Core Viewpoint - Muji, a Japanese brand known for its minimalist design and high quality, is facing a wave of store closures in China, raising questions about the underlying reasons for this trend [1][3]. Group 1: Store Closures - Muji has announced the closure of several stores in major cities such as Beijing and Shanghai, indicating a significant retreat from previously thriving locations [1]. - The company claims that these closures are part of a normal adjustment based on operational efficiency, responding to declining foot traffic in certain shopping districts [1]. Group 2: Market Challenges - Muji's pricing strategy in China contrasts sharply with its "low-price" philosophy, as basic items like cotton T-shirts are priced above 100 yuan, while similar domestic brands offer comparable quality at about one-third of that price [3]. - Increased competition from both local brands, such as Miniso and KKV, and international players has further squeezed Muji's market space, making it difficult for the brand to maintain its position [4]. Group 3: Strategic Positioning - Muji's "middle-ground" strategy has shown weaknesses, lacking the cultural value to support premium pricing and failing to establish a cost advantage like budget brands [4]. - To address these challenges, Muji needs to enhance its competitiveness by localizing product development to meet Chinese consumer needs and improving supply chain management to reduce costs through technological innovation and economies of scale [4].