Chinese Consumers Show Strong Willingness To Buy After Muji'S Price Cut.

According to the world clothing shoes and hats net,

The company's good quality plan announced last week's fiscal year ended February 2018, with revenue growth of 13% to 379 billion 500 million yen (22 billion 200 million yuan), net sales increased by 17.4% to 378 billion 800 million yen (about 22 billion 100 million yuan), net profit increased 16.6% to 30 billion 100 million yen (about 1 billion 700 million yuan), and profits have been recorded for four consecutive years.

Among them, China is the most brilliant one by region.

The revenue was 68 billion 900 million yen (4 billion 30 million yuan), up 25.4% from the same period last year.

The second largest market in the world.

Most of them came from the performance of new stores.

Japanese market revenue of 234 billion 700 million yen, an increase of 8%, basically in the absence of expansion of stores, and the same store sales increased by 6.8%, from the same store sales, last year is the best performance in five years.

In the Japanese market, Muji men's wear and healthy cosmetics are the most prominent.

Matsuzaki Kyo, President of good planning, said that Muji's health and beauty products contributed 1/4 of sales in the Chinese market, while the Japanese market accounted for 16% of the total sales.

He has also indicated that by the end of 2019, 4 to 5 new flagship stores will be opened in China, and the new area will be used to display health beauty products.

By the end of the reporting period, Muji had 876 stores in 25 countries, including 54 overseas markets, reaching 457 last year.

It is noteworthy that the Chinese market has increased by 29 and has the largest number of shops in all the world's markets.

However, for Chinese consumers, Muji is two times higher than that of Japan, and their loyalty to the brand has been losing rapidly. Many consumers have also repeatedly reported to the Muji. They can hardly afford to pay a huge difference when many products are made in China.

In this regard, Muji has launched a series of price cuts in mainland China since October 2014, and is expected to achieve the same basic price between China and Japan this year.

In September last year, Muji was officially opened in China's fifth round of price cuts through the official WeChat public.

However, it is difficult for companies to increase their operating margins in the process of pricing MUJI products, including China, since the 2015 fiscal year.

In 2016, the growth rate of the good plan was the lowest in three years.

The annual revenue of the good plan is 333 billion 381 million yen (about 19 billion 500 million yuan), an increase of 8.4% compared with the same period last year, with a profit of 38 billion 278 million yen (about 2 billion 200 million yuan), a 11.1% increase over the previous fiscal year.

But the growth rate of revenue and profit has slowed down. The growth rate of revenue and profit in the 2015 fiscal year has reached 18.2% and 44.4% respectively.

Although Chinese consumers show strong willingness to buy after the price cuts, the price reduction is not a permanent solution. Under the condition of the slow growth of the Japanese market, the Chinese market has become a lifeline for Muji, but the competitors on this land are increasing day by day. Muji style is no longer unique to a single company, let alone competitors' price advantage, so the most important thing for them is to find a pattern of attracting consumers continuously.

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