Chapter 152 Saturation Bombardment
Chapter 152 Saturation Bombardment
(The extra chapter has finally been added)
March 10, 1989, Tokyo.
Although it is early spring, the cold wind is still biting in this urban jungle of steel and concrete.
In stark contrast, the streets were filled with an almost burning heat.
There are only twenty days left until the consumption tax bill is officially implemented.
The lobby of Seibu Department Store in Shibuya.
"The checkout counter is over here! Please line up! Don't push!"
The saleswoman's voice was hoarse as she held up a sign that read "End of Queue," swaying precariously from the surging crowd. The air was thick with the scent of expensive perfume and the sweat of thousands gathered together.
It's less like shopping and more like plunder, except people are paying for it.
The French Guerlain perfume, the Italian Gucci handbags, and even the Persian rug priced at 500,000 yen in the display cases all seemed like freebies (Japanese cabbage isn't cheap). The wealthy women waved their credit cards, their eyes gleaming with fervor, their fingernails scraping against the glass counter with a grating sound.
"Wrap this up, this one, and that one too!"
A middle-aged woman in a mink coat pointed to the three remaining pearl necklaces in the counter, speaking at an astonishing speed.
"Prices are going to go up next month anyway, so buying now is a steal! My husband's bonus will just go to the government for taxes anyway!"
The cash register drawer popped open and closed, making a series of "ding-ding" sounds.
This fear of "losing out if you don't buy" spread like a virus throughout Tokyo. From high-end department stores in Ginza to small shops in the downtown area, every window was plastered with red signs with white lettering:
[Final Sale], [Last Rush Before Consumption Tax Implementation], [Buy Now or Prices Will Rise in April].
Daiei Supermarket (Nerima Store)
This is the battlefield for housewives.
The shopping carts clattered together, making a dull metallic clang. Soy sauce, toilet paper, and rice on the shelves were swept clean. Even expensive imported canned goods, usually ignored, were reduced to empty cardboard boxes.
The store manager stood in the aisle, watching this crazy scene, his face showing a mixture of pain and pleasure.
I'm happy because sales hit a new record. I'm miserable because... we're out of stock.
"Manager! The cooking oil section is empty! The customers are arguing!"
"Manager! The stock in the warehouse has all been shipped out! The purchasing department says the supplier is out of stock!"
"Sold out!"
The store manager wiped the oil and sweat from his face and gritted his teeth.
He looked at the empty shelves and felt a sense of relief.
Good that it's sold out.
Once everything is sold out, we won't have to worry about calculating the complicated inventory tax difference when we do the inventory check on March 31st.
This is the consensus across the retail industry: convert everything in hand into cash before that troublesome April 1st arrives. Go light, even if it means earning less, clear out all inventory.
They're all gambling.
I'm betting that the market will enter a period of stagnation after April, and that the cash I have now is the safest bet.
……
At the same time.
Chiyoda Ward, Marunouchi.
Saionji Industrial Headquarters, Conference Room 1.
The blinds cut the midday sun into neat patches of light, which were then projected onto the long mahogany conference table.
On the projection screen on the wall, a series of heart-pounding data were displayed.
Red, all of them are red upward arrows.
"That's insane."
Executive Director Endo held a newly printed report in his hand, his fingers trembling slightly.
"Uniqlo stores across the board achieved daily sales exceeding 100 million yen. Although S-Mart has not officially opened yet, it has already sold 50 million yen worth of pre-sale membership cards and gift certificates alone."
"It's even more outrageous at the convenience stores."
Endo turned the page.
"FamilyMart and Lawson's ordering systems are at full capacity. All franchisees are frantically ordering supplies, especially durable canned goods and daily necessities—they're consuming as much as they need."
He looked up at the girl sitting in the main seat.
Satsuki was wearing the uniform of Seika Academy, twirling a dark blue Montblanc pen in her hand.
"Young Miss".
Endo pushed up his glasses, his tone tinged with worry.
"At this rate, the 1.2 million pieces of clothing we stockpiled in the Chiba warehouse, as well as the potatoes and onions in the S-Farm cold storage, will be sold out before the end of the month."
"Should we...control the pace a bit?"
"control?"
Satsuki put down her pen.
She tilted her head slightly, looked at Endo, and a faint smile appeared on her lips.
Why control it?
