEM factory is guaranteed, which is equivalent to endorsing Yiyou.
Xiao Gao watched intently from the side, truly admiring his boss. She could always find a way to resolve such crises time and time again. Oh, it's called crisis management.
He remarked, "Big companies are big companies after all; Toray doesn't act arrogantly at all."
Wang Xiao casually chimed in, "It doesn't matter if they act tough. We can produce the original contract we signed with Toray, the acceptance documents signed by the craftsmen after the factory renovation was completed, and the inspection certificate issued by Toray's testing agency after our fleece fabric was produced, to prove our capabilities. If Toray doesn't show up, we still have the workers they sent over."
Xiao Zhao was dumbfounded: "Boss, you really think ten steps ahead for every one step you take. You even anticipated that Toray might not be willing to lend a hand."
Good heavens! He now believes a popular view in Moscow these days—not everyone can become a capitalist just by paying money.
The most important quality of a true capitalist is the ability to obtain returns from products that exceed the inputs, and the ability to effectively organize all factors of production, including labor, to generate profits.
People with this ability are extremely rare.
Just like how many people go to school, but how many can get high scores?
Even among those who are generally considered to have the lowest barriers to entry, a large number of them still lose money.
But Wang Xiao didn't accept the bodyguard's flattery and shook his head directly: "No, signing contracts and signing off on renovations are just the most basic procedures. In doing anything, standardizing procedures and strictly implementing them are the most fundamental and effective methods. Words are meaningless; written agreements are the only proof. Implementing these basic tasks well can greatly improve efficiency and effectively avoid risks."
"You need to maintain relationships with your partners on a daily basis, but you can't rely on those relationships to get through to crucial moments. Right now, everyone's relationship is good, and they're willing to cooperate. But if they become unwilling to do anything or cooperate later, you'll be left with no evidence and you'll be completely helpless."
Ivanov, now quite capable, actually blurted out: "Without rules, nothing can be accomplished; the more rules, the better."
“Too much of it becomes just for show,” Wang Xiao smiled. “You’ll get tired of it eventually.”
Ivanov stared at the television, his curiosity piqued: "Does it work? God, I feel like the Japanese are from another planet. Although I've been to Japan several times, I feel like I don't understand them at all."
“I don’t know either,” Wang Xiao said honestly. “The Japanese people have a very strong admiration for the strong, even to an extreme degree. There’s a very unpleasant saying that the Japanese treat those they consider inferior as dogs, and treat themselves as dogs of those they consider stronger.”
Ivanov burst out laughing. "My God, that's an amazing way to put it!"
But Wang Xiao disagrees: "This is actually a situation that exists in every country and every ethnic group. Which country doesn't have people who fawn over their superiors and bully their inferiors? Judging people's merits or demerits based on their ethnicity is a terrible double standard."
Ivanov laughed so hard he almost fell off his chair: "The Chameleon, my God, the first play I ever acted in when I was in school. Good heavens! Chekhov was such a great writer, he knew all too well the flaws of humanity. Oh God! So you're just showing off your fists and flexing your muscles!"
The Japanese admire strength, so Iino Yu directly demonstrated her formidable power to them.
If you weren't incredibly wealthy, who would want to get into the garment industry and spend tens of millions of US dollars to buy a complete set of equipment from established textile companies and renovate so many factories?
If you don't have exceptional capabilities, how can you find established companies to provide you with comprehensive technical and management support?
Oh God, those who admire strength will readily accept everything the strong do and find reasons to justify it.
Is it that you garment companies don't want to take advantage of China's cheap labor to make more profits? No, it's that you don't have the money to invest so much at once, and you don't have the ability to upgrade so many factories.
Ivanov spoke rapidly and urgently, and at the end, he even burst into laughter, but after laughing, he asked worriedly, "Your Majesty, will this trick work?"
What he thinks may not be what the Japanese think.
"have no idea."
Despite the uncertain future, Wang Xiao wasn't worried. "If we're lucky, Inoyu will win its first marketing battle and make a name for itself in Tokyo's clothing retail industry. If we're unlucky, Inoyu will be labeled as something the Japanese dislike."
Lyuba felt that the boss had a good attitude and was still not in a hurry at this time.
Wang Xiao is really not in a hurry.
because--
"The minimum requirement for the press conference is to promote contract manufacturers, specifically those approved by Toray Industries, a long-established Japanese textile giant. These manufacturers already possess modern production capabilities and can produce products that meet Japanese quality standards."
Ivanov suddenly realized: "So, after this press conference, some astute brands will proactively place orders with the factories that hosted the conference?"
