MUJI Products "Bend Over" To Win The Two Or Three Line Market

Faced with the brakes on revenue and profit growth, Muji in grocers hopes China.

It aims to ease up by increasing stores in China.

Recently,

One day, three different non tier cities opened 3 stores and accelerated in Hua Kuozhang.

Three shops open together

MUJI, a vow to accelerate its opening up in China, is continuing to shop.

According to the world clothing and shoe net, Muji added 3 stores at the end of June.

The news of Muji's official website showed that Muji had opened 3 stores in Wuxi, Ji'nan and Shijiazhuang in June 30th.

Prior to that, Muji had opened shop plans.

It is reported that Muji will speed up the opening of stores in the mainland of China. In the next four years, the total number of newly opened 40 stores and stores will increase to 360.

Such a shop speed is normal in Muji. In 2013 7-8, Muji opened 3 stores in Shanghai.

At this point, Muji has put on schedule 40 new stores a year.

In addition, in terms of the number of stores, the good plan will open 1200 stores worldwide in 2020, of which 698 will be open overseas.

China has become one of the main fronts of MUJI products in its continuous expansion.

It is reported that MUJI products account for about 10% of China's total business and about 26% of overseas business.

Seize the two or three line Market

In addition to the deep excavation of the consumer market in Shanghai, Beijing and other tier cities, Muji will also expand the shop network to Chongqing, Suzhou and other cities.

The 3 shops added to Muji are also distributed in two or three cities in China.

Prior to that, Muji had ploughed the first tier cities in the country and set up physical stores in shopping centers such as Beijing and Shanghai.

When consumption escalation and consumption concept change, Muji's performance growth is slowing down.

MUJI products released 2016 third quarter data show that the Muji China market in the three quarter, compared to sales only recorded a slight increase of 0.8%, while the previous two quarters were 4.7% and 5.4% respectively.

The Muji company released its 2016 earnings report. The company's profit grew by 11.1% during the period, and its growth rate dropped sharply.

Yao Liming, director of the China Economic Research Institute, said that the consumption level of the two or three tier cities is rising, and the consumption capacity is also worth digging.

Beijing Business Daily reporter found that as of now, the MUJI products official website released 12 new store opening information in 2017, of which, there were 8 news outlets in two or three line cities, accounting for 2/3.

It includes Suzhou, Kunming, Qingdao, Xuzhou and other cities.

Since May, there are 8 new outlets for Muji.

The platform ocean wharf has released the "overseas shopping dares index", which shows that consumers of the two or three tier cities are more daring to spend than the first tier cities. Among them, consumers in Guiyang, Nanning and Kunming have the highest overseas consumption.

Bow to the people

With the upgrading of consumption, impulsive consumption and characteristic consumption occupy the mainstream, and the superiority of Muji is gradually lost.

Lai Yangceng, a research fellow and a vice president of the Beijing Institute of business economics, said that MUJI products were "conservative" and could not fully follow the changes in the Chinese consumer market.

In addition, although Muji continues to expand its stores and seize the market, it will lead to an increase in operating costs and a decline in single store sales when the consumption audience remains unchanged.

In the market, MUJI products are constantly appearing and intensifying market competition.

In the face of declining performance in China, Muji has also constantly adjusted its strategy.

In January, Muji released a new round of price cuts in China, which is the sixth time since 2014 that Muji has been cut.

Before that, there was a certain gap between the price of MUJI products in China and the price in Japan, and after the price cut, the price of domestic clothing was almost equal to that in Japan.

According to the analysis of the industry, the price reduction may bring positive benefits to Muji's march into the two or three tier cities, but frequent price cuts will lead to damage to the brand image, or a vicious cycle of falling prices, resulting in impaired performance.

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