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Chapter 71 - Chapter 71 Hong Kong Layout

His slender fingers tapped lightly on the desk, making a rhythmic thudding sound.

"Mr. Ishida, I have a general understanding of what you've said."

Takuya's voice was calm, yet it acted like a tranquilizer, slightly easing Mr. Ishida's anxious mood.

"Therefore, I don't intend to place all the production pressure on mainland Japan."

Mr. Ishida was momentarily stunned by the words, looking at Takuya with some confusion.

"What do you mean?"

"Hong Kong."

Takuya Nakayama clearly uttered two words.

"Hong Kong?"

Mr. Ishida's brows furrowed even more, clearly surprised by the suggestion.

"That's right, Hong Kong."

Takuya's smile grew wider.

"Mr. Ishida, consider this: as a free port, Hong Kong possesses unique trade advantages. Whether it's importing raw materials or exporting finished products, it's extremely convenient, and the tax rates are low."

"More importantly, there's a large pool of cheap and skilled electronics assembly workers there, whose salary levels are far lower than in Japan."

"Moreover, factories in Hong Kong are much more flexible in terms of production capacity allocation than our domestic enterprises; they can quickly adjust according to order demands."

Takuya's speaking pace was not fast, but every word clearly conveyed his thoughts.

"Transferring most of the pokémon production tasks to OEM factories in Hong Kong can not only resolve our current production capacity bottleneck but also significantly reduce production costs and increase the product's profit margin."

"This is my true strategic intention."

Mr. Ishida's eyes slowly widened, his surprise evident.

He had never imagined that this young managing director would have such a bold, even unconventional, idea.

Outsourcing the production of Sega's core products to regions outside Japan?

This was unimaginable before.

But Takuya's clear logic and forward-thinking analysis forced him to admit that this might indeed be a viable path.

It's just...

"Nakayama-san, your proposal... is indeed very appealing."

Mr. Ishida pondered for a moment, a hint of hesitation in his tone.

"However, transferring production lines to Hong Kong on a large scale involves a major adjustment of the entire supply chain, and this... I'm afraid I cannot decide on my own."

"Furthermore, within our company, Director Terauchi and Director Hatano are most deeply connected with production suppliers; they..."

Takuya Nakayama smiled slightly, interrupting Mr. Ishida.

"I understand your concerns, Mr. Ishida."

"I have no intention of interfering with Sega's existing industrial chain layout, nor do I intend to offend the two directors."

"Therefore, I hope you can convey my proposal exactly as it is to Director Terauchi and Director Hatano."

"Preferably, if you could introduce me, I would like to report all my ideas to them in person."

Takuya adopted a humble posture, full of respect for his seniors.

Mr. Ishida looked at Takuya Nakayama's sincere eyes, and his last shred of doubt vanished.

He nodded.

"I understand, Nakayama-san. I will arrange it as soon as possible."

Following Mr. Ishida's report, Director Terauchi and Director Hatano quickly agreed to hear Takuya's report.

In the high-level reception room, the lingering aroma of fine incense added a touch of warmth.

When Mr. Ishida brought Takuya Nakayama and respectfully stood before Director Terauchi and Director Hatano, giving a detailed report on the Hong Kong OEM factory proposal, the two directors showed expressions of satisfaction.

What pleased them was not just the proposal itself, but also Takuya Nakayama's respectful attitude towards his seniors and his approach of reporting everything through proper channels.

It should be noted that President Hayao Nakayama stood behind Takuya Nakayama, and he could have fully leveraged this relationship to directly push his plan.

But he did not.

"Takuya-kun, your idea is very interesting."

Director Terauchi took a sip of tea and said slowly.

He exchanged a glance with Director Hatano.

The arcade games and home console games previously spearheaded by Takuya Nakayama had indeed brought considerable profits to these directors who controlled production resources and affiliated companies.

They recognized this young man's business acumen.

"However,"

Director Hatano took over, a hint of almost imperceptible worry in his tone.

"If a large number of orders are transferred to Hong Kong, what will be the future for our own production companies?

"We can't just watch them wither away, can we?"

"And, will the people in Hong Kong accept Japanese Yen?" Director Terauchi added.

This was their most pressing concern.

Takuya Nakayama seemed to have anticipated their question, maintaining a composed smile on his face.

"I fully understand the concerns of both directors."

"In fact, in my opinion, this is not a crisis at all, but rather an excellent opportunity."

"Opportunity?"

Director Terauchi and Director Hatano both showed expressions of interest.

"Yes, opportunity."

Takuya nodded affirmatively.

"Both directors can completely acquire small local electronics factories in Hong Kong through their own factories, achieving an indirect overseas expansion."

"Those assembly processes with relatively low profits and requiring a large amount of low-end labor can be gradually outsourced to Hong Kong, and can even be further extended to the neighboring GD Province."

"In this way, factories in mainland Japan can concentrate resources on producing core components with high technological content, precision assembly, and final quality inspection."

"This not only doesn't weaken the status of domestic factories but instead elevates their technological threshold and core competitiveness."

Takuya paused, observing the expressions of the two directors, and continued to elaborate on his thinking.

"We can even take this opportunity to transfer some relatively outdated production equipment, at a valuation, to joint ventures or acquired factories in Hong Kong. This will not only revitalize fixed assets but also free up space and funds for technological upgrades in domestic factories. And with our control over technology and production, we can use the expansion of the industrial chain as an opportunity to delve deep into China, and once variables we do not wish to see arise, we can also ensure withdrawal at the smallest cost."

"Killing multiple birds with one stone."

"In recent years, economic exchanges between Japan and China have become increasingly close, and the Chinese side has a very strong demand for various Japanese products, especially electronic products. The procurement expenses for some technology licenses and high-tech equipment are also very high."

"However, with the continuous appreciation of the Japanese Yen, for the Chinese side, which has a tight foreign exchange reserve, the pressure of foreign exchange expenditure is also continuously increasing, and they must also be having headaches over this."

"Our current proactive proposal to go to Hong Kong, and even to the mainland in the future, to set up factories in the form of foreign exchange payments, will undoubtedly be welcomed and supported by the Chinese side."

"Currently, not many Japanese companies are investing in the electronics industry in China, which is an excellent opportunity to seize the initiative."

Takuya Nakayama's analysis was layered, logically clear, and painted a tempting blueprint.

The worried expressions on Director Terauchi and Director Hatano's faces gradually faded, replaced by deep thought and subtle excitement.

They had to admit that Takuya Nakayama's plan was more far-reaching and comprehensive than their own.

This was not just about solving a new product's production capacity issue, but also an optimization and upgrade of industrial layout.

Ultimately, the two directors were completely convinced by the prospects Takuya Nakayama described.

They immediately decided to dispatch their respective capable subordinates to accompany Takuya Nakayama and Mr. Ishida, to immediately depart for Hong Kong for on-site inspection and to begin promoting relevant matters.

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