Wang Xiao nodded: "That's right. Consumers are easily swayed by emotions, and capital values profits more. Japan started looking for contract manufacturers in China in the 1970s and 80s, attracted by China's low labor costs. However, due to poor product quality control, Chinese-made products were disliked by the Japanese market, so this market gradually declined. Now, there are qualified contract manufacturers that can fully meet the needs of brands and maintain low processing fees. They won't go to these factories to place orders, as that wouldn't be in their best interest."
Ivanov burst into laughter again: "My God, what's this called? Is it the 'openly repairing the plank road while secretly crossing the Chencang' strategy from the Thirty-Six Stratagems?"
Wang Xiao himself was confused: "Is this one among the Thirty-Six Stratagems?"
Well, she's not a very cultured person. She really can't memorize the Thirty-Six Stratagems.
Xiao Gao wondered to himself, why don't Japanese brands modify their own OEM factories? Wouldn't that make them more convenient to use?
He immediately realized that the Japanese couldn't do it, or rather, it was very difficult for them to do it.
Because virtually no Chinese manufacturers would pay any attention to them.
The factories that the Japanese can choose must be in good overall condition and have a good business situation.
Why should a factory like that bother with you if you ask it to stop production and cooperate with the Japanese in their factory renovation?
What if I spend so much money and time, only to end up with nothing?
You can give me a guarantee, but I have to believe your guarantee first.
So how is the boss able to do this?
Because the trade city can provide factories with a steady stream of orders. The existence of the trade city makes contract manufacturers realize that a short, sharp pain is better than a long, drawn-out one.
Rather than being kicked off the cooperation list, it's better to cooperate honestly and complete the renovation according to the requirements of the commercial city.
Anyway, we made less money this time, but once the renovation is completed and orders increase, we can make the money back.
As for how to fund the renovation? The factory doesn't have the money, but the commercial city will provide it; if they do, they'll invest.
This is why the boss took the opportunity of holding a press conference in Tokyo to recommend the contract manufacturer.
If there's no vested interest, the boss wouldn't bother with this.
So why are these contract manufacturers willing to have the trade city invest in them?
Well, firstly, the trade city is a joint venture, and its investment means that contract manufacturers can also upgrade to joint ventures, enjoying preferential treatment in taxation and related policies. Some factories that have previously cooperated with the trade city have already set an example in this regard.
Secondly, since they've formed a joint venture, they're practically family now, and future orders from the trade center will definitely favor the joint venture factory. Why not?
Of course, this is also related to the current national policy of encouraging joint ventures.
The more Xiao Gao thought about it, the more interesting it seemed.
After Ivanov finished laughing, he finally remembered to show some sympathy: "Poor Saori-chan, it's really not easy for you."
She may have lost, but her bosses have definitely won.
However, her spirit and drive are commendable, and as her boss, he is willing to continue giving her opportunities.
“Wang, if the Tokyo store doesn’t work out, let her run the Shanghai store.”
Ivanov's eyes widened as soon as he finished speaking.
Oh my God, what is this petite Japanese store manager doing?
On television, Saori Yamada stood up and showed the reporters her fleece coat. Then she walked up to them and gave them a deep, standard bow.
She earnestly asked the reporters, "Please help us try on our fleece coats."
Xiao Gao, who couldn't understand Japanese, stared blankly at the TV, looking completely bewildered: "What is she trying to do?"
They're not going to kneel down and apologize, are they?
He was really annoyed by the Japanese bowing endlessly all the time; he could tolerate it.
He really couldn't stand being forced to kneel.
Because Yamada Saori represents the virtue of intimacy, and how can the virtue of intimacy kneel down to the Japanese?
Ivanov urged the Japanese translator Wang Xiao had found, "What did she say?"
"Evaluation." The translator tried to translate the meaning: "Ms. Yamada requests that the reporters evaluate these clothes with an impartial attitude, so as to provide the public with the most authentic experience of wearing them."
"My God!" Ivanov cried, "Your Majesty, you had this trick up your sleeve!"
marvelous!
When such a request is made at a press conference, it is difficult for the reporters present to refuse in public.
But as long as they wear Yi Noyu's clothes, a day's news will become a week's worth of news, or even longer.
Viewers who watched the press conference will be curious about what happens next.
It's like when he watches a TV series; he always wants to know what happens in the next episode.
"My God!" Ivanov was at a loss for words to express his excitement. "Your Majesty, how did you come up with this?"
Everyone clearly only has one head.
Wang Xiao shook his head: "This is not my idea. Last night, the public relations plan that Yamada Saori discussed with me did not include this clause."
Her surprise was no less than Ivanov's, but it was even more of a delight.
Her store manager is proactive, willing to use moral blackmail, and adept at generating buzz; moreover, she is extremely efficient.
There was a reason why Sachiko Ito immediately thought of recommending her.
Ivanov's shock doubled, his eyes practically popping out of their sockets: "Saori-chan came up with this herself?!"
God, this made him tremble even more than if it were the king's plan, because the expectations were completely different.
