7 Things That Make Muji Back To Life.

Surveys conducted by Japanese media for young consumers show that

The brand sentiment is 51.1%, ranking first.

According to the world clothing and shoe net, at present, Muji has opened two hundred stores in China, and there are more than 800 worldwide.

But, you know, in the limitless and wanton expansion

Behind the myth is a crisis that once was destroyed.

In 2001, the annual profit was halved and the current profit was 0.

In August, there was a deficit of 3 billion 800 million yen in Muji.

In the face of the tragic situation in Waterloo, Muji has been reviving. Recently, Matsui Chusan, the former chairman of the Muji company who created the myth, visited the China Europe venture camp to talk about his capital innovation and operation.

What made Muji almost collapse?

In 2001, Muji appeared the biggest deficit since its inception: 3 billion 800 million yen (RMB 230 million yuan), and its share price plummeted from 17350 yen in 2000 to 2750 yen, and it dropped to 1/6 in only one year.

The society is also full of ridicule that the era of Muji is about to end.

The main reason for failure is from within the enterprise.

The first to bear the brunt is arrogance.

Because of the rapid and steady growth in the first ten years, we are confident and no longer pay attention to changes in the external environment.

Our competitors did a very detailed study of Muji.

Such as 100 yuan store Dachong, they sell daily groceries overlap with us, the price is only selling 100 yen; another rival Nitori, they sell the bed, sofa and other furniture is also cheaper than us 30%.

Secondly, we were also in a state of confusion at that time.

MUJI has three main categories:

Household products and food.

The earliest problem is clothing, and consumers think they lack the sense of fashion.

Sales of clothing were very poor, leading to 3 leading leaders in the Department of clothing in the past 5 years.

The biggest reason is the weakening of the brand.

In the past, we had been able to develop new products before customer demand, and the idea of "cheap reason" was gradually forgotten.

In terms of strategy, we also made a wrong decision: expanding rapidly.

Because of the weakening of our brand, the major stores are basically in deficit.

Shops are opening more and more, and losses are bigger and bigger.

The external reason is that Japan was in the era of deflation, which made our "cheap reason" and "keeping the quality of department stores" no longer common.

What did I do in the face of a huge deficit?

During my first year as president, I took action to stop bleeding and eliminate deficits.

In the next second years, some forward-looking strategic decisions are needed.

1, reduce loss stores, burn bad stocks

At that time, I went to ask the developers to reduce the rent of the stores. They told me that the rent had already been lowered and there was no room for further reduction.

So in 2002, we closed down 10% of the deficit stores.

Another big problem is overstock.

The bad inventory of our logistics center is very heavy. At that time, I thought that if we did not reform the inventory problem, we would not be able to reverse the decline.

The final decision was to send these stocks to the incineration plant for incineration.

On the same day, I took the relevant personnel of production and sales to the scene of burning: the products that I made by myself could not be delivered to the guests, but it was the most painful experience for them to burn.

Only by realizing the cruelty of reality can we learn from it.

2, executive force > Planning

A securities analyst told me that none of the failed retailers could stand up again.

That is to say, the structure of these enterprises has become a loss structure that can not win in the market. This is the fundamental reason why enterprises can not be revitalized.

Therefore, we must create a structural mechanism that can win the market.

In the past, we adopted the method of "empiricism" and paid too much attention to planning.

However, the reality is that 95% of the plan can only be carried out by 5%.

Planning is perfect. No execution equals zero.

So we put forward the slogan again: "planning 5%, implementing 95%".

3, strengthen the organizational system.

To strengthen the organizational system, first and foremost, the responsibility is to the people. If the sales performance of clothing category is not satisfactory, the responsibility lies solely with the Minister of the clothing department.

The second point is to overthrow empiricism.

The third point is the reform mechanism and structure.

There are only two kinds of customers and competitors in the market. We need to reform the mechanism of product development if we want to satisfy our customers and defeat our competitors at the same time.

If the mechanism is visualized, 80% of the problems can be improved, and standardization will naturally be formed.

Finally, we must change the way of thinking of employees.

We must carry out reform. We must change people's way of thinking and consciousness, start from culture, and strengthen internal communication, otherwise they will not become a century old enterprise.

We must constantly realize the evolution of enterprises through mechanism and reform. We need to rely on execution to achieve evolution, so we put forward a slogan such as "evolution and implementation".

4, build quality brand.

"Cheap reason" is our constant concept, and the sub concept is "must change with the times".

