Course: MBBZ06 Project members:
Class: E1-1 1. 姓名 (Student ID)赵岩 2240005241
Group project: A case study 2. 姓名 (Student ID)谢雲 2240001836
Deadline: Before 24:00, Dec. 4 (Wednesday) 3. 姓名 (Student ID)张澳 2240015694
4. 姓名 (Student ID)王浩兵 2240001455
5. 姓名 (Student ID)梁家榮 2240010682
Marketing Case study: Brand name
1. Brand Overview
MUJI was born in the early days of Japan's 90s when the dream of a real estate
bubble was shattered.
The economy has stagnated in the 80s, and people's desire to spend is generally
low. MUJI uses low prices as an entry point to attract customers, and promotes
"simple and inexpensive products". Through improved processes and simple
packaging, the price of similar competing products has been reduced by 3%.
Cheap, became an obvious label. This was clearly a good move for Muji to quickly
open up in Japan. At its peak, there are shelves on the streets, subway stations, and
even convenience stores in Japan.
But Muji's popularity in China is not because of its cheap price, but because it is
sought after by the middle class. Its popularity is closely linked to the rise of literary
and artistic youth.
China only joined the WTO in 2001 and hosted the Olympics in 2008. At that time,
the society did not know how to run amove, and the aesthetic and consumer needs of
literary and artistic youths were rapid and enthusiastic, projected onto the real thing,
and there was no entrance at all.
In 2005, the advent of MUJI made up for this gap.Based on Kenya Hara's design
ideas of "empty" and "white", it quickly harvested a large number of young people
with a style that "has no brand logo" but "simple and beautiful design". The price
position is in the upper middle range, and then it has become the new favorite of the
middle class.
ean Baudrillard mentioned in "Consumer Society" that when material abundance
reaches a certain level, consumption behavior will replace production behavior and
become the dominant social economy. In the consumer society, consumers are more
interested in the symbolic meaning and symbolic value of goods.
Around 2015, the Chinese market ushered in the heyday of consumer culture.
People's consumption has risen from physical goods to the conceptual level, from
functional attributes to the symbolic level.
On the one hand, brands have been trying to give more spiritual connotation and
cultural value to products for their own premium, ignoring the improvement of the
functional value of products, on the other hand, consumers grasp the symbolic
meaning and symbols behind the goods for conspicuous consumption and pursuit.
This leads to a complete disruption of the balance between the cultural value and the
use value of the commodity. Copying brands is not uncommon, and in a large number
of imitation designs, the exposed letters and canvas patterns everywhere make the
public disgusted with brands with obvious labels. Although "obvious labels" play an
important role in brand image promotion, they can also make people feel "noisy",
although MUJI does not have a brand logo, but the wood color texture and white shell
are still too recognizable.Consumers will think, "People don't know what brand I'm
using, but it's amazing to look at."
In recent years, market competition has gradually increased, the offline space is not
as good as Eslite Bookstore, the online e-commerce can't fight NetEase's strict
selection, and the grassroots market can't beat MINISO. MUJI is also promoting the
concept of "one-stop shopping", which is actually only suitable for e-commerce and
hypermarkets, not for MUJI, which has very limited options to offer. There are too
many competing brands on the market at the same time, and there are too many
choices for consumers. After the brand eats the early dividends, it is difficult to have
that kind of die-hard fans, who maintain a good impression of all the products in a
brand, and generally choose some and some not. Muji extends from home furnishings
and cosmetics to food, and such snack products have low unit prices, high repurchase
rates, and high profit margins. MUJI does not pay attention to localization, and the
designers represented by Kenya Hara have always emphasized the "emptiness" and
"whiteness" of MUJI, and the emptiness in Japanese Buddhism is relatively repressive
and miniaturized, which is closely related to the long-standing low desire of Japanese
society and the caution in the national character. But this kind of thinking does not
have such a strong foundation in Chinese society. Tomoji Shimizu, the new managing
director of MUJI China, will increase the proportion of localized products in the
Chinese market to 50% of the total number of products in the grocery division in
response to the slowdown in the growth rate of the Chinese market. This may be a
compromise in Japanese culture, but it is also a change that must be made.
2. Brand SWOT Analysis
Ⅰ.Advantage
The clerk’s service attitude is serious 、The products are diverse, high-quality, and
the displays have themes 、 Provide online shopping 、 Simple and natural
style、Stationery supplies are popular among students、Save unnecessary packaging
Weakness
II. Weakness
Product unit price is high 、 Product updates are slow 、Insufficient online product
promotion 、 There are not enough outlets, and counters are mostly located in
department stores.
Ⅲ. Opportunity
Modern people pay more and more attention to the quality of life and the texture
and design of supplies.
Environmental awareness continues to increase, and the use of renewable energy is
promoted.
