Core Viewpoint - MUJI is facing significant challenges in the Chinese market, including high pricing and quality control issues, while attempting to adapt its strategy by introducing lower-priced products and expanding its store presence [4][5][25]. Pricing Strategy - MUJI has been criticized for its high prices, with consumers expressing that the actual prices are often double their psychological expectations [6][9]. - The company has made efforts to lower prices, aiming to align them with Japanese market levels, but still faces backlash regarding its pricing strategy [17][19]. - Comparisons show that prices in Japan are approximately 70% of those in China, indicating a significant markup in the Chinese market [21][19]. Product Quality and Consumer Feedback - There have been multiple complaints regarding product quality, including issues like clothing defects and furniture damage, leading to consumer dissatisfaction [5][9][14]. - The company has faced penalties for selling non-compliant products, with four instances of fines in the past two years [14][15]. Market Competition - MUJI is competing with brands like NetEase Yanxuan, Miniso, and NOME, which offer similar styles at lower prices, challenging MUJI's market position [5][28]. - The introduction of "MUJI 500" stores, focusing on products priced below 500 yen (approximately 25 RMB), is a strategic move to capture the budget-conscious segment of the market [22][30]. Expansion and Market Importance - China is MUJI's largest overseas market, with significant sales growth attributed to this region, including a 21.3% increase in sales in the latest financial report [25][26]. - The company has been actively expanding its store presence in China, with 47 new stores opened by the end of the 2024 fiscal year [22]. Brand Positioning Challenges - MUJI's high-end positioning in China contrasts with its original brand philosophy of simplicity and affordability, leading to consumer confusion and criticism [28][30]. - The company must find a balance between maintaining its brand image and competing on price, as consumers increasingly seek alternatives that offer similar aesthetics at lower costs [33][30].

Core Viewpoint - Muji, a brand known for its light luxury positioning, has been facing consumer complaints about high prices in China despite recent price reductions. The company plans to introduce new stores with products priced around 25 yuan to cater to the budget market [1]. Pricing and Consumer Perception - Consumers have expressed dissatisfaction with Muji's product quality, citing issues such as clothing seams coming apart and poor home goods quality. The brand faces competition from similar style brands like NetEase Yanxuan, Miniso, and NOME, indicating that merely lowering prices may not be the best solution [2][22]. - New product launches have been met with criticism regarding pricing, with some items priced nearly double what consumers find acceptable. This has led to a perception that Muji's prices should align more closely with Japanese prices [3][4]. - Despite some positive feedback on product quality, overall pricing remains above average compared to similar products [4][7]. Market Strategy and Expansion - Muji has been actively reducing prices in China, aiming to align them with Japanese market prices. The company has implemented multiple price cuts since 2014, with reductions of up to 50% on certain items [14][17]. - The company has also accelerated store openings in China, adding 47 new stores by the end of the 2024 fiscal year, bringing the total to 408 [17][18]. - Muji plans to open small stores in China focusing on products priced below 500 yen (approximately 25 yuan), similar to its "Muji 500" stores in Japan, which cater to budget-conscious consumers [18][19]. Importance of the Chinese Market - China is Muji's largest overseas market, contributing significantly to the company's sales growth. In the first quarter of the 2025 fiscal year, sales in China increased by 21.3% year-on-year [19][20]. - The brand has been exploring local market adaptations, including opening a farm concept store in Shanghai and a flagship store in Beijing [19][21]. Competitive Landscape - Muji faces increasing competition from brands that offer similar aesthetics at lower prices, such as Miniso, which has successfully captured market share with its budget-friendly offerings [22][25]. - The brand's high-end positioning in China has led to criticism and a disconnect from its original minimalist philosophy, which resonated well with Japanese consumers during economic downturns [22][23]. Challenges Ahead - Despite recent improvements, Muji must navigate challenges related to its pricing strategy and brand perception in China. The company needs to find a balance between competitive pricing and maintaining its brand identity [23][25].

Core Insights - Muji, a brand known for its light luxury positioning, has faced criticism in China for its high prices despite recent price reductions. The company plans to introduce new stores with products priced around 25 RMB to cater to the budget market [1][13][19] Pricing and Consumer Perception - Consumers have expressed dissatisfaction with Muji's pricing, stating that new product prices are often close to double what they consider acceptable. This has led to a perception that prices should be more aligned with Japanese pricing [2][4][7] - Despite some positive feedback regarding product quality, overall, Muji's pricing remains on the higher end compared to similar products [4][22] Competitive Landscape - Muji faces competition from brands like NetEase Yanxuan, Miniso, and NOME, which offer similar styles at lower prices. The brand must balance its pricing strategy with maintaining its brand image [2][22][23] - The introduction of the "Muji 500" store concept, which focuses on products priced below 500 yen (approximately 25 RMB), is a strategic move to capture market share in the budget segment [17][19] Market Performance and Strategy - China is Muji's largest overseas market, with significant sales growth attributed to this region. The company reported a 21.3% year-on-year increase in sales, largely driven by the Chinese market [19][20] - Muji has been actively expanding its store presence in China, with 47 new stores opened by the end of the 2024 fiscal year, bringing the total to 408 [16][19] Challenges Ahead - Despite recent successes, Muji continues to face challenges in the Chinese market, including maintaining its brand identity while addressing consumer price sensitivity. The brand's high-end positioning may conflict with the growing demand for affordable alternatives [22][23] - The company must navigate the competitive landscape where similar products are available at significantly lower prices, necessitating a careful balance between pricing and brand perception [23]