Strengthening customer engagement through various channels also is driving success.
On December 12, 2024, Otsuka Corporation, led by President Hiroshi Otsuka, announced that its consolidated sales for the fiscal year ending December 31, 2024, exceeded 1 trillion yen for the first time since its founding. The Japanese company has set a sales target of 1.055 trillion yen for the fiscal year and is striving to meet this goal. At the current exchange rate of approximately 150 yen to 1 USD, this milestone translates to around 6.6 billion USD.
Founded in 1961 by the late Minoru Otsuka as a copier sales company operating out of a single-phone office, Otsuka Corporation has grown to employ about 9,400 people. With its unique Total Office Solution business model, the company provides nearly all office-related products and services and serves approximately 290,000 customers annually.
In 2023, the company reported consolidated sales of 977.37 billion yen, making the 1 trillion yen achievement in 2024 widely anticipated. Otsuka Corporation’s revenue from large enterprises continues to increase, with sales from companies generating annual revenues exceeding 10 billion yen accounting for 52.97% of its standalone sales in 2023.
In 2023, Otsuka Corporation sold 36,356 multifunction printers (MFPs), with color MFPs accounting for the majority at 35,543 units. Additionally, they sold 1,161,417 personal computers.
Otsuka Corporation’s business is divided into two main segments:
- System Integration Business: This segment covers a range of activities, including consulting, system design and development, delivery and installation, and network construction, providing customers with optimal systems.
- Service & Support Business: This includes supply replenishment, hardware and software maintenance, telephone support, and outsourcing services, offering comprehensive support for customer-installed systems and business operations. The TanoMail office supply e-commerce service also is part of this segment.
2023 Segment Sales
- System Integration Business:185 billion yen.
- Service & Support Business:185 billion yen, including 201.443 billion yen from the TanoMail e-commerce platform, which exceeded 200 billion yen for the first time.
TanoMail, a comprehensive e-commerce service, offers approximately two million office-related products, from consumables like paper and toner to stationery and lifestyle goods.
Although the Service & Support Business generates smaller revenues compared to the System Integration Business, it’s less affected by economic fluctuations, ensuring stable sales and profitability. As a result, Otsuka Corporation prioritizes it as a critical “stock business.”
2024 Initiatives
Under the 2024 slogan, “Standing by Our Customers and Growing Together with DX,” Otsuka Corporation continues to advance its Total Office Solution initiative. Leveraging its extensive product and service lineup, the company supports customers in their digital transformation (DX) efforts, particularly for medium- and small-sized enterprises lagging in digitalization. The company provides high-value solutions to enhance productivity and reduce costs, focusing on improving customer satisfaction.
To achieve this, Otsuka Corporation strengthens customer engagement through various channels, such as support centers, customer portals, and AI-driven sales process enhancements. In addition, the company offers IT-based services and solutions to address environmental, social, and governance challenges and contribute to achieving sustainable development goals. Otsuka Corporation also prioritizes enhancing its human capital by improving labor distribution ratios, advancing management reforms, nurturing AI talent, and implementing measures to boost employee engagement as part of its Total Office Solution vision.
