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Insider Report &
Background Stories:
More than five(7) years have quickly passed since we
returned to USA from Japan. We started our internet mail order in
the late 1999[actually we were in California 1977-1986 and opened a
store in Fountain Valley, CA (1982-1985) under the name of NAGATO
CORPORATION,
AMERICA (NCA-established in 1977)]. Doing Business As IMPERIAL
KAMADO since 1998.
After beginning our internet business, we received
unexpectedly large number of requests for replacement parts for
these long-surviving classics. A big surprise was to learn that many
thousands were still in use, or got stored away when the original
owner passed on. Most of these aforementioned Kamados had been sold
by our US importers, dealer and stores like Pachinko
Palace(1973-1982), Pier One(1979-1984) and
Barbeques Galore(1978-1995), and included our store in Fountain
Valley(1983-1985) as well as other dealers in other states.
We exported approximately 60,000 units starting from 1973-1995 under
the name of NAGATO SHOKAI, INC. (NSI-Yokohama Japan, established in
1955 as the parent company of NCA).
Due to the above indirect sales system, we did not
have a chance to communicate with many of our end-users in the USA.
You needed our help in restoring or replacing your units. Now
through the miracle of internet, knowing who you are will allow us
to support you more fully. In fact, through your feed-back during
the last 7 years we have learned a lot from our customers.
First of all, our Kamado owners are a close, friendly
& unique group, made up of special type persons who want the best,
know quality and are not fooled by misleading claims or empty
inducements. Secondly, we found that Kamado users get attached to
their appliances. They are eager to tell us and others that Kamado
is a world’s best cooker and smoker that they ever had. Thirdly,
they have maintained their Kamado as treasured heirlooms. Now that
they can replace parts & rejuvenate the units, they are positively
thrilled. We did not realize there was so much product loyalty.
One of our customers, age 30 or so, came to our
office to pick up replacement parts for his dad’s old Kamado telling
us his grandfather was the original owner. The family has since
purchased 3 Kamados. It made our day and gave us great inner
satisfaction. Another recent experience needs to be re-told. We
have a long-time Kamado owner who makes his living in the selling of
American-style (flash-and-burn) outdoor grills. Like the car
salesman who knows his firm’s products but himself drives a vintage
classic auto, this expert goes home to a genuine Kamado. His words
to us were “If someone is trying to choose the better cooker/smoker,
let him try to smoke cheese with Brand X, as compared to the tasty
Kamado result. You just know who emerges the winner”.
Experiences and accolades such as these help
counterbalance all the struggles & hard times our company has gone
through. It was personal loyalty to you the hardcore of owners that
made us persist in this business. It was fanatic adherence to the
knowledge that only earthenware (and not ceramics or heat-conductive
composites) cookware resulted in optimal taste.
We came to US to serve these loyal customers in the
face of difficulties & strong competition from copy-cat
opportunists. In fact, the weakening of the US dollar’s exchange
rate compared to strong Japanese yen spelled doom for most Japanese
exporters. [in 1973 the dollar could buy a 300 yen product but then
weakened so it could only buy an 180 yen(1987) product]. It was
untenable to remain in the US without drastically increasing prices,
so we closed our store in Fountain Valley (1985) and left
California. We resumed to exporting in a small way from Japan again
under the name of NSI. Stubbornly, we continued to export to the US
even at the extremes of the “weak-dollar, strong-yen years”.
[The
debilitated dollar dropped as low as 80 yen, making purchases of
Japanese exports much more unattainable to the US buyer using
dollar!]
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Sales plummeted, business suffered, and many
bankruptcies occurred as Japanese exporters could not sell at such
exchange rate. We saw the dollar lose almost three-fourths of its
value against the yen. To continue our business, we gave exclusive
sales rights in southern California to the Barbeques Galore in 1985
and then gradually the territories were expanded to all California,
Nevada, Arizona.
Our supply to the US market came to a holding pattern
on the death of our last Japanese craftsman in 1995. It took a 3
year, multi-nation search and painstaking testing before finding the
proper replacement in terms of soil, craftsmen, and factory.
