21 | The History of Glass: Kimoto Glass's Challenge and Glass Manufacturing - Part 4

Hello, for the past few times, I've been giving textbook explanations of the functions of wholesalers. Even in the marketing I studied nearly 50 years ago, we discussed the functions of wholesalers.

Of course, compared to that time, the content of the work has changed significantly due to dramatic technological advancements, the emergence of the web and the internet, and new technologies and innovations, but the fundamental principles remain the same.

I believe that Kimoto Glass has managed to survive through various environmental changes by chance, thanks to its honest and earnest nature, a transformative challenging spirit that isn't afraid of change, and the support of many people around us.

While earnestness can also be a form of clumsiness, both my grandfather and father always told me to only deal with glass, not anything else, and to remain a wholesaler. Even during the bubble era, they completely ignored land speculation and investment offers, earnestly (and clumsily) focusing solely on glass as a wholesaler. We partnered with Matsuya Department Store, our business partner at the time. Despite being a small company, our continued partnership with Matsuya Department Store earned us the trust of our suppliers—handmade glass factories, Edo Kiriko craftsmen, and major glass manufacturers. Matsuya also trusted us as the go-to for glass, and we received various consultations and projects from them. We continue to maintain long-standing relationships with all our suppliers.

For a wholesaler to grow, there are several methods:

① Expand the range of products handled – increase sales by handling ceramics, lacquerware, chopsticks, and other tableware besides glass.

② Expand sales areas – expand sales areas not only in Tokyo but also in Osaka and other regional areas.

③ Enter retail.

④ Enter manufacturing.

However, Kimoto Glass did none of the above. Instead of expanding its scale, it diligently focused solely on glass and specialized in being a wholesaler.

This, in retrospect, was the "underdog strategy" as described by the Lanchester Laws. Large companies use capital and resources to steadily acquire market share. In contrast, small companies, in stark opposition to the strong competitor's strategy, narrow their market (target), clarify their objectives, and aim to be the undisputed number one in their specialized field to survive.