MUJI Clothing Products Will Be Reduced In Japan Or China In 2018.

As of February 2016,

There are 758 chain stores in the world, of which 414 are Japanese and 344 are overseas, which is 3 times the number of stores in 1997.

The Muji company's good quality plan recently announced that it would cut prices in Japan early next year to boost sales, involving 300 products, such as spring and summer clothing and food, with a price range of 20% to 34%.

According to the world clothing and shoe net, this is not the first time that Muji has announced a reduction in Japan.

Positioning the masses

MUJI has reclaimed consumers through price cuts several times.

According to the insiders, the goods in Muji shops do not brand themselves, but they become the object of competition among consumers in Japan and other countries. The core of their products is to define the concept of their products, seize the essence of consumers' daily necessities, and penetrate and pfer these ideas into every commodity, so as to ensure the continuous sales of stores.

According to the world clothing and shoe net, with the increasing status of MUJI products in the market, expanding the product line and gaining market share of food, clothing and daily necessities have become the main objectives.

The commodity category suddenly increased from 40 at the beginning of 1980 to 1111 in 1984, only four years later, and the apparel industry began to exert power after 1982.

The expanding market means a continuous increase in sales. As a growing retail enterprise, its bargaining power on raw material suppliers is also rising. This has also played a positive role in reducing costs.

According to the world clothing and shoe net, as of February 2016, Muji has 758 chain stores in the world, of which 414 are Japanese, 344 overseas, and 3 times the number of stores in 1997.

The company's stores in Japan are divided into 3 categories: Direct stores, franchisees, and West friends stores, which are all cancelled after 2002.

The average area of Japanese Direct stores is about 730 square meters, which has been relatively stable in recent years.

According to the financial report, the East Asia part, which is mainly east China, Taiwan, Hongkong and South Korea, is the most important area in the distribution of stores. There are 227 stores, all direct outlets.

In addition to Muji's brand stores, the company also works with the famous Japanese family convenience store (formerly with Xi you) to sell sandwiches, beverages and other daily necessities such as sandwiches, beverages, etc.

As of 2015, Muji's operating income reached 307 billion 200 million yen (converted to RMB 19 billion 800 million yuan in October 15, 2016), with a net profit of 21 billion 720 million yen (about 1 billion 410 million yuan) and a net profit margin of 7.07%.

Li Jin Tan, an analyst with Changjiang Securities, said that Muji has entered the Chinese market in July 2005 and has the first store in Shanghai.

In 2008, it entered a period of rapid expansion and expansion, and the number of stores and operating performance showed explosive growth.

During the 2005-2015 years, the revenue of China's business grew from 51 million yen to 49 billion 900 million yen, and the average annual compound growth rate reached 99.08% in 10 years.

In 2012, the number of MUJI products stores expanded from 65 to 100, with a growth rate of 65%. After that, 30-40 stores opened every year and planned to break through 200 stores in China in 2016.

The same store growth rate of Chinese business has maintained a high growth rate of two digits, coupled with the rapid growth of new stores, forming the main growth point of the company's business.

According to the financial reports, the profit margins of Muji in China are much higher than those in other markets while the business scale is growing at a high speed.

Because the company's overseas business profit statistics are based on the overall statistics of East Asia, East Asian business accounted for more than half of the total revenue in 2015, accounting for 27%, accounting for 50.12% (Japan accounted for 49.54%, and European business loss). At the same time, the operating profit margin of East Asia was 20.75%, much higher than that of 8.61% of Japan.

MUJI has applied the same price strategy to overseas markets abroad, and because of tariff and logistics cost, the price of products printed on overseas markets is no more than 30% higher than that in Japan.

Considering the difference of GDP between China and Japan, Muji price is obviously expensive for China's consumption level.

Before absorbing the experience in Europe, Muji first concentrated the consumption groups on the higher income groups in the first and second tier cities.

According to Li Jin analysis, Muji shop opened a strategy of "second golden lots" and gradually lowered its commodity prices. After the saturation of stores in economically developed cities, the next strategy for Muji is to sink more channels to more cities, and target customers to the emerging middle class.

China's consumer spending continued to maintain a two digit growth rate, which was higher than the GDP growth rate.

At the same time, the proportion of Chinese residents' consumption expenditure in GDP is not small compared with that of developed countries. In the future, with the development of urbanization and the continuous improvement of residents' income, there will still be room for growth in household consumption.

According to the world clothing and shoe net, Muji can choose to shop at the top of the popular shopping center and away from the escalator. It can reduce the rental cost and open a relatively large area of stores, so as to prepare for more and more price conscious pformation.

At the same time, Muji has also reduced its price in the Chinese market in the past 4 years through the improvement of production and logistics links, and plans to achieve the same price with Japan in 2018.

In Li Jin's view, the chain store replication capability is the key to laying a foundation for its valuation, such as MUJI products, which is a self owned professional chain store. Muji has realized the continuous expansion of the store through product design and structural optimization and system standardization, so as to achieve continuous upward valuation. At the same time, the level of profitability based on scale advantage is the core of its valuation premium, that is, for product retail enterprises, the bargaining power of products becomes the key to open up the valuation promotion channel.

More interesting reports, please pay attention to the world clothing shoes and hats net.