MUJI: From Loss 1 Billion To Revenue 141 Billion

It was created in 1980 from the West friends group.

From the very beginning, it has its own idea. This basic concept is called "cheap reason", which provides the same quality as department stores, but only sells 70% of the price. This is the clear positioning of Muji from its birth.

MUJI is also a brand with its own values. The direct plation of Japanese means that "I only produce products that I can see and need."

And when it comes to Muji, I believe you can think of two key words:

Frigidity

MUJI products are very cool.

I think people are commented on Muji. "I think Muji's bed has a sense of abstinence."

If you want to sleep in such a bed, you are embarrassed to have sex, feel yourself vulgar, sorry the sheets. "

You know, Muji.

Among them, the original research, Fukazawa Naohito, Nagasawa Youchi, Yamamoto Teruji, Uehara Kunishio are all the existence of super big coffee.

This is the original painting style of master Ren Muji design director. Is there a lot of design?

In the period of economic slowdown in Japan in the year of 2007, many department stores owned their own brands. So far, the only one left behind is Muji.

The biggest reason for MUJI products can be achieved today is that they have their own brand positioning and philosophy.

However, the development of Muji is not so smooth. It also encountered many crises in its development, and once fell into a dilemma of development.

The first ten years after the establishment of Muji was a smooth development period. In the tenth year, the first profit fell. The crisis began in 2000, increased further in 2001, and halved regular profits. The current profits almost came to the first deficit in the first half of 02001.

And in this case, Mr. Matsui was put on the job by the company as president of the company.

Japan had a chief stock market analyst at the time, who once told Matsui, "Mr. Matsui, there is no example of Japan's professionalization of stores, once the decline has been able to rally, so I hope you will come up."

At that time, Muji could be said to be a hot potato, and the whole company was flooded with crises and fears.

Fortunately, Mr. Matsui soon discovered that the fundamental problem of Muji is the serious contradiction between corporate culture and its parent company.

1, the contradiction between perceptual and rational culture.

First of all, Muji is a brand of Xi you group. The subsidiary company is a very large enterprise group, besides Muji, as well as Xi you, Xi Wu and the whole family.

The boss of Xi you group is very sentimental, and the corporate culture is also very sentimental. Its seamount department store was originally the only three department store in Japan. But the boss wanted to make the company first-class in the world like WAL-MART, then went to Europe, moved all the top brands in Europe to the West Wu department store, so that the West Wu department store rose from three to first class.

MUJI is a company that needs to operate in a scientific way. The concept of design and operation of all products needs to be scientific, which conflicts with the parent company group.

Moreover, Muji highlighted the chain brand, which is also in conflict with the parent group's emphasis on single store culture.

2, differences in executive ability

Mui Yi's Sai Yu group is a company based on planning and planning. There are a lot of detailed planning plans.

But how thick the paper is and how low its execution is.

Xi you is a planning, planning for 95%, the implementation of 5% companies, and Muji is to implement 95%, planning, planning 5% of an enterprise culture.

MUJI and its distinct culture are also important reasons for its crisis.

3, urgently need to change the institutional structure.

Before the company has to get a profit, it is to regulate all the problems. For example, the Department of clothing is not doing well, that is, the Department of clothing and materials.

The problem of Muji is caused by the institutional structure of the 80%.

As we all know, TOYOTA is very powerful in Japan, and the culture of Toyota Corporation is a learning culture.

Toyota Corporation sales is Japan's biggest profit company. It is made up of many subsidiaries. The senior managers of each subsidiary spend a lot of time each year studying and attending classes to upgrade themselves outside.

About three years ago, I asked TOYOTA, like this, let every company's top executives go outside to learn a lot of things. How long did it take? TOYOTA said it was 38 years ago.

By this year, TOYOTA's learning culture has been doing for over 40 years.

Such a huge and profitable company is still demanding his senior to learn.

So Muji was badly in need of rebuilding the corporate culture of the company.

Fortunately, under the leadership of Matsui, he found seven major reform measures for the MUJI products, and he said, "let me show you how Mr. Matsui did it."

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Deal with a lot of stocks with great care.

The first move of the reform was to deal with a large number of bad stocks. Matsui thought that such a large inventory of bad products would not be possible for the company to recover.

Not only did he handle it himself, but he also took the manufacturers and manufacturers of these products to see them. When they saw that all the goods they had made by heart were burned, the heartache feeling was unheard of.

The purpose is to let them know that if they can not make really good products, they are useless for consumers.

Use the feeling of the scene to stimulate manufacturers, and Muji together to carry out a reform from start to finish.

Closing 10% of shops

Closing stores is not to dismiss employees, but to dismiss employees is not to bring real reform to the company, but to change the structure of the company.

How to rebuild a winning corporate structure is what Mr. Matsui is trying to think about.

These two initiatives have achieved very good results at once. But Mr. Matsui realized that these are not the real reasons for the company's crisis. They only solve the problem, but the fundamental problem lies in the corporate culture.

Therefore, he soon made the following four reform measures.

Building a functional system of R & D, design and planning

At that time, the concept of "world's Muji" was put forward, and the excellent and creative talents and designers from all over the world worked together to enlarge the planning of products from Japan to the whole world.

MUJI was working with many designers around the world using a way called "designer not designed".

At that time, groceries accounted for 55% of the whole sale of Muji, a very large category.

Matsui heard that a chair made by a designer in Italy had a very sense of design, and he intended to cooperate with him and make an intermediary through his designer. The designer's position is "designer not designed", playing a bridge role in the middle.

Get the designer's design and integrate it into the design of his own product.

In this way, many good design inspirations from the world were obtained, while Muji's own design features were maintained, so that MUJI products were successful, and the products sold very well.