"But..." Endo hesitated, "Isn't our core strategy to play the 'no price increase' card on April 1st? If our current inventory is all sold out, what will we use to fight the war? And if we restock then, the cost will be..."
"Executive Director Endo."
Satsuki interrupted him softly.
She stood up, walked to the floor-to-ceiling window, and looked down at the city engulfed in a frenzy.
"Do you see any difference between the money you have now and the money you had in April?"
"Uh...it's all about money."
"That's right."
Satsuki turned around, leaning against the glass, the sunlight gilding the edges of her hair.
"Now that the fish have jumped onto the deck on their own, why should we kick them back into the sea?"
"Dairo and Seibu are clearing out their inventory because they are afraid. They are afraid of the financial accounting problems that will occur across tax periods, they are afraid of the market downturn after April, and they are afraid of being stuck with unsold inventory."
"So they chose to 'take the money and run'."
Satsuki walked to the whiteboard, picked up a black marker, and drew a downward-curving arc on it.
"They emptied the warehouse, like animals emptying their stomachs before hibernation. By April 1st, their shelves were empty, but their funds were plentiful. They thought that would make them safe."
"but……"
Satsuki turned her pen and drew an upward arrow at the end of the arc.
"What if there was a store whose shelves were always full at this time?"
The meeting room fell silent.
Yanai sat at the table, his eyes burning with fervor. He seemed to understand something.
"What does the young lady mean is..."
"We don't hibernate."
Satsuki threw away the marker.
"We need to binge eat."
"We'll take everything in the current buying frenzy. We'll sell as much as we can, sucking all the money out of the market."
"However, we are not 'clearing out' our inventory."
Satsuki placed her hands on the table, her gaze sweeping over everyone present.
"President Yanai."
"exist!"
"Notify the factory manager in Shanghai, Gaoqiao. Tell him to turn on all those backup production lines. Three shifts, 24 hours a day, without stopping."
"Allocate an extra sum of money specifically to buy pork, and tell them that as long as they exceed the quota, they can eat braised pork every meal; if they double the quota, each person in their family will receive an extra portion of rice."
"I need him to produce another million T-shirts and sweatshirts for me within half a month. Even if it has to be shipped by air, he has to get the goods to Tokyo by March 31st."
Tadashi Yanai gasped.
One million pieces. By air.
This cost...
"Don't worry about the shipping costs." Satsuki seemed to see through his thoughts. "The current profits are enough to cover those costs. What I need is speed."
She turned to the other side.
"Shimomura."
Shimomura Tsutomu, who was sitting in the corner playing a handheld game console, looked up and popped a bubble from his chewing gum.
"Can S-Food's supply chain system hold up?"
"As long as the server doesn't smoke, I can get it running." Shimomura shrugged. "However, if you're going to go that far, I suggest adding two more mainframes."
"purchase."
Satsuki answered crisply and decisively.
"Executive Director Endo."
"Yes."
"Call Chairman Iwamura in Hokkaido. Tell him that no matter how many potatoes are left in the fields, or how many onions are hidden in the warehouse of the village next door, I'll take them all, even if it means digging up next year's seeds."
"I want to fill every warehouse in Chiba Port."
"It's so crowded that not even a mouse can squeeze in."
Endo was terrified.
It's a big gamble.
If a company is frantically shipping out inventory while simultaneously frantically buying more, and if the market does indeed enter a period of stagnation as predicted after April 1st, this massive inventory will instantly become a huge cash flow black hole, dragging down the entire company.
"Young Miss... isn't this too risky?" Endo advised, wiping his sweat. "Our competitors are all downsizing..."
"Precisely because they are contracting."
Satsuki sat back down in her chair and picked up her teacup.
"On April 1st, when the shelves of Daiei Supermarket were empty, when the new goods of Seibu Department Store were still floating at sea, when customers had money but could not buy anything."
"Only our door was open."
"Only our shelves are full."
"Furthermore, we will also put up a sign that says 'We'll pay your taxes'."
Satsuki took a sip of black tea, her eyes sparkling.
"This is called a 'saturation attack'."
"I will use this mountain of goods to devour my competitors' market share, skin and bones, in that spring when everyone thought it would be a slump."
"You have to understand that even if the market is in a slump, it's relative to the entire market. Even if only 10% of the consumer desire remains, as long as we capture that 10%, we'll win."
