Why Do Chinese Consumers No Longer Have &#34 For MUJI Products And &#34?

This is already

The tenth reduction in the Chinese mainland market.

This is about MUJI star merchandise.

For example, the highest price drop of the aromatherapy machine is even 30%.

Others such as basic funds

Products, including bilateral yarn knitted pajamas, men's underwear, bra series, and part of the collection of life products, the price range is around 20%.

MUJI said that after reviewing the price of some star products, it hoped to pfer better products to consumers at a more reasonable price.

However, it is still too good to say that this is a helpless move to boost China's mainland market performance.

A continuous price cut not being bought.

Since 1980s, Muji has been established for 38 years. From Japan to the world, it has developed 700 stores and over 7000 products. It has become a dark horse in the global retail industry.

Recently, however, it has encountered some troubles in the Chinese market.

The Muji's parent company's good plan announced the financial briefing for the third quarter of 2018/2019.

In September 2018 ~11, the sales of Muji in the same store in China dropped by 4.1%, down more than in the second quarter.

From February 2018 to November, Muji is in China.

Sales volume is about 3 billion 347 million yuan, and same store sales are down 1.5%.

The Chinese market has dragged down the business of the whole overseas department, which has led to a 0.2% drop in the same store sales in overseas markets.

Moreover, this happened on the premise that the Muji has been continuously cut 9 times in mainland China.

In October 2014, Muji first announced the "new pricing" activities in the Chinese market, with an average price reduction of 17.5% over 100 categories.

Yet Chinese consumers do not seem to buy it.

In the past year, MUJI has not been successful in China.

According to the world clothing shoes and hats net, in September 2018, a MUJI shop staff refused to cooperate with the Haidian branch of Beijing industrial and commercial bureau to carry out commodity sampling inspection, which aroused public concern.

Subsequently, the local industry and Commerce Bureau in its official website informed the quality of Muji clothing sampling results, a total of 10 batches of clothing failed.

The recent outbreak of "cancer gate" has made the image of Muji brand more vulnerable.

Recently, a test report released by the Hongkong Consumer Council said that a hazel oatmeal biscuit with Muji was found to contain genotoxic and carcinogenic substances.

Competitors step by step.

Besides, Chinese consumers also have more new choices.

NetEase, such as Yan Xuan, MI Jia you, Taobao Xin Xuan and other companies with similar positioning with Muji, rose to the point that the MUJI products, which were accused of high price in the Chinese market, were once in a passive position.

For example, a 70cm * 140cm bath towel is priced at 180 yuan in MUJI China official website, while strictly selected in NetEase, the same type of bath towel is below 100 yuan.

Behind these brands are the support of Chinese Internet giants and the pouring of brand resources.

NetEase Yan Xuan recently opened its first line shop in Hangzhou, not far away from its flagship store.

Taobao's heart election has launched a series of "living molecules" that uphold the "Minimalism" of Japanese design master Fukazawa Naohito, and Fukazawa Naohito was originally a co design designer for MUJI products.

At the same time, cheap life home brand name and top quality products also received 1 billion yuan investment from Tencent and high altitude capital last year.

According to the data, by the year December 2018, there were 3400 stores in the world, including more than 2200 in China and nearly 1200 overseas.

Compared with the Chinese competitors who do not have the middleman to make the difference, Muji has no competitive price in China.

The halo faded and laid down.

MUJI was born in Japan in 1980s. After the bubble economy period, consumers refused to pay for the brand premium, from luxury consumption to rational consumption.

MUJI is rising under this background, simplifying packaging under the condition of ensuring the quality of products, and achieving "reasonable reason".

Unlike the Japanese market, the concept of "label free" has coincided with the lifestyle of China's new middle class, winning a large number of followers.

As a result, the Japanese "civilian" brand has become a "light luxury" brand in China, and intends to strengthen this aura.

The prices of goods sold in China are much higher than in Japan, and some are even two times as high as that of Japan.

However, Chinese consumers are gradually becoming immune to such routines, and the Muji halo has begun to fade in the Chinese market.

From the two quarter of fiscal 2018 to the two quarter of fiscal 2019, the quarterly operating income of Muji's parent company's good plan in the Chinese market increased by 22.6%, 21.2%, 18.3%, 14.8% and 10.4%, respectively, and the growth of operating income showed a gradual slowdown.

In order to defend the Chinese market, the good plan began to adopt a localization strategy in August 2018 to enable the Chinese team to take part in product design and R & D work aimed at the local market.

Prior to that, the work was completed by the Japanese headquarters.

"We want to sell products that are suitable for Chinese market."

Matsuzaki, an excellent producer, gave an example that Chinese consumers feel that the Muji bottle is too small.

Break through the road: high-end, big shop

Whether it is a continuous price cut or a quick opening strategy, we can see Muji's importance to the Chinese market.

The Chinese market is an important driving force in the Muji's mid 2020 business plan.

It plans to reach 500 billion yen in 2020, and 1200 stores in the world. The East Asian market in China is the fastest selling shop in the plan.

In addition to price cuts, opening "big shop" is a new move for Muji in China.

In the past month, Muji has opened two world flagship stores in Nanjing and Hangzhou, the two new ones after Chengdu and Shanghai.

According to the last World flagship store opened at No. 755 Huaihai, Shanghai, it has been 3 years old.

In addition to its larger area and more local features, the world flagship store has more experience and services, such as MUJI books, restaurant / Cafe MUJI cafe, dress matching, furniture matching, customization and exhibitions.

It is still unknown whether we can expand the consumption scenario and open up diversified businesses and become the breakthrough road for MUJI products in China.

However, compared with competitors such as NetEase koala, it has more experience in layout and operation of online retail.

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