Quantifying sales standards

At that time, the sales side also had very serious problems. Only ten new stores could be opened, and only two shops could achieve their target profits. Matsui found that the benchmark for opening the shop was very vague, and there was no quantitative judgement.

Therefore, we have done a lot of quantitative judgement standards. What is the average consumption income index of the cities that open up shops? The index of urban average consumption income is directly proportional to the business status of Muji shops.

Dosage to determine when to open shop, under what circumstances can not open shop.

After setting up such a quantitative standard, the result is very obvious. The success rate of the new store introduced into the standard has reached over 90%, 10 shops and 9 shops will be profitable.

Force drop operation cost to 30%

The sales mode has been changed, the product development way has been changed, and the enterprise's business has to be changed, so a system of "30% committees" has been set up to do this.

The 30% committee is to reduce the operating cost of the company to 30%, that is, the total operating cost will account for 30% of the sales volume.

Reduce operating costs by cutting down on useless business trips and cutting down on useless overtime.

In order to achieve this 30%, Matsui sent many directors to the departments to supervise the war, but the result was very unexpected.

By the end of the financial year, the amount of money we wanted to cut had not been reduced, but increased.

Although many direct stores are growing and sales are increasing, the cost is also growing.

Matsui soon discovered that many of his peers, such as WAL-MART, had many tools to do their own work, and they assembled and matched them in the store, which could also reduce costs very well.

So Muji produced many props and equipment to China to make accessories, and then assembled them in Muji shops, which cut the cost by more than 40% at once.

By learning from other companies, Muji has cut down unnecessary costs and reduced costs.

Set up a staff manual to update all staff members.

Before Muji, many stores often had the same problems and wasted time and manpower. Later, in the company's intranet, a platform for staff's internal proposal was made. Any employee, shop manager or salesperson in the front line could finish a workbook through the platform, and the contents of the handbook were related to the execution content of the storefront.

A front-line employee can submit his opinion to the company through the internal website, then confirm by the regional manager, then confirm it by the company headquarters, then compile it into the latest manual immediately, and request the company's work process to make corresponding changes.

Now all kinds of platforms in the market have, how to choose the platform is particularly important, and I most optimistic about NetEase's new cloud collaboration, its own products, Youdao Dictionary, Youdao notes have long been known to everyone, and the new way of cloud collaboration is not to be underestimated.

MUJI is an international enterprise. Although this handbook was raised in Japan, it must be globally unified.

So every country has its own employee handbook.

The operation of the enterprise itself has many local characteristics, so the employee handbook is only about half the content of the world, and the remaining half should be revised according to the situation of each country.

Countries around the world have their own manuals, and they are different.

The implementation of the employee handbook has greatly improved the internal efficiency of the company, greatly saving manpower and time.

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MUJI is a lifetime employment system. There is a system of talent Committee. A college graduate is about 22 years old. After graduating, he is admitted to the company. He has to work in the company for 40 years. He should train him through various ways such as post education and rotation.

And this will be achieved through the talent Committee, which can account for 80% of the whole person's training.

This is also the reason why NetEase has launched a cloud collaboration. In the early stage of development, there are road clouds that have conducted a multifaceted study of SkyDrive, the existing enterprise in the market. Therefore, there is a road cloud collaboration which includes the advantages of SkyDrive in the market, but at the same time, considering the needs of various companies, it will be a perfect choice for salesmen.

The training of Muji employees in the company consists of three components, namely, 10%, 80% and 10%:

The 10% is the proportion of work manual learning, which is the benchmark and the simplest foundation. 80%, it is through the training of company posts, that is, a training method for the new employees to educate their new employees through daily work, such as the necessary knowledge, skills and working methods, and so on. Finally, 10% is the specialized training for employees, the company's internal training courses, and the three parts constitute the education of Muji for employees.

So how can the Muji leadership grow? If 100 new employees are coming, only 20% of them will eventually become leaders. How to cultivate or dig out these 20 people?

A very important position in the company is to train successors. This is the talent pool.

For example, if the Minister of sales is responsible for this position, he will be able to take up 10% of the company's number.

This is reserved for tomorrow's talents, there are few employees.

This is the first kind of talent with high potential and good performance.

The second type of talent is slightly less qualified, but the performance and evaluation results are very good.

These people can become a very important middle level of the company, which is a ministerial reserve, which accounts for about 10% of the company's employees.

The third type of talents are highly qualified and qualified. This kind of talent is called the selection of class level talents.

But the vast majority, about 60% of the employees are fourth kinds of talents. They are very ordinary employees, but they are very important.

The fifth type of talent needs special attention to him. Employees who need to improve their working ability generally account for 5% of the company and not more than 10%.

Matsui believes that talent allocation is what kind of people to go to what sectors, not only for the company's performance has great help, but also for personal growth and development.

In addition, the talent training committee also had a job at that time. 20% of the middle-level cadres in Japan would have the opportunity to study abroad and learn from overseas.

Indeed, since we have decided to proceed with globalization, this step must be done.

Overseas rotation makes the linkage between the global companies and headquarters more closely. These middle managers, while learning rotation, not only get rich experience, but also can directly solve the problems of overseas companies' overseas stores, which has greatly enhanced the management ability of the middle and primary level and the proper settlement of overseas shops.

Today, Japan's Muji has also basically covered the whole country, and the first and second main cities have completed their stores.

Now it is ready to enter the more than 300 three line cities in China.

In February 2015, Muji had 128 stores in China, reaching 160 in February 2016, and Matsui plans to open to 200 this year.

From loss 1 billion to revenue 141 billion, from Mui to the last to go all over the world Muji is a lot of similar businesses worth learning.