Kokuyo Co. is transforming from a traditional office supplies manufacturer into a workspace solutions provider, unveiling plans to design and renovate commercial buildings as part of its strategic shift.
The Japanese company aims to renovate about 10 buildings annually through its new renovation service launched in October. The initiative builds on Kokuyo’s existing expertise in office design and furniture sales, which it expects to generate sales of 219 billion yen ($1.45 billion) by 2027, marking a 35% increase from 2024 projections.
The shift comes as Kokuyo faces headwinds in its core businesses. The company recently downgraded its 2024 guidance, citing China’s economic slowdown and Japan’s declining birth rate affecting its stationery sales.
To fuel growth, Kokuyo plans to invest 70 billion yen in expansion efforts, with 20 billion yen earmarked for acquisitions. The company will target Southeast Asia and Oceania markets while expanding its furniture business in Australia and India. Currently, China and India account for 90% of its international revenue.
Under the three-year plan through 2027, Kokuyo targets total sales of 430 billion yen ($2.85 billion), up 27% from current forecasts, with an ultimate goal of reaching 500 billion yen ($3.31 billion) by 2030.