(which
is now centered in China )
However, the 3 year interruption in our supply from
1995 to 1998 took its toll on business. Trying to ride the
coattails of the popularity of our unique & original products, as
many as 5 companies began advertising through publications, and the
internet that their imitation products were a rebirth of the
original Japanese Kamado.
In line with my announcement that I am looking for a
successor to the business, the following history of the firm & my
personal history is offered:
NAGATO SHOKAI, INC. was founded in Yokohama, Japan by
Makoto Nagaoka in 1955, the name being a combination of the first 4
letters of my last name the last 2 letters of my first name. In
English, it appropriately means a “Long Gate” (my goal was to
continue the business for a long time, I am now 76 years old and
have been in the business for 50 years).
My main business at first was to supply general merchandise to Far
East US Military Exchanges as a vendor. In 1956. I had a chance to
go abroad the US to attend the World Trade Fair held in Seattle,
Washington on a sponsorship from my native government,
Kanagawa-prefecture. I was then 27 years old. It was my dream to
visit & study in Seattle as my parents lived there from 1910 – 1920.
By DC-6, it took me more than 18 hours to get to Seattle, for stops
at Wake Island, Honolulu, & San Francisco were necessary. After
travel for about a month( San Francisco, Denver, Chicago,
Washington, New York and Los Angeles, Hawaii), I was so impressed
not only with the size of America but with the opportunities
available.
When I visited the top of Empire State Building, I
resolved to return to New York for business. In 1960, I was elected
as a market research representative for the Kanagawa Governor for
one year stint in New York. At the same time, the Kanagawa
Government announced that it would participate in the World Trade
Show in New York.
I was looking for some suitable item to display and promote at the
show and I finally found it, quite by co-incidence and with lots of
excitement.
If my memory is correct it was February 1960, on my
birthday that my mother sent me a tiny washing machine hand
–operated to create motion & pressure, and a supply of US-made cloth
diapers. It was a timely gift, as my first baby boy was born in the
late December 1959.(unfortunately, he went into a different
profession) My mother insisted that one should wash diapers separate
from other laundry. The patented aluminum miniature pressure
washing machine was operated by hand. Using hot water, it took 30
seconds to wash several diapers at a time and the device performed
perfectly. We were then living in a small apartment with a small
back yard and could dry the diapers in the sun. One day, my wife
told me that many neighbors asked her what kind of washing machine
was it that resulted in such white, clean and damage-free diapers.
When I heard her story, I first thought it was
because of superior American cloth material that the diapers were
made of. But then I realized that I had a product that was ideal
for the US market. Coin laundries were inconvenient and using them
was time inefficient. In the US apartment, hot water was plentiful,
and the busy working housewife could finish small bits of laundry in
no time at all. In contrast, in 1960, instant hot water was not
common in Japan. My experience doing my own travel laundry by hand
in hotels and business instincts led to a lucky decision.
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After negotiation with the manufacturer
(at that time, one of the
leading Japanese business enterprises) I decided to go with this
product but ”experts” (members of the manufacturer’s staff) all said
it was against common sense to choose such a device for display and
export. They contended that advanced countries all had electric
washing machines in their homes. My mother was alone in her
encouragement and thought it was a good product to promote. So I
brought the mini hand pressure washer named “KAMOME(sea-gull)
Washer” to the World Trade Show in New York, in May 1960 (Jet
airplane were already available) when I was
31 years old. I displayed 20 units and demonstrated the 30 second
procedure to the crowds at the trade show, trying to find a buyer
FOB Japan for price of 5 US dollars. (a dollar traded for 360 yen
officially and up to 400 yen in unofficially) The display &
demonstration caused quite a stir of excitement. The official
wanted the washer shown to bigger crowds.
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Note that in 1960 the college graduate
in Japan earned less than the equivalent of 50 US
dollars per month (the exchange rate was 360 yen per one US dollar).
