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Prospects For Muji In China

2011/6/30 15:35:00 242

After UNIQLO, another day of the Chinese enterprises in the market force.

Matsui Chusan, President of the good planning company, told reporters on 25, Muji 2011 plans to open 39 new stores outside Japan, including about half of the newly opened stores in China, and the Chinese market has become one of the most important overseas markets.

MUJI

"Brand has opened 28 stores in Shanghai, Beijing and other places, and sales in China account for 8.7% of the total sales of MUJI products. This year, Muji will open 20 new stores in China.

Matsui Chusan said that the annual sales volume of the company is about 163 billion 700 million yen. As of the end of 5 this year, there are 369 stores in Japan, and 139 stores in overseas markets outside Japan. By 2012, sales of MUJI products outside Japan reached 40 billion yen, accounting for 20% of total sales.

Matsui Chusan said Muji is a store in the Chinese market.

Single store

Sales performance has been increasing, and the number of shops has increased. However, the Chinese market is quite different from the Japanese market: in the Chinese market, clothing accounts for about half of the sales and food sales are very few. In Japan, grocery products such as food are the main sources of Muji, and Muji is rarely found in Japanese department stores, but China's department stores are still one of the main shopping places for consumers. MUJI products must enter the market.

Department Store

The opening of shops has resulted in 15% of the total sales of the MUJI products in the Chinese market, compared with only 12% in the Japanese market.

In order to reduce costs, Muji has sold products made in China directly to the local market, which can save 10% of the logistics cost.

The purpose of "Muji" is "no trademark and high quality". The company registered in Japan in May 1979, advocating the simple, natural and reasonable price of the product design. It has similar location to the Japanese fast selling company that operates the "UNIQLO" brand. The two companies are close to each other and adopt the business mode of SPA (private brand retailers).

However, the fast selling companies which only run clothing sales reached 814 billion 800 million yen in fiscal year 2010, while sales of food, furniture, household appliances, stationery and other MUJI products have not reached 200 billion yen in addition to clothing.

Ryui Masa, the brand holder of "UNIQLO" brand, and Japan's fast marketing chairman, said he hopes to open 300 new stores every year, of which 100 are in Japan, 100 in China and 100 in other markets.

As of August 2010, XXX has 136 stores outside Japan, 54 of which are located in China, and a net increase of 21 compared with the 2009 fiscal year.

The scope of business is so complex that Muji is far behind the fast selling company.

For this doubt, Matsui Chusan explained: "the company did discuss whether to give up some businesses, such as food, low gross margins, and the process is more complex. Muji wanted to bring food into the Chinese market, but the cost of testing was very high. The cost of testing was 1 million yen, and the time was relatively long, so the food had not been opened up in the Chinese market.

Giving up these businesses may be able to concentrate more on Muji's most advantageous areas. "

"Nevertheless, we decided to stick to our existing business positioning. Muji promoted a simple and natural way of life. This is the difference between Muji and other companies. This lifestyle not only includes clothing, but also food, furniture and other products. If we only make clothes, this way of life is incomplete, and if we only make clothes, it is another UNIQLO, without its own characteristics."

Matsui Chusan emphasized.