In Japan, when it comes to soy sauce, the brand that first comes to mind is undoubtedly Kikkoman. This globally operating company started as a small soy sauce workshop, with its origins tracing back to the mid-17th century, and has continued for over 350 years. Soy sauce is an indispensable seasoning in daily life. A Japanese proverb says, 'Washoku begins with soy sauce and ends with soy sauce,' meaning that in Japanese cuisine, soy sauce is essential from start to finish. In Japan, the brand that first comes to mind when discussing soy sauce is undoubtedly Kikkoman. In the fiercely competitive Japanese soy sauce market, Kikkoman holds an unshakable position. Approximately 50% of the Japanese soy sauce market is firmly held by five major companies, while the remaining half is divided among over 1,400 small and medium-sized soy sauce manufacturers. Among these five major companies, Kikkoman alone holds a market share of about 31%, while the combined share of the other four is less than 20%. Following Kikkoman, YAMASA holds 11% and Shoda holds 6%. However, if you think Kikkoman's strong position in soy sauce is limited to Japan, you would be greatly mistaken. Compared to giants like Mitsubishi and Mitsui, Kikkoman is much smaller, with annual sales of only $3-4 billion, but Kikkoman is arguably one of Japan's earliest practitioners of internationalization and one of the most successful in its international strategy. In fact, Kikkoman's overseas sales and revenue have both exceeded its domestic Japanese market. According to Kikkoman's fiscal year 2014 financial report, overseas sales accounted for 55% of total sales, and overseas operating profit accounted for as much as 81%. Of that, 75% of overseas sales and 67% of overseas revenue came from the United States. A popular saying goes, 'In 1956, Americans got to know Kikkoman, which supplied soy sauce to the Japanese imperial family; the next year, they saw the first Japanese Toyota Crown; thereafter, they saw Sony electronics.' Kikkoman's main product, soy sauce, is now sold in over 100 countries and regions. According to statistics, Kikkoman holds about 50% of the global soy sauce market share. Kikkoman's own statistics also show that in 2013, its share of the U.S. soy sauce market exceeded 55%. Kikkoman has almost become synonymous with soy sauce, with soy sauce alone contributing approximately $2 billion in annual sales. However, this company, which operates globally and 'makes a big deal' out of soy sauce, started as a small soy sauce workshop, with its origins tracing back to the mid-17th century, and has continued for over 350 years. So, what kind of force has enabled a company to maintain such longevity? From a Soy Sauce Workshop to 'Governance by Eight Families' Kikkoman's Mogi family old residence in Noda A comparative study of other Japanese family businesses reveals that the biggest feature of Kikkoman's succession might be 'governance by eight families.' Kikkoman was formed by integrating the businesses of eight branches from three families. The company's unwritten rule is that each branch can only send one member into the company, and whether that person becomes a director depends entirely on their own merit. Under competition, only the one recognized as the best can take over, and it is not excluded that excellent professional managers from outside the eight branches may be chosen to succeed. It is this mechanism design that makes Kikkoman distinctly different from other family businesses. Haruhiko Fukazawa, head of the second group of Kikkoman's overseas business, told the author that it may not be appropriate to view Kikkoman as a traditional Japanese family business. Yuzaburo Mogi, honorary chairman (10th president) and son of the late president, and Shuji Mogi, managing executive officer, also believe that in a sense, viewing Kikkoman as a family business is a misunderstanding by the outside world. However, according to information publicly disclosed by Kikkoman on June 30, 2015, companies closely related to the three families, such as 'Kabushiki Kaisha Chosha,' 'Kabushiki Kaisha Mogi Suke,' 'Yugen Kaisha Kushigata,' and 'Kosei Zaidan Hojin Noda Sangyo Kagaku Kenkyujo,' hold 3.19%, 2.92%, 1.98%, and 1.77% respectively, and remain major shareholders. This indicates that Kikkoman still retains some basic characteristics of a family business. In fact, the formation of the 'governance by eight families' model underwent a long historical evolution. Kikkoman originated in the Noda region of Chiba Prefecture, Japan, which has abundant high-quality water sources and has been a famous soy sauce production area since ancient times. In 1661, as a prominent family in the Noda area, the 19th generation of the Takanashi family, Takanashi Heizaemon, began brewing soy sauce and opened a small soy sauce workshop. The birthplace of Kikkoman: Noda region, Chiba Prefecture, Japan Another family in the same region, the Mogi family, began producing miso in 1662. However, a branch of the Mogi family (Mogi Shichiroemon) had been working with Takanashi Heizaemon on soy sauce brewing since 1662. It was not until 1766 that the main Mogi family also fully transitioned to soy sauce brewing. In 1814, in the Nagareyama