BOOKOFF Group Expands Global Circular Economy Footprint Through Community-Centered Retail

From beauty and skincare to stationery, apparel, and secondhand goods, Japan’s niche brands and retailers continue to thrive by meeting specific consumer needs. As they grow, however, they must deepen their connection with both local and international audiences. How is your company evolving to meet these changing consumer demands, at home and abroad?

It’s a big question, so I’m not quite sure where to begin, but I’d first like to highlight the uniqueness of the reuse concept. Unlike traditional distributors, our business model starts with buying items directly from customers. Everything begins when someone brings something they no longer need to one of our stores. These are things they once wanted, but no longer do, which already reflects a shift in consumer behavior. That change is something we can directly observe in the products people bring to us. This is one of the defining characteristics of our business.

Our top priority is creating an environment that encourages people to sell more items to us. Once that environment is in place and more people choose to sell to us, our merchandise naturally stays fresh and updated.

Our business began with books. In Japan—and perhaps in other countries as well—books sold as new are typically fixed-price items. But once a book has been read, many people no longer need it, and that’s when they bring it to us. As a secondhand item, we’re able to set our own price. That simple shift, from wanting a book to being ready to part with it; was the foundation that allowed our business to grow.

Secondhand bookstores existed in Japan long before BOOKOFF, but many of them were old, cluttered, and uninviting. You didn’t really feel like stepping into them. That’s why we set out to create a store that looked more like a convenience store; bright, clean, and welcoming. We wanted to build a space where everyone would feel comfortable coming in to buy or sell books.

That approach helped us grow our book business, and from there, we gradually expanded our product lineup to include CDs, DVDs, games, videos, clothing, and more. In doing so, we continued to broaden the scope of our business.

I’m curious about your success during that period. Japan’s economy essentially collapsed in the early 1990s, right around the time you were starting the business. How has the Japanese consumer mindset evolved since the days of the so-called bubble economy? And was it difficult at first to convince consumers that buying secondhand was a worthwhile option?

At the time, the JPY 100 boom had begun. For example, even Daiei started selling beer for JPY 100. Our idea was to let people buy books for JPY 100—a single coin in Japan. I believe that made the concept appealing enough to overcome any lingering stigma around secondhand goods.

Rather than being seen as a typical secondhand store, we were viewed as a place where you could buy books for just JPY 100. That simple pricing point shifted the perception, and the broader trend of JPY 100 stores helped reshape consumer attitudes. It played a big role in reinforcing and validating our concept.

As I mentioned earlier, new books in Japan have fixed prices that can’t be discounted, which actually worked in our favor. Some people felt new books were too expensive; especially students who wanted to buy manga, which at the time cost around JPY 400 to JPY 500. That was a bit out of reach for many, but JPY 100 used books were much more affordable.

Another key difference was the in-store experience. Traditional bookstores didn’t want customers standing around reading; they wanted them to make a purchase. In contrast, we allowed people to stand and read freely. We created an open, welcoming space where they didn’t feel pressured to buy. That approach helped us attract more people into our stores and made them feel more comfortable engaging with our products.

Companies that embrace circular economy principles are well-positioned to meet the needs of today’s more environmentally conscious consumers. BOOKOFF exemplifies this model and has already contributed to a reduction of 446,000 tons of CO2 emissions. How are you continuing to advance your role in the circular economy, and what strategies are you using to further reduce emissions?

Our core philosophy is to operate as a store rooted in the local community. That means our buying and selling activities are centered around the people who live or work near each store. Local customers bring in items to sell, and other members of the same community purchase them, so the benefits stay within that area. Although we operate around 800 stores nationwide, as a general rule, we do not transfer products between locations. Items are bought and sold within the same local region. This localized model is something we aim to bring to our overseas operations as well. We expanded to the U.S. in 2000 and to France in 2004.

One of the challenges we face with our model is that we often buy more than we sell. For instance, if we purchase 100 books, we might only sell about 60, leaving 40 unsold. Figuring out how to manage this surplus is a key issue for us. Fortunately, books are made of paper, so we can recycle them easily—and we’ve been doing that. However, items like clothing or toys are more difficult to recycle, which makes the surplus harder to manage.

This hasn’t posed much of a problem in the U.S. or France, but in Japan, it has been more challenging. That’s what led us to launch Jalan Jalan Japan (JJJ) in 2016. It began as an experimental effort to export surplus inventory from Japan to Malaysia, and it turned out to be very popular there.

Even after launching Jalan Jalan Japan, we were still left with unsold plastic items, which presented another challenge. With growing global regulations around plastics, we knew we needed to take action. That’s when we first came up with the idea of converting CDs and DVDs into repurposed plastic items, such as trays.

So, going back to your question about the circular economy, what’s working well for us are our stores in the U.S. and France, as well as our Jalan Jalan Japan locations. However, there are still areas that need improvement. For the items we haven't been able to manage effectively, we’re now exploring the possibility of becoming a new materials producer. The idea is to repurpose old plastic into new plastic products, and we’re actively working on that initiative now.

Do you have a timeline in mind for when you might move beyond the research phase and begin full-scale production of these repurposed plastic products?

Our goal is to continue research through 2028. We’re still exploring what kinds of products we can create, so nothing is finalized yet. Whatever we develop will likely become available in or after 2028, which gives us about three more years to work on it.

You mentioned your Malaysian presence with Jalan Jalan Japan, where you operate sixteen stores, and you also have a presence in Kazakhstan. Could you tell us more about your store expansion model, and is this something you’re looking to replicate in other international markets?

In Malaysia, we’re not currently looking to expand the business further. That market primarily serves as a destination for overstock products from Japan. However, as the supply of surplus inventory from Japan is limited, we are currently focusing on strengthening initiatives to secure additional overstock within Japan.