We have made a thorough reform of the product development plan, and proposed WORLD MUJI and FOUND MUJI.

WORLD MUJI is based on the idea that MUJI products do well in Japan, but how they will behave in foreign countries. So we invite global authoritative designers to participate in our product development. FOUND MUJI gives us a wealth of experience that enables residents from overseas countries to enjoy MUJI products, and encourages us to pay more attention to communication with consumers, so as to continuously develop new products that can be understood and enjoyed by overseas consumers.

In addition, the famous designer's products are sold very well if they are sold in their name, and the sale of Muji brand is much cheaper.

For example, in clothing, we cooperate with Yamamoto Teruji.

The shirt he designed will be sold for 25000 yen, while the shirt we work with will only cost 2500 yen.

Since 2003, these products have also been recognized by consumers, and have achieved a big sale.

5, evaluation of shop opening factors

According to the early experience of opening a shop, we extracted 25 factors that will affect the opening of shops.

If the actual shops do not meet our expectations, we will constantly adjust the contents of the assessment.

Since the establishment of this mechanism in 2004, nine of the ten shops we have been able to achieve are expected targets.

6. Implementation Manual

All employees in our company have a workbook, a total of 13 volumes, 200 pages.

This is the standard of "Muji" that goes beyond the personal style of each store manager.

The establishment of such a standard is because the 100 shop managers, there may be only two can make their stores to 100 points of the standard, while the other 98 can only reach 70 points, but customers always hope that the quality of stores can be more than 90 points, so we must unify a standard.

But this standard is not fixed.

We will listen to the opinions of each store.

Each store can enter the proposal in the system. The regional manager is responsible for pmitting the good proposal to the headquarters. We hold a meeting once a month to distribute the adjusted guide to all stores.

The biggest feature of this guide is enforceability.

The predecessors and colleagues of each store will adopt the same way of work to achieve the 100% implementation of the workbook.

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7, mobile configuration talent

We set up a special talent Committee. Its purpose is to carry out "mobile configuration": we can arrange the work of people through different places.

The talent committee uses Five Box tools to conduct personnel assessment and arrangement.

(below) the horizontal axis shows the leadership quality, and the vertical axis shows the past performance of the leader.

The first level (upper right) is the best and the strongest minister; the second level (upper left) is an excellent minister, and may not become a company director in the future, but its performance and performance are still very good. The third level (middle right side) refers to the excellent section chief, whose future development direction is the first level; the fourth tier (middle left side) has a relatively large scope, and about 60% of the people can do their job well.

People at the bottom level need to improve or rotate jobs in the future.

The talent Committee meets every half a year. All the directors of the company are involved in the project. The staff are assessed and the right people are placed in the most suitable positions from the idea of "overall optimization and optimization".

Our experience is to make profits overseas.

1, wholly owned overseas stores

The first store we opened in some areas took the form of joint venture, and later found many problems.

Finally, we decided to invest in MUJI 100% to set up overseas stores.

Instead of middlemen, our employees negotiate directly with the developers of local commercial facilities, which can bring prices to a very reasonable level.

2, create the right business model.

Our business model has three main characteristics: first, we have set up a grocery (daily necessities) department, which has only one business in the world; second, we adopt the SPA business mode, and all products are original products of their own brands.

We need high returns if we need to make profits overseas, so we have adopted the business mode of high risk and high return. Third, investment and recovery are fast. We have built up a mechanism to accelerate investment recovery.

3, strengthen the execution standard of open shop standards.

There is not a global market in the world, but a local market. In China, it must conform to the characteristics of the Chinese market.

Without the ability to comply with the local market, it would be impossible to succeed overseas.

Take the Chinese market as an example. Just now, there are 25 items to be evaluated in Japan. There are 28 items in China and 3 more.

One is a young consumer group.

In Japan, old people are rich, while young people have no money.

But in China, young people are willing to spend.

The second is foreigners, and there are many foreigners in China.

The third one is the other famous shops in the commercial facilities.

Before we enter the commercial facilities, we need to check whether there are very famous brand shops.

These are different from the situation in Japan.

By December 2017, we planned to set up 460 stores overseas, more than 424 in Japan.

From the constituent ratio of operating income, the proportion of overseas accounts has reached 35%, and the profit has reached 41.

Our employees hope that the overseas earnings ratio can reach 50%. I also very much look forward to this day.

This article is based on the fifth stages of the China Europe entrepreneurship camp, Matsui Chusan, who has been abridged.

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