A Genuine Desire to Change the World

From my high school days, I began questioning the words of my parents and teachers, resisting the heavy emphasis on academic background and the seniority system. I valued both friends who enjoyed studying and those who did not; the idea that one’s entire future could be determined by academic credentials was distasteful to me, leading me to once submit a blank answer sheet for an exam in protest.

Nonetheless, until middle school, I served as the student council president and was a model student who consistently scored top grades without the need for previewing or reviewing lessons. I simply asked questions in class and remembered the answers, finishing tests in 15 minutes and still scoring perfectly, even if I left my seat partway through. My study method was different from others. For instance, in studying history, I would first overview the chronological flow from the textbook’s table of contents, then memorize the important dates. I engaged with the material by considering how I would have acted in historical events like the Ōnin War, creating stories and empathetically learning through them.

In university, I studied media, statistics, and marketing, coming to believe that an era where the desire to know and to communicate increases, necessitating IT skills, was on the horizon. My career at HIKARI TSUSHIN, INC. started from a mixture of resistance to the established social order and a fascination with IT technology. I wanted to create a company where academic backgrounds were irrelevant and hierarchical structures were dismantled. In morning meetings and conferences, I would say, “Selling products and doing business have nothing to do with academic abilities. If we think about our customers and act accordingly, we can succeed.” There was no special talent or magic at play. The reason I was able to build a team of 10,000 people and rise to the top of the organization was because of a purposeful intention to genuinely change the world.

If Not Us, Then Who Will Digitalize Japan’s Companies?

Aiming to change the world with IT, we set up systems for one million small and medium-sized enterprises. Initially, our door-to-door sales were met with constant rejections, and despite repeated attempts, we made no sales, leading us to offer communication terminals for free to cover the initial costs. As a result, the company’s debt ballooned to 7 billion yen when the management team was in their 20s. We could take such measures because we were driven by a sense of mission. We wanted to create an era where anyone could seize opportunities at any age, felt it was crucial not to fall behind in the internet age, and always envisioned Japan from above, aspiring to transform it into its ideal state. Ultimately, we were able to streamline corporate systems and popularize mobile phones and the internet across businesses throughout Japan.

Thus, our revenue grew to 50 billion and then 100 billion yen, enabling us to list on the Tokyo Stock Exchange, Inc. at record-breaking youngest and fastest times. If not us, who would digitalize Japan’s small and medium-sized enterprises? With a firm resolution to see things through no matter what, my 20s were spent betting everything on this venture.

Thinking of the Customer, Emphasizing Giving

I believe that those who don’t seem like typical salespeople often turn out to be the best. The essence of sales ability lies in changing the flavor and method of consumption to make customers want what they initially didn’t. Sales that push products without listening to the customer are, in my view, mediocre at best. What’s crucial is thinking about the other person and giving. Sales should always put the customer first, constantly striving to find the product, service, and communication style that makes you think, “I would buy this myself.” I can’t do sales that involve lying.

After going public, there were moments when, being in the highest position, my personal assets exceeded 10 billion yen in my 20s, and times when I had absolutely nothing. This was because I took on over 200 billion yen in debt to lift the entire Japanese market, investing in the entire industry. Believing that ventures in the information and communication, and IT industries would grow, I invested in hundreds of younger companies. Although the venture investment market was criticized as a bubble, some of these companies went public within five years, and the investment funds were recouped. Looking back, I was taking huge risks, but we were a group of twenty some year olds starting from nothing, so it wasn’t scary. Our sales activities had no facility investments or company brand. It was a simple business model: selling new services to small and medium-sized enterprises. Even if we failed, as long as we had each other, we could start over, so there was nothing to fear.

The money in front of you is real, but the valuation of your company’s stock can fluctuate wildly by billions. At that point, personal finances become less important. If you work hard, money will come, and even if you lose it, you can still survive. Whether my personal assets were zero or 10 billion yen, the sky above was the same, and a bowl of beef rice was still delicious. Laughing or crying doesn’t change anything. Since anyone can earn a few hundred million yen over their lifetime, I considered asset fluctuations to be negligible. What I truly believed was important was continuously increasing the real value of the company and myself.

Embracing Risk in Management Participation

I dislike inconsistencies between what one says and what one does. Having been a director since my twenties, I detested being told by others that, as a salaried worker, I wasn’t really taking any risks. That’s why, from my twenties, I started investing in my own company’s stock, and around the age of 30, I took on a debt of 1 billion yen to buy shares in HIKARI TSUSHIN, INC. and participate in its management. Even when it seemed like I was at my most successful to the outside world, in reality, I was facing debt collectors.

