Hagoromo president explains why he closed down his beloved chalk business
asia.nikkei.com
asia.nikkei.com
It was rather refreshing at a time when I can't stand reading more than a paragraph of a typical press release of a BigCo written by lawyers or PR specialists. Unlike this essay, those are intended to obfuscate, not to inform.
He wanted to serve people sustainably. He did it for decades, and when that became untenable, he responsibly searched for a way to minimize the waste and harm caused by him exiting the business.
I especially love that he treats his machines almost as people, people intrinsically valuable to him. Whereas here, we often treat our people as machines, machines that are eternally disposable.
It's also interesting that they seem to be somewhat oblivious of the US demand. At least it seemed like that. My guess is that they could have sold one of the machines to a US based entrepreneur. I can pretty much envision somone making that chalk in a garage and selling it to universities/individuals.
I also think that it's somewhat short sighted to assume procurement by the employer is needed. Especially in "brainy" jobs it's pretty common for people to be willing to spend their own money for tools they use on the job. If my school only provides chalk X I'm pretty much willing to spend some of my own money for the better chalk if I can't change their mind.
Maybe they were just "too big" and targeting a commodity market instead of going for the smaller premium market.
I have no idea why, but with Japanese companies it's a common theme. Most don't even care about overseas expansion, and if they do, it's poorly executed (say, Daihatsu, who dicked around on the European market for decades without ever listening to even trivial customer wishes, and then wrote the whole business off because it "obviously can't work" – well, duh).
And then there is an economic issue: their currency has been so strong for so long, it simply wasn't worth for most medium-to-small companies to invest in tricky oversea expansion for a very long time. Things have changed a bit there, but the cultural perception has not shifted much.
There is also the obvious difficulty of limited chances for local expansion: the country closest to them in cultural terms are Korea, which they historically see as inferior and poorer, and China, which they know they simply cannot match on equal terms.
And then, of course, there is the recent history of train-crash expansion in the '80s. That didn't end well, and some of the lessons they learnt was not to try too hard to expand abroad.
I'm not so sure about this analysis.
Korea is a much smaller market than Japan and also has regulations hostile foreign products in general (high import tariffs and so on) or to Japanese products in particular (such as limitations on how much Japanese-language material can be broadcast). I don't know what it means to say that they "simply cannot match China on equal terms;" it's only recently that Japan's economy's size was surpassed by that of China and even then it has a number of advantages that China does not (much higher per-capita income, a more stable regulatory environment, lower levels of corruption, etc., you get the idea).
(although when it comes to audio-video, @navait is correct: it's a legal minefield.)
The Japanese domestic consumer market is so enormous that many Japanese companies are simply not interested in selling their goods internationally, because they don't need to. They can make plenty of money without dealing with the complications of selling their products in other countries. Many are small businesses and are content with making enough money to cover payroll.
Seems whenever I try to use a whiteboard, the first 5 markers I try don't write and I have to spend 15 minutes hunting for spares.
And if you have a "sort of working" marker, which is what I'd usually end up with, it won't write very dark and the whiteboard text has worse contrast than a chalkboard.
I trained myself to, whenever I found a non-working whiteboard marker, literally throw it into a back corner to pick up later.
Similarly, when I take off a sock with holes, I tear the hole a lot bigger so I don't feel tempted to keep it in use.
Chalk is two generations behind at this point. Its probably not too great to be breathing in all day either, at least for some of the population:
The study, published in the journal Indoor and Built Environment, ruefully concludes: "Though real-time airborne chalk dust generation was found to be low in this study … and did not contain toxic materials, chalk dust could be harmful to allergic persons and may cause lacrimation and breathing troubles in the long run and certainly is a constant nuisance in classrooms as it may soil clothes, body parts, audiovisual aids and study materials."
http://www.theguardian.com/education/2011/nov/28/chalk-dust-...
These have their place, certainly, but I'd find it hard to believe that power-consuming electronic replacements (also considering the environmental impact from raw materials and waste products, and energy used to manufacture them) are a "better" choice than a chalkboard in many cases.
A PC with a projector can last a decade in use and depending on the region may be powered by mostly or all renewables.
That's part of why it's incredibly difficult to talk about waste on industrial scales. One plant's garbage is frequently another's input. Waste is expensive, so plants will always try to reduce it to the bare minimums, and if possible make money off it, in the case of certainl classes of recyclables.
Sure but the amount of carbon you burn to get to that rock, excavate it, process it, move it, etc, etc is non-trivial. A computer and projector on 8 hours of day is a drop in a bucket to that.
In fact the cost things like PECVD or dry etching is so disproportionate compared to drilling a hole in the ground, that I'm willing to bet a computer is the equivalent of hundreds of years worth of a blackboard with chalk.
Really, I recommend anyone look into this stuff. Just to get silicon to the purity and precise structure to just start chip fabrication: https://en.wikipedia.org/wiki/Czochralski_process Imagine the whole supply chain, from smelting metal for wires and cases to plastic molding to storage, economies of scale truly are vast.
