In December 1980, MUJI started as a private brand of The Seiyu, Ltd. (currently Seiyu GK) with only 40 products, using the slogan “Lower priced for a reason.” The MUJI business was spun off from Seiyu into Ryohin Keikaku Co., Ltd. in 1989 and became a manufacturer/retailer for the planning, development, production, distribution and sale of “MUJI products,” which include diverse necessities such as clothes, household articles and food (MUJI now offers more than 7,000 items).
For the MUJI sales business in Japan during FY2009, we reinforced product development, promoting distinctive products with improved texture and functionality, using the catchphrase, “Naruhodo (’indeed’) MUJI.” Having selected 73 items for strategic marketing prioritization, we were able to improve our sales force by combining advertisement & sales promotions with shop floor development. However, while products sold at revised prices enjoyed strong sales, our LFL stores suffered poor sales results particularly in terms of the core product lines, as we failed to offer competitive prices overall. On the other hand, the September launch of a TV commercial to attract more customers proved effective over time, leading to an upward trend in year-on-year rates of customer traffic at LFL stores since December and resulting in a year-on-year sales increase at LFL stores in January. In terms of new store openings, we strived to develop a small-store-based business style, which involves the opening of MUJI.com, with the theme of “A quick shop for daily items at your local store on your local street”; MUJI Beauty, offering mainly skincare goods, cosmetics and small articles for young adult women; and MUJI to GO, opening at stations and airports throughout the world based on the concept of “Travel & Mobile” (Pack and Go). In FY2010, 24 stores, including three small outlets, are to be opened. (One store is to be closed.)
The expansion of MUJI stores overseas started in Europe and Asia in 1991. By the end of FY2009, the number of stores totaled 115, in 17 countries and regions around the world. Across Europe in FY2009, we saw many stores including wholesalers suffer due to the declining economic environment, although in Britain, where LFL stores were refurbished, we enjoyed increased sales in the second half of the year. In Asia, while new store openings forced neighboring LFL stores to struggle in Hong Kong and Taiwan