MUJI company business model
Muji is a Japanese retail company which sells a wide variety of household and consumer goods. It is distinguished by its design minimalism, emphasis on recycling, avoidance of waste in production and packaging, and no-logo or “no-brand” policy.
The name of the company, Muji is derived from the first part of Mujirushi Ryohin, translated as No brand Quality Goods on Muji’s European website. The company started with 40 products during the 1980s and their products range from stationery and clothing for men and women to food and major kitchen appliances and has even included an automobile.
Its primary business includes: Café Muji, Meal Muji, Muji Campsite, florist and even home furnishing. The company has also engaged in architectural projects such as the Muji houses.
By the end of the 2000s, Muji sells more than 7000 products. It is positioned as a reasonably priced brand, keeping the retail prices of products lower than usual by the materials it selects, streamlining its manufacturing processes, and minimizing packaging.
In Japan, the company had directly operated 262 stores and supplied 117 outlets as of February 2013. In August the same year, there were 205 International retail outlets which included UK, France, Italy, Germany, Ireland and Malaysia among many more.
Muji’s no-brand strategy means that little money is spent on advertizing or classical marketing, and its success is attributed to word of mouth, a simple shopping experience and the anti-brand movement.
This strategy also means that its products are attractive to customers who prefer unbranded products for aesthetic reasons, and because it provides an alternative to traditional branded products.