Core Viewpoint - The Chinese beauty market is evolving towards ingredient-focused skincare, with consumers increasingly valuing natural efficacy and cost-effectiveness, as exemplified by MUJI's new "Rice Bran Fermentation Essence Series" which combines natural ingredients with a competitive price point [3][4][21]. Group 1: Product Innovation - MUJI's "Rice Bran Fermentation Essence Series" emphasizes the dual core of "natural ingredients" and "value for money," introducing the concept of "Step 0" in skincare, which aims to prepare the skin for subsequent products [5][10]. - The series utilizes rice bran, a byproduct of rice processing, which is rich in nutrients and has been historically recognized for its skincare benefits [6][8]. - The fermentation technology used in the series enhances the bioavailability of active compounds in rice bran, resulting in a product that is both effective and environmentally friendly [8][12]. Group 2: Market Positioning - The pricing strategy of MUJI's new series positions it within a high-value segment, offering quality comparable to premium products while maintaining a competitive price, thus challenging the stereotype that natural skincare equals high prices [21][24]. - The series is priced at approximately 128 RMB for the essence and 98 RMB for the essence water, appealing to consumers seeking effective yet affordable skincare solutions [16][26]. - The product's launch in China follows a successful introduction in Japan, where it quickly gained popularity, indicating strong market demand for such offerings [19][21]. Group 3: Consumer Insights - There is a growing consumer demand for gentle yet effective skincare products, as many existing high-potency products can burden the skin barrier, leading to a cycle of sensitivity [25][27]. - MUJI's approach addresses this need by combining natural fermentation with skin-friendly ingredients, ensuring both efficacy and gentleness [25][30]. - The brand's commitment to a philosophy of "natural power" resonates with consumers who value sustainability and simplicity in their skincare choices [34][35]. Group 4: Brand Strategy - MUJI's success in the Chinese market reflects a deep understanding of consumer behavior, moving away from trends towards a consistent brand philosophy centered on natural ingredients and sustainable practices [32][34]. - The brand has cultivated a loyal customer base by maintaining its core values and gradually building brand awareness over two decades, rather than chasing fleeting market trends [40][41]. - MUJI's ongoing product development and market expansion indicate a strategic focus on enhancing its presence in the natural skincare segment, with plans for additional product lines [41][42].