Around the same time that Amazon was building its online book business in the US, a company in Japan was also developing a book business – a resale business. While Amazon’s history has become legendary, Bookoff has had a lower profile. Bookoff certainly doesn’t rival Amazon in terms of size, however with sales set to reach $800 million by March 2020, and over 100 million annual transactions, the retailer has grown its business from a niche to a resale empire. Like Amazon, it continues to expand the selection of merchandise categories it sells. While Amazon has a foot in the resale sector (many books can be purchased either new or used, and you can buy or sell pre-owned items on the platform). <h4><strong>The Back Story</strong></h4> Bookoff started out in 1991 selling used Japanese language books. Later that decade it added other categories. First, in 1996 it brought in home electronics and then in 1999, children’s goods. Starting in 2000, categories including jewelry and watches, clothing, tableware, hobby items, sporting goods, and even video rentals were included in the mix. In 2004 Bookoff Group Holdings listed on the Tokyo Stock Exchange. Today, books account for less than 10 percent of the company’s total sales, with about 90 percent of sales coming from other product categories. Operating margins were around 2 percent in fiscal year 2019. <h3><strong>Why It’s a Hit with Consumers</strong></h3> While the retailer is known for its bargain prices, the big attraction for consumers is that shopping at Bookoff is like a treasure hunt. The one-of-a-kind nature of the resale business model makes every visit to a Bookoff store an adventure. Each store carries an estimated 200,000 items so customers can spend hours searching for that unique item or looking for a specific item at a below-retail price. Company wide, Bookoff is buys around 400,000 million items from consumers each year. The company has expanded its product offering even further, now dealing in trading cards, used mobile phones, and even private-brand Bookoff products. Bookoff has moved into the purchasing and sales of an expanded array of gently used goods, leveraging the experience and expertise developed through its Bookoff business. The Bookoff Online operates the Bookoff Online reuse shop handling books, software, and other items via the internet. The HUGALL operates as a new reuse business not limited to store operations, but engaged in the purchasing and sales of a wider range of items. <h3><strong>Bringing Japanese Culture Overseas</strong></h3> Today, Bookoff has 800 stores (including franchises) in Japan. It has now set its sights on the international market with 14 overseas locations in France, the US, and Malaysia. The company has entered Malaysia through a franchise agreement with Bok Marketing Sdn. Bhd., a branch company of Bookoff Corporation Ltd. In Malaysia, the stores operate under the name Jalan Jalan Japan Superstores or JJJ Superstores. It opened a 5<sup>th</sup> store in December in the KIP Mall in Kuala Lumpur. The company has plans to open 10 more stores in the next few years. <h3><strong>Driving Future Growth</strong></h3> “We continue to roll out new Bookoff Plus and Bookoff Super Bazaar locations across Japan. We believe these new store formats will be the core drivers of our business growth in the future,” according to a company statement. “As a business, we see a large, untapped demand in the reuse market. Leveraging the customer attraction power of the Bookoff brand, we plan to increase awareness and use of our apparel offerings, while at the same time launching new stores to tap into this demand and grow our share of the reuse market.”