MUJI Into The City Blind Expansion?

In the depressed environment of retail business, fast fashion brands are welcomed by consumers and are expanding their market share with the advantage of high cost performance and fast updating of goods. Even in spring city of Southwest China, Kunming has seen a fast fashion shop.

According to the win business network, MUJI Muji has been settled on the first floor of Shun Cheng shopping center in Kunming.

In February 2012, Muji entered Yunnan, and its first store was settled in Kunming Golden Eagle Shopping Center.

With the development of commercial real estate in Yunnan, Muji has gradually opened up a prelude to development, and has opened stores in 3 shopping centers, including colorful ME TOWN, 100 new world and Kunming Plaza.

With the current layout in the new store of Shun Cheng shopping center, Muji will reach 6 stores in Kunming.

From the perspective of expanding layout, Muji shops are basically set up in Kunming's core business circle and convenient shopping mall.

The Shuncheng shopping center was no exception, but after Shuncheng store opened, there were 3 stores in the 1.5 km radius of Nanping Street.

Especially

The distance from the store is less than 500 meters, almost face to face competition.

This can not help but a little "blind expansion" of "suspicion".

First of all, Muji's layout in Europe and other places is obviously saturated, and even low profit stores have appeared, so the pace of shop opening has slowed down, but Muji stores in China are more layout than UNIQLO.

The development of fast fashion brand stores is relatively cautious, especially in China's three or four tier cities, Muji shops are still "slightly less".

According to Liang Yijia, the director general of Taiwan's Indo - free products, September revealed that the Chinese mainland market will increase from 30-35 stores a year to 50 cities every year since 2017.

Thus it can be seen,

Efforts are also being made to expand the market, while opening stores in the three or four tier cities is in line with the strategic layout of Muji in China.

In fact, in response to the pressure of the downturn in the retail industry, Muji also implemented a 37% reduction decision in August 2015 to attract more customers in China.

Secondly, according to the requirement of Muji location, a business opening of Shuncheng Kunming commercial landmark is in line with the expansion strategy.

As for why we face face-to-face with the Xintiandi store, or take account of the daily average traffic volume of Kunming three city streets up to 300 thousand, opening another store can play a diversion role, so that customers can avoid overcrowding in shopping mall and enhance their shopping experience.

MUJI company was founded in 1989 and has been in existence for 25 years.

There are more than 700 stores in the world, including more than 400 in Japan and more than 300 overseas.

After ten years of creation, Muji sales increased from 24 billion 500 million to 100 billion and 13 billion.

However, business has not always been smooth.

In early 1990, Japan's bubble economy burst, and after 20 consecutive years of growth, Muji lost 3 billion 800 million yen in 2001. The industry thought that the era of splendor was ended.

According to Matsui Chusan, the former chairman and honorary consultant of Japanese Muji, the main reasons for the company's deficit are as follows: Pride and luxury within the enterprise, weakening of brand effect and strategic error of rapid expansion.

After strategic decision adjustment, Muji back to normal in 2003.