ASKUL’s Strategic Pivot: A Blueprint for Surviving Market Contraction in Japan
Koichi Yoshizuka, a seasoned player in the office supply and e-commerce industries, provides valuable insights into the shifting dynamics of Japan’s office supply market and how ASKUL Corporation is navigating this challenging landscape. As a founder and CEO of QRIE Ltd., Yoshizuka draws on his extensive experience to analyze ASKUL’s transformation and its implications for the broader industry.
The Decline of Traditional Office Supplies
Japan’s office supply and stationery market is undergoing a structural decline, driven by the rise of remote work, digital workflows, and paperless operations. According to the Yano Research Institute, the market contracted to 396.5 billion yen (US$2.56 billion) in FY2023, with a further decline projected to 393.9 billion yen (US$2.67 billion) in FY2024. This trend underscores a long-term shift away from traditional office consumables like ink cartridges, toner, and label tapes.
ASKUL’s Evolution: From Office Supplies to Diverse Offerings
Founded in 1993, ASKUL initially operated as a catalog-based mail-order business targeting SMEs. It gained market leadership through its innovative agent-based model and next-day delivery service, which leveraged local stationery retailers and in-house logistics to avoid conflicts with existing retail channels. The company entered the e-commerce space in 1997 and expanded its product range to include daily necessities and medical products.
However, the decline in demand for traditional office supplies has forced ASKUL to rethink its strategy. The company has launched a medium-term management plan through FY2029, focusing on six high-growth sectors, including food services and healthcare. A key component of this strategy is the aggressive expansion of private brand (PB) products, such as detergents, hygiene items, and processed foods. ASKUL has also partnered with PayPay, Japan’s leading mobile payment provider, to reach smaller food service operators.
Strategic Goals and Investments
ASKUL aims to achieve up to 600 billion yen (US$4.03 billion) in revenue and 30 billion yen (US$0.2 billion) in operating profit by FY2029, more than doubling its recent performance. The company plans to invest up to 100 billion yen (US$676.5 million) in areas such as mergers and acquisitions (M&A), digital transformation, and back-office support for SMEs. This strategic pivot is part of a broader trend in Japan’s retail sector, where major players like AEON, Seven & i Holdings, and FamilyMart are increasing their focus on PB products.
Implications for National Brand Suppliers
ASKUL’s shift toward PB products poses challenges for national brand (NB) suppliers, who may face reduced shelf space and purchasing budgets. However, this trend also presents opportunities for NB suppliers to reposition themselves as original equipment manufacturers (OEMs) for PB products, leveraging their production capabilities to gain volume even as they forgo branding. Success in this new landscape will require innovation, enhanced quality, and niche targeting.
A Blueprint for Industry Reinvention
Yoshizuka emphasizes that ASKUL’s transformation is more than a company pivot—it’s a blueprint for industry-wide reinvention. Stakeholders in recycling, remanufacturing, distribution, and OEM manufacturing must adapt to the evolving market or risk being left behind. The key takeaway is clear: businesses must evolve with the market to remain competitive.
About the Author
Koichi Yoshizuka is the founder and CEO of QRIE Ltd., a company specializing in importing and wholesaling compatible inks and toners for printers. Under his leadership, QRIE has expanded into online sales through platforms like Rakuten, Amazon, and Yahoo! Shopping, achieving annual sales of approximately USD 14 million. Yoshizuka has also been a featured speaker at industry events, including the RemaxWorld Summit 2024, where he highlighted the unique characteristics of Japan’s printing and copying market.
Conclusion
ASKUL’s strategic pivot offers valuable lessons for businesses navigating market contraction. By diversifying its product offerings, expanding PB lines, and investing in high-growth sectors, ASKUL is positioning itself for long-term success. For suppliers and industry stakeholders, the message is clear: adapt and innovate to thrive in a rapidly changing environment.
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