>that I'm willing to bet a computer is the equivalent of hundreds of years worth of a blackboard with chalk.
As someone who grew up near a limestone mine, I think you greatly underestimate how much work it takes to get rocks from the earth. I've seen some of the largest machines in the world working there. Its an huge operation.
I'm not letting my daughter write on the driveway with markers ;-)
- Chalk is on it's way out. It's a rapidly shrinking market. Each year there will be less customers and less profit world wide.
- He could have sold the machine to another entreprenuer? Their company makes 45 MILLION sticks of chalk. They're getting their materials at a high bulk discount. Another company can never match the price point. They'll end up selling the same chalk at double the price.
- And expansion into the USA is laughable. Try expanding into an existing market with well established players (crayola) that is shrinking and on its way out.
- And this is the USA we're talking about, we prefer cheap products to quality ones. The only time it seems we invest in premium products is when they are an American brand, made in America.
I am a math professor. Most of us prefer chalk, and have no desire to go to whiteboards, smart boards, Powerpoints, what have you. I think that there is a fairly durable market for chalk.
Moreover, over the last five years I think that awareness of Hagoromo (and more generally, of high-end chalk) has been growing. You see it for the first time when visiting some other university and think "Wow, what is this? I must have some!" This led me to buy several boxes of it at $35 a pop. My out-of-town guests, who give lectures in the research seminar I help to run, get treated to the good stuff.
I remember thinking that the whiteboards were an improvement at first, but that quickly changed when I realized I couldn't read what was written on them anymore.
I agree that there is a durable market for chalk, but not at this kind of volume.
I'm pretty sure the customers mentioned qualify as typical customers that are willing to pay a hefty premium for a product they love. tl;dr: scale down, focus on quality, charge more > shutdown
A recent example: Nitram fine art charcoal.
Grandson of founder sells business, gear, and secret recipe to enthusiastic customer, who relaunches a beloved product line.
http://www.nitramcharcoal.com/blog/the-history-of-nitram-cha...
Obsolete technologies become forms of art. Vinyl records, polaroid pictures, book making, knitting, etc.
The Impossible Project is truly impressive. Polaroid film is a mindblowingly complex product to develop, since it's basically a photo lab sandwiched into a thin sheet. Even if their results aren't perfect, it's amazing they're making it work at all.
There's also a small group of people who are rebooting the Ferriana film line.
There's also a small group of people who
are rebooting the Ferriana film line.
In typical Kickstarter fashion, yes maybe, if we're lucky and they don't run out of cash first. They just sent out an update yesterday saying that the hardware they thought would satisfy their needs won't do anything of the sort, and that they're now months behind on their schedule.I hope to, at some point, receive my rolls of 135 and 120 film, but I'm not holding my breath.
I hope this entrepreneur have a handy geiger counter next him/her when buying those machines. Just in case... better safe than sorry
High quality commodities are considered nowadays luxury and not bare minimum. Quite sad, really.
> The tendency has become more and more prevalent under electronic auction systems.
While incidents like this are often used as examples of the failures of technocracy, I think the problem is elsewhere. A decision process has been out-sourced to a machine that is not smart enough yet to make a good decision. The decision might be good in a very localized and easy to measure sense (cheap), but lacks an understanding of other economical signals.
Maybe a spec like this doesn't exist now, but you could use the good chalk and write the spec based on how it did.
Franssen M (2005) Arrow’s theorem, multi-criteria decision problems and multi-attribute preferences in engineering design. Research in Engineering Design 16(1):42–56
For an item like chalk though, my employer now has an arrangement with one of the big office-supply companies who specialize in tolerating (and charging extra for) gov't nonsense. Lately it's been CDW-G, I think. They provide a walled garden of approved products (which don't include the kind of good quality chalk in question) and a semi-streamlined purchasing process. It works great for the purchasing dep't, I'm sure, but it sucks for end-users because it introduces the same kind of uncertainty that a purchasing organization is supposed to fix. For example, the prices quoted on the website are not the actual prices of the products, and the products have variable discounts; this and the latency inherent in dealing with the purchasing process makes budgeting and price-shopping difficult to impossible. In my very small dep't we usually have budget projections rounded to the nearest hundred even for small items like chalk/dry erase markers because doing otherwise is a waste of time. We spent a lot of time a few years ago, working around the purchasing system just trying to get decent chalk before fatigue eventually set in and we just gave up and installed whiteboards.
if (x < y) { // } is a simple optimisation.
The classic "you optimise for what is or can be measured rather than what is important."
There are ways around this of course by setting minimum quality via an objective third party (MIL-STD's for example) but that process introduces a whole new can of worms.
Isn't an "electornic auction system" just a database anyone can spam - the actual decisions are probably made by humans? My hunch (might be incorrect) that the auction system creates a barrier of disinterest where the official has very little else to go with than the prices quoted. In this case it's not that the machine is stupid - it's way worse, the system stops actively humans doing what humans are particularly good at - separating wheat from chaff based on experience and intuition - if the official will never use the chalks and has no idea what the impact of the product will be.
