The Book Market of Japan
Breakfast Meeting
October, 11, Frankfurt am Main
Seiichi Higuchi
Japan Book Publishers AssociationJAPANPopulation 120,000,000
Area

370,000km2

Population is not so small, compared to Europeancountries. For example, Germany has 80 million people,
France has 65 million etc. As the same situation ofEuropean countries, a trend of ageing is advanced. The
percentage of people more than 65 years old is 20.8% in
2006. On the other hand, young generation has been
decreasing. This is the serious problem for the society
and publishing world as well.

Outline of the Book Marketof Japan

Retail Market Sales ofBooks and Magazines
3,000.00
2,500.00
2,000.00
Magazines
Books

1,500.00
1,000.00
500.000.00
97 98

99 2000 01

02 03 04

05 06

Total Sales of Publications in 2006
Books

932.6 billion yen(US$ 7.8 billion)

Magazines

1,220,0(US$10.2 billion)

Japanese book market is not necessarily small, but it has become declined since
mid 1990s. The total sales of publishing industry in 2006 were nearly same as
those of 1990. Japanese publishing industries lost 500 billion yen per year forthese ten years. This means the size of the publishing industry became small by
20% of the maximum.
Ten years ago, parents always said to their children, do not read manga but
study hard. However, nowadays children do not read even manga. Their only
concern seems to communicate their friends through mobile phones.

１. Most medium-sized and large
publishers in Japan produce
both books and magazines,
and both are distributed throughthe same channel.
In the trade market, a wholesale distributor will usually act as an intermediary
between the publisher and the bookstore. Generally, publishers do businesswith distributors on a consignment basis, with the distributor then selling to theretail market on returnable basis.
Distributors promptly and efficiently deliver books to bookstores and otherretailers nationwide after receiving stock from publishers. It is difficult to sell
books and magazines in Japan without a distributor, but a significant advantageof this system is that even small publishers can compete on an equal basis withmajor publishing houses in terms of getting titles into a large number ofbookstores.

Major Publishing House in JapanCompany
Shogakukan
Kodansha
ShueishaKadokawa
GakkenGyoseiNikkeiBP
ZenrinKobunsha
Bungeishunju
Top 10 Total
Share of Top 10Total

Turnover in 2006
(million yen)

Number of new titles in2006

146,951
145,570
139,982
68,10067,601
59,182
55,24851,27832,50031,271
797,68337.08%
2,152,540

937
2,013
849
1,138
1,106
243
250
―
442
530
7,508
9.66%
77,722

２．Approximately 70% ofpublications are distributed bya few wholesalers, which cover
the whole country.

Publisher
Publisher

Wholesalers
Wholesalers

Bookstores
Bookstores
Convenience
Convenience storesstores
UniversityUniversitycooperatives
cooperatives

DirectDirect mailmail
ExportExport(direct(directbusiness/business/
exportersexporters
exportersexporters-importers/
importers/
wholesalerswholesalers))

DirectDirect sales
sales

DoorDoor
to
Doortodoor sales
sales
Door--toto--door
Installment
Installment
payment
payment systemsystemDealers
Dealers

Newsstands
Newsstands(stations(stations etc.)
etc.)

Kiosks(JRKiosks(JR stations)
stations)
Newspaper
Newspaper agentsagentsSchoolSchool textbook
textbook distributors
distributors
SecondSecond
Secondhand booksellers
booksellers
Second--handReading
Reading
audience,
audience,
includingincludinglibraries,libraries,schools,schools,
members
members ofofuniversity
university
cooperatives
cooperatives
andand overseas
overseas
readers
readersMajor Wholesalers(million yen)CompanySales

Books

Magazines

othersNippan678,217

252,016

338,751

87,449Tohan

654,964

253,149

354,757

47,058Osakaya

120,561

71,64447,652

1,264

Kurita58,563―――

Taiyosha

48,274

22,141

24,995

1,138

Books
28,901
Textbooks 8,174

1,195

Nikkyohan

38,269Chuosha

26,641

6,488

14,987

5,165

Total

1,625,489

642,513

781,142

143,269

Nippan, Oji Logistic Center

Tohan, Okegawa SCM Center

These are the major wholesalers in Japan. As you know, the share of two big wholesalers,
Nippan and Tohan are overwhelming. These two big companies covers more than 60% of
total sales of publications.

４． Bookstores are able to stock
publications without any risk
because of the consignment
system.
Book stores are able to stock publications without any risk because of the consignment system.
Under the Consignment Sales System, retailers and wholesalers can freely return unsold
publications within a set period of time (usually six months for newly released books). So, evensmall booksellers are able to distribute a large selection of books with no risk, and specialty
bookstores can stock titles with small print runs or a slow turnover. Conversely, the consignment
sales system is also effective for mass-market publications aimed at nationwide audiences. The
unique system of book consignment serves consumers well because it offers more choice, and it
serves booksellers well because it helps them maintain their vitality. However, it can also work to
detrimental effect when publishers overproduce and distribute books that do not sell, thus
resulting in a large volume of returns. The task of rationalizing the distribution system to avoid
this pitfall still needs to be addressed.
Almost publications are distributed on a returnable basis.

