For Fuji Xerox, stripped of half of its recognized brand name, Xerox, after a dispute between its U.S. and Japanese mother firms, the big question is whether the company can duplicate its past success on its own.

The company, whose products sold so well that the verb “xerox” became synonymous for making photocopies, can no longer use the word on any of its company or product names.

After its Japanese parent company failed to acquire Xerox Corp., it was left with no choice but to dissolve its 59-year partnership with Xerox. Fuji Xerox was a joint venture established in 1962 by Xerox in the United States and what is now Fujifilm Holdings Corp. 

On April 1, the maker of photocopy machines and printers renamed itself Fujifilm Business Innovation Corp. and must embark on a grueling journey with the new name to vie for customers it could not appeal to previously.

Despite the challenges the company faces, its incoming president, Hisanori Makaya, who assumed his post the same day the company was renamed, spoke positively about its future at a news conference.

“Today is the greatest change since the corporation’s beginning,” he admitted, but added, “This change will offer a big chance.”

Fujifilm Business Innovation is expected to pitch Fujifilm-brand products for use at offices in an increasingly competitive copier market, where demand is shrinking amid the novel coronavirus crisis and the global trend to go paperless.

Some anticipate the company is in for a rough time in its attempt to navigate the fluctuating office industry market.

Paperless solutions have become increasingly common mainly in Europe and the United States, resulting in sluggish global demand.

Printers are less indispensable at workplaces as more people work at home during the COVID-19 crisis. Many point out that if the “new normal” becomes entrenched, demand may not recover even following the end of the pandemic.

On top of that, it is unclear whether the new Fujifilm copier brand will be accepted by consumers. As toner cartridge replacement and maintenance work are essential for office machines, their manufacturers build strong bonds with customers.

For that reason, a former sales representative of a different company expressed strong doubts that Fujifilm Business Innovation will be able to make a go of it.

“Once they choose suppliers, few clients shift to the products of different office device makers,” the person said. “There are significantly high hurdles to cracking open the market.”

While Fujifilm Holdings in February last year announced that it was looking to raise Fujifilm Business Innovation’s sales by 300 billion yen ($2.73 billion) in fiscal 2024 from fiscal 2019, that target will be lowered.

Though Fuji Xerox initially retailed items of Xerox, it started making its own products in the 1970s. Fuji Xerox grew dramatically and later started supplying devices to Xerox.

Fuji Xerox and Xerox did not work in the same markets. While Xerox covered Europe and the United States, Fuji Xerox won over consumers in Asia.

When Xerox saw its market share eroded by the aggressive sales efforts by Japanese businesses, such as Canon Inc. and Ricoh Co., Fuji Xerox offered to help. But that was met with a “no thank you” from Xerox, according to a former Fuji Xerox official.

Dissatisfied with that, the parental firm, Fujifilm Holdings, began moving to acquire Xerox in 2018. However, Fujifilm Holdings dropped the plan since Xerox’s shareholders were opposed.

This undermined their bilateral ties, leading to Fujifilm Holdings’ decision to make Fuji Xerox a wholly owned subsidiary.

An advantage of the split is that Fujifilm Holdings can expand sales networks in Europe and the United States, where in the past it did not do business for the sake of Xerox.

“We will expand our sales on a global scale so as to make our company and brand names recognizable by more consumers,” Makaya said, expressing high expectations.

A previous Fuji Xerox official also sees the change as a good opportunity and described the separation from Xerox as “relieving the company from the yoke associated with the partnership.”

(This article was written by Yasuro Suzuki and Taiki Koide.)