MUJI Has Become Cheaper. Do You Know The Reason For "New Pricing"?

If you ever patronize after January 23rd

(MUJI) in China's stores, you may find that MUJI has become cheaper.

In MUJI, about 150 products were labeled with lower prices.

For example, the original price of the minimum pull rod lock travel suitcase is 1280 yuan, while the current price tag is 1098 yuan. The high collar wool sweater, the main neck restraining sensation, has been reduced from the original 278 yuan to the current 198 yuan.

However, it is not necessary to prepare for a mad fight. This is not a limited time discount, but a MUJI re pricing for these products.

Narikawa Takuya, a Muji business reform, admitted frankly that the same piece of MUJI products sold at different prices in Japan and China, and that the prices of goods in Chinese stores were generally higher.

"We also know that many Chinese customers will travel to Japan and go there to buy MUJI products.

Now the yen's exchange rate has dropped, and this is more.

Narikawa Takuya explained the reasons for "new pricing" to reporters.

As early as last October, MUJI had conducted the first test of "new pricing" in grocery products.

At that time, steel knives and forks, BP storage boxes and so on, all had new prices.

In January, the 150 products that were "newly priced" were all from the category of clothing and groceries.

Narikawa Cho also said that this is because Chinese customers prefer to buy clothes at MUJI.

"In Japan, the composition of MUJI's merchandise sales is 40% of clothing categories, 50% of life categories and 10% of food.

In China, clothing and living categories account for 50% of the total.

Narikawa Takuya said.

"New pricing" is enough to please MUJI fans in China for a while, but for MUJI, the greater impetus for new pricing may come from the desire to further expand China's market share.

From 2005 to the Chinese market, 10 years

It has 128 stores in China.

According to the data provided by Ou Rui consulting, MUJI will open 100 new stores in mainland China in the next three years.

In the past 10 years, with the concept of "lifestyle" being accepted by more Chinese people, apart from MUJI, the brand of "lifestyle" as a selling point and the basic life of UNIQLO, China's local brands as well as the fast fashion brands such as H&M, GAP and so on, have also come from Japan.

The "lifestyle" brand has become increasingly fierce in the Chinese market.

"China's fashion and lifestyle industries are experiencing rapid changes.

Over the past few years, many consumers in China have no longer blindly pursued luxury goods with eye-catching trademarks because of the rapid accumulation of wealth.

Now, brands like MUJI, which are simple, low-key and have unique aesthetic philosophy, will be more favored by Chinese consumers.

Magdalena Kodej, director of global apparel industry, said in an interview with interface news.

Price reduction is one of the most effective means of competition, but the problem is how to avoid hurting corporate profits.

Reducing cost by reducing costs is the reason for success in Japan after the establishment of Muji in 1980s.

In the best-selling book, Muji reform, it tells how MUJI reduces costs by simplifying packaging, thereby reducing the selling price to customers.

But in China, the prices of imported products are more subject to tariffs. The simplified packaging method that can be used in Japan is not universal in the Chinese market.

"After the completion of the commodity development, we want to simplify the packaging. We feel that the effect will be limited."

Narikawa Takuya said.

In China, MUJI has cut costs from the "tax reduction".

The production of goods in the mainland of China and the direct distribution to stores in China naturally cut the tariff.

China has a preferential tariff agreement with some Southeast Asian countries with lower labor costs, such as Vietnam, so these Southeast Asian countries will also be the ideal suppliers.

Therefore, mainland China and Southeast Asia have become new MUJI distribution bases.

In addition, MUJI has adopted a more efficient inventory management method to reduce the complex process of distribution.

Starting from the 15 spring and summer series, MUJI began to use the "Assortment distribution system" adopted by many international clothing brands to reduce the waste of manpower, material and time caused by repeated selection, packaging and distribution of clothes of different colors, sizes and quantities.

And the manpower and material resources in this part of the province will be converted to lower prices for consumers.

MUJI now will be in accordance with the ratio of 6 pieces per packet, including 1 men's wear code, 2 medium code, 3 large yards, 1 extra sizes, 2 women's clothing, 2 medium code and 2 large yards.

The ratio of each package for men's and women's wear is MUJI's lowest ratio based on years of experience in the Chinese market, which ensures the flexibility and accuracy of the allocation of goods.

According to the difference between the customers in North and South China, MUJI will also send extra packages for big stores and large size clothing to northern stores.

With the increasing demand from the Chinese market, the expansion of production scale also reduces the cost of MUJI.

In 2014, MUJI accounted for 26% of the sales from overseas markets, of which China accounted for 10%.

As China's labor costs and land prices continue to rise, only enough production can ensure that Chinese factories are willing to produce MUJI at a lower price.

The 150 products that are included in the new pricing range are just the beginning. Next, MUJI will continue to reduce prices. After the autumn and winter series in 2015, MUJI will launch a new pricing of clothing products.

"We have thought that the pricing of MUJI Chinese products will be exactly the same as that of Japan, but even if the price is the same, it may still be expensive for the current consumption level of Chinese consumers."

Narikawa Takuya said, "however, at present, China's economy is developing at a high speed. MUJI has a hunch that with the improvement of Chinese income and the continuous price reduction of MUJI, MUJI is likely to base itself on the Chinese market with a more intimate image."