Core Insights - The arrival of strong cold air has significantly increased the demand for warming products in Zhejiang, particularly in Chuzhou, where sales of gloves, thermal pants, and thick quilts have surged [1][2]. Group 1: Sales Trends - In Chuzhou, many daily goods stores have prominently displayed thick gloves, fleece hats, and various autumn clothing to attract customers, resulting in a more than doubling of sales for warming products in the past two days [2]. - The demand for warming products extends beyond clothing, with a notable increase in the purchase of bedding items such as cotton quilts, cashmere quilts, and down quilts [3]. Group 2: Consumer Behavior - A home goods store owner reported that items like quilts and bedding sets have seen a significant uptick in sales, averaging around seventy to eighty quilts sold daily in recent days [4].

Core Viewpoint - MUJI is experiencing a wave of store closures in China, with a total of 17 stores expected to close by May 2025, marking a historical high for the company in this market. Despite the closures, MUJI plans to open approximately 40 new stores annually, indicating a strategic shift in its operations [1][7][10]. Group 1: Store Closures - Multiple MUJI stores in key urban areas, including Beijing and Jinan, are closing due to decreased foot traffic influenced by newer shopping centers nearby [2][1]. - The closures are part of a broader strategy to enhance operational efficiency by evaluating the performance of underperforming stores [1][2]. Group 2: New Store Strategy - MUJI has introduced a new store format called "MUJI 500," focusing on lower-priced items, with around 70% of products priced at approximately 25 RMB (500 yen) [4][5]. - The new stores will avoid high-rent core shopping areas, opting instead for locations near subway stations and community hubs, with store sizes around 200 square meters [5][6]. Group 3: Cost Reduction Measures - The "MUJI 500" stores will feature a localized supply chain, with nearly half of the products manufactured in China, significantly reducing logistics costs [6][10]. - The product strategy will focus on existing low-cost items rather than introducing new products, thereby minimizing design and trial costs [6][10]. Group 4: Market Positioning and Competition - MUJI's pricing strategy in China has historically been higher than in Japan, with some products priced 50% to 100% more, influenced by taxes and logistics [7][10]. - The competitive landscape includes brands like Miniso, which has a significantly larger store count and offers lower-priced products, prompting MUJI to adjust its strategy [8][10]. Group 5: Consumer Behavior Trends - The shift in consumer preferences towards value and cost-effectiveness is evident, as younger consumers increasingly seek products that offer better price-performance ratios [12]. - The changing market dynamics reflect a broader trend where consumers are less willing to pay premium prices for brands, favoring essential value instead [12].