The article delves into the profound impact of digitalization on Japan’s postal and printing industries, highlighting the financial struggles of Japan Post, the decline of physical mail, and the challenges faced by the recycled toner industry. Here’s a concise summary:
Japan Post’s Financial Crisis
Japan Post is grappling with severe financial difficulties, prompting the Japanese government to consider annual subsidies of around 65 billion yen to sustain its extensive postal network of 24,000 offices. These funds would come from government-held shares and dormant account funds. However, Japan Post’s postal business reported a loss of 89.6 billion yen in 2023, raising concerns about the long-term viability of such subsidies. As mail volumes decline and operational costs rise, Japan Post is likely to increase postage rates, further driving businesses and individuals toward digital alternatives and exacerbating the decline of physical mail.
Decline in Mail Volumes
Over the past two decades, the volume of mailed items in Japan has halved since its peak in 2001. A survey revealed that 25.1% of mail drop boxes receive 30 or fewer letters per month, with 3.9% handling as few as 0-1 items monthly. A pilot study in remote areas found one mailbox that received no letters for an entire month. This decline is attributed to digitalization, the rise of email and social media, corporate paperless policies, and the fading tradition of New Year’s greeting cards. The trend is expected to continue, further challenging the postal network’s sustainability.
Denmark’s Postal Abolition: A Cautionary Tale
Japan’s postal crisis mirrors global trends. Denmark announced the abolition of letter deliveries by the end of 2025 due to a 90% decline in mail volume since 2000. PostNord, Denmark’s postal service, deemed letter handling financially unsustainable and plans to remove over 1,500 mailboxes. Similarly, Deutsche Post in Germany is downsizing 8,000 employees to mitigate financial losses. These examples serve as a warning for Japan, where postal services may increasingly prioritize parcel deliveries over traditional mail.
Challenges in the Recycled Toner Industry
Digitalization is also reshaping the office printing industry. The Association of Japanese Cartridge Recyclers (AJCR) reports a continuous decline in demand for recycled toner cartridges. Shipments peaked at 5.79 million units in 2012 but fell to 3.83 million in 2023, with a sharp post-2020 decline reflecting reduced office printing needs. Smaller recycled toner companies are particularly vulnerable, with some already facing bankruptcy. The industry’s future appears bleak unless it adapts to the paperless trend.
The Path Forward
While the decline of postal services and the recycled toner industry seems inevitable, innovation could transform digitalization from a threat into an opportunity. Japan Post and the printing industry must creatively respond to these challenges to remain relevant. Embracing digital solutions and redefining their roles in a paperless world could pave the way for sustainable transformation.
About the Author
Koichi Yoshizuka, founder and CEO of QRIE Ltd., is a leading figure in the printer supplies market. QRIE specializes in importing and wholesaling compatible inks and toners, achieving significant success in e-commerce. Yoshizuka, a featured speaker at the RemaxWorld Summit 2024, emphasizes the need for innovation in the face of digitalization.
In conclusion, the article underscores the transformative impact of digitalization on traditional industries, urging stakeholders to adapt and innovate to survive in an increasingly paperless world.
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