This news made me excited. The Japanese retailer Muji finally decided to open stores in Canada. I am a loyal customer of Muji myself. I just love the “simplicity” of their products, and the quality which goes with a fair price. From the spokesman’s words, I can see that Muji takes this expansion very seriously. Right now, North America contributes a very little part of their revenue, but they still consider as a potential market in the future.

Source of image: nikkeivoice.ca

Expanding overseas may be difficult for a company. I think Muji has done a good job in establishing the brand reputation around the world, but they adopts a “careful” expansion plan in Canada this time. The target is to open 5 to 6 stores in the next 5 years, the speed will increase when it reaches a certain level. It shows their plan may vary with actual situation. The initial plan is to offer just 2,800 items in Canada, a relative low amount of products compare with other countries. I think the reason for being so careful about expansion is just to avoid risk. Muji does not want to open many stores at once, which I think is a good decision, because quality over quantity. They also concern about the high operating cost in Canada, which can be a restraining force indeed, makes pricing a challenge. I agree with Muji’s low cost on advertising strategy and like that “stores are the places to advertise and promote”. There are many other ways to increase brand awareness in marketing. In the end, I hope that good quality and fair price of their products will remain the same and bring Muji a success in Canada.