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  • Essay / Muji's Business Zen Analysis - 1003

    A company with brand equity would enjoy the benefits of progressive traction, cost advantages and a sustainable price premium. This is what the article shows: “In 2015, MUJI recorded an eighteen percent increase in revenue for the year, to $2.14 billion, and an increase of fourteen for cent of its profits, to 196 million dollars…” (The Commercial Zen of Muji, 2015). ) This demonstrates that MUJI's implementation of an "unbranded" branding strategy worked in their favor, as brand equity increases MUJI's sales growth, thereby inspiring the company to develop on a global scale. From a national retailer, it has grown into a two-billion-dollar independent company with hundreds of stores not only in Japan, but also around the world. At the same time, MUJI continues to expand its product range. Initially, it only offered around forty different products, including snacks and household items. However, it now sells more than seven thousand items, ranging from furniture to cosmetics (basic beauty and skin care products), allowing it to dominate the industry in terms of market share. A brand's market share and profitability can be increased through product positioning. By using its unique way of positioning and branding, MUJI manages to establish and develop its brand image as well as brand identity, which leads to greater brand value. As shown in the article “The Commercial Zen of MUJI,” we can see that brand equity brings benefits to a brand by distinguishing it from its main competitors and creating increased sales growth. Therefore, MUJI gets the potential of higher market share. Therefore, it is necessary to position a brand appropriately and maintain it