MUJI Stall in China?
Just now, MUJI (Shanghai) Commercial Co., Ltd. (MUJI China headquarters) denied this.
According to media reports, recently, the good product plan announced the first quarter of fiscal year 2020 performance report shows that in the three months ended May 31, 2019, good product plan sales increased by 5% year-on-year to 112.3 billion yen (about 7.1 billion yuan), and net profit plunged 31% year-on-year to 6.5 billion yen (about 400 million yuan). This is the first time that same-store sales in the Chinese market have fallen.
In this regard, MUJI responded: "We have never announced specific sales figures for the Chinese mainland market, and according to the official IR information that has been released, there are many factual errors in the data mentioned in the report.
The rise of similar domestic brands
MUJI style is no longer unique
MUJI is a brand developed by Seiyo Corporation in 1980. In 2005, MUJI entered the Chinese market. As of February 28, 2019, there were 256 stores in mainland China, accounting for more than half of overseas stores.
A sky eye inspection revealed that MUJI (Shanghai) Commercial Co., Ltd. has a registered capital of 29 million U.S. dollars, and its legal representative is Shimizu. Its business scope includes clothing , apparel , shoes and hats, accessories, daily necessities, kitchenware, sanitary appliances, household appliances, and cultural goods , Parts, flowers, seedlings, food, etc., there are currently 14 foreign-invested enterprises in China, all of which are wholly-owned.
Recently, MUJI announced its entry into the home improvement market, saying it will provide MUJI INFILL home improvement services in China. "From the ground, walls, roof, to storage, kitchen, sofa, bed, shower, bathtub, toilet basic living scene, MUJI INFILL provides a one-stop service from planning adjustment to design and construction to create a living space that is exactly the size required by users . "
After MUJI entered the Chinese market, its unlabeled, value-oriented, and unmodified concepts were favored by domestic consumers. However, in recent years, with the rise of fast-fashion brands in the Chinese local market, competition among similar brands has intensified, and MUJI's style is no longer unique. Netease strictly selected, Taobao selected, Mijia Youpin, made in Beijing ... The brand also pursues simple style in product design and packaging, but the average price is lower than MUJI.
According to surging news reports, MUJI currently sells clothing in mainland China that is 10% more expensive than Japan as a whole, and daily necessities are 20% more expensive. MUJI, the president of the MUJI parent company ’s good product program, said in an interview that MUJI will reduce prices every year through logistics and supplier exchanges, and aims to achieve the same price for Chinese and Japanese products by 2020.
Facing similar competitors, Matsuzaki said: "We have more than 7,000 categories of goods, you can imitate one, two, three, but it is impossible for 7,000 products to do this way of thinking, this is our own strongest I believe that we can do ourselves well, we are not afraid of competition or we welcome such competition. "
Multiple exposures to product quality issues
MUJI becomes "unscrupulous"?
However, MUJI was repeatedly exposed to product quality issues when trying to stimulate sales and save business with price reductions.
On January 15, 2019, the Hong Kong Consumer Council issued a test report that it purchased 58 types of biscuits from August to October 2018 in Hong Kong. Some of the test samples were found to be genotoxic and carcinogenic. Of propylene glycol and acrylamide, one of MUJI's hazelnut oat biscuits originating in Malaysia. Among the tested non-prepackaged or prepackaged samples exempted from nutrition labeling, the highest content of propylene glycol and acrylamide are .
In February 2019, a bottled drinking water "natural water" produced at a plant in Kurobe, Toyama Prefecture, Japan was detected as a suspected carcinogen, bromic acid. MUJI announced the recall of approximately 588,000 bottles including "carbonated water" Bottled drinking water.
In July 2019, the Beijing Bureau of Market Supervision released the results of quality inspection of furniture products in the circulation field. Of the 11 unqualified furniture, 6 were from “Muji”, the main problem was that the nominal material did not match the actual material.
A sky eye inspection revealed that MUJI (Shanghai) Commercial Co., Ltd. had multiple pieces of administrative punishment information. In addition to quality issues and the issue of fake products, it also included advertisements that harmed the country's dignity or interests and leaked state secrets.
In December 2019, MUJI's lawsuit over the trademark dispute was renewed. The Beijing High People's Court made a final judgment and found that MUJI of Japan constituted a trademark infringement on Beijing MUJI, ordered it to stop the infringement immediately, issued a statement, and compensated Beijing MUJI for the economic losses of more than 400,000 yuan.
Subsequently, Japan's MUJI issued a statement saying that the "MUJI" trademark was "sold by other companies' MUJI trademarks" in some product categories, causing its own misuse, and the company has rectified it.
MUJI responds to everything
Said there was no "strong attitude, no sincerity"
According to 21st Century Business Herald, on January 7, Muji responded intensively to some media reports.
In response to "the 11th consecutive price reduction to 'please' Chinese consumers," MUJI said that "the re-examination of prices" is not a blind price reduction for a specific product or category. "
Good at "same store sales in the Chinese market fell for the first time", "net profit fell 31% year-on-year", MUJI said that the content lacks data support, is purely fabricated, or there are obvious errors.
Regarding the report, “Much of the quality issues are identified, MUJI ’s official attitude is very strong, and there is no sincerity to apologize.” MUJI said, “We have actively cooperated with rectification on any product quality issues. , Apologize on official online channels, and provide consumers with returns and refunds, there is no such thing as a strong attitude and no sincerity. "
Source: City of circles: Xiao Lan