MUJI fell into the altar in the Chinese market
Editor’s note: This article comes from WeChat public account “Zinc scale” (ID: znkedu) , author: Deng Xiao Li Kun Lin into.
The past year has been the most intense year for MUJI.
In 1980, MUJI made its debut in Japan with kraft paper as its background. This simple design has been in use for 40 years. MUJI, which was born in Japan’s bubble economy period, has a long history of development, and its respected persistence and resonance have become the spiritual guidance of many fans and enterprises.
In recent years, the performance of MUJI has been astounding. Product quality problems, frequent price reductions, and localization have emerged. Even on March 18, 2020, its parent company exposed a huge tax evasion scandal. These have severely deviated from their brand tone.
MUJI fell into the altar in the Chinese market. What is “natural and of course” free? What did it do wrong?
Fans who fled
In early March, the largest commercial district in the southwest resumed business. The Muji store on the second floor of the business district also lights up.
As an MUJI iron powder, Zhu Wen has developed to go shopping in any business district. As long as there is MUJI, he will go shopping first.
For many fans, MUJI is not necessarily for shopping, but for the atmosphere. “I like the way the products are displayed and I like the decoration style full of life.” Zhu Wen told Zinc Scales that even his two children like to go to the MUJI sofa home display area at the door and sit on the lazy sofa. Play on.
But as an iron powder for more than ten years, Zhu Wen was disappointed with the recent performance of MUJI.
First of all, the MUJI plant soap soap that he has been using has been difficult to buy for a long time. This time when the business district resumed business, Zhu Wen went to the store as soon as possible, but he lost everything. “Last year, replacement packs started to be out of stock, and later formal packs were out of stock, and they were almost impossible to buy in the end.”
Zhu Wen told Zinc Scale that in fact, the shortage or even the suspension of a product is normal for any brand, but he was disappointed because every time he asked the store staff about the relevant situation, the feedback given by the other party was not Like a bigThe standard of service that a brand should have. “Either answer, I don’t know; or say that I have to ask for a reply and leave it alone”, and the clerk recently replied that the work has just resumed after the epidemic, and all the goods are still on the road. under. But more than half a month later, Zhu Wen still didn’t see the related products appear.
In fact, Zhu Wen found out very early that the MUJI store he frequents has been running out of stock for the past two years, and some of the facial cleansers that have been used before are no longer available. Can’t see it.
Zinc scales were also found in the MUJI area of the MUJI store. There were only a few products such as shampoo and hand sanitizer on the shelves, and all other places were replaced by empty bottles. Some of the previous surplus products have also been dealt with through discount promotions.
Like Zhu Wen, Yang Jing is also disappointed with the performance of MUJI in recent years.
Yang Jing is a freelance photographer, and her daily dress is all MUJI style. She even made her home full of MUJI style. The book MUJI Muji in the bookcase also had an important impact on Yang Jing’s career. “Simple style, cotton and linen quality, and a relaxed lifestyle make me feel very comfortable.” It has made her die for more than a decade.
Yang Jing told Zinc Scales that in the past, it was difficult to find substitutes for MUJI clothing and household products, and the style was very distinctive. “At that time, although the price was relatively high, I was still willing to pay. Now, no Yinliang’s prices are frequently reduced, but the quality of the products is obviously not as good as before. “
Relevant statistics show that since 2015, MUJI has reduced its price in the Chinese market for 11 consecutive times. Some media reports pointed out that MUJI’s price reduction strategy is to “please” Chinese market consumers, but fans do not seem to buy it. Zhu Wen felt that MUJI’s price reduction strategy was actually one of its gradual loss of competitiveness. And Yang Jing said that many domestic brands appearing now are similar to those of the cotton era, and their quality has surpassed MUJI.
The MUJI parent company ’s good product plan for the second quarter of fiscal 2019 shows that as of August 31, 2019, MUJI ’s same-store sales in the Chinese market fell for the first time, with sales falling 2.2%, indicating that fans are fleeing.
MUJI is no longer so “arrogant”, taking the line of catering to the market, and consumer sentiment will wear off. Maybe it is the most true portrayal of its MUJI characteristics.
The “good product” advantage is no longer
Contrary to the original image of MUJI, the news of alleged tax omission has become the most relevant word for it.
On the one hand, the Tokyo Internal Revenue Service considers that the MUJI parent company Co., Ltd. and the Chinese subsidiary are suspected of using “transfer pricing” to evade taxes. Different. “
Later, the Good Product Co., Ltd. has applied for bilateral advance pricing arrangements to the tax authorities in Japan and China. The tax evasion dispute has come to an end, but MUJI’s bad news doesn’t stop there.
To make matters worse, MUJI seems to have gradually fallen from the “high price and high quality” altar.
For example, on January 15, 2019, the Hong Kong Consumer Council issued a test report saying that MUJI sells hazelnut oat biscuits made in Malaysia and contains genotoxic and carcinogenic glycidyl alcohol and acrylamide.
Muji hazelnut oatmeal cookies were found to contain carcinogens
“The quality before MUJI is really good, and the design is relatively simple, which is my favorite style.” Ruby has been a loyal fan of MUJI since college, from stationery and clothing to household items, Almost used to “muji style”.
But Ruby himself ca n’t remember, since when Muji is no longer considered as the first choice, “Muji has become a bit inferior.” Ruby said that Muji ’s food comes from the radiation zone of Japan. When the negative news broke out, he could hardly trust him.
Muji products today seem to be irreplaceable in many aspects such as product design, quality, and price.
Siege of “believers”
In the case of frequent thunderstorms and continued price declines with little effect, MUJI has a greater impact, perhaps due to the lack of innovation and the emergence of many imitators.
Muji Koike, the founder of MUJI, once mentioned, “When we are doing a lot of product development or doing a lot of things, nature is our inexhaustible teacher. MUJI’s philosophy has always been upheld This philosophy. “But this philosophical idea is rare in subsequent innovations.
e.g. 2The first restaurant “MUJI Diner” opened on Shanghai Huaihai Road in June 017 was criticized by many diners as a “restaurant not to recommend”. Only the Muji Hotel that fully implements the “MUJI” style has barely received good reviews, and this also reflects from the side that consumers are more willing to buy, or the original “MUJI”.
The one in front of MUJI is to continue to be a cool self, and the other side is to change itself in response to the market. Obviously, MUJI chose the latter. But it is not thorough enough, so in recent years, we have only seen a erratic MUJI.
Mujin Good Hotel
It is also in this gap that strong competitors are constantly emerging in the market, and it can even be said that they are caught in a battle of hegemony.
The offline stores have a clash between famous brands, Nome and other brands, and online e-commerce companies such as NetEase Yanxuan, Beijing-Tokyo, Taobao Xinxuan, and Mijia Youpin have blocked them. Compared with previous established competitors-Daiso, Uniqlo, Amazon, etc., MUJI appears to be lacking in both the frequency of new products, the interactive suction of joint IP, and online and offline marketing.
Facing the impact of the market and the loss of old fans, MUJI still has the advantages of brand, reputation and feelings. However, under the rapid change of the new retail era, how to attract new fans and enhance user stickiness and loyalty is still an insurmountable obstacle for MUJI.
MUJI, who has always been good at telling stories, may owe a chapter to fans to return to their original stories.