Goods Converted To "China Size" Muji In Disguise, The Highest Price Cut Again 36%

From the "middle class" to the frequent price cuts, Muji has been trying hard to try the favor of Chinese consumers.

In March 21st, the official WeChat of Muji, China, said: "since March 29, 2019, we have re examined the price. MUJI has developed a series of" China needs "commodities from China's perspective and made changes for China.

The reporter noted that in this round of "continuation of price reexamination" action, Muji has been revised to the standard size of Chinese consumers by using the Japanese standard size of departmental commodities, and the price of such goods has been substantially reduced, with a drop of up to 36%.

MUJI has experienced several rounds of price cuts in China.

When China's market growth is weak, the sensitivity of Chinese and European consumers to commodity prices is relatively low. Is today's Muji back to its old concern?

According to expert analysis, Muji has been a "double-edged sword" for its success in attacking the Chinese market with its simplicity. Now, when the commodity style is similar, the price war is slightly self destructive.

01, localization size in disguised price reduction?

In March 21st, WeChat, a Muji based official, issued a "continuation of price review and change for China".

The reporter found that the bed price of the former price of 8840 yuan will be changed to the standard size of 1.2 meters *1.5 meters in China size, and the length of the bed and mattress will be changed from 2 meters to 1.95 meters.

Immediately after that, Muji developers released a message at the brand official micro office, saying, "no longer regret because they know that goods do not conform to the" little embarrassment "of" China needs ".

We hope to enhance the customer's "satisfaction" and enhance the brand's "goodwill degree".

Although the Muji officials claimed that "meet China's needs", the reporters found that the price of the adjusted size products had also been substantially reduced.

Among them, the price of the new size of bed products is reduced to 560 yuan, which is equivalent to 36% of the original price.

At the same time, the price reduction also includes T-shirts, from 78 yuan to 58 yuan; some stationery products, the tag price is 35 yuan, the discount price is 18, and so on, the price is reduced by nearly 50%.

In order to seek development in China, Muji is the second time this year.

In January this year, reporters visited the Muji shop, learned that clothing, lifestyle and other dozens of products, the price of 4-162 yuan, the magnitude of 6%-30%.

02, the price reduction strategy has little effect?

With "high cold" image into the Chinese market, MUJI products, and "discount" constantly failed to save consumers' attention.

In January 2019, the Muji printing company reported that sales of Muji in China decreased by 4.1% in September 2018 -11, increasing by 2.2% over the second quarter.

In addition, Muji in February 2018 -11, sales of Muji in the Chinese market amounted to about 3 billion 347 million yuan, and same store sales decreased by 1.5%.

The decline in sales in the Chinese market has resulted in a 0.2% decrease in the same store sales of Muji parent companies in overseas markets.

At the same time, Muji has been developing around the Chinese market.

In consumer goods and grocery products, MUJI products are constantly appearing, such as NetEase, Taobao, and Xiaomi.

The selection of e-commerce platform and its own brand are constantly listed.

The ten yuan store in China upgraded to styled superior shop. When competing products entered the market in the same way and style, Muji gradually lost its edge.

03, the past "killer" today's "double-edged sword".

Even if price cuts are frequent, competing products are constantly segmenting the market. Nowadays, it is not easy to mobilize the enthusiasm of Chinese consumers.

There is a view that Chinese enterprises have stronger ability to cope with consumer demand and more room for improving service quality. These are the competitive pressures that Muji needs to face.

Guo Zengli, director of the China shopping union Shopping Center Committee, told reporters that in terms of the overall retail market, consumer behavior is changing gradually due to the upgrading of consumption.

Consumers have higher requirements for product quality, and are more inclined to choose brands with high cost performance and high reputation.

Zhang Shule, an Internet commentator, has issued a point of view that the "killer mace" of the Chinese market was originally a result of "a double-edged sword".

The brand's current price war is to pay for the strategic choice of not paying enough attention to the design and simply taking the national line.

When the commodity style is similar, only the price performance goes up, then the price war is slightly self destructive.

Lai Yang, executive vice president of the Beijing Business Economics Association, also believes that frequent price cuts will lead to a loss of brand image or a vicious cycle of falling prices.

Zhang Shule believes that Muji can not only keep the market through price cuts, but also be competitive, and rely on product design and quality to consolidate market share.