Core Insights - MUJI is experiencing a wave of store closures in China, including its Beijing Shimao Gong 3 store, which is set to close by August 31, 2025, amidst a changing consumer landscape that favors affordability over premium pricing [1][2] - The brand, which has been a symbol of quality for middle-class consumers since entering the Chinese market in 2005, is now facing intense competition from local brands and online channels that offer lower prices [1][3] Store Closures - The closure trend is not isolated to the Beijing Shimao Gong 3 store; other locations in cities like Shanghai, Changsha, and Suzhou have also announced closures [2] - MUJI has stated that despite the closures, it has opened 19 new stores in mainland China since 2025, maintaining a net growth strategy [2] Market Performance - As of August 18, 2023, MUJI operates 421 stores in mainland China, making it the second-largest market after Japan [3] - The East Asia division of MUJI reported a revenue increase of 14.1% for the nine months ending May 31, 2025, with profits rising by 27.5% [4] Pricing and Competition - MUJI's pricing strategy in China is perceived as high-end compared to its original positioning in Japan, which has led to a mismatch with current consumer trends favoring lower prices [4][5] - Local competitors like Miniso and Xiaomi have rapidly expanded, with Miniso reaching 7,488 stores globally, further intensifying the competitive landscape [5] Future Strategy - MUJI acknowledges the shift in consumer behavior towards quality and purpose-driven purchases, planning to enhance product quality and service competitiveness [5] - The company aims to open approximately 40 new stores annually, focusing on first, new first, and second-tier cities, while also considering potential in third-tier cities [5]

Core Viewpoint - There are two brands named "无印良品" (MUJI), one from Japan and one from China, leading to confusion among consumers due to their similar branding and product offerings [1][4][6]. Brand Comparison - The Japanese MUJI brand is known for its minimalist design and offers a wide range of products including clothing, home goods, and food, while the Chinese brand focuses primarily on bedding and towels [4][5]. - The pricing strategy differs significantly; Japanese MUJI targets the middle-class market with higher prices, while the Chinese brand adopts a more affordable pricing model [5][6]. Trademark Dispute - The trademark dispute between the two brands has been ongoing for 24 years, with the Chinese brand holding a legally registered trademark that predates the Japanese brand's entry into the market [7][8]. - The Supreme People's Court of China recently upheld the validity of the Chinese brand's trademark, which the Japanese brand expressed regret over, stating it would not affect their overall operations in China [7][10]. - The conflict began in 1999 when the Japanese brand failed to register a key trademark category, leading to the Chinese brand's registration in 2000 [8][10].