region of Chiba Prefecture, not far from Noda, Horikiri Monjiro of the Horikiri family also began soy sauce brewing. At that time, the Takanashi and Mogi families were already renowned in the field of soy sauce brewing and had cultivated many famous soy sauce brewers. In 1828, the soy sauce produced by the Takanashi and Mogi families was highly recognized by the shogunate. In 1873, the main Mogi family (Mogi Saheiji family) brought soy sauce bearing the 'Kikkoman' trademark to the World's Fair (Expo) held in Australia, where it won the highest award in the soy sauce category, making Kikkoman famous. When the Mogi family divided, they provided assistance to the separated family members by distributing soy sauce flavoring stores, covering initial equipment investments, and providing operating working capital. As a result, the entire Mogi family continued to grow, and by around 1860, the Mogi family's soy sauce production accounted for more than half of the total production in the Noda area. At the same time, competition among the same clan became increasingly fierce. To address this, the main Mogi family gathered all branches and formed the 'Chosha' in 1885, with the stated purpose of 'family harmony and eternal business,' to jointly build the Mogi family foundation with the main family at the center. In 1887, through several intermarriages and adoptions, the Takanashi and Mogi families, which had essentially become one family, formally merged to form the 'Noda Soy Sauce Brewing Association.' The outbreak of World War I in 1914 greatly increased demand for soy sauce, but it also intensified vicious competition among peers. Mogi family old residence To address this, the Mogi family (including the main family and branches, totaling six families), the Takanashi family, and the Horikiri family integrated their businesses and merged in 1917 to establish 'Noda Soy Sauce Co., Ltd.' They elected Mogi Shichiroemon (6th generation) as the first president. The 'Kikkoman' trademark used by the main Mogi family was recognized as the unified trademark, and the more than 200 trademarks before the merger began to unify. The company's operations achieved 'governance by eight families.' Regarding this unique model, Kikkoman's honorary chairman and 10th president, Yuzaburo Mogi, said in an interview, 'A major drawback of family business management is allowing incompetent family members to participate in management. ... Although it is unclear who first proposed it, when the eight families merged in 1917, a strict rule was established: each family could only allow one person per generation to join the company, and there was no guarantee that the person who joined would become a director. This rule has been maintained to this day.' At the same time, Yuzaburo Mogi believes, 'A major advantage of family businesses is that there are many people with a strong sense of mission and enthusiasm for the company. This advantage should be utilized. However, it is also necessary to give opportunities to others, so if there is a suitable person, the president does not necessarily have to be a family member.' Under the 'governance by eight families' model with strict rules, each family could only cultivate and select the best member to join the company. These eight families became 'rivals' in another sense and had to diligently educate and train their children. Needless to say, this model relatively well overcame the inherent drawbacks of family business succession. From 1917 to the present, the position of president of Kikkoman has been passed down to the 13th generation. From the six Mogi families and the Takanashi family, a total of eight people have been selected; from outside the eight families, there have been two quasi-family members, two external professional managers, and one from the Horikiri family (the current president). Moreover, every family member must start from the lowest-level sales position after joining the company. Ichiro Takanashi, the only successor from the Takanashi family to join the company, said, 'This is a necessary process.' His first job at Kikkoman was selling Coca-Cola, at a time when Japanese society was almost universally boycotting Coca-Cola. Phoenix Nirvana After the Great Strike 1927 Noda Soy Sauce Strike In fact, shortly after the company was established in 1917, it suffered a heavy blow under special historical circumstances. After the end of World War I in 1918, leftist ideologies rose worldwide, and labor movements became frequent. Across Japan, large-scale strikes continued, and there were nationwide 'rice riots,' plunging society into unrest. 'Noda Soy Sauce' was no exception. In 1919, the company experienced its first strike. In 1921, workers formed a union, and strikes increased. The then-president, Mogi Shichiroemon, stated in the company's 'policy instructions,' 'Those who move with the times prosper; those who go against them perish,' and sought to quell strikes by improving treatment and refining company systems. However, in 1927, Japan experienced a financial panic, with stock prices plummeting and banks suspending operations. Amid such unrest, large-scale labor movements emerged again. 