Core Viewpoint - MUJI is facing significant consumer backlash regarding its pricing strategy, with many customers feeling that the prices are excessively high compared to their expectations and similar products in the market [1][3][7]. Pricing Concerns - Consumers have expressed that MUJI's new product prices are nearly double what they consider acceptable, leading to widespread criticism on social media [1][3]. - Despite some consumers acknowledging the quality of certain products, the overall pricing remains positioned at a higher tier compared to competitors [3][7]. - Specific examples of high pricing include a wooden trash can priced at 158 RMB, which has drawn negative comments from consumers [7]. Quality Issues - There are ongoing concerns about product quality, with reports of items such as shirts and wooden tables experiencing defects shortly after purchase [7][11]. - MUJI has faced multiple penalties for selling non-compliant products in China, indicating potential issues with quality control [11][12]. Strategic Adjustments - In response to consumer feedback, MUJI has made efforts to lower prices in China, aiming to align them more closely with Japanese market prices [13][14]. - The company has implemented significant price reductions, with some products seeing price cuts of up to 50% since 2014 [13]. - MUJI has also expanded its store presence in China, adding 47 new stores by the end of the 2024 fiscal year, indicating a commitment to growth in this market [14][15]. Market Importance - China is MUJI's largest overseas market, contributing significantly to its overall sales, with a reported 21.3% year-on-year increase in sales for the first quarter of the 2025 fiscal year [15][16]. - The company has introduced new store concepts, such as the "MUJI 500" stores, which focus on lower-priced items to attract a broader customer base [14][15]. Competitive Landscape - MUJI faces increasing competition from brands like Miniso and NOME, which offer similar minimalist styles at lower prices, challenging MUJI's market position [17][19]. - The brand's high-end positioning in China has led to criticism and a loss of its original value proposition, making it essential for MUJI to find a balance between pricing and brand identity [17][19].

Core Viewpoint - MUJI is facing significant consumer backlash regarding its pricing strategy in China, with many customers feeling that prices are excessively high compared to their expectations and similar products [3][5][10]. Pricing Concerns - Consumers have expressed that the prices of new MUJI products are nearly double what they consider acceptable, leading to widespread criticism on social media [3][5]. - Despite some customers acknowledging the quality and durability of certain products, the overall pricing remains positioned above the market average [5]. - A humorous trend among young shoppers is guessing the prices of MUJI products, which often exceed their expectations, exemplified by a wooden trash can priced at 158 yuan [9]. Quality Issues - There are ongoing concerns about product quality, with reports of issues such as clothing seams coming undone and wooden furniture cracking shortly after purchase [10]. - MUJI has faced regulatory scrutiny, with multiple fines for selling non-compliant products, indicating potential quality control problems [13][14]. Strategic Adjustments - In response to consumer feedback, MUJI has made efforts to lower prices in China, aiming to align them more closely with Japanese market prices, which are generally lower [15][16]. - The company has been actively expanding its store presence in China, with a net increase of 47 stores, bringing the total to 408 by the end of the fiscal year in August 2024 [16][18]. - MUJI plans to introduce a new store format in China, focusing on products priced below 500 yen (approximately 25 yuan), to attract more price-sensitive consumers [16][18]. Market Importance - China is MUJI's largest overseas market, contributing significantly to its overall sales, with a reported 21.3% year-on-year increase in sales to 197.6 billion yen (approximately 9.4 billion yuan) in the first quarter of the 2025 fiscal year [18][19]. - The company has seen a resurgence in same-store sales in China, with a continuous four-month growth period noted in late 2024 [18]. Competitive Landscape - MUJI faces increasing competition from local brands that offer similar minimalist aesthetics at lower prices, such as Netease Yanxuan and Miniso, which have gained significant market share [21][24]. - The challenge for MUJI lies in balancing its premium brand image with the need to compete on price, as consumers may opt for cheaper alternatives that mimic its style [24].