Japan’s Journey to Paperless: Digitization and the Decline of Office Printing

In Japan’s office environment, a traditionally conservative culture has led to a slower adoption of paperless practices compared to other countries. However, the enforcement of the Revised Electronic Books Maintenance Act (Dencho Law) in 2022 has accelerated corporate digitization efforts. Notably, from January 1, 2024, the mandatory preservation of electronic transaction data has compelled companies to transition from paper documents to electronic data.

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This legislative change has brought significant attention to the digitization of invoicing, referred to as “Invoice DX.” Cloud service providers such as Rakus and Sansan have achieved remarkable success in this sector. Services like Rakus’s “RakuRaku Meisai” and Sansan’s “Bill One” have been widely adopted by numerous companies, enhancing operational efficiency.

Concurrently, there is a noticeable decline in office printing demand. Major OEM manufacturers like Ricoh and Konica Minolta are undergoing structural reforms to adapt to this decreasing demand. Despite strong business performance, Ricoh has announced a reduction of approximately 2,000 employees to improve profitability. Similarly, Konica Minolta has revealed plans to cut about 2,400 jobs.

These market shifts are also impacting remanufactured toner cartridge manufacturers. As office printing needs diminish, the demand for remanufactured toners is contracting, prompting manufacturers to explore new business models and diversify their product lines.

The Association of Japan Cartridge Remanufacturers (AJCR), which includes major domestic remanufactured toner factories, publishes annual figures showing a downward trend in the shipment volume of remanufactured toner cartridges:

Japan’s shift towards paperless operations has significantly progressed, driven by legislative changes. While the conservative corporate culture and market dynamics may delay a complete transition, the wave of digitization is undeniably growing. The Japanese office supply industry must now devise strategies to adapt to this evolving landscape.

While the above discussion focuses on the B2B sector—specifically office printing—the situation in the B2C sector, such as personal printing, is even more challenging. One significant indicator is the steep decline in demand for New Year’s cards (nengajo), which have historically played an essential role in Japan’s personal printing market.

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About 20 years ago, New Year’s card issuance peaked at approximately 4.4 billion cards. However, the number has steadily declined, with this season’s issuance dropping by 25.7% year-over-year to about 1.07 billion cards. Additionally, the number of cards delivered on New Year’s Day, which exceeded 1 billion in 2022, has plummeted to approximately 490.52 million this year, marking a 34% decline compared to the previous year. This drop is the largest in over a decade, with the total halving in just three years.

The sharp increase in postal rates last fall has accelerated the trend of “nengajo abandonment.” Combined with the widespread adoption of emails and social media, as well as Japan’s ageing society, the decline of New Year’s cards is expected to continue in the coming seasons. Consequently, the demand for home-use inkjet printers and inkjet cartridges—critical components of personal printing in Japan—is dwindling rapidly, leaving their future uncertain.

About the Author

Koichi Yoshizuka is the founder and CEO of QRIE Ltd., established in 2005. QRIE specializes in importing and wholesaling compatible inks and toners for printers. The company has successfully expanded into online sales through its e-commerce site and major platforms like Rakuten, Amazon, and Yahoo! Shopping, serving a diverse clientele ranging from corporate clients to individual consumers. Renowned for quality and affordability, QRIE has won Rakuten’s Shop of the Year award in the Electronics category three times.

In addition, QRIE is actively developing new digital businesses and products driven by employee innovation. Today, QRIE boasts annual sales revenue of approximately USD 14 million and employs 45 dedicated staff members. Under Koichi Yoshizuka’s leadership, QRIE continues to thrive and innovate in the competitive printer supplies market.

Koichi Yoshizuka was also a featured speaker at the RemaxWorld Summit 2024 , held in October during the RemaxWorld Expo in Zhuhai, China. In his address, he highlighted the unique characteristics of the Japanese printing and copying market.

For communication, you can contact Koichi Yoshizuka on LinkedIn.

Other posts from Koichi:

• Farewell to a Legend: David Gibbons and His Enduring Legacy
• Japan’s Journey to Paperless: Digitization and the Decline of Office Printing

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