In 2005, Muji, the Japanese lifestyle retailer, established its first store in Mainland China at one of Shanghai’s prime retail destinations, Nanjing West Road. Today, 20 years later, the company has adopted a subtler growth approach in China. Despite making adjustments to its store network, including closing some retail locations as part of its standard optimization, Muji’s focus remains on expansion, localisation, and fostering a deeper engagement with customers.
China is currently Muji’s largest foreign market with over 400 stores. The brand’s growth strategy in the region is increasingly focusing on local product development, flagship store experiences, and the integration of online and offline retail.
Muji’s Strategic Approach
According to Shu Wu, a board member and CMO, China, the focus is not only on launching more stores but also ensuring that the brand remains relevant as Chinese consumer behaviour transforms.
“Muji strives to be a fundamental brand for a superior lifestyle,” Wu stated. She highlighted that the brand’s intention is to support a lifestyle that is both materially and spiritually rich while using as few resources as possible. The brand’s philosophy is centred around the ‘Power of Nature’ concept, which manifests in the production of goods from natural materials and minimal disturbance of nature, resulting in a sustainable and truthful lifestyle for everyone.
Moreover, Wu emphasized that expressing this philosophy in China requires a stronger local connection. She stated, “In the local market, while staying true to this positioning and approach, Muji places even greater emphasis on local connections. With respect for Chinese nature, culture, and society, we continue to deepen our roots here.”
Competitive Stance and Digital Growth
In an increasingly competitive market with brands such as Miniso and other lower-cost alternatives, Muji’s approach is not to compete solely on price. Instead, the company focuses on reinforcing product quality, purpose, and relevance.
Furthermore, as the brand continues to invest in physical stores, China’s digital ecosystem has become a significant part of its overall retail strategy. Wu revealed that e-commerce now accounts for more than 20% of Muji’s total sales in the local market. The company views online and offline channels as complementary, enhancing the consumer experience instead of competing with each other.
Muji sees its next stage of growth in China as less about defending its existing position and more about adjusting its global brand philosophy to a changing local market.
Questions & Answers
What is Muji’s growth strategy in China?
Muji’s growth strategy in China focuses on expansion, localisation, and fostering deeper engagement with customers. The company aims to stay relevant as Chinese consumer behaviour transforms.
How is Muji competing in an increasingly competitive market?
Muji’s approach to competition is not to compete solely on price. Instead, the company focuses on reinforcing product quality, purpose, and relevance.
What role does digital growth play in Muji’s strategy?
Digital growth plays a significant role in Muji’s strategy. With e-commerce accounting for over 20% of Muji’s total sales in the local market, the company views online and offline channels as complementary, not competitive. The brand aims to enhance the customer experience across all platforms.
