Muji: The “no-brand” brand

by EvaLiu

The unique aspects found in a company’s business model is often what sets it apart from competitors and gives it the lead in the industry. Making a unique Muji-Storeyet efficient business model is key to growing the company and expanding into new markets. Take Japanese retailer Muji for example, the retailer, that produces household and consumer goods and known for its “no-brand” philosophy, is set to enter the Canadian market by opening 7-8     stores in the next five years. The brands unique value proposition of environmental friendliness, simplicity, and functionality design sets it apart from many competitors and fits extremely well with Canadians own environmentally clean and stainable image. Though the brand’s image targets and attracts a seemingly specific customer segment (think wealthy and trendy urbanites), the vast assortment of quality everyday products is bound to draw much attention from the mass market. In addition to its unique value propositions, the brand’s distribution channels, as it prepares to launch in the Canadian market, is also quite different. Unlike Target, who has also recently just launched in Canada, Muji does not plan on opening multiple stores at once, but instead focuses on one store per year. This will increase the amount of attention put on each store and will eventually lead to more customer awareness on the brand, and will be perhaps a better idea since despite Target’s vast popularity in the United States, its sales in Canada have seen a steady decrease overtime. 

References:

http://www.huffingtonpost.ca/2014/09/29/muji-canada-toronto-vancouver_n_5902066.html?utm_hp_ref=canada-business

http://www.cbc.ca/news/business/same-store-sales-at-target-canada-tumble-11-in-second-quarter-1.2741617

http://www.cbc.ca/news/business/target-canada-s-failed-launch-offers-lessons-for-other-retailers-1.2711149

http://www.muji.us/