BooksPublisher Wholesaler
Margin (8%)

Magazines
Publisher

Bookstore

Margin (22%)

Wholesaler Bookstore

Margin (8.5%)

Margin (23%)

Number of Bookstores in Japan(Members of Japan Booksellers Federation)

14,00012,00010,000
8,000
6,000
4,000
2,000
070

75

80

85

90

95

2000

2007

Major Bookstore Chains(including Convenience stores)

Sales in 2006
（Million yen）

Number of stores

Share(%)（Seven Eleven Japan）

177,345

11,735

8.2

Kinokuniya

118,070

65(+Overseas 24)

5.5

Maruzen98,14647

4.6（Lawson）

80,4238,564

3.7（Familymart）

58,7846,501

2.7（Circle K Japan）

55,8592,681

2.6

Yurindo54,26532

2.5

Bonkyodo

52,775223

2.5

Junkudo37,47431

1.7

Miraiya

31,569155

1.5

Top 10 Total

764,710―

35.5

Share of Top 10 (%)

35.5

―

Total

2,152,540―

CompanyＲａｔｅ ｏｆ Ｒｅｔｕｒｎｓ
45.0
40.0
Books

35.0
30.0

Monthly
Magazines
WeeklyMagazines

25.0
20.015.0
10.0
5.0
0.0

80

859095200006

Kinokuniya Shinjuku South StoreJunkudo, Ikebukuro store

These are the major bookstore chains in Japan. Comparing with the situation of USA, theshare of the big chains are not so high. Three big chains in US, Barnes & Noble, Borders,
Books-A-million have approximately more than 50% of the whole book market. In Japan, thetotal sales of top 6 chains are 392 billion yen, and this figure is about 18% of the total sales ofthe whole country. Even the biggest one, Kinokuniya shares only 5.5%.
You can understand that the biggest sales are accomplished by Seven Eleven Japan. Ofcourse, Seven Eleven is not a bookstore but a convenience store chain. The 95 of the salesof Seven Eleven are magazines.

Kobunkan, Kanda-jimbocho

This is a typical small bookstore. We used to be able to see such small bookstores inthe every corner of towns, however, as I mentioned, many small bookstores becameclosed. Fortunately, this store is still alive at Kanda-jimbocho, where is the famous asbook town in Tokyo. There are many publishers, bookstores, antiquarian booksellers,
small distributors in the area. This store’s owner was the ex-president of the Japan
Booksellers Federation.

５. Readers are able to buy
publications for fixed priceanywhere in Japan because ofthe Resale Price Maintenance
System.

Publications were ruled an exception to the 1953 Anti-Monopoly Law,
allowing the continuation of the pre-war custom of selling publications atfixed prices.
The Resale Price Maintenance System, under which a publication are sold
across the country at a fixed price. For the publishers and bookstores
across the country, resale price maintenance enables the distribution of awide variety of titles in small volumes and makes possible royalty payments
for books with a small circulation.
This does not mean that publications must be sold at a fixed price, but
only means that the publications are allowed to be sold at a fixed price. In
other words, it depends on publisher whether they sell a specific publication
at a fixed price or not. The Resale Price Maintenance Agreements
themselves are contracts between publishers and wholesaler, or between
wholesaler and bookseller on a voluntary basis.
For eight years, the publishing industry fought against the government
Fair Trade Commission’s (FTC’s) stance that “from the perspective ofmarket competition, the resale price maintenance system should beabolished.” This standoff came to an end on March 23, 2001, when thecommission released the following comment:“From the perspective of fair competition policy, the resale pricemaintenance system should be abolished. However, considering the large
number of dissenting voices expressing concern about the possible
influences on culture and the public good, as well as a lack of publicconsensus on and support for abolishment, we therefore announce that, forthe time being, it is appropriate that the present system be maintained.”

The Japan Book Publishers Association values the understanding andsupport of the Japanese public in this matter, but regrets that thecommission persists in maintaining the position that the resale pricemaintenance system should be abolished.
Part of the reason for the decision was that, of the more than 28,000
comments sent to the FTC on the resale price maintenance system, morethan 99% were from supporters of the system, including authors groups,
local public organizations and nonpartisan members of the National Diet. It
would be fair to say that the commission was unable to ignore such anoverwhelming result.
In accordance with the request of the FTC that publishers, distributors andbookstores should consider ways to make the system "more flexible andpractical“.
The publishing industry in Japan has been working to promote flexible anddiversified use of the resale price maintenance system to benefit readers,such as the development of channels for the sale of books at open prices,
special thank-you sales for readers, and revisions of resale pricemaintenance contracts and manuals governing the system.

