Intellectual Capital Theory

letter.
A Conversation with Takeo City Mayor Keisuke Hiwatashi: Into the Age of Intellectual Capital

energy.
Only designers survive
Win.
Books create a revolution
jeon.
In fact, only dreams come true
texture.
The form of a company is its message.

The final chapter.
In lieu of a review: Byproducts create happiness.

CCC Chronicles
CCC spaces

Intellectual Capital Theory

Praise for Masuda Muneaki and Intellectual Capital in Various Media

If you're curious about whether the tree of the future will bear fruit that will bring happiness to everyone's relationships, step beneath the tree of wisdom cultivated by Masuda Muneaki and listen to the story of "Intellectual Capital," filled with wind and light.
After reading this book, your mind and heart will be filled with a sense of wonder. —Han Myeong-su, current creative director of Woowa Brothers and Baedal Minjok, former managing director of SK Planet's UX Design Lab
One of the best business books I've ever read.
A book like this won't be published for the next 10 years. - Keisuke Hiwatashi, former mayor of Takeo City, Japan
A book that captures the management philosophy of Tsutaya, a rapidly growing company. ―PR TIMES

A leader in the lifestyle industry, ranked 35th among Japan's richest people. —Forbes
One of the world's most creative entrepreneurs and investors. —Der Spiegel
A person who constantly proposes new projects in the face of adversity. —The Asahi Shimbun
The man who created Japan's most attractive stores, a businessman always seeking new ideas. —Nikkei Business
A person who understands happiness better than anyone else, a person who plans a rich life. ―From the NHK documentary "Professional: The Secret of Business"

There is no such thing as a declining industry!
Tsutaya Bookstore, which boasts positive growth even in the midst of a severe recession.
Pay attention to the unique suggestions only available here.

The economic recession continues worldwide.
Moreover, the economic downturn and shrinking consumption are becoming more serious, and not only our country but also Japan, which has the world's second-largest domestic market, is no exception.
Japan, which has suffered the aftereffects of a bubble economy for the past twenty years, shows the dark future that a highly capitalist society can face.
Competition in Japan's manufacturing, distribution, and service industries has become so fierce that companies are resorting to extreme measures, such as mergers and acquisitions, to survive.
In this recession, there is one company that stands out by showing rapid growth.
Even in a business field far removed from IT or future industries, the company achieved unexpected success.
It is the Culture Convenience Club (CCC) that operates the Tsutaya Bookstore.
Amidst all these challenges—the onslaught of e-books, the departure of print media, the decline of the book distribution industry, and the entry of mammoth global corporations (Amazon, Alibaba, etc.) into Japan—CCC has maintained positive growth, emphasizing the importance of offline stores and the content industry, which centers around books.
Despite the closure of over 10,000 bookstores in just ten years, and the decline of established large-scale bookstores due to reduced investment, what is the secret behind Tsutaya Books' continued success? And even amidst the rise of internet platforms, free from the constraints of time and space, what is the unique appeal of Tsutaya Books, which draws millions of people to the outskirts of cities and provincial towns with inconvenient transportation? Tsutaya boasts 50,000 members and operates over 1,400 stores.
CCC CEO Muneaki Masuda, who planned and completed this, has finally published his unique management philosophy in a book.
The two keywords that permeate his management philosophy—"creating customer value" and "proposing a lifestyle"—offer a fresh perspective on the absolute importance of "proposal power" in the age of intellectual capital and the "design" that underpins it.

Only the planners survive,
Uncovering the true nature of "intellectual capital" through a proper understanding of the times!

The strength of Tsutaya Bookstore, or CCC, stems from a proper understanding of the times. Muneaki Masuda, president and CEO of CCC and the creator of Daikanyama Tsutaya Bookstore, who garnered worldwide attention, clearly articulates this point in his book, "Intellectual Capital."
According to this book, after World War II, capitalist society has progressed sequentially through the 'first stage', which demands scarce materials, the 'second stage', which desires a variety of products in a stable situation, and the 'third stage', which desires unique tastes (styles) and requires 'suggestions' in the midst of an overflow of goods and services.
Nevertheless, people in corporations and business circles still conduct business with their eyes set on the 'second stage'.
However, in an industrial structure and market that has already advanced to a new stage, past strategies will not work.
To survive in a rapidly changing consumer society, we need a sense of reality that allows us to accept those changes.
If you just blame the times and the industry, you are likely to lose your way.
So, Muneaki Masuda faced reality and revolutionized the industry by correctly understanding the characteristics of the "third stage."


