Frequent Price Cuts Boost Performance Muji, Frankly Speaking, Supply Chain Constraints Sales

MUJI Muji fine parent company's good plan (hereinafter referred to as "good plan") reported that as of February 2019, the company's MUJI Muji stores totaled 919, and there were 256 in mainland China.

"Muji" refers to the "good commodity without name", which mainly promotes clothing, groceries, food and other quality products. Since 2014, Muji has introduced the "new pricing" measures since MUJI, and has cut down on some commodities several times since then. A few days ago, MUJI Muji improved the size of products to suit China's needs. MUJI Muji has mentioned that the MUJI Muji furniture is widely known in Japan, but in China, it has become "acclimatized". Size is the key to MUJI "Muji" "acclimatized"?

Slowdown

In March 21st, MUJI Muji, WeChat official of China, said that since March 29, 2019, "price reexamination" has continued, and MUJI Muir has developed a series of "China needs" products from the perspective of China. Brand developers also said that the approach was aimed at eliminating the "little embarrassment" problem of commodities that did not meet China's needs, and hoped to take this opportunity to enhance customer satisfaction and brand sentiment.

"Price reexamination" is the concept of MUJI Muji's commodity repricing strategy. It is "euphemistic and appropriate" to replace "big sale" with "new pricing". Publicly available data show that MUJI Muji started the new pricing mode in 2014, and the "China" goods on the line changed not only in size but also in terms of price.

MUJI Muji said in the news that the new bed and mattress will be adjusted to the Chinese standard, that is, the size of single bed, double bed and double bed will be changed to 120x200cm, 150x200cm and 180x200cm respectively. At the same time, the original rounded design and highly adjustable bed feet should be retained. In terms of price, the new combined price will be 5660 yuan, with a drop of 36%. MUJI China headquarters told reporters that the MUJI China commodity development team was formally established in September 2018. In addition to bed products, the future will also introduce more "China" merchandise, the concrete development plan temporarily inconvenient inform.

Reporters at the message department found that many netizens expressed support for this practice, but also some netizens said, MUJI Muji finally "enlightened", to enter the Chinese market for many years before making adjustments and changes is not easy.

Insiders said that the goal of MUJI's Muji is to reduce prices in disguise. MUJI's China headquarters replied to reporters, "price reexamination" is to spanfer better products to consumers at a more reasonable price, and will continue to implement the plan in the future.

Reporters visited MUJI MUJI Guangzhou store and found that some of the brand's products were included in the "price review", while clothing, lifestyle and other dozens of products were also involved in the limited time discount activities. Among them, star products aromatherapy machine series is also in substantial price cuts, ranging from 50 yuan to 162 yuan.

According to the 2019 fiscal year results released by the good plan, the sales of MUJI Muji in the first three quarters of March 2018 (November to November) dropped by 9% compared with the same period last year.

From the time before the price reduction and financial performance, after the implementation of the new pricing, MUJI Muji performance often rebounded, but this strategy began to achieve little effect in the second half of 2017.

Advantage changes.

MUJI Muji has mentioned that the MUJI Muji furniture is widely known in Japan, but in China, it has become "acclimatized". Size is the key to MUJI "Muji" "acclimatized"?

In the MUJI MUJI Tmall flagship store, in a commentary on the most expensive bedding (quilt cover suit), many consumers said the quality of the product was generally coarse and thin.

In addition, public information showed that in January 15th, the Consumer Council of Hongkong released a test report that MUJI was found to be the highest in the samples tested, and the content of propylene oxide and acrylamide was the highest in Malaysia hazelnut oatmeal Biscuits (epoxy propanol and acrylamide had genotoxicity and carcinogenicity). In January 18th, MUJI's Muji released statement said that biscuits were also sold in mainland China. At present, only the EU has limited the content of acrylonitrile in food, and the content of acrylonitrile in biscuits detected by the Consumer Council of Hongkong is lower than that of the EU standard. However, taking into account the concerns of consumers, the company temporarily put down the product.

The company's official website showed that after the company's "Muji natural water" was detected containing "bromate" exceeded the limit value, the parent company recalls the 2 "Muji free natural water" and recalled the "Muji" carbonated water produced by the same equipment. It sold only "Muji" carbonated water in mainland China. After testing, the "Muji" carbonated water does not contain bromate, and the parent company also stops recalling the product.

At the same time, the market advantage of MUJI Muji has been constrained by the attack of various life class e-commerce platforms and offline brand stores.

The official website shows that MUJI Muji always adheres to the three basic principles of "selecting materials, modifying processes and simplifying packaging". MUJI Muji has entered the Chinese market in 2005. It has led a trend in the market with "minimalism and quality". It has been favored by consumers and has been studied and imitated by many brands.

MUJI Muji China headquarters told reporters that there are many companies in the world who want to learn others to make products, but the products they make may be just like them. The concept of MUJI MUJI products, the story behind it and the development of products are different from those of other brands.

NetEase, such as Yan Xuan, Xiaomi products, suing poles and other electronic business platforms and famous brand products, NOME, and other offline brand stores want to have a share in the home market. Insiders say that Internet companies have changed the supply chain to reduce costs through the use of the electricity supplier mode, which has been cost-effective. The expansion of MUJI products in the Internet channel is more violent than MUJI, and has a great impact on MUJI MUJI products.

For the above year sales of the existing stores in China, MUJI headquarters in China indicated that the main reason was that the hot commodities were out of stock and the supply chain was in trouble, which resulted in the fact that the company did not complete the order in time, resulting in insufficient inventory and affecting sales. What are the shortcomings of the supply chain and how it will be improved in the future? MUJI China headquarters said it needed time to confirm the problem and failed to reply to reporters. Future Ltd will take this as a reference and continue to improve the management accuracy of inventory management and sales plan to meet the needs of customers.

In terms of online channels, MUJI Muji still has brand competition. In the search for MUJI products on the electronic business platform, a certified brand named "Muji" flagship store appeared, but it was later found that the brand was not "MUJI Muji". The reporter made a complaint to MUJI China's headquarters about whether the store was causing infringement, and MUJI headquarters in China replied that it did not comment on it. In addition, MUJI China headquarters stated that its online channels in mainland China are only MUJI Muji network, Jingdong flagship store and Tmall flagship store.