IV. Threaten
There are more and more similar stores and there are many substitutes.
Potential competitors can easily enter.
3. Brand Competitive Strategies
(1). Product
The product philosophy of MUJI is centered on simplicity, environmental
protection, and people-oriented, creating high-quality products. The product line is
extremely rich, covering multiple fields such as home furnishings, clothing,
stationery, and food. The rich product line has multiple advantages and can attract
different consumer groups. For example, young people who pursue fashion and
simplicity may be attracted to MUJI's clothing and stationery; Housewives who value
their quality of life will be interested in their household items and food. MUJI also
focuses on creating distinctive products, constantly experimenting with new materials,
technologies, and design concepts to launch innovative products. In terms of
household items, MUJI's storage box design is also very clever. Using transparent or
semi transparent materials, consumers can clearly see the items inside, making it easy
to search and organize. At the same time, the size and shape of the storage box have
been carefully designed to meet the storage needs of different items. For example,
MUJI's makeup box has multiple compartments inside, which can store cosmetics,
skincare products, etc. separately, making consumers' makeup tables more tidy and
orderly.
(2). Price
MUJI's price positioning is relatively high, but compared to other luxury brands, it
is more affordable. MUJI adopts a "middle ground" strategy, not pursuing market
share at low prices, nor positioning prices too high to lose consumers. In terms of
price, MUJI focuses on balancing consumer demand and company profitability.
The minimalist marketing style of MUJI has a significant impact on its price
positioning, which is reflected not only in product design but also in brand marketing.
The product has already absorbed the ideas and cutting-edge concepts of top designers
during the design process. MUJI has a fixed consumer base, and by capturing the
purchasing desire of this group of consumers, it naturally will not lower its price.
Most consumers will purchase a certain type of product due to the effect of word-of-
mouth. The minimalist style of MUJI sets it apart in the market and provides support
for its higher price positioning. Although this pricing strategy to some extent limits
the size of the consumer group, it also ensures the uniqueness and high-end image of
the brand.
Faced with fierce competition from domestic brands such as NetEase Yanxuan and
Miniso, MUJI has adopted a new pricing strategy for some of its products. By
assigning new pricing to some products, MUJI attempts to lower prices in order to
enhance market competitiveness. For example, MUJI has made price adjustments to
some popular home, food, clothing, and other products. Through a new pricing
strategy, MUJI attracts consumers with more reasonable prices and expands its market
share.
(3). Place
MUJI has over 900 stores worldwide, and its physical store layout
often chooses bustling commercial areas, which usually have a large
customer flow and can ensure that the store has sufficient potential
customers. For example, in the core business districts of first tier
cities such as Shanghai and Beijing, the daily flow of people can
reach hundreds of thousands or even millions. It can attract a large
number of consumers to browse and purchase products in the store.
Secondly, bustling commercial areas can enhance brand
awareness. In these regions, many well-known domestic and foreign
brands often gather, and MUJI is adjacent to these brands, which
can attract more attention with their influence. At the same time,
bustling commercial areas are also the focus of media and social
media attention, with higher exposure of stores, which is conducive
to brand promotion and advertising. The supporting facilities in the
bustling commercial area are complete, and the transportation is convenient,
which can provide consumers with a better shopping experience. Consumers can
reach the store through various means such as subway and bus, and there are also
facilities such as parking lots, restaurants, and cafes nearby, making it convenient for
consumers to rest and entertain themselves while shopping. This also increases the
time consumers stay in the store and increases the likelihood of purchasing.
MUJI's online shopping platform has launched a series of customized services and
promotional activities tailored to the characteristics of e-commerce platforms to meet
the needs of different consumers and attract customers to make purchases. In terms of
customized services, MUJI provides consumers with personalized product
customization options. For example, consumers can choose their favorite colors,
patterns, or materials on e-commerce platforms to customize their own stationery,
household items, etc. This customized service not only meets consumers' demand for
personalized products, but also increases interaction between consumers and brands,
improving consumer satisfaction and loyalty.
MUJI also integrates online and offline channels to achieve complementary
advantages and enhance the shopping experience. On the one hand, MUJI regards
online e-commerce platforms as an important window to showcase its brand image
and product information. Consumers can browse the full range of MUJI products on
e-commerce platforms to understand their features, functions, and usage methods. At
the same time, e-commerce platforms also provide convenient shopping methods,
allowing consumers to purchase their favorite products anytime and anywhere without
being limited by time and space. On the other hand, MUJI regards offline physical
stores as important places to provide high-quality shopping experiences. Consumers
can personally experience the product quality and brand atmosphere of MUJI in
physical stores, and enjoy professional shopping guidance and after-sales service. At
the same time, offline physical stores can also serve as pick-up and return points for
online e-commerce platforms, providing consumers with a more convenient shopping
experience.