Kazakhstan, however, shows more promise for our franchise model. About a year ago, we opened a locally operated store there, but it didn’t go as planned. We faced challenges in management, particularly around understanding the local culture and language, so we decided to step back. We closed the store this year and have since handed operations over to local partners to run independently.

One advantage of operating in both Malaysia and Kazakhstan is the contrast in climate. Malaysia’s warm weather makes it an ideal market for summer clothing, while Kazakhstan’s colder climate allows us to sell winter apparel. This helps solve the challenge of moving seasonal inventory that may not sell well in one region but is in demand in another.

BOOKOFF USA began operations in 2000 near Grand Central Station in Manhattan, later relocating to a larger space on 49 West 45th Street. Since then, you’ve expanded to eighteen stores in the U.S., with a goal of reaching 100 by 2033. Could you explain why you’ve focused on the East and West Coasts, and whether you see the U.S. model as something that could be replicated in other countries?

In terms of sequence, we first opened in Hawaii, then expanded to New York, followed by Los Angeles. But New York was actually the founder’s dream—he always said that if we were going to enter the U.S. market, we had to be in New York. That’s why we made it a priority early on.

As for the West Coast, it wasn’t a strategic choice from the start. A bookstore happened to close down, leaving a vacant space, so we took that opportunity to open a BOOKOFF store there.

Even in our overseas operations, our initial target was the Japanese community—especially expats working abroad. At the time, there were many Japanese businesspeople stationed in cities like Los Angeles and New York. They were sent by their companies, often with their families, so we focused on serving that demographic. That’s why our early presence was concentrated on the East and West Coasts.

Things changed significantly during the COVID-19 pandemic. With the rise of streaming platforms like Netflix and Hulu, people began watching more Japanese programs and developing a broader interest in Japanese culture. Although we couldn’t open new stores during that time, we turned to TikTok and other social media platforms, and we also began exhibiting at comic conventions. That helped generate interest across the U.S., and people began reaching out to us, asking us to open stores in their regions. That’s when we realized there was real potential to expand to more cities and states.

We already have a store in Arizona, and we’re planning to open new locations in Houston, Texas, and Detroit, Michigan within the next year.

Our strategy isn’t tied to specific cities or states. Instead, we’re focused on expanding to major metropolitan areas. Ideally, we would open an anchor store in each large city—stocked with books, figurines, videos, and the full range of items we buy and sell. Around those anchor stores, we plan to open smaller satellite locations that specialize in manga, anime, or other niche categories.

Just to clarify, is your current customer base in the U.S. still primarily focused on Japanese residents and expats, or has it expanded to include a broader audience?

Our customer focus actually began to shift during the Great Recession, when many companies recalled their Japanese staff from the U.S. After that, the rise of streaming platforms and online access to Japanese content and culture—especially during COVID—further accelerated and expanded our customer base. As a result, our audience has become much more diverse.

Japan welcomed 36.9 million overseas visitors last year, and the government aims to reach 60 million tourists spending JPY 15 trillion by 2030. How are you working to tap into this surge in inbound tourism, and what opportunities does it present for your business?

Our inbound tourism sales reached JPY 5.8 billion, which accounts for about 5% of our total revenue. Depending on how you look at it, that figure could be seen as either small or significant. We've been focusing on inbound tourism for about seven or eight years now. Initially, it was driven by Chinese and other Asian tourists who were interested in brand-name items like bags and shoes. That was our entry point into the inbound market.

However, our stores aren’t located in airport terminals, so we’ve had to find ways to attract tourists into our locations. Post-COVID, interest in anime and related content surged, and we’ve been able to respond to that demand. In my view, it’s less about our strategies being highly effective and more about global trends—especially on social media—aligning with what we already offer.

We’re working to adapt our approach to match the speed of these evolving trends. Social media moves quickly, so we’ve been active across all major platforms to promote our content. We also offer duty-free shopping, use English signage to make our stores more accessible, and have begun hiring foreign staff to better serve international customers.

E-commerce has been a pioneer in the secondhand space, yet you’ve remained committed to brick-and-mortar stores as the core of your business. Have you considered expanding your online presence to reach new customers and markets?

We’re actually not very enthusiastic about e-commerce. It’s effective for selling, but not as effective for our buying model. As I mentioned earlier, our concept is built around a localized circular economy, where goods are bought and sold within the same community, often within a single store. While e-commerce allows for global sales, it doesn’t align well with this core vision.

Instead, we’re putting more focus on inbound visitors who come into our stores. This allows us to showcase our products directly to international customers while continuing to serve our Japanese clientele. If we stay committed to the reuse model as our foundation, this remains the right path for us. Of course, if we were to shift toward selling more new merchandise and fundamentally change our business model, then we might reconsider our approach to e-commerce.

As a final question, what would you like to accomplish during your tenure as president before handing the reins to the next generation of leadership?

My answer might not be what you expect, but what I want most is for my successor to be a true internal CEO. By that, I mean someone who has worked in our stores—someone who started at the bottom and rose through the ranks. I came into the company as a consultant, so I wasn’t an insider. The previous CEO came from a banking background, and the one before that was also a consultant. The CEO before them had started as store staff and worked their way up, and before that, it was the founder himself.

Our business relies heavily on people. The entire buyback model depends on having staff who are motivated and enthusiastic about both buying and selling. That’s why I believe the next leader should be someone who truly understands the business from the ground up.

One reason we’ve adopted a holding company structure is to create those opportunities—each group company can have its own president, and one of those individuals could ultimately rise to lead the entire organization. That’s my hope.

For more information, please visit their website at: https://www.bookoffgroup.co.jp/en/our_company/top-en/