Japan's Muji to expand beauty offering in China

30-Mar-2016 - Last updated on 30-Mar-2016 at 15:51 GMT

Clothing, household goods and cosmetics retailer Muji has China to thank for its record profit in the last financial year of $192 million (US), according to Satoru Matsuzaki, president of the brand’s operator.

Muji is owned and operated by Ryohin Keikaku, and the parent company’s president is keen to emphasise the Chinese market’s role in the brand’s increasing fortunes.

“Consumers in China are increasingly buying lifestyle goods, and they are adopting Muji products for their practicality in terms of quality, functions, design and price,” he recently told the Asia Nikkei Review.

“We are boosting the lineup of domestic appliances and cosmetics. Trying to avoid running out of stocks of popular items by improving the distribution systems [is also helping] greatly,” said the company president.

China expansion

Muji recently established plans to expand its offering further in China: it is set to open a flagship store in Beijing this year, and increase its bricks and mortar presence by 35 new stores a year in the country, and this year aims to bring its total to 200.

Matsuzaki recently told Reuters: “Chinese same-store sales have been up almost 20% year-on-year. Those with high-end goods have been affected, but Mujirushi Ryohin hasn’t seen any impact and don’t see this changing.”

A big part of its success in China is due to a localized business strategy, coupled with a strong brand identity which Chinese consumers are warming to, the Asia Nikkei Review has reported.

"Even as we integrate with Chinese traditional culture and communities, we continue to promote [Muji's] 'feel-good life'" concept”, Masaaki Kanai, president of Ryohin Keikaku, told the media outlet.

The company has reportedly taken the approach of opening in ‘the second-best spot in a prime location’ with its store portfolio expansion.

‘Indigenization’

Matsuzaki states that the company’s key strategy in China is one he describes as ‘indigenization’; altering Muji’s current product offering to meet the specific demands of Chinese consumers.

“For instance, the water bottles and rice cookers we currently have available are popular but too small for Chinese consumers. They need to be altered to meet local demand,” he told the Asia Nikkei Review.