（4）.Promotion
MUJI's regular promotional methods include limited time discounts, full gifts,
bundled sales, coupon discounts, etc. At the same time, a membership system is
established to provide exclusive discounts and point redemption benefits for
members, increasing consumer stickiness. In terms of member promotion, MUJI
promotes through official websites, WeChat mini programs, offline stores, and other
channels. On the official website and WeChat mini program, MUJI provides a
detailed introduction to the benefits and advantages of its membership system,
attracting consumers to register as members. Offline stores promote the membership
system through posters, brochures, and other means, allowing consumers to
understand it during the shopping process. In addition, MUJI will regularly send
emails and text messages to members to inform them of the latest promotional
activities and product information, thereby increasing their participation and loyalty.
MUJI also holds various activities, such as handicraft workshops, life lectures, etc.
Social media often posts videos conveying brand concepts to enhance consumer
awareness of the brand.
4. Positioning and Re-positioning Strategies
（1）.Brand Philosophy and Design Philosophy:
Muji is a Japanese household brand with the core concept of "good products
without brand identity," emphasizing simplicity, minimalism, environmental
friendliness, and a human-centric approach. This philosophy reflects the brand's
pursuit of minimalist aesthetics and the "empty" brand concept, allowing consumers
to freely define and interpret Muji.
（2）.Product Positioning:
Muji's product positioning is focused on simple and natural everyday items. The
product development prioritizes natural materials and advocates showcasing the
inherent texture of the products, retaining the original appearance and feel of the
materials. Muji produces goods with simple, basic, and unadorned designs by
selecting quality materials, modifying processes, and simplifying packaging.
（3）. Target Consumer Group
Muji's target consumer group mainly consists of adults aged 18-50, with no specific
age targeting. Customers are predominantly located in first and second-tier cities,
mainly professionals in fields such as the internet, advertising, art, publishing, and
media. These consumers typically seek a simple, comfortable, and quality lifestyle
and are tired of the complicated logos and designs prevalent in the market.
（4）. Market Strategy
Muji's market strategy is reflected in its "penetration power." The brand spreads its
product style and lifestyle philosophy, making Muji not just a brand but also a style of
aesthetics and a way of life. Muji's global flagship stores and advertising strategies,
such as the "like water" advertisement, demonstrate how it seamlessly integrates into
the daily lives of local people.
（5）. Pricing Strategy
Muji is positioned as a mass-market, affordable daily necessity brand in the
Japanese market. However, after entering the Chinese market, its product pricing is
generally higher than in Japan. This price discrepancy reflects the brand's
international strategy and the cost structure of different markets. Nevertheless, Muji's
pricing strategy in the Chinese market has also raised some questions among
consumers.
In summary, Muji's market positioning is a unique brand image that combines
minimalist aesthetics, environmental philosophy, and affordable pricing strategies,
aimed at attracting consumers who pursue a simple and natural lifestyle.
5.Comments
(1). Advantages
Ⅰ.Brand design
Muji's product design style is mainly simple, focusing on practicality and
comfort, while emphasizing the pursuit of product quality. This simple style
reduces the cost of production, in line with the modern pursuit of simple,
natural, relaxed life concept.
II.Diversified product line
Muji's product line is very rich, including household goods, clothing, cosmetics,
food, etc., to meet the needs of consumers in many aspects of life.
Ⅲ. Global vision
Muji seeks inspiration and raw materials around the world, combining cultures
and living habits of different regions to create products with universal appeal.
This global vision and local execution strategy have enabled Muji to achieve
success in different markets.
IV.Supply chain management
Muji collaborates with design masters to explore the essence of various
regions, and introduces the concept of SPA to achieve high profits, select
suppliers, directly participate in product design, manufacturing supervision and
retail, reduce intermediate links, and improve efficiency and profits on the premise
of ensuring product quality.
(2). Disadvantages
Ⅰ.Lack of localization
Due to the large cultural differences between China and Japan, MUJI's
expansion in the Chinese market is limited. For example, the size of the bed did
not meet Chinese standards, which MUJI did not realize until 13 years after
entering the Chinese market and set up a product development team in China. Muji's
pricing did not match its positioning in the Japanese market and was considered a
"light luxury" brand, which was out of line with Chinese consumers' expectations
of Muji.
II.Pricing issues
Some of Muji's products were overpriced, out of line with Chinese consumers'
price sensitivity, resulting in market share being taken by competitors such as
NetEase Yanxuan and Miniso.
Ⅲ. Slow product updates
Muji's product line is relatively slow to update, which can cause consumers to
lose interest in the brand, especially in the fashion and design sector, which seeks
freshness and rapid changes. Long inventory turnaround cycles, hot products
being out of stock, and unpopular products occupying shelves for long periods
of time are issues that indicate deficiencies in Muji's product management and
supply chain optimization.
