Uchikura & Co., LLC

Japan’s Early CRM and Subscription Business Model

 

Long before modern software companies invented CRM systems, subscriptions, or “pay as you use” services, Japan already had a business model based on all three concepts.

 

It was called the Toyama Medicine Seller system, which began in the 17th century.

 

Medicine sellers from Toyama traveled across Japan and placed medicine boxes inside customers’ homes. Families did not pay upfront. Instead, they only paid for the medicines they actually used when the seller returned months later to refill the box.

 

This was an early form of subscription and usage-based billing.

 

But the truly remarkable part was customer relationship management. The medicine sellers knew their customers personally. They remembered family members, health conditions, seasonal needs, and even changes within the household. They kept handwritten records of usage and adjusted the medicine supply for each customer.

 

The relationship was built on long-term trust, not one-time sales.

 

What is even more impressive is that this business model still exists in Japan today. Even in the age of online shopping, AI, and digital subscriptions, some households continue to use these medicine box services.

 

Modern businesses often think CRM and subscription systems were invented by software companies in Silicon Valley. In reality, Japan was already practicing these ideas nearly 400 years ago using paper records, face-to-face communication, and personal relationships.

 

Technology changes, but good business principles do not.