sbdcsierra Chapter 144 Selling Panic
Chapter 144 Selling Panic
December 25, 1988.
Christmas morning.
The heavy snowfall last night has stopped. The pine trees in the courtyard are covered in a thick white coat, and the sunlight reflects off the snow, creating a dazzling halo.
The main house of Saionji Temple, a sunroom.
The air was filled with the aroma of black tea and Darjeeling.
Shuichi sat in a wicker chair, the morning paper spread out on his lap. The front page headline was a black and white photograph: Prime Minister Takeshita Noboru's back as he bowed deeply after the consumption tax bill was passed in the Diet.
The title is in bold black letters: "Decision and Termination".
"What an amazing person."
Shuichi took off his glasses and gently wiped them with a soft cloth, his tone carrying a hint of lingering regret.
"Knowing full well it was a pit of fire, he still jumped in. For the sake of the country's finances, he used himself as firewood."
Satsuki sat opposite him, cutting a piece of freshly toasted bread.
The knife sliced through the crispy bread crust, making a soft, sizzling sound.
"yes."
Satsuki stopped what she was doing and her gaze fell on the photo in the newspaper.
"In this calculating Nagata Town, a person who is willing to sacrifice himself for 'justice' may seem incredibly foolish to me, but he still deserves everyone's respect."
She put a small piece of toast into her mouth and chewed it carefully.
"Mr. Takeshita has completed his historical mission. He forcefully shoved the toughest nut, the 'consumption tax,' down Japan's throat."
Satsuki put down her knife and fork, picked up a napkin, and dabbed at the corner of her mouth.
The respect she had shown for politicians just moments before was carefully folded up and tucked away in a corner of her heart.
"Since our seniors have paved the way, the best we can do as juniors is to pay our respects..."
She looked up at Xiuichi.
"We just don't want to waste this foundation."
Xiu paused for a moment, then put his glasses back on: "Satsuki, what do you mean?"
"Father, for politicians, the consumption tax is a 'responsibility.' But for us, it's an opportunity."
"opportunity?"
Shuichi pondered Satsuki's words, lost in thought.
Satsuki stood up and walked to the French windows.
Outside the window, several sparrows were scrambling for bread crumbs scattered in the snow.
"There are still three months until it officially takes effect on April 1st next year."
"During these ninety days, the same thought echoed in the mind of every Japanese person—'The price of things is going to go up,' 'The value of the money in our hands is going to depreciate.'"
Satsuki turned around, her back to the blinding sunlight, her entire body bathed in golden light.
"This 3% tax rate will create a huge psychological gap for Japanese people who have long enjoyed 'no direct tax'. The 3% price increase will be amplified psychologically, creating a collective anxiety that 'not buying now is losing money'."
"When anxiety reaches a certain level, coupled with some of our 'guidance'... panic will inevitably occur."
"And panic is the best salesperson. People will go on a buying spree to save a mere few hundred yen in taxes, even if they don't need it."
She glanced at the clock on the wall.
Eight o'clock in the morning.
"Notify Yanai, Endo, and Itakura. I want to see them at headquarters in half an hour."
"We want to help Tokyoites spend their money wisely this winter."
……
Nine o'clock in the morning.
Marunouchi, Saionji Industrial Headquarters, Conference Room 1.
Seated around the long conference table were the three core generals of the Saionji Group at this stage.
Tadashi Yanai was wearing his signature gray suit, with a thick stack of inventory reports in front of him. His eyes were bloodshot, clearly from a sleepless night, but he was unusually energetic.
Executive Director Endo sat upright, his gold-rimmed glasses reflecting a cold light. He noticed the young lady had summoned them, and combined with the forced passage of the consumption tax policy last night, he vaguely sensed that something big was about to happen. He was currently considering how to cooperate with the young lady's plan.
Sitting at the back, Itakura, though not as assertive as the other two, sat upright. He neatly laid out a business plan for the entertainment industry in front of him, his expression calm; the timidity of the small shop owner from Akihabara seemed to have vanished from him.
The door was pushed open.
Satsuki walked in. She had changed into a smart black wool suit, with a simple pearl brooch pinned to her chest.
Shuichi followed behind her and took his seat in the main seat. But everyone knew who the main character was today.
"Hello, President!"
The three of them stood up at the same time.
Merry Christmas, everyone.
Satsuki gestured for everyone to sit down, then walked to the whiteboard and picked up a red marker.
"However, I think no one is in the mood for the holiday."
She wrote a red number on the whiteboard: 3%.
"Ladies and gentlemen, I believe you are all aware of what happened last night, so I won't go into details. From a business perspective, we can view this 3% tax as a switch for 'loss aversion'."
Satsuki tapped the number hard with the tip of her pen, making a crisp "click" sound.
"Human consumer psychology is very interesting. They may be indifferent to our usual 10% discounts, but they absolutely cannot tolerate the government taking 3% out of their wallets for no reason. From today until April 1st, in the subconscious of consumers, cash is depreciating and goods are appreciating."