'Noda Soy Sauce' experienced a strike lasting 218 days, an event hailed as one of the three major pre-war strikes in Japan. Keizaburo Mogi (adopted son of the Mogi family, father of Yuzaburo Mogi, originally named Katsuji Iida, known as the 'restorer of Kikkoman'), who later became the 5th president, personally experienced this influential event. In his later years, he recalled in the famous serialized column 'My Resume' in the Nikkei Shimbun: 'At that time, employees' morale had fallen to the point where they would not even help put out a fire if the company caught fire. This made us realize that if a company becomes a mere shell, lacking responsibility and ethics in management, employees will lose their professional consciousness and beliefs.' Honorary Chairman Yuzaburo Mogi also recalled in an interview, 'In the 1960s, when I was studying at Columbia University, scholars in American universities were still researching that strike at Kikkoman. The final result was a ruling in favor of the company, but as an important lesson, Kikkoman incorporated it into its corporate motto.' The 1927 Noda Soy Sauce strike became an important lesson for the company's development Indeed, after the strike was resolved in 1928, the then-president Mogi Shichiroemon established the 'Sangyo Tamashii' (Industrial Spirit) as the company's motto (a programmatic 'corporate constitution'). The 'Industrial Spirit' clearly summarized and warned: 'A company is not merely a place for profit-making, but a public instrument of society. In addition to shareholders, management must consider the interests of multiple stakeholders, including employees and the local community. The purpose of management is to enhance the prosperity of the nation and the happiness of the people. The establishment of mutual aid and love among people is the foundation of management.' 'Turning misfortune into fortune,' Yuzaburo Mogi commented on the great strike. 'It was the first major shock after the integration of the eight families. The eight families, which had been loosely united, truly stood together in the face of difficulty. If it had not been for the integration of eight families, but only two or three, with competitive relationships among them, we might not have been able to overcome the crisis.' It was this phoenix-like rebirth after the heavy blow and the thorough reflection after the major event that made Kikkoman place great importance on corporate social contribution and harmonious employee relations in its subsequent development. In its 'Global Strategy 2020,' Kikkoman clearly stated its aim to become 'a company that is meaningful to the global society.' 'The education we received from childhood was not the currently popular win-win, but rather benefiting three parties, which includes society in addition to the two cooperating parties. If a business activity cannot give back to society or benefit society, it is difficult for it to exist in the long term,' said Ichiro Takanashi of the Takanashi family. Such concepts are now evident in every detail of Kikkoman. Last year, when the author first met Shuji Mogi, a member of the Mogi family and managing executive officer of Kikkoman, the business card he handed over was extremely thin and light, made of very special material. Shuji Mogi explained, 'The business cards of all our employees do not use wood; instead, they use recycled soy sauce lees. We promote waste reduction and resource recycling through every possible means.' 'Honesty' and 'Innovation' Kikkoman President Kōshō Horikiri When asked, 'What are the conditions for long-term sustainable development of a company?', Yuzaburo Mogi answered, 'Honesty' and 'Innovation.' Kikkoman's brand enhancement is closely related to its insistence on 'pure brewed soy sauce.' As is well known, soy sauce is mainly divided into pure brewed soy sauce and chemically synthesized soy sauce. Pure brewed soy sauce uses soybeans, wheat, and salt as main ingredients, and fermentation often takes several months. Chemically synthesized soy sauce involves adding hydrochloric acid and yeast to soybeans, with fermentation taking only about a month. The author could not find specific statistical data, but some Chinese media reports claim that currently, pure brewed soy sauce accounts for only about 10% of the soy sauce circulating in the Chinese market, with the vast majority being chemically synthesized soy sauce. However, Kikkoman resisted producing chemically synthesized soy sauce even during wartime and the difficult period immediately after the war. Yuzaburo Mogi recalled, 'Just after World War II, when raw materials were scarce in Japan, the occupation forces pressured us to switch to producing chemically synthesized soy sauce. The company's management at the time faced enormous pressure, but through efforts, they developed a method for producing pure brewed soy sauce that fully utilized soybeans, thereby persuading the occupation forces. To promote the concept of pure brewed soy sauce, the management at the time also decided to make the technology and patents freely available.' 