10:00 AM.
Kasumigaseki, Ministry of International Trade and Industry Building.
The phone in the Director-General of the Industrial Policy Bureau's office hadn't stopped ringing since morning. Protests from the Retailers Association, pleas from small business owners, and even inquiries from certain bigwigs within the ruling party flooded in like a tide.
The Director-General hung up the phone from the Daiei Group, his face ashen.
"It's a mess," he loosened his tie and paced irritably around the office. The implementation of the consumption tax was already facing heavy resistance. The government had finally managed, through various propaganda and appeasements, to barely get the business community to accept a tacit agreement of passing costs across the entire industry. If everyone raised prices together, no one would lose out, and the public would eventually accept it after some grumbling.
But now, the Saionji Family had jumped out.
If S.A. Group didn't raise prices, what would other businesses do? Follow suit and not raise them? Then they'd have to pay out of their own pockets, and a huge number of them would go bankrupt. Raise prices? Then customers would flock to the Saionji Family's stores, and a huge number would still go bankrupt.
This was destroying the order of wa.
"Director-General, Mr. Saionji Shuichi has arrived," the secretary whispered after opening the door.
"Let him in," the Director-General retied his tie and sat back behind his desk, putting on a serious bureaucratic face.
A few seconds later, Shuichi walked in.
He wore a dark gray double-breasted suit and held a black dress hat in his hand. He walked with a steady pace, a gentle and humble smile on his face.
"Director-General, I apologize for disturbing you during your busy schedule," Shuichi said, bowing slightly. He handed his hat to the attendant behind him and walked straight to the guest seat to sit down.
"Mr. Saionji," the Director-General did not have tea served. He crossed his hands on the desk and stared sharply at Shuichi. "The newspapers today have caused quite a stir."
"Just a little commercial promotion," Shuichi responded with a smile, "to give back to our customers."
"Give back to your customers?" the Director-General snorted and took a document from his drawer. It was the "Guiding Opinions on Maintaining Fair Market Competition." "Mr. Saionji, do you know how much effort the government has put into implementing the new tax law? The current situation is very fragile. If the entire distribution price system collapses because of one company's uniqueness, leading to expectations of deflation..."
The Director-General leaned forward, his tone growing heavier.
"This is a national crisis."
"Please consider the big picture. Withdraw the advertisements and implement tax-inclusive pricing according to the unified industry standards."
This was an order, not a negotiation.
In Japan, although MITI's Administrative Guidance did not have the force of law, no company dared to ignore it. This was because MITI controlled import and export quotas, industrial subsidies, and countless invisible approval powers.
Shuichi looked at the Director-General's face, which was full of pressure.
He did not show the slightest bit of panic.
He slowly took a document out of his briefcase. The Saionji Industries crest was printed on the cover.
"Director-General, I perfectly understand the big picture you mentioned," Shuichi said as he handed the document over with both hands. "However, I would also like you to take a look at this data."
The Director-General took the document suspiciously and flipped it open.
It was a "Proposal for S-Mart and S-Style Supply Chain Cost Composition and the Affordable Food Basket Plan."
The first page was a cost accounting sheet for the Shanghai factory. Cotton yarn purchase price, labor costs, utilities, transportation — every number was precise to two decimal places. And in the "Comprehensive Cost per Finished Unit" column at the bottom, the figure was outrageously low.
The second page was a list of agricultural products directly supplied by S-Farm in Hokkaido. Potatoes, onions, rice. No middlemen, no layered price hikes from the Agricultural Cooperative — directly from the fields to the factory, and then to the shelves of S-Mart.
The third page was an analysis of S-Mart's operational model: warehouse-style displays, minimalist SKUs, and membership-based prepayments.
The more the Director-General read, the more shocked he became.
"This..." he looked up, his eyes filled with disbelief. "Is this real?"
"Absolutely true," Shuichi nodded calmly. "This is the result of the Saionji Family's global layout over the past three years. Our costs are only 60% of the industry average."
Shuichi leaned back slightly against the chair.
"Director-General, we are not dumping. Even if we maintain the original prices and even if we pay that 3% tax for the customers, we still have a profit. And it's a reasonable profit."
"This is called a Distribution Revolution."
Shuichi's gaze became sharp.