Our #5 Kamado w/o accessories could be purchased for only 25 dollars. However, on the
undesirable side, economy class round trip air fare(DC-6) between Tokyo & New York was $1200, and a
telephone call between those cities cost $10 per minute. [Today, a Japanese college graduate looks
for the equivalent of $2000(the current exchange rate is 107 yen per one US dollar) a month, and
the Kamado costs $500. Economy air fare nowadays average $600 and a telephone call costs only
7 cents per minute. In terms of relative value & costs, there have been lots of changes in the world
during the past 45 years.] |
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Thus the miniature Japan-made product was selected as an item to be
high-lighted for Jack Paar’s “Tonight” TV Talk Show. I didn’t have a
chance to watch my presentation but my friend who took the picture
told me that “a small, little Japanese man brought a small, little
hand-operated washer and in just 30 seconds entertained the
audience, etc. etc.” During his one hour talk show, Jack Paar got
lots of laugh whenever he demonstrated my product to the viewers..
[At the same Fair, close to my booth, TOYOTA
displayed its first export model, the 1960 “Corona,” asking for
about $1,200 dollars, FOB Japan but no one seemed to be interested
in the Japanese car at that time. I purchased a new Corona in 1963
trading in for Toyota’s newer models every three years for both my
personal use & for company cars; trucks, station wagons. (Some time
later, I happened to meet my high school classmate. Frankie Sakai, a
famous Japanese actor & dramatist. He became well-known for playing
the role of YABU-SAN in the movie SHOUGUN. He confided to me that
he was chosen to be the celebrity driver to showcase the Toyota
Corona on its first drive from LA to Las Vegas, but it was not a
success because the engine overheated midway! He found it hard to
believe that Toyota would come to be a world-leading auto company.
His favorite car was a Rolls-Royce two door sports model
(limited
production of 12). I arranged the Los Angeles purchase & export to
Japan for him in 1988.(Including freight, import duty & other
expenses, it cost him $250,000(at 135 yen rate) rather than the
$400.000 it would have cost had he bought it through the
dealer/importer in Japan.)]
But back to the TV story. Because of Jack Parr Show
publicity, many entrepreneurs became interested in the mini-washer
and offered me exclusive agreements. I could not easily communicate
with the manufacturer due to the time-zone differences & costly
telephone or cable during 60’s. I dutifully forwarded all contacts to the manufacturer
since I still had 11 months to fulfill in New York as a government
delegate. The manufacturer selected its own export agent in Tokyo
and shipped about 1000 units to New York and an unknown number to
Europe. Sad to say, I was not given a share in the profits even
though the KAMOME washers were an overnight export success.
(this
manufacturer went bankrupt after 15 years or so)
However, after I returned to Japan I made a great success exporting
almost 10,000 units to Switzerland during 1961-64 as another maker
had a 2nd right to this patent. My product was a larger sized,
upgraded model named “PET”. We exported the “PET Washer” under
buyer’s brand, “Mondial” and won all the patent challenges from the
former manufacturer. In
1963, the owners of the PET washer factory, a Mr. & Mrs. Horikawa,
sponsored me and paid all my travel expenses for an around-the world
trip as their guide & interpreter. We visited the owner of
“Mondial” in Switzerland and continued travel through Denmark,
Sweden, Finland, Italy, France, Germany, Holland, England and then
New York. On our way back to Japan we stopped in Honolulu.
Unfortunately, in late 1964, the owner of “Mondial” (a rich but
small company, with only one lady-secretary who spoke English)
passed away suddenly, and thus ended our export business. Unfortunately we could not export any to
the US market. However, this story is not ended. After the patent
was expired, probably in late 1980’s or early 1990’s, some American
businessman copied it with plastic material and called his product
“Wonder Wash” in US ($19.95 – 39.95) & “Super Wash” in Japan(Y13,500
or abut $120). Their ad in Japanese new papers
(in 1997) say that it
sells more than a million units worldwide.
Recalling my experience with the popular mini-washer, it is my last
goal to find a suitable successor for my Kamado business. Although
I have exported over 60,000 Kamados. I envision a successor who
could handle thousands and thousands of units after I pass the baton
to him. I believe someone can create better merchandising through
modern internet techniques, even sell better service, give better
price than any other competitors while maintaining the traditional
quality. I see the Kamado as a suitable candidate for growth &
development and
I believe Imperial Kamado is a “FOREVER” product.
(Thank you for reading this long epistle to its
bitter end.)
Makoto Nagaoka
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