IV.Frequent quality problems
Muji has had quality problems from time to time in recent years, which has had
a negative impact on the brand's reputation and may lead to a decline in consumer
trust.
To sum up, Muji has obvious advantages in brand design, quality assurance
and diversified product lines, but it also faces challenges such as insufficient
localization, pricing problems, slow product updates and frequent quality
problems. Muji needs to make appropriate local marketing adjustments for
different markets while maintaining its brand characteristics to cope with the
diverse needs of the global market.
6.Reflection from the Case and Compare to a Similar China’s Brand
(1).Comparison between the international brand and the domestic brand
Ⅰ.Brand background and positioning
Muji: Originating from Japan, it carries deep Japanese minimalist aesthetics and
life philosophy, emphasizing "no brand" concept, focusing on product simplicity
design and basic functions, removing unnecessary decorations and brand logos,
providing products that offer value for money, personalized designs, pursuing natural,
simple comfortable lifestles. In its early days in China, it was positioned as mid to
high-end.
Domestic brands: Most of them were founded locally, deeply influenced by
Chinese traditional culture, offering products with good quality but more affordable
prices, paying attention to local market consumers' needs and habits, meeting the
demands of different levels of consumers. In recent years, many brands have also
begun to focus on incorporating traditional elements into their designs, forming
unique brand images.
II. Different product designs
Muji: It focuses on the design and material quality of the product, such as
cooperation with famous designers like Kazuhide Takahama, Kenzo Tange, and
Shigeru Ban, creating products that are both practical and aesthetically valuable,
which has created a distinctive brand characteristic. Among these products, using
environmentally friendly materials not onlv meets modern consumers' health concerns
but also embodies environmental protection concepts.
Domestic Brands:Emphasize affordability, durability, and whether the styles are
aesthetically pleasing according to contemporary mass-market tastes, along with
brand recognition. However, in recent years, domestic brands have increasingly
emphasized innovation and personalization, diversifying their choice of materials to
cater to the needs of consumers across various age groups.
Ⅲ. Market and Consumer Differences
In its home country of Japan, Muji's pricing strategy is geared towards everyday
consumption, featuring high frequency purchases at affordable prices that meet most
consumer expectations. The company tends to locate stores in areas with lower rent or
near convenience stores, effectively reducing costs related to rent, labor, and
electricity.These factors collectively contribute to Muji's success in the Japanese
domestic market.However, upon entering the Chinese market, Muji failed to consider
the specific needs and preferences of local consumers, continuing to apply its
Japanese consumer strategies and expanding primarily in high-rent shopping malls.
This led to increased costs and higher product markups, which did not align with the
local GDP level, resulting in insufficient brand purchasing power due to inadequate
localization efforts.
(2).Recommendations to the domestic brand
Ⅰ.Adhere to core brand values
From the beginning, Muji has insisted on the concept of "no brand + good
quality,"emphasizing the removal of unnecessary brand premiums and focusing on
product quality, design, and practicality. This philosophy has helped Muji build a
strongthem throughout the entire process of product design, production, and
sales.brand image globally. Domestic brands should clearly define their core values
and integrate.
II. Focus on User Experience
Muji pays attention to details in product design, striving to provide the best user
experience.Whether it's home goods or clothing, Muji aims for simplicity without
sacrificing functionality. Domestic brands should pay more attention to the actual
usage scenarios of their products, continuously optimize user experience, and improve
customer satisfaction.
Ⅲ. Emphasize the Power of Design
Muji's design style is simple, practical, and aesthetically pleasing, which has been
widely! appreciated by global consumers. While domestic brands strive for cost-
effectiveness they should not overlook the importance of design.Excellent industrial
design can not only enhance the value of the product but also strengthen brand
recognition.
IV.Emphasize Social Responsibility
Muji sets a good example in environmental protection and social responsibility,
such as using eco-friendly materials and reducing packaging waste. While pursuing
commercial interests, domestic brands should also take on their social responsibilities,
actively participate in public welfare activities, and establish a positive social image.
In summary, Muji's experience tells us that abrand must consistently adhere to its
corevalues, continuously optimize products andservices, actively respond to market
changesand also focus on building and maintaining astrong brand image to achieve
long-term success.
7.References
Reminders:
1. Students can have a group of 5 or 6 students and choose a foreign brand for their marketing case study.
2. A group can write the project paper either in English (with extra credit) or in Chinese (without extra credit).
3. Have 15 pages at most in length, excluding references; Font and format: Times New Roman, 12 points, and single space.
4. On behalf of the group, the team leader is responsible for uploading the group project in PDF to the Moodle system.
5. Before the oral presentation, each group is required to submit a printed copy of their PowerPoint presentation to the
instructor.