"Isn't the purpose of MITI to encourage enterprises to reduce costs through technological innovation and management optimization?"
"Does the government really want to see companies using the consumption tax as an excuse to drive up prices and let inflation devour the people's wallets?"
The Director-General opened his mouth but found himself speechless.
If the Saionji Family were losing money just to make a name for themselves, he could use unfair competition to discipline them. But they had lowered costs through their own ability. This was efficiency consistent with core capitalist values.
If he were to forcibly demand that the Saionji Family raise prices now, word would get out that MITI had become a villain that obstructed enterprises from reducing costs and increasing efficiency and colluded with unscrupulous merchants to exploit the people.
"But..." the Director-General wiped the sweat from his forehead, "what about the other companies? They don't have a supply chain like yours..."
"That is their problem," Shuichi interrupted him, his voice gentle yet carrying a certain beauty of indifference toward the survival of others. "In a market economy, it's survival of the fittest. If we ask the fast runners to stop and wait just because others are slow, how can this country progress?"
He stood up and picked up his hat.
"Director-General, I think you should be very clear. Public resentment is very high right now. The government needs a pressure relief valve."
"S-Mart is willing to be that pressure relief valve. We are willing to tell the citizens that the cost of living can be controlled and that prices do not have to rise."
"Isn't this helping the government maintain stability?"
The Director-General looked at Shuichi.
He suddenly realized he was being led entirely by the nose. Moral high ground, economic logic, political considerations — the other party played every card flawlessly.
"...I understand," the Director-General closed the file and waved his hand weakly. "Leave the documents. I will report to the Minister."
"Thank you for your understanding, Director-General," Shuichi bowed slightly and turned toward the door.
As he reached the door, he stopped and looked back.
"By the way, Director-General. I heard your daughter is also a student at Seika Academy?"
The Director-General was stunned. "Yes... why?"
"Nothing," Shuichi smiled. "My daughter Satsuki often mentions her, saying she's an excellent child. If there's an opportunity another day, we should let them get closer."
Having said that, he pushed the door and left.
The Director-General sat in his chair, staring at the closed door, the shirt on his back soaked through.
He understood.
The Saionji Family was reminding him.
In this circle, everyone is connected.
3:00 PM.
On the streets of Tokyo.
Under a gloomy sky, a massive crane was slowly lifting a brand-new sign.
It wasn't a traditional neon lightbox, but a huge, minimalist soft-light box.
White background, black text.
S-Mart
Next to it was a red square logo and a line of small text: Life Wear & Food.
Passersby stopped one after another, looking up at this behemoth that had suddenly appeared on the street corner.
"Is this the supermarket the newspaper said wouldn't raise prices?"
"It looks so high-end, like an art museum."
"Is it really cheap? With this kind of decor..."
"Who cares? It's membership-based anyway. I heard that with a membership card, eggs are only 10 yen a carton!"
Discussions rose up everywhere.
Satsuki sat in a black sedan across the street, watching through the dark window as the sign was firmly fixed to the building's exterior wall.
"Eldest Miss," Fujita Tsuyoshi sat in the driver's seat and glanced at the rearview mirror. "It seems there's movement from Daiei's side. President Isao Nakauchi went to the Retailers Association."
"Let him go," Satsuki held a biography of Walmart founder Sam Walton, not even looking up. "A lion doesn't need to concern itself with the protests of sheep."
She closed the book, her fingertips tapping lightly on the cover.
"Is the lightbox on?"
"Not yet, they are still testing the wiring."
"Then we wait," Satsuki said as she looked out the window.
A few minutes later.
Buzz—
A slight sound of electric current seemed to pierce through the clamor of the street.
That giant lightbox suddenly lit up.
It wasn't a piercing white light, but a warm, soft glow like a full moon. That light reflected on the gray street, appearing exceptionally clean, composed, and even carrying a hint of the sacred.
In contrast to this light, the surrounding colorful shop signs plastered with Big Sale stickers instantly looked vulgar and tawdry.
"It's lit," Satsuki said softly.
She looked at that orb of light, the reflection of S-Mart mirrored in her eyes.
"This is our lighthouse."
"In this era that is about to fall into chaos and inflation, we will use this lamp to attract all the moths of Tokyo."