Japan’s administrative sector has traditionally relied heavily on paper-based processes, a practice that has sustained the domestic office supply industry, particularly the market for printer-related products like ink and recycled toner cartridges. For years, government procurement has been a critical revenue source for Japanese toner remanufacturers. According to the Association of Japanese Cartridge Recyclers (AJCR), many companies depended on public sector contracts to maintain consistent production volumes, especially for monochrome toner used in official documents. However, this reliance on paper is now rapidly declining due to digital transformation, particularly spearheaded by the Tokyo Metropolitan Government (TMG).
Tokyo, Japan’s capital and most populous prefecture, is home to approximately 14 million people—over 11% of the nation’s population. The administrative decisions of the TMG often set national trends. Under the leadership of Vice Governor Manabu Miyasaka, a former CEO and chairman of Yahoo Japan, the TMG has made remarkable progress in digitalization. In just five years, the digitalization rate of Tokyo’s administrative procedures surged from 5% to 82%, a more than sixteenfold increase. This transformation is more than symbolic; TMG is actively working to become a model of digital governance.
Key initiatives by the TMG include:
- QR code-based user reviews at service counters, allowing residents to rate and provide feedback on administrative services (scored from 1 to 5).
- In-house software development rather than relying on external vendors or cloud solutions, enabling greater innovation and cost efficiency.
- Offering TMG-developed tools free of charge to other municipalities nationwide to reduce redundant procurement costs and accelerate digital adoption.
Miyasaka emphasizes that in-house development is not just about cost savings but about fostering government innovation and responsiveness. He advocates for normalizing risk-taking and experimentation in the public sector, mirroring the startup mindset he champions in Tokyo’s broader economic strategy.
The implications of TMG’s digital-first approach are significant. If Tokyo’s model is replicated by other prefectures—which is highly plausible given Tokyo’s political and economic influence—the use of paper in public administration could decline dramatically nationwide. Japan has 47 prefectures and over 1,700 municipalities, so even partial adoption of Tokyo’s model could lead to a structural drop in public sector demand for printing and paper supplies.
This digital shift is already impacting the office supply industry. AJCR data shows that recycled toner cartridge shipments peaked in 2012 at 5.79 million units but fell to 4.29 million in 2020 and dropped further to 3.83 million in 2023. The downward trend is expected to continue as digital signatures, cloud-based document sharing, and e-filing gain mainstream adoption across both private and public institutions. Additionally, the number of recycled toner cartridge factories in Japan is declining due to closures and bankruptcies, with small and medium-sized manufacturers struggling to maintain operations amid shrinking demand and rising competition.
In summary, Japan’s once paper-driven administrative system is rapidly evolving into a catalyst for digital disruption. As Tokyo leads this transition, the ripple effects are likely to reshape procurement norms, budget allocations, and the structure of demand in the office supply sector. For businesses reliant on paper-based processes, the message is clear: adapt swiftly or risk obsolescence.
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 corporate clients and individual consumers alike. Renowned for quality and affordability, QRIE has won Rakuten’s Shop of the Year award in the Electronics category three times.
QRIE is also actively developing new digital businesses and products driven by employee innovation. Under Yoshizuka’s leadership, the company boasts annual sales revenue of approximately USD 14 million and employs 45 dedicated staff members.
Yoshizuka was 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, Koichi Yoshizuka can be contacted via LinkedIn.
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