Wang Xiao spread his hands: "See, there's always someone smarter than you. My dear Ivanov, let's have a toast to celebrate having such an excellent manager."
Ivanov laughed heartily: "My God, our plan to open Yioyu stores all over Japan in five years can now proceed steadily."
Xiao Gao and Xiao Zhao were still staring intently at the TV, afraid that Yamada Saori would be rejected outright and make Inoyu lose face.
Wang Xiao has already started selecting wines.
Oh God, she cried out to God too. Because Georgia is at war, they don't even grow grapes or produce wine anymore. What a great pity.
She glanced at the two Chinese bodyguards who were extremely nervous and smiled, "Don't worry, many people can't refuse others, especially in the context of Japanese culture. As long as the other party's request isn't outrageously unreasonable, they will accept it."
As expected, although the reporters showed some surprise on their faces, they still accepted Yamada Saori's request.
Bosses can eat and drink on weekends, but even if an employee becomes a store manager, they still have to go to the store to work after a press conference.
It wasn't until 3:30 p.m., when Wang Xiao was enjoying Russian-style baked apples made from Moscow sour apples, that Yamada Saori finally finished her work and took a moment to report to her boss.
Today's visitor traffic has plummeted.
After the evening news finished airing, the store saw a few more customers browsing, but not many made purchases.
Wang Xiao encouraged her, "Wait a little longer, the news needs time to spread. Ms. Yamada, Ivanov and I are very satisfied with you. Your request for reporters to evaluate the clothes was excellent."
Journalists are widely recognized as the uncrowned kings, independent third parties.
When people are disappointed with the government, powerful authorities, tycoons, and other powerful forces, the first people they think of asking for help are journalists.
Having journalists review E-You's clothing can greatly increase public trust in the brand.
Saori Yamada was still a little nervous, afraid that something might go wrong: "I'm worried that they'll nitpick."
Wang Xiao laughed: "It's okay. If they go too far, they'll be slapping Toray in the face."
Oh, we at Toray have approved the quality, and you're saying it's not good enough? Are you an outsider trying to teach an expert how to do things?
"Besides, even if they objectively evaluate it, they still think our fleece coats are not as good as imported American products, which is normal. It's unrealistic to expect a 3,000 yen product to be of the same quality as a 30,000 yen product."
What's that saying again? 3000 yen, what more could you ask for?
Wang Xiao affirmed once again: "You did a great job this time, and your public relations plan was also excellent."
Saori Yamada said a little embarrassedly, "Actually, it was you who reminded me, boss. You said this was a once-in-a-lifetime promotional opportunity, a free advertisement. I was thinking about how to extend the advertising time to increase the effect."
Japan experienced a post-war economic boom, which allowed it to enter the information age earlier.
As a native Tokyoist, Saori Yamada knows all too well how easily information can be covered up.
Even the hottest topics today will be quickly suppressed as soon as news comes out tomorrow.
Only by repeating this process for at least a week can it leave a lasting impression on everyone.
Wang Xiao laughed and said, "That's because you're able to grasp the key points."
Saori Yamada further emphasized, "Actually, the public relations strategy was inspired by Miss Tao. She said that in Japan, it's simply impossible to produce clothes of the same quality at a low cost. That's when I thought of approaching it from a cost perspective."
Wang Xiao praised her again: "You are good at listening to people, which is also a good thing."
One thing she admired about Yamada Saori was that when she called her last night, Yamada Saori didn't mention Tao Yafen's role in the matter.
Because the situation was still unclear at the time, what she said could have been interpreted as her trying to find someone to share the responsibility and risk with the boss.
She didn't do that; instead, she took it upon herself, demonstrating a fundamental quality that a leader should possess—a sense of responsibility.
Once the matter was settled and the boss's approval was obtained, Yamada Saori revealed the situation at the time, which was equivalent to letting Tao Yafen gain recognition in front of the boss.
As the boss, Wang Xiao naturally has high hopes for a leader who can handle things without taking credit for others (subordinates).
“Ms. Yamada, your workload will increase from now on. Besides the current store, I’d like to know if you considered any other locations? If any of them are still vacant, reassess why you abandoned them in the first place and see if there’s really no way to resolve the issue. If there is a solution, rent them and prepare to open a branch.”
Saori Yamada exclaimed in surprise, "But our shop has only just opened!"
Yesterday it was only briefly popular for half a day, and today's sales are dismal. Whether it can recover is anyone's guess.
Is the boss about to open a branch?
Wang Xiao encouraged the bewildered store manager, "Ms. Yamada, you have to believe in your abilities. You can do it. I'm waiting for you to open stores all over Japan within five years."
I can't wait for that day to come.
But before that, we need to clean up the trash.
Who in their right mind would be so bored as to cause trouble and disgust people in front of a newly opened store?
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