'Such persistence enhanced the credibility of the Kikkoman brand and greatly increased its market share. For the right things, only by persisting in your beliefs and making efforts will the path become wider,' Yuzaburo Mogi summarized. Regarding the free disclosure of technology and patents, Ichiro Takanashi retorted, 'Does that sound foolish? But in fact, it gained consumer trust. Those seemingly stubborn family precepts contain truth, such as our family precept No. 9: "Benevolence should extend to all living species." Our understanding is that new technology should be used to benefit the world.' As Toshiki Kurashina, professor at the Faculty of Business Administration at Konan University and president of the Family Business Society of Japan, said, 'The biggest secret of Japanese companies that have achieved sustainable business is that such companies often have strict management discipline. They usually clarify corporate philosophy and goals through family constitutions and precepts, and strengthen the understanding and succession of these across generations.' Shuji Mogi, son of Yuzaburo Mogi and managing executive officer of Kikkoman, also said in an interview, 'Although I am not familiar with the details of the eight families' constitutions, on the point of "honesty," the eight families are in common. The Mogi family has 17 precepts, and one that clearly indicates action guidelines is: "A family should value harmony above all, remember that virtue is the root, wealth is the branch, and do not forget the root and branch." The wording may differ slightly among families, but the philosophy itself is common.' As for innovation, Kikkoman's current overseas strategy, especially its great success in Europe and America, is undoubtedly the best proof. In the 1970s, when Kikkoman built its largest soy sauce factory in Europe and America in Wisconsin, USA, Ichiro Takanashi recalled that local Americans 'could hardly distinguish between soy sauce and Indian ink.' Kikkoman required Japanese employees to live scattered in various American communities in Wisconsin, learn English with locals, and ship all commonly used American ingredients back to Japan for research to develop soy sauce and seasonings best suited to local tastes. Kikkoman's American factory Regarding Kikkoman's growth from a soy sauce workshop to an international company, the current president, Kōshō Horikiri (13th generation, member of the Horikiri family), believes the reason lies in continuous innovation. In Kikkoman's view, tradition and innovation are not contradictory but organically integrated. President Horikiri stated, 'So-called tradition is nothing but the accumulation of innovation.' In fact, Kikkoman is extremely committed to tradition. For example, Kikkoman has an interesting tradition: even when building factories overseas, it insists on holding Shinto ceremonies. 'Even when building factories in the United States, the Netherlands, etc., we specially invite local Shinto priests to preside over this ceremony that has been passed down for 2,000 years. Because our ancestors believed that only purified land is where Kikkoman can take root,' said Ichiro Takanashi. Regarding business longevity, Kikkoman's honorary chairman Yuzaburo Mogi has his own insights: 'The longevity of a business is the cycle of facing various challenges and overcoming them through effort. It is often said that the lifespan of a company is 30 years, and indeed, major problems often occur about every 30 years. Whether a company can achieve longevity depends on whether it can overcome these major problems. Sticking to the old ways is definitely not enough; we must also proactively respond. It is precisely because we have always faced challenges with a positive attitude that we have come this far.' Ichiro Takanashi of the Takanashi family said, 'The secret is actually simple. Darwin's theory of biological evolution contains a truth: among all living things, those that survive are not necessarily the strongest or the smartest, but those that are most sensitive and responsive to environmental changes. This is survival of the fittest.' Ichiro Takanashi, descendant of the Takanashi family, one of Kikkoman's three families Ichiro Takanashi believes that the three most important points for achieving business longevity are: 'clarifying the selection method and training path for successors,' 'adapting to the environment and proactively seeking change, with a management system conducive to self-reform,' and 'having a clear corporate philosophy and management ethics that are not easily swayed by trends.' Regarding Kikkoman's future, President Horikiri stated, 'Conveying and permeating food culture takes time; the company's global strategy is a plan for a hundred years.' Regarding its success in Europe and America, President Horikiri responded calmly, 'These are just two continents of the world.' Grasp the Lifeline of Enterprises, Seize Trend Opportunities! Editor's PS: The editor has selected 1,067 articles from nearly 1,900 articles published on this official account, divided them into 14 categories and 57 knowledge points, and systematically organized frontline marketing management content into a library for everyone's learning. From market to customers, covering practical combat and management, all are dry goods. Follow the official account and reply with the number '1' to browse and view related content.