"In an ice age where the whole society 'doesn't want to buy anything,' the little bit of purchasing desire that remains will all rush to the 'only place where prices don't rise.'"
"Therefore, we don't need to create new demand; we just need to drain all the remaining customer traffic from our competitors."
Only the sound of breathing could be heard in the conference room.
madman.
This was what everyone was thinking. But looking at the calm-looking girl, they felt a strange mix of fear and excitement.
"Understood."
Tadashi Yanai stood up, straightened his suit, and could no longer hide the fervor in his eyes.
"I'll call Shanghai right now. Even if I have to work the sewing machine until it smokes, I'll get the goods for you."
"Go."
Satsuki waved her hand.
"Let this greedy stomach eat even more."
……
March 20th, late at night.
Chiba Port, SA Logistics Bonded Zone 1.
The sea breeze howled, whipping up black waves that crashed against the dock.
The lights here stayed on all night.
The massive gantry cranes, like steel arms, tirelessly lift containers from cargo ships that have just docked and place them heavily onto trailers.
"Boom—"
The container landed, causing the ground to tremble slightly.
The box door opened, revealing a cardboard box crammed full.
Cotton textiles from Shanghai, root vegetables from Hokkaido, and daily necessities urgently transferred from Southeast Asia.
Forklifts shuttled through the warehouse like a swarm of busy worker ants.
"Hurry! Warehouse number three is full! Move the load to warehouse number four!"
The warehouse manager shouted, his voice echoing through the empty harbor.
"Over there! Don't block the way! That's an urgent package that needs to be sent to the Uniqlo Shibuya store tomorrow morning!"
Yanai stood on the second-floor platform of the warehouse, holding a walkie-talkie, his eyes bloodshot.
He hasn't been home for three days.
He looked down at the bustling scene below.
On one side is the shipping area, where trucks bearing the SA logo, fully loaded with goods, roar and head to every corner of Tokyo to fill the market black hole that can never be filled.
On the other side is the receiving area, where a steady stream of supplies pours in like a tide, quickly filling the gaps left after the shipments were sent out.
Swallowing and spitting.
This enormous warehouse is like a lung that is breathing violently.
Every breath is the sound of money flowing.
"That's truly spectacular..."
Shimomura Tsutomu appeared beside him at some point, holding a laptop in his hands, with green data streaming on the screen.
"Current throughput is already three times that of last month. System load is 98%."
Shimomura Tsutomu chewed his gum and pointed at the screen.
"Look at the data from Da Rong's side."
He switched to a different window, which displayed a curve that was plummeting.
"Their ordering stopped two weeks ago. They're clearing out their inventory now. At this rate, their main stores will probably run out of stock in about three days."
Yanai looked at the curve and a cold smile appeared on his lips.
"They are committing suicide..."
"That's right." Shimomura Tsutomu closed his laptop. "In this game, whoever has the most cards in their hand has the right to speak, even if those cards can't be played temporarily."
……
March 24th, late at night.
Bunkyo District, Saionji Headquarters.
Shuichi entered the study and saw Satsuki standing in front of the desk.
A huge sample copy of the newspaper was spread out on the table; it was the full-page draft of the Yomiuri Shimbun, which would be printed and distributed throughout Tokyo the next morning.
Black background with white lettering.
There were no fancy designs, only a simple, direct, yet powerful declaration that shook the entire retail industry:
[GST? We'll pay it for you.]
[S-Mart & UNIQLO promise: Starting April 1st, all items will maintain their original prices.]
Satsuki stretched out her finger and gently stroked the line of bold text.
"Father."
She said softly.
"Ammunition loading complete."
Shuichi looked at the GG card and took a deep breath.
He knew that once this paper was sent out tomorrow, the consequences would be astonishing.
Retail associations will protest, the Ministry of International Trade and Industry will be shocked, and competitors will go crazy.
But consumers will cheer.
"Tomorrow..." Shuichi's voice was somewhat low, "it will be a fierce battle."
"A fierce battle?"
Satsuki raised her head and looked at the dark night sky outside the window.
There were no stars there, only the faint red light reflected back from the city.
I don't think so.
She turned around, rolled up the sample magazine, and held it in her hand like a scepter.
"Let all of Tokyo see who the real 'conscientious company' is."
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