MUJI Will Take The Biggest Price Cut In Mainland China This Month.

2300 goods queued for price reduction.

MUJI will start its biggest price cut in history this month.

According to the world clothing shoes and hats net, Japan

Will continue to use price reduction strategy against Amazon and other online competitors.

Among them, the price of the best computer package dropped by 25%, from 3990 yen to 2990 yen, and 3 pairs of socks dropped 100 yen to 890 yen.

Although price cuts can cause damage to profits, sales can improve the strength of procurement negotiations and reduce costs, and price cuts will also help increase passenger traffic.

In 3-8 months of this year, after the price reduction of 300 products, MUJI Muji parent company Japan

Grocery, department store group Ryohin Keikaku Co.Ltd. (7453.T) Co., Ltd., the first half of the year, the sales volume of the general store was 7.9% higher than that of the sales.

The company said that the price reduction not only attracted new customers, but also increased the repeat purchase rate of old customers.

In the first half of this year, group direct business passenger traffic surged 7.5% compared to the same period last year, and the price of passenger only 0.8% decreased. Clothing is still the most demanding category of demand for good quality products, and the sales of Direct stores can rise 15% over sales.

Direct sales in the same store grew by 7%.

Customer traffic also increased by 6%, while the consumption per customer increased by 1%.

The company saw the price cuts lead to more new and old customers.

While Japan is cutting prices, MUJI will be followed by another core Chinese market. Research Institute No Agency predicts that MUJI Muji will release China's eighth price reduction by the end of this month, which will be announced as soon as possible.

Previously, MUJI Muji has experienced 7 price cuts, and the company will call it "new pricing". The latest price reduction will take place at the end of August, which is the end of the second quarter of the group.

China's clothing and grocery market is experiencing the most intense competition, and the sales growth of the parity clothing market has continued to visit China, while the large number of online brands in the grocery market are coming to the forefront, only the beauty market is soaring.

According to statistics, in the two quarter of August 31st, the MUJI Muji China market only recorded a 1.8% growth over sales, a 5.8% slowdown compared with the first quarter, and a new low for the three quarter of last fiscal year.

In the three quarter of 2017 fiscal year 8-11 2016, the MUJI Muji China market recorded a comparable growth rate of 0.8% in the Chinese market, when the brand China stores reached 200 milestones.

In the following two quarters, China's economic stability and brand reduction and the "315" party incident, MUJI Muji China market rebounded.

As of the two quarter of August, MUJI Muji China sales recorded an increase of 22.6%. In the first half of fiscal year, the brand China could achieve an increase of 3.8% compared with sales. The actual sales growth benefited from 5% growth of 5%, an increase of 16.6% to 30 billion 807 million yen in yen, or about 1 billion 820 million yuan.

At the end of the two quarter, there were 210 stores in China and 200 in the same period in 2017.

MUJI Shanghai Huaihailu Road opened long when it opened, but the store was in poor condition.

The sale of MUJI products in China once again sounded the alarm not only in the overall sales, but the sale of the flagship store in Huaihailu Road, which opened in December 12, 2015, has been reported for more than a year for sale in the world's largest flagship store in the year of MUJI.

In early June of last year, the world's first MUJI Diner was opened in the Huaihailu Road store to supplement its original business. In addition, the first two stores of MUJI hotels will open in Shenzhen and Beijing in January 18th and March 20th respectively.

Last week, the group updated the latest status of MUJI HOTEL SHENZHEN and displayed the guest room condition.

In addition to the competition in the traditional retail market, there are many "Muji" business providers in the Chinese market, including the strict selection of NetEase, which is known as the supplier of MUJI products. It also advertised with the banner and attracted constant criticism. At the same time, it also gained a large number of users and publicity.

In addition, China's largest e-commerce platform Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba's small seller B2C platform Taobao Taobao.com also launched the Taobao core business in May this year, which is a rare internal direct retail test of Alibaba, which has been focused on platform business.

The NetEase has strictly chosen or even cooperated with local hotel brands to test the water hotel project. However, the project has been widely criticized for being misplaced by its target customers, and the hotel is full of Hard Sell. It is difficult for both The Inn Boutique enthusiasts and NetEase's core customers to be attracted.

The latest monthly data released by the good plan show that the three quarter of this group is expected to record the worst performance this year. Therefore, once again the price reduction is undoubtedly encouraged by the group's success in reducing prices and promoting sales in the first half of the year.

In 9, 10 and November, sales of good projects were recorded at 7.3%, 2.9% and 8.3% respectively, of which the performance in October was the worst in the year, while the November performance was rebounded by the weather.

Excluding international business, 9, 10, and November, the sales of good projects recorded an increase of 4%, 3.9% and 9.1% respectively, indicating that China's business has not been substantially improved in the three quarter.

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