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    Interview With Muji Chi, A Muji Company, To Interpret Brand Strategy

    2016/4/27 22:40:00 128

    MUJIMatsuzakiBrand Strategy

    The "Muji" good quality plan for China's operating clothing and grocery stores is growing rapidly.

    Driven by the good performance of local stores in China, the combined net profit in fiscal year 2015 (up to February 2016) is expected to reach 21 billion 500 million yen, a record high.

    What is the secret of the good plan in keeping up with the wind? The reporter interviewed Matsuzaki, the president of the good plan.

      

    Reporter: has China's economic slowdown not affected your company?

    Good quality program President

      

    Song Qi Xiao

    The sales volume of existing stores in January was 2 digit year-on-year.

    The total growth in 1~3 months was about 10%.

    I think the performance is strong and optimistic.

    Sales of clothing and cosmetics continued to be good.

    In addition, the rising share of food in sales is also a feature.

    In January, China accounted for 4.8% of the total sales, reaching 2 times that of 2015.

    Although processed food is still the main product, we have increased the type of sales.

      

    Interviewer: what do you think is the reason for your firm performance?

    Matsuzaki: China's consumption is turning to the actual needs of daily life. The quality, function, design and price of Muji have been accepted by Chinese consumers.

    Famous in the place

    Commercial facilities

    Louis Weedon and other luxury brands have been withdrawn.

    In a city, MUJI products opened up after the withdrawal of luxury brands, resulting in excellent sales.

    Another reason is that products that could not be sold for various reasons were now available for sale.

    For example, after Japan's 3.11 earthquake, it was impossible to sell food because of import restrictions, but by changing the domestic origin of Japan or producing in China, the food could be sold smoothly.

    As for home appliances and cosmetics, we have also increased the types of goods.

    In addition, improving the system and other methods to improve the sale of best-selling products has also played a great role.

      

    Reporter: Japan

    Retail

    What are the issues that will be faced if we want to succeed in business overseas?

    Matsuzaki: it is not easy to achieve product differentiation in Japan and overseas.

    The impression of MUJI products to consumers is to save the useless part and have the simplicity of Japanese style.

    In addition, the shop speed should be reasonable.

    If you can't make profits in every store, it's hard to consider continuing to open shop.

    If we just pursue the scale of business, it will be difficult for the retail industry to succeed overseas.

    Matsuzaki Xiao: graduated from the Law School of Centre College in Japan in 1978, and then went to Store, a Japanese retailer.

    In 2005, he entered the good quality plan, and served as director and overseas business minister in 2011, and has been president since 2015.

    From the time of Xi you began to be active in overseas markets.

    He is 62 years old.

      

    Reporter: how will China continue to grow in the future?

    Matsuzaki: we plan to open 40 stores in China in the 2016 fiscal year (as of February 2017), when there will be 200 stores in China.

    From the 2017 fiscal year (as of February 2018), the medium-term business plan is expected to open 40~50 a year.

    Consider setting up 500 Ping (1650 square meters) flagship stores in major cities such as Beijing and opening a smaller shop in its surrounding cities.

    Perhaps it can be called "localization", and we will gradually launch products that are in line with China's local products.

    For example, thermal cups and rice cookers are popular, but for Chinese consumers, they are smaller in size.

    These products should respond to local needs.

      

    Reporter's view: MUJI products how to maintain "cheap sense" is being tested

    Despite its impression of the domestic demand type enterprises in Japan, the good plan has taken a step forward in the field of globalization, and its overseas business accounts for nearly half of the consolidated operating profit.

    There are shops in Asia, Europe and the Middle East, and will open stores in India in 2016.

    Its simple design, environmental protection and other Japanese values will become an advantage in developing global business.

    What's harder is price setting.

    Not only in China, but also in other countries, in the context of economic slowdown, consumers are becoming increasingly demanding.

    To what extent will the exchange rate changes and the increase in logistics costs be passed on to commodities? While maintaining a certain quality, how to create a sense of cheap and Muji will be tested.


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