Trading Policy
Business Model Not Depending On Foreign Exchange Rates
Toyo Science was established with only exporting business from Japan
in 1995, when the Japanese yen was extremely strong at 80 to 90 yen to
u.s.dollar. Concentrating on only products that can be sold even at super
strong yen, that is our starting point of our business model.
In 1985, 10 years before our establishment, there was a histrical
"Plaza Accord" by the leaders of developed countries, and the
yen appreciated significantly from 240 yen to 180 yen per u.s.dollar. Until
then, Japan was an era in which as long as the quality was good, it could
sell as much as possible on the backdrop of the depreciation of the yen.
However, after this dramatic yen appreciation, the competitiveness of Japanese
products that had been exported until then rapidly declined. It was a major
turning point in which Japan as a whole could not survive without seeking
a new direction.
After the Plaza Accord, there was a demand for a "balance between
price and quality" that was not just about quality, and production
bases were dynamically relocated overseas, and dramatically reducing the
number of products that could be exported from Japan. Eventually, the dollar
became stronger to the 70 yen level, and the products that could continue
to be exported at that time were limited to "Products that could not
be replaced" or "Products that were of high quality but balanced
with the price"
At this time our company was establsihed, and we started to deal
in products such as "Products can not be replaced", "Products with higher quality and higher performance than price", and "Products with guaranteed safety and security". And we started with the pursuit of a sustainable business model.
Our Import Business for Supply Chain Started Due To Strong Yen
The rapid appreciation of the yen after the Plaza Accord brought
about dynamic changes in Japan's import business.
Until then, Japan was focused on quality, had a strong preference
for domestic products, and was not aggressive in considering overseas products
though they were inexpensive. However, the rapid appreciation of the yen
accelerated the movement of production bases overseas. And the lower production
costs at these relocated overseas factories resulted in the rapid expantion
of local demand in China and Asian countries. And the rapid production
increase at overseas factories brought great economic benefits and eventually
the backflow to Japan began.
Next, the "local procurement" of raw materials required
for oversease factories that had been purchased from Japan accelerated,
and these usable raw materials began to be exported to Japan, and eventually
the supply chain of raw materials used at domestic and overseas factories
were established. In this way, the need for various raw material procurement
increased depending on the purpose, quality, and price, and our import
business tto support the supply chain from overseas to Japanese customers
were added to our trading business, which was mainly export until then.
Sustainable Marketing Even at Super Strong Yen - The Origin of Our Business Model
Under the dramatic shift in the yen's appreciation that began in
the 1980s, how to maintain and expand the export business and build an
import business that maintains stable economic efficiency and high quality.
The dramatic appreciation of the yen had completely changed the functional
elements required to trading companies.
Until then, the required functions of trading companies had prioritized
financial strength, language ability, expertise in the target area, and
country risk management. However, this dramatic appreciation of the yen
required not only the functions up to that point, but also specialized
technical skills and knowledge, and literacy such as understanding and
explanation has come to occupy a greater weight.
The era where anyone can sell good products was over. Quickly to
find products and materials that customers and markets would need in the
future, and fully to understand professional related technologies, and
functions that can be explained to the people involved in the project in
an easy-to-understand, efficient, and reproducible manner, these came to
our "sustainable business model."
In addition to conventional marketing activities that visit customers
and purchasers so far, "Providing cutting edge materials" and "Supporting Contract Research" to research laboratories that are responsible for future R &
D", and "Supporting Contract Manufacturing" to factories that build production lines for new products, and to marketing teams, "Supporting for Demand Creation from zero base", our business model today has been completed.
"2 Niche fields" and "2 field-oriented" - This is Our Business Policy
Our business policy, which was created through the rapid appreciation of the yen and drastic changes in demand, is "2 niche fields" and "2 fields-oriented".
"Sociality" is indispensable for a sustainable business model, and in order to contribute to "Sociality and Sustainable Development Goals", unique to our company, which is not available by other companies can do, we have the following two business policies:
- Specialize in professional products and fields that cannot be understood and handled without technical knowledge.
- Specialize in cutting-edge materials
2 field-oriented
- Frequent visits of customers' sites (research laboratories and factories) quickly to identify problems and future development directions, and provice our full supports for sustainable growth.
- Frequent visits of suppliers' sites (research laboratories and factories) to cultivate an environment where new fields, technologies, and products can be introduced faster than anyone else.