Muneaki Masuda developed a business strategy targeting the 'third stage', which must create 'proposals' with 'planning (design)' as its core.
For example, amidst the onslaught of internet platforms, he devoted himself to reviving the unique charm of physical stores, especially the dense "proposal" (concierge service by customer service staff) and the "sensation" that allows one to experience reality firsthand.
This is because customers in the 'third stage' do not simply want 'products' or insufficient supplies.
In the midst of the abundance of products, we want our own style and a special meaning and emotion.
Therefore, the companies of the future must create customer value through 'proposals' and 'planning' and change everyone's lives.
This is the brand power of 'Tsutaya Bookstore'.
To some, books, records, and video content may seem like ordinary commodities.
However, Muneaki Masuda judged them as a bundle of proposals, that is, intellectual capital (the ability to plan and propose), and by focusing on that, he was able to sell 'life itself' (lifestyle) rather than 'things necessary for life'.
But Masuda Muneaki's revolution doesn't stop here.
He sought to innovate the company by recruiting "outsiders" from other industries, minimized the "reporting system" to prevent the organization from becoming bureaucratized, and even went so far as to break up group-sized companies into small and medium-sized enterprises.
Because in the 'third stage', only designers who can propose a lifestyle through novel ideas can survive.
The concrete fruits of Masuda Muneaki's constant pursuit of innovation are the Daikanyama Tsutaya Bookstore and the Takeo City Library.
It is now expanding its scope and area to include 'Tsutaya Appliances' and 'Hakodate Tsutaya Bookstore'.


The first thing I want to emphasize is that only designers can survive.
That's the answer.
Therefore, all companies must become a group of designers.
Companies that fail to do so will not be able to achieve success in future business. - From the text

Today's consumer society is becoming more and more advanced.
As you can see if you look around, we live in an age overflowing with platforms.
There are countless platforms on the Internet, allowing people to engage in consumption activities without being restricted by time or place.
This is the 'third stage', the era we are currently living in.
With so many platforms already in existence, simply providing a platform is no longer enough to increase customer value.
Therefore, ‘proposal ability’, or ‘intellectual capital’, is required.
(……) As consumer society changes, the foundation of companies cannot help but change as well.
No matter how much money you have, it alone cannot create a ‘proposal’.
Yes, what we will need in the future is ‘intellectual capital.’
The extent to which intellectual capital is accumulated determines the life or death of a company. - From the text

Bookstores are not allowed to sell books.
You might get angry and ask what I mean.
If a book is a bundle of suggestions, isn't it natural to sell it?
And a bookstore is a store that sells books, so if business is not going well because books are sold, isn't the bookstore business a declining industry?
No, it isn't.
What is valuable to customers is not the book itself, but the rich offering contained within it.
So, you have to sell the proposal written in that book.
However, because they completely ignored such aspects and tried to sell the books themselves, they brought about the so-called "bookstore crisis." - From the text

I hope that your daily life and reality will be filled with happiness,
Dreaming of an era where everyone becomes a designer!

What meaning will "Intellectual Capital," which contains the management philosophy of Masuda Muneaki, who planned and succeeded at "Tsutaya Bookstore," convey to Korean society?
The situation that Masuda Muneaki had to face in Korea today is very similar to the situation that he faced during his long period: a long-term economic recession, an overheated market, and a rapidly changing consumer society.
Therefore, if you want to take the initiative in the 'third stage' and pioneer a new path, you need to pay attention to Masuda Muneaki's 'Intellectual Capital Theory'.
Already, companies are emerging in Korea, either benchmarking CCC's business strategies or even partnering with it, and the lifestyle industry centered around books and cultural content is booming by the day.
In this context, "Intellectual Capital" will be a solid supporter, guaranteeing the importance and potential of proposals and planning, and a perfect advisor with proven success, providing abundant inspiration.
In fact, Masuda Muneaki's management philosophy has served as an excellent guide not only for companies (businesses) but also for those who envision innovation and novel projects, and is evaluated to have provided countless people with a glimpse into life as a planner (designer).
Ultimately, planning is about elevating "human values," so if we can all become planners and designers, then even capitalist society, which has so far pursued only efficiency and financial performance, can advance to a "new stage of pursuing happiness."
This is the logic of 『Intellectual Capital』.

Just as intellectual capital cannot be put on a balance sheet, perhaps the senses that cannot be quantified are closer to happiness.
A planning company is a company that seeks to expand customer value.
In other words, it means a company that creates plans to bring happiness and abundance to customers. - From the text

If "Intellectual Capital" can serve as an opportunity for all readers, especially young people aspiring to start a business, to create their own "1," I, as the author, will feel a sense of pride in having accomplished something meaningful. —From the text


■ Spaces created by CCC

Daikanyama Tsutaya Bookstore
Hakodate Tsutaya Bookstore
Takeo City Library