Answer the price of MUJI products

price

The price issue is the biggest problem MUJI may encounter in China. Every article about Muji that was issued before the Fashion Chinese website could almost meet the challenge of the price of MUJI products.

This price question is not the same as questioning luxury goods. Since Muji is not a luxury, why is it so expensive? This is an interesting topic, although the fact remains that there are some factors regarding the tax. But because it is not a luxury product, if it buys 299 in the same check shirt, and Uniqlo sells 199 or 129, some people find it arrogant or inaccurate. Of course, this part of the population is usually not a loyal customer of Muji.

The problem with this price is that Muji has been solving problems, such as several price cuts. There are several main aspects of price reduction. For example, there are cost reductions in raw material costs and a decrease in imported products. In addition, there are exchange rate factors, and the yen is lower. After the increase in the scale of stores, it can be sacrificed by a certain profit margin. These three factors can be seen as positive and favorable factors. The other, or passive, is the fierce competition in the Chinese market and the need for a price war against other brands, especially the fast fashion industry.

Consumer psychology is related to many aspects such as wealth, education, and personality. Of course, the biggest determinant is price.

Why price is the biggest determinant, because the rich who do not care about prices are always only a few. Therefore, the price as a decisive factor is also discussed in the overall consumer group. If we study the consumption habits of the rich, prices may not be the first deciding factor, or even if it is the first deciding factor, its proportion may not be as large as the public is on the price determinants.

Therefore, for MUJI's emphasis on consumers, the difference between similar products and Uniqlo's dozens or 100 pieces can be offset by the brand's goodwill.

Analogy. The same singer, they are away from the professional singer is a hundred thousand miles away, for the disabled and normal, you may not be the same money.

In addition, the installation of X and vanity are nothing, are psychological needs, is more psychological than physical needs, do not feel LOW, this is an important distinction between humans and other animals as advanced animals.

The consumers of MUJI and Uniqlo and ZARA are all the same group of people and are the most important middle class in China. However, they are a richer class within the middle class, and of course they are smaller.

The small customer group usually represents a small scale, which is certain, but it does not mean that the brand is small. For example, glasses are a small business, but there are also large companies such as Lucentika.

Muji and Jiangnan Puyi can basically represent a specific group within the middle class. Their consumer market is there. How much is it? At present, our statistics are about 26 billion ***. This data is dynamic. There may be about 50 billion in the future, but will it be more? It's hard. But it can achieve 20% of the scale, that is 10 billion. In China, how many brands can reach 10 billion?

Consumer groups are easy to divide. So as a retail brand, do you have to be a chicken or an phoenix? Market segmentation, differentiated competition, I think Muji should be considered a good case.