45｜History of Glassware: Japanese Glass Manufacturers and Hand-blown Glass Factories (Part 15)

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The warmth lately has been unusual. With temperatures of 20 degrees in February, comparable to mid-April, I feel like we've surpassed global warming and entered an era of "global boiling."

HOYA Crystal was founded relatively late among major companies in 1941 (Showa 16). However, its influence on Japanese glass manufacturing was significant. Later, through steps like withdrawing from the crystal business, appointing outside directors, implementing major restructuring, and pursuing new challenges, HOYA evolved into the global HOYA, driven by ideas not typically found in traditional Japanese companies.

During World War II, HOYA manufactured optical glass lenses for military demand. However, after the war, with the market gone, they began producing crystal glass. In 1947 (Showa 22), they started manufacturing chandeliers (lighting) and focused on overseas exports, particularly to the United States, which led to significant sales. This was due to the fact that Czechoslovakia, traditionally a chandelier production hub, became a communist bloc, prompting the US to look to Japan as an alternative production source. HOYA took on the role of exporter. As a result, by around 1949 (Showa 24), approximately 90% of the company's total sales came from exports (chandeliers) to the US.

After that, HOYA faced a challenging path. Due to an economic recession around 1955 (Showa 30), performance deteriorated. The following year, Shigeru Yamanaka, the president from the founding family, suffered a cerebral hemorrhage due to stress, making it difficult for him to continue managing the business. His son-in-law, Tetsuo Suzuki (then 32), took over as president, and the Yamanaka family stepped back from HOYA's management.

Suzuki introduced rational management methods, which were rare in Japan at the time. In 1958 (Showa 33), HOYA entered the eyeglass business as a new venture after crystal glass, and subsequently listed on the Second Section of the Tokyo Stock Exchange. HOYA believed it could secure market share by selling eyeglasses directly rather than through wholesalers. However, the cost of direct sales was six times higher than anticipated, leading to a decline in HOYA's performance. Coupled with the economic recession in Japan, in 1966 (Showa 41), the company reported sales of 4.2 billion yen and a net loss of 700 million yen, resulting in a suspension of dividends. A coup then occurred within the company, and Tetsuo Suzuki was removed as president. Later, Suzuki personally purchased shares, and as direct sales advanced and performance improved, he returned as president in 1970 (Showa 45) and further diversified the company's management.

HOYA diversified into optical glass, contact lenses, mask blanks for semiconductor design, and other areas. Furthermore, it achieved a business structure with high market share in each product group and numerous products holding top share even in small markets. As a result, in 1990 (Heisei 2), HOYA secured an operating profit of 15.4 billion yen against sales of 123.3 billion yen, maintaining an unusually high operating profit margin of 12.5% for a Japanese manufacturer.

In 1994 (Heisei 6), Suzuki resolved to reform the management, implementing a "business reorganization," then "asset reduction," and finally "organizational streamlining (restructuring)," steering the company towards policies that enhance management efficiency. In terms of business, HOYA restructured its subsidiaries, focusing on the crystal glass business which was losing competitiveness. In terms of assets, it compressed its balance sheet by selling land and buildings that became unnecessary due to business contraction. In terms of organization, it carried out personnel adjustments, reducing staff by one-third and introducing an optional early retirement system for employees over 55. These reforms were implemented over two years from 1994, completing "restructuring" earlier than typical Japanese companies. As a result, this laid the groundwork for promoting the globalization of its business from the 2000s onward.