Satsuki turned around and glanced at the three people sitting there.
"These three months have been a free window of opportunity for us to reduce inventory, provided by the government."
"We need to capitalize on this fear of 'not wanting to lose out' to completely bring forward demand. We'll forcefully release the consumer spending power that was originally meant for next spring and summer now."
"What I want you to do is not simple promotion, but 'cleaning' – turning the old stock piled up in the warehouse into the most liquid cash."
"Remember, for the retail industry, goods stored in warehouses are liabilities; only cash inflows are bullets."
"Before that 'winter' on April 1st (referring to the cooling of consumption after the implementation of the consumption tax), I want to see our warehouses cleaner than your faces."
"President Yanai."
"Here!" Yanai Tadashi was suddenly called out by his boss and straightened his back abruptly.
"What is the current inventory level in the Chiba warehouse?"
"As of 8 a.m. this morning, we have 1.2 million S-Style basic T-shirts, 800,000 hoodies, and 500,000 sets of thermal underwear in stock," Tadashi Yanai blurted out. "All of these are surplus stock shipped back from the Shanghai factory according to your request."
"very good."
Satsuki uncapped the pen and wrote a line on the whiteboard:
[3 items for 1900 yen]
Tadashi Yanai's pupils contracted slightly.
This price...
Even considering the extremely low costs of the Shanghai factory, this price still allows for profit. But from the consumer's perspective, it's practically free money.
"President Yanai, I want you to put this price all over the windows of every Uniqlo store within three days."
"The slogan is—'The last tax-free winter of the Showa era.'"
"Tell them that if they don't buy now, they'll have to pay more tax next year. Tell them this is their last chance to stock up on underwear and socks."
"Don't worry about the profit per item. What I want is to clear out inventory and take over their wardrobes."
"Understood!" Yanai Tadashi was so excited his hands were trembling. He knew all too well the destructive power of this strategy.
Satsuki turned her gaze to Endo.
"Executive Director Endo."
"Yes, Miss."
"Regarding S-Food, I need you to use our control over the three major convenience store chains."
Satsuki drew a simple sketch of a can on the whiteboard.
"We are launching 'Family Disaster Preparedness Stockpiling Kits'."
"Pack up all the curry packets, canned goods, rice, and even toilet paper and detergent that have a long shelf life."
"On the most prominent shelves of 7-Eleven, FamilyMart, and Lawson, red labels are placed that read, 'Price increase warning starting April 1st.'"
"Housewons are the most astute, but also the most easily panicked. When they see this line, they will not hesitate to fill their pantries."
Endo wiped his sweat and nodded repeatedly: "But... what about President Suzuki Toshifumi..."
"He will agree."
Satsuki said calmly.
"Because he also needs to generate revenue. In the final frenzy before the price increase, nobody wants to turn down money."
"At most, we can have them release different versions of stock-packs, and maybe collaborate with a few anime IPs..."
Finally, Satsuki's gaze fell on Itakura.
Itakura instinctively shrank his neck.
"President Itakura."
"Yes! I'm here!"
"SA Entertainment doesn't need to sell goods. The service industry can't be stockpiled."
Satsuki wrote two words on the whiteboard: [Member].
"But we can sell the 'future'."
"Issuing 'Permanent Tax-Free Membership Cards'."
"By depositing 100,000 yen now, you can enjoy a 3% consumption tax exemption at all SA-owned KTVs and arcades for the next three years."
Itakura was stunned: "Tax-free? Who's going to pay that 3%? Are we going to pay for it ourselves?"
"Of course we'll put it on."
Satsuki looked at Itakura as if she were looking at a student who was not yet enlightened.
"However, Itakura, what you're receiving is 100,000 yen in cash."
"In this era of inflation, 100,000 yen today is worth much more than 100,000 yen three years from now."
"Moreover, once they buy the card, they're locked into our store. In order to earn back that 3% tax, they'll use high-frequency spending to pay us back ten or even a hundred times that amount."
"This is called—interest-free financing."
Itakura's mouth gaped open, and he couldn't close it for a long time.
He looked at the calm girl standing in front of the whiteboard and felt a chill run from the soles of his feet to the top of his head.
It's too cruel.
This is simply taking human weaknesses to the extreme.
Yanai and Endo watched Itakura's shocked expression with disdain. This was nothing compared to what had happened back then...
"Did you all understand?"
Satsuki capped the pen with a "snap," interrupting their thoughts.
"I understand!"
The three answered in unison, their voices echoing in the conference room.
"Then let's take action."
Satsuki threw the marker back into the pen holder.
"Smack."
The crisp sound of the impact made everyone tense.
Meeting adjourned.
As soon as those two words were spoken, the three executives stood up simultaneously, grabbed the documents, and headed for the door.
Soon, hurried and rapid footsteps echoed down the corridor.
The sound grew louder and farther away, as if a massive, sophisticated machine had been instantly switched to its highest gear, roaring and grinding forward.