Marketing case study

236

marketing SPOTLIGHT

MUJI

MUJI was founded in 1980 as a private label for Japanese supermarket The Seiyu. At the time, foreign brands were becoming increasingly popular as the economy grew. As a result, cheaper, low-quality imitation goods became attractive alternatives for budget-conscious consumers. MUJI goods were created to fill the growing market for quality goods that were affordable and long-lasting. MUJI started with 9 household and 31 food products, which were advertised with the slogan "lower priced for a reason." Products were packaged in simple materials such as clear cellophane and brown paper. Over the next couple of years, MUJI expanded its product line to include stationery, clothing, kitchen appli­ ances, and home furnishings. It also began opening its own stores across Japan.

The company's full name, Mujirushi Ryohin, means "no-brand quality goods," a design philosophy that reflects the simplicity and functionality of its products. MUJI claims that its products are "brandless," which means that they do not have logos or distinct markings. They are designed not to stand out, but rather to look minimalist-as MUJI describes them, to be just "enough" to deliver the one function they were designed for. This can be seen in MUJI socks, which are made with a 90-degree angle rather than the normal 120. The right angle helps with heel slippage when the socks are worn inside boots and increases overall comfort. MUJI intends its products to be simple in both function and style, so they can be mixed and matched to suit any user's needs and lifestyle.

MUJI follows three core principles to create quality, minimalist products that anyone can afford. First, MUJI carefully selects the materials used to manufacture its products. The company has been known to use industrial materials that it can buy in bulk at low cost. This concept

started with the food that MUJI carried in the early 1980s; MUJI sold U-shaped pasta after buying the ends of spa­ ghetti cut off after manufacturing, as well as canned salmon made from undesirable parts of the fish. Second, MUJI streamlines its manufacturing process; products typi­ cally use natural or unfinished materials that don't have to be painted or dyed. This not only makes MUJI products uniform in color and material but also creates less waste and reduces costs. Third, MUJI uses bulk packaging for its products, placing them in plain containers. Besides being in line with MUJl's "brandless" philosophy, the minimalist packaging saves resources and keeps the company envi­ ronmentally friendly.

MUJl's "no brand" philosophy can also be seen in its promotional strategy. The company keeps its advertising budget modest by relying on word of mouth to spread aware­ ness. Instead of running huge advertising campaigns on TV and print media, MUJI prefers to reach people through press and in-store events. Resources are invested in the salespeople employed in its physical locations. Locally hired store managers are sent to MUJI offices in Tokyo for training on how to sell MUJI products. By ensuring that customers