MUJI China Has Repeatedly Cut Prices, Can It Retain Chinese Consumers?

China is a country with a strong spending power. Many foreign businessmen focused on this huge market as early as 80s and 90s. Now, many of the products we use are foreign brands. Among them, there is a Japanese chain brand, which has been loved by young consumers in China for many years, and it is Muji.

The Chinese market now has more than 200 stores, but luck has not been accompanied by the growth of its performance in the Chinese market in recent years, which is suffering many difficulties.

MUJI, China's performance has been under pressure, and has repeatedly taken the initiative to reduce prices. Can we retain Chinese consumers?

MUJI was founded in the Great Depression of Japan, and the idea of cheap and good quality and returning to the essence was loved by Japanese domestic consumers, thus occupying a large share of the market.

After that, Muji began to target the international market, especially the Chinese market.

In 2005, Muji opened its first store in Shanghai and announced its official entry into China.

Unlike Japan, Muji is a brand of foreign companies in China, and the first impression is Japanese style. The brand positioning is not the past parity strategy, but has a connection with the middle class, high quality, middle and upper price.

With the increasing number of domestic middle class, people's living standard is getting better and better, especially young people's pursuit of things has undergone a fundamental change. At this time, Muji is just the object that people are willing to pursue in this period.

MUJI is a cheap brand in Japan. It has become a high-end brand in China. Although many people are not willing to accept this phenomenon, it is difficult to block the rapid development of Muji in China in 2012. Almost every year, nearly 40 stores have expanded rapidly. Meanwhile, China's business income has also become an important part of Muji.

But in 2016, Muji's sales performance in China began to decline slightly. When we first entered China, we could often see consumers queuing up to buy, and now the business is relatively bad.

There are probably four factors that affect:

First, there is a big gap between the two standards in terms of pricing. In Japan, the price of Muji is relatively civilian, and the price in China is much higher.

At the beginning, even if we all know this, we will still buy it. Now there are more competitors in the market, and the price of Muji has lost its advantage. After 2015, Muji has taken more than 10 price cuts. It shows the importance of the Chinese market. It also said that the price of the Chinese market will be at the same level as that of the Japanese market by 2020.

Two, the problem of Muji's trademark has a great influence in the Chinese market. Before Muji was introduced into China, it was registered with Beijing Muji Investment Co., Ltd., resulting in the use of MUJI, which could not be used by Muji.

No matter how much the products and shop decorations are similar to Muji, the sale of Japanese Muji has a great impact.

Three, Muji has always been the focus of attention in the quality of products, and there are many problems in recent years.

Including biscuit containing carcinogens, some products sampling quality is not qualified, etc., was also exposed many problems in the 3.15 party, making the brand image in the hearts of consumers greatly reduced.

Four, over the years, many new retail brands have emerged in China, most of which have the shadow of Muji.

A Chinese saying goes like this: "the apprentice of the church, the teacher who starved to death."

MUJI products may be in such an awkward period. The brand represented by "famous brand" is rising rapidly, with internal and external troubles. In this context, the growth of Muji's performance is inevitable.

Fortunately, Muji has made many changes in the Chinese market. First of all, the price of products mentioned just now will drop to the same level as Japan, but at present, this measure has not achieved much success.

In addition, through the current popular scene experience, we use similar IKEA layout to stimulate consumption desire and create a Muji lifestyle.

At the same time, China launched a series of products to meet the needs of domestic consumers. We also see that we attach great importance to the Chinese market. This measure is being used by many foreign companies, and the better result is KFC.

MUJI products, which have been popular in the Chinese market for many years, have realized their plight and actively made corresponding measures. But the market has changed too much. For example, many famous brands, such as famous brands, NetEase, and Xiaomi, have risen and occupied a lot of market share in their relatively superior field. Can Muji still resist pressure and continue to be an era?