The Nakamura Lacquer Company (NLC) of Kyoto, Japan, employed several thousand men and produced 500,000 pieces of lacquer tableware annually, with its Chrysanthmum brand becoming Japan's best known and bestselling brand. The annual profit from operations was $250,000.
The market for lacquerware in Japan seemed to have matured, with the production steady at 500,000 pieces a year. NLC did practically no business outside Japan.
In May 2000, the ambitious and dynamic, Mr. Nakamura (Chairman, NLC) received two offers from American companies wishing to sell lacquer ware in America.
The first offer was from the National China Company. It was the largest manufacturer of good quality dinnerware in the U.S., with their “Rose and Crown” brand accounting for almost 30% of total sales. They were willing to give a firm order for three years for annual purchases of 400,000 sets of lacquer dinnerware, delivered in Japan and at 5% more than what the Japanese jobbers paid. However, Nakamura would have to forego the Chrysanthemum trademark to “Rose and Crown” and also undertake not to sell lacquer ware to anyone else in the U.S.
The second offer was from Sammelback, Sammelback and Whittacker (henceforth SSW), Chicago, the largest supplier of hotel and restaurant supplies in the U.S. They perceived a U.S. market of 600,000 sets a year, expecting it to go up to 2 million in around 5 years. Since the Japanese government did not allow overseas investment, SSW was willing to budget $1.5 million for the next two years towards introduction and promotion. Nakamura would sell his “Chrysanthemum” brand but would have to give exclusive representation to SSW for five years at standard commission rates and also forego his profit margin toward paying back of the $ 1.5 million.
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Great Article !
Nice and Interesting !!
Question: Rephrase the article
The Nakamura Lacquer Company (NLC) of Kyoto, Japan, employed thousands of people and produced 500,000 pieces of lacquer tableware per year, with its Chrysanthmum brand becoming Japan's best-known and bestselling brand. The annual operating profit was $250,000.
The Japanese lacquerware market appeared to have matured, with annual production remaining stable at 500,000 pieces. NLC did almost no business outside of Japan
In May 2000, Mr. Nakamura (Chairman, NLC) received two offers from American companies seeking to sell lacquerware in the United States.
The National China Company made the first offer. It was the largest producer of high-quality dinnerware in the United States, with their "Rose and Crown" brand accounting for nearly 30% of total sales. They were willing to give a firm order for three years for annual purchases of 400,000 sets of lacquer dinnerware delivered in Japan at a price that was 5% higher than what Japanese jobbers paid. However, Nakamura would be required to change the Chrysanthemum trademark to "Rose and Crown" and agree not to sell lacquer ware to anyone else in the United States.
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