Many (most? all?) state and local governments have laws that generally require you to go with the lowest valid bid to an RFP.
Or at least it used to. Perhaps with the modern IT systems we could create a solution that delivers the transparency to the process - the official would explain his/her choices publicly, and the public would have an opportunity to argue...
it's all a matter of doing your job right. despite the fact that a machine will help you with some portion of it.
Your observations are poignant. There is strong incentive to treat everything as a commodity these days. Part of our business is in helping buyers structure their RFQ documents so that the product or service can be competitively sourced. In the government sector, however, we rarely participate in this process.
Governments must purchase based on their state and local laws, which often ties their hands. A local school system may want to purchase better quality chalk for a reasonable premium, but the laws pertaining to procurement frequently prevent them. It's a really bizarre circumstance where public perception of government waste has resulted in laws that eliminate buyers' ability to cut deals that are better for everyone. I'm not saying it's impossible; it's just much easier for a procurement officer at a local government to follow the standard process (which prioritizes price) than it is to fight for quality.
There are pockets of innovation, however. Our eRA platform stands out because we offer the ability to incorporate non-price factors in to our ranking algorithm. This gives a buyer the ability to "weight" one bidder over the others. We developed some of our most advanced features jointly with local governments in Arizona. I'm not sure I should name names, but there are people doing really great work out in Arizona.
We have even considered founding a separate not-for-profit organization whose entire purpose would be to assist local governments in improving their procurement laws so that there would be a better balance of good sourcing practices and the ability to incentivize quality over price where appropriate. That's a huge challenge though. You frequently end up directly opposed to special interests with very deep pockets and a financial incentive to keep procurement laws just as they are.
1: If you're wondering: http://www.eauctionservices.com
Earlier, companies based in a city, ward or town were given a priority at auctions held by their governments.
Local companies were given priority not because they were providing higher quality product but simply because they were from the area.
besides, it is common for many businesses to fall back on the excuse that their quality justifies their price without proving that their competitors are not delivering what is requested.
if you are over delivering and doing well that is fine, but if you are over delivering and losing money your not doing it right and the market will correct you one way or another
just the milkman the chalkboard has been obsoleted.
Basically, the chalk seems to be optimized for writing Kanji strokes which need to vary in thickness and weight.
And, yes, he did miss the boat in the US. I have never heard of this stuff before they went under (not completely true: my Japanese teacher complained about the quality of American chalk all the time--I should have twigged in). I would have bought crates of this stuff when I was teaching.
Hopefully the Korean company he sold the machines to won't be quite so insular.
The article gives the impression there was a specific highly custom production system where the materials were selected for the machines and the machines were fit for the materials. And the machines were apparently jury rigged adaptations which probably lack detailed blueprints. Sounds a bit hard to formalize, after the fact, without quite a laborious effort.
While it wouldn't be perfect, such a machine could be standardized or improved, and quality could be iterated on by people who care about it until they could make their own chalk that was better than what they can easily buy.
Heck, just the recipe might be sufficient for people to do that.
At first, we considered selling the whole company, enabling the Hagoromo brand to survive and helping overall chalk sales. But we could not find the right deal for the company.
I'm sad that I have been forced to close down my company. But I am pleased I have been able to contribute to education by providing high-quality chalk over the last 50 years.
Commendable passion to a bigger cause, but sometimes that isn't enough. Very touching note.
How is it "not enough"? He ran a successful business that brought joy and utility to millions for 50 years. Sure, it ends on a sad note - but such is life. That is success if I ever saw it.
However, it is nice to read about people who have a passion for what they do, and this man seems to have passion in spades.
This post from a while ago explains why "Mathematicians Are Hoarding a Type of Japanese Chalk"
To every thing there is a season, and a time to every purpose under the heaven
Alle thingis han tyme, and alle thingis vndur sunne passen bi her spaces.
See https://en.wikisource.org/wiki/Bible_%28Wycliffe%29/Ecclesia....
So the Byrds were covering a Pete Seeger song, who used lyrics by Ecclesiastes.
3 To every thing there is a season, and a time to every purpose under the heaven:
2 A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted;
3 A time to kill, and a time to heal; a time to break down, and a time to build up;
4 A time to weep, and a time to laugh; a time to mourn, and a time to dance;
5 A time to cast away stones, and a time to gather stones together; a time to embrace, and a time to refrain from embracing;
6 A time to get, and a time to lose; a time to keep, and a time to cast away;
7 A time to rend, and a time to sew; a time to keep silence, and a time to speak;
8 A time to love, and a time to hate; a time of war, and a time of peace.
"Then I hated all my labor in which I had toiled under the sun, because I must leave it to the man who will come after me. And who knows whether he will be wise or a fool? Yet he will rule over all my labor in which I toiled and in which I have shown myself wise under the sun. This also is vanity."
When your customers are still sending faxes, that pretty much sums up your dire situation.
https://www.google.com/search?q=japanese+fax+machine+culture
tl;dr: Fax machines are still fundamental to Japanese business communications.