How Tokyo’s Digital Reform Threatens Japan’s Office Supply Industry

Japan’s administrative sector has long been characterized by its conservative nature, especially in its reliance on paper-based processes. Despite being criticized for this outdated practice, it has paradoxically sustained the domestic office supply industry—particularly the market for printer-related products such as ink and recycled toner cartridges.

For years, government procurement has served as a critical revenue pillar for Japanese toner remanufacturers. According to data from the Association of Japanese Cartridge Recyclers (AJCR), many companies relied heavily on public sector contracts to maintain consistent production volumes, especially for monochrome toner used in official documents.

However, this foundation is now rapidly eroding.

Tokyo—the capital and by far the most populous prefecture in Japan—hosts approximately 14 million people, accounting for over 11% of the nation’s total population of 125 million. As such, administrative decisions taken by the Tokyo Metropolitan Government (TMG) often set the tone for national trends. Under the leadership of Vice Governor Manabu Miyasaka, a former Yahoo Japan CEO and chairman, the TMG has made remarkable strides in digital transformation. In just five years, the digitalization rate of Tokyo’s administrative procedures surged from 5% to 82%, a more than sixteenfold increase.

This change is more than symbolic. TMG is actively working to become a model of digital governance. Some of its recent initiatives include:

• A system of QR code-based user reviews at service counters, allowing Tokyo residents to rate and provide feedback on administrative services (scored from 1 to 5).
• Developing internal software systems rather than relying entirely on external vendors or cloud solutions.
• Offering TMG-developed administrative tools free of charge to other municipalities nationwide to reduce redundant procurement costs and accelerate digital adoption.

Miyasaka stresses that in-house development is not just about cost efficiency but about empowering government innovation and responsiveness. He also highlights the importance of shifting public perception to normalize risk-taking and experimentation in the public sector—mirroring the startup mindset he advocates in Tokyo’s broader economic strategy.

The implications of this shift are significant. If Tokyo’s digital-first approach becomes a template for other prefectures, which is highly plausible given Tokyo’s political and economic clout, the use of paper in public administration could decline dramatically nationwide. With 47 prefectures and over 1,700 municipalities in Japan, even partial replication of Tokyo’s model could mean a structural drop in public sector demand for printing and paper supplies.

Already, the AJCR data shows a clear trend: 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 pressure continues to mount, especially as digital signatures, cloud-based document sharing, and e-filing gain mainstream adoption across both private and public institutions.

Moreover, the number of recycled toner cartridge factories in Japan is unfortunately continuing to decline due to closures and bankruptcies. Small and medium-sized manufacturers, in particular, are finding it increasingly difficult to maintain operations amid shrinking demand and rising competition.

In summary, Japan’s once paper-bound administrative system is rapidly evolving into a catalyst for digital disruption. As Tokyo continues to pioneer this transition, the ripple effects are likely to reshape procurement norms, budget allocations, and the very structure of demand in the office supply sector. For businesses reliant on the inertia of 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 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
• The Inevitable Decline of Postal Services in a Paperless World
• How Tokyo’s Digital Reform Threatens Japan’s Office Supply Industry

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