I’ve been fired twice. I promised to increase a business’s revenue from 100 to 500, but if the result was only 400, I was deemed to have not met my goal and was dismissed. Of course, even if the goal was met, any scandal within the organization could also lead to dismissal. Being removed or resigning from the board of directors isn’t a demotion; it’s getting fired. Even after being fired as a director, I would show up to work as if nothing happened, sneak into some department under the title of manager, and aim to become a director again. I don’t think you’ve ever heard of someone being fired as a director twice, rejoining the company as an employee, and then becoming a director for the third time (laughs).

We were strict about meritocracy, so it would have been unfair for us alone, who imposed tough promotions and demotions on our subordinates, to cling to our executive positions. I really do hate inconsistencies.

Heading to Alibaba to Achieve a Trillion Yen

A major influence in my life was Yasumitsu Shigeta, the founder of HIKARI TSUSHIN, INC. I became one of the few directors in the entire company just four years after my new graduate entry, but he never really remembered my name. The only thing he was interested in was how much money was spent and earned. There are many famous entrepreneurs in the world, but I think he’s the most incredible. Without meeting him, I wouldn’t be where I am today, nor would I have pursued anything with passion and aesthetics.

His influence led me to get involved with Alibaba’s agency business in Japan in 2009. When we reached 300 billion yen in sales, he said, “Hurry up and reach a trillion yen.” I thought overcoming a major hurdle would finally earn me some recognition, but I was wrong. A trillion yen seemed astronomical domestically, and I considered changing our business model, but my strength has always been in sales. Realizing the only option was to expand sales overseas, I discovered Alibaba, which was still relatively unknown at the time. I sneaked into SoftBank’s planning meetings for about a year and a half before starting the Alibaba agency business. Interestingly, our company’s original name was “Ali Marketing”; we hadn’t received “Baba” yet. We started as an unofficial trial with Alibaba’s Chinese headquarters and quickly made a name for ourselves, earning the “Baba” part later (laughs).

Later, when Alibaba became a super famous company and its market capitalization soared to about four times that of Toyota, I was invited to various places by many people. These were views I wouldn’t have seen if Mr. Shigeta had praised me. Being foolish allowed me to dream big. I believe we achieved greatness because we believed in and persevered through the realistically tough days, forming a team that shared our belief.

Discovering a Profound Sense of Mission Through My Experiences in Dubai

Although many companies joined Alibaba.com, an online exhibition platform with global access, I realized that starting overseas exportation for Japanese companies was not an easy task. Companies that gradually increased their export volumes had something in common: they were staffed with personnel who ventured into foreign markets themselves, embraced failure, and iteratively improved their processes through PDCA. However, proposing that “everyone should acquire business skills for the international market” highlighted a contradiction in myself, as I lacked firsthand experience in conducting sales in English abroad.

Thus, I decided to leave all my jobs behind and head to Dubai. With a backpack filled with samples and catalogs, I embarked on door-to-door sales, and eventually, I set up a 300-tsubo showroom, pitching products from almost every industry to buyers from various countries. These five years were marked by significant financial losses.

The goal of achieving 1 trillion yen and earning Mr. Shigeta’s recognition gradually transformed into a sense of mission for the success of our clients and Japan. Reflecting on the future of my children and grandchildren, I realized that enhancing the stage upon which they and others around the world will live was more important than simply being present with them daily as a father.

Businesses Are Their People: Aiming for the Globalization of Japanese Companies

In Dubai, after conducting market research on 500 companies and devising sellable plans for each product, I realized that 99% of Japanese companies stated, “We don’t have the internal structure to implement these plans,” and thus couldn’t start on the plans we had developed. There’s a saying, “Businesses are their people,” but at that time, Japanese companies lacked the internal system—that is, “global talent”—to drive global business. In foreign markets, it’s impossible to distribute Japanese products using the same business model as in Japan. Various localizations and PDCA cycles need to be executed.

For this to happen, every department and position, from headquarters to manufacturing to sales, must understand foreign markets and have individuals capable of conducting business in English, sometimes even on-site. Thus, I decided to focus on educating and developing talent to globalize the organizational structure of Japanese companies, aiming for their successful global expansion. After spending a total of ten years starting from Alibaba all the way to Dubai, investing shareholders’ and my own money to learn, I finally realized that “people are the key to change Japan.”

Rather than merely facilitating sales between companies, I wanted to help companies become self-sufficient and competitive in the global market. Businesses are indeed their people. I believe we need to completely overhaul the human resource systems of Japanese companies. I plan to spend the next 30 years convincing business leaders across Japan to develop companies that can win globally.

My greatest joy comes from being involved in the growth and change of Japan, its small and medium-sized enterprises, and its youth. Therefore, I am incredibly happy to see our employees go through school-drama-like experiences, growing through laughter and tears. It’s not about profit or loss. Gathering talented sales managers from various companies to sell trending products might be easier and more profitable. But that would be boring. I love stories like those in rugby, soccer, or baseball manga, where delinquents come together to aim for the national championship.

November 2022, at the headquarters of Global Partners Inc. Edited by: DK Sugiyama