Canon Marketing Japan’s Valuation Surge: Lessons for the Aftermarket

Canon Marketing Japan (Canon MJ), once little more than Canon’s domestic sales arm, has quietly become one of the most compelling transformation stories in Japan’s technology sector. In 2025, its market capitalization approached JP¥800 billion (US$5.19 billion), nearing that of Ricoh—an outcome few would have predicted a decade ago.

This re-rating has little to do with a resurgence in traditional hardware sales. Even when office equipment, multifunction printers (MFPs), and Canon’s legacy camera business are combined, hardware now accounts for less than half of Canon MJ’s revenue. Instead, investors are rewarding the company’s decisive shift toward IT services and business process outsourcing (BPO), driven largely through M&A.

To understand why this strategic pivot matters—not only for Canon MJ but also for the broader aftermarket industry—it is important to first look at the structural changes underway in the Japanese office and printing market.

A Mature Market Under Structural Pressure

Japan’s office printing market has entered a mature phase. Unit shipments have been flat to slightly declining, while total market value continues to contract. In fiscal year 2024, domestic office printer shipments reached approximately 1.22 million units (up 1.7% year-on-year), yet shipment value fell to ¥348.9 billion (down 3.3%). This divergence highlights a key challenge: even when volumes stabilize, revenue does not necessarily follow.

One major factor is product mix. Shipments of higher-priced MFPs have declined, while growth has concentrated in lower-priced segments. As a result, average selling prices have fallen, compressing margins across the value chain.

Demand patterns are also changing. Office consolidation, the normalization of remote and hybrid work, and ongoing efforts toward paperless operations have led to a structural decline in demand for low- to mid-speed office page printers. Over the medium to long term, this trend is unlikely to reverse.

By contrast, business and industrial printing segments—such as commercial printing and large-format inkjet (LFP)—continue to show growth potential. These areas benefit from the ongoing replacement of analog printing with digital solutions, positioning them as higher-value, more resilient segments of the market.

Globally, the same pattern is visible. In 2025, worldwide business printer shipments are projected to reach approximately 10.88 million units (down 1.8% year-on-year), while market value is expected to grow to around ¥1.32 trillion (up 1.7%). Value growth outpacing unit growth underscores a broader shift from volume-driven competition toward higher functionality, services, and solutions.

Within this context, Japan’s office printing industry is being reshaped as a “quality-over-quantity” market—one that assumes declining paper demand but seeks sustainability through higher-value offerings, operational efficiency, and industry consolidation.

Canon MJ’s Historical Role—and Strategic Repositioning

Canon MJ’s transformation is particularly noteworthy given its historical role. Established in 1968 through the formation of Canon’s office equipment sales and service companies, and later consolidated in 1971 as Canon Sales (now Canon Marketing Japan), the company was created as part of a clear division of labor. Canon headquarters focused on R&D and manufacturing, while Canon MJ specialized in domestic sales and customer service.

Through the 1980s, Canon MJ played a central role in the rapid expansion of copiers and printers in Japan. Its listing on the Tokyo Stock Exchange First Section in 1983 symbolized its position as the backbone of Canon’s domestic commercial success and a key driver of office automation adoption nationwide.

For decades, this sales-centric model worked. However, as the market matured and hardware margins eroded, its limitations became increasingly clear. Canon MJ’s response was not to defend the past but to redefine its future.

Since 2022, the company has pursued a series of acquisitions that expanded its capabilities far beyond product distribution. By adding payroll services, system integration, and BPO operations, Canon MJ repositioned itself as a provider of end-to-end digital and operational solutions. By 2025, IT-related businesses accounted for more than 50% of consolidated revenue—a dramatic shift achieved in just a few years.

Implications for the Aftermarket Industry

Canon MJ’s evolution carries important lessons for the aftermarket industry. Many aftermarket players remain heavily dependent on physical products—consumables, spare parts, or refurbished hardware—within markets that are increasingly commoditized and price-competitive.

Historically, aftermarket companies have excelled at reverse-engineering OEM products. This role has been critically important, delivering cost savings and choice to customers worldwide. However, the next phase of competition requires a broader lens. It is no longer enough to follow OEMs at the product level alone; their business models must also be studied—and, where appropriate, emulated.

Canon MJ demonstrates that the true source of sustainable value lies not in one-time product sales, but in continuously delivered services. Customer relationships built through hardware placements can serve as a powerful foundation for expanding into IT services, workflow optimization, data management, and outsourced business functions.

For aftermarket companies, this suggests several practical steps:

Leverage existing customer bases to introduce value-added services rather than competing solely on price.
Invest in service capabilities, whether organically or through partnerships and acquisitions.
Shift strategic focus from unit margins to lifetime customer value, recurring revenue, and operational integration.

In essence, Canon MJ’s “escape from pure distribution” offers a concrete roadmap for aftermarket players facing margin pressure and commoditization. By treating customer relationships, data, and service expertise as core assets, companies can reposition themselves for long-term growth—even in structurally mature markets.

As hardware continues to lose its role as the primary driver of corporate value, the aftermarket industry faces a clear choice: remain tied to declining product economics, or evolve into a service-led business model aligned with how value is now created. Canon MJ’s experience suggests which path investors—and customers—are increasingly rewarding.

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.

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Canon Marketing Japan’s Valuation Surge: Lessons for the Aftermarket