Resale Price Maintenance SystemBooks
Periodicals
Newspapers
Phonograms
Music Tapes
Music Compact Discs
The Anti-monopoly Law allows to conclude the resale price maintenance agreement onthese 6 categories of commodities. Books, Periodicals, Newspapers, Phonograms, Music
Tapes and Music Compact disks. The RPMA is the only exception of the law and thegovernment does not want to extend the limitation to any other new media and new type ofgoods and services.

RPMS is not applied to :CD-ROM, DVD
E-books
Scondhand Books and Periodicals
Foreign Books and periodicals, journals
So, CD-ROM, DVD, E-books are not allowed to be sold at a fixed price. And as the RPMA is anagreement between publishers and wholesalers or between wholesalers and bookstores, after
once publication is sold to the third party including readers, the RPMS is not applied. Therefore,
secondhanded bookshops are able to set the retail price at their discretion. And regarding
foreign books and magazines, as there is no RPMA between foreign publisher and importer inJapan, RPMS is not applied.

Development of E-book(Million yen)

2000

Mobile phone
1800

PC

1600
1400
1120
1200
1000800460600120400
20000100

2002

51703302003

2004

7004802005

2006

６. Most of publishers are small or
medium-sized company andtheir stocks are not listed onthe market.
Merger and acquisition of
publishing companies isseldom done in Japan.

7. The market of publications inJapanese is mature and many
books published abroad aretranslated into Japanese.
On the other hand, the marketof books in English is relatively
small.

Number of Translation TitlesYear

New Publications

Translations%1994

48,824

4,303

8.8

1999

51,682

4,462

8.6

2004

56,613

4,943

8.7

Ratio of New Translation Title to the Field
Subjects
GeneralPhilosophy
History
Social Science
Natural Science
EngineeringIndustry
Art
Linguistic
Literature
Total

1968
2.0
10.0
7.0
18.4
13.1
5.1
1.8
3.4
1.1
38.1
100.0

2004
(%)
1.2
10.7
5.2
13.6
6.8
6.0
2.4
12.6
2.8
38.7
100.0

Translated Books of Literature
Original language

1968

2004

English394

1,523(606: Harlequin)

German6362

French133

93

Russian66

27

Italian715

Others

144

198

Total

807

1,918

Number of Translation titles
among Top 30 bestsellers

1098
7654
32108385 878991

93 95

97 99

01

0305 06

Harry Potter and the Half-Blood Prince
was only translation title among top 20
sales in 2006.

In 2005, The Da Vinci Code was onlytranslation title among top 20.

The Brothers Karamazov(by Dostoevskii)

New translation was published byKobunsha in September 2006.

4 volumes in paperbacksMore than 260,000 copies was sold.

Trends of Bestsellers in Japan
1. Paperbacks in Shinsho size
Major Big publishing Houses are publishing many books inthe Shinsho size. In 2006, 11 books among top 30
bestsellers was in the shinsho size.
This is the biggest bestseller in 2003. The title is BAKA NO
KABE, the Wall of the Fools. This book was sold by morethan 4 million copies to date. The author is Dr. Takeshi
Yoro, an Anatomist.
The contents of shinsho books are in various fields.
There is a few translation titles, for Example, Shueisha
published the works of Dr. Amartya Sen, who is the first
Novel Economics Prize winner from Asia, and Dr. Avram
Noam Chomsky, who is one of the most famous linguist
and critic to the neo conservatism in the United States.No.2 Light Novels.
This is a kind of Japanese English. This means fiction titles,
such as love story, fantasy or science fiction for young
generation, mainly young women.
It seems that they are a kind of intermediate between
manga and novel. Many of them contain some illustrations
and, their jackets are just like comics.
Some of them are published as e-books and we can readthem with mobile phone.

No. 3 Mental cure of the aged people.

• Among the bestsellers, there are some books for coloringdrawings. And some books are printed the text of famousclassics in gray color and readers will be able to trace themwith pencil. The aged people may feel a kind of cure when
they spend quiet time in their room, and color drawings ortrace text by themselves.
• And not a few books to look back on the time of 1950s to 70s.
People were poorer than now, but they were able to believea legend of high economic growth of Japan and be able tohave a hope in the future then.

Export from Japan to Asia
Translation from Japan to Korea
Total number of new publication
45,521 titles
Translation from Japan
4,324 titles(9.5%)
Manga・Comic 2,668
Literature581
Children’s Book 402
Social science303

Kyobo Book Store, Seoul Korea

Reading Promotion
・The Year of Book Reading for Children(2000)
・The Act of Book Reading Promotion forChildren(2001)
・Literary Culture Promotion Act(2005)]
・Literary Culture Promotion Organization(to be established on 2007.10.24)

Thank You for your attention.
Seiichi HIGUCHI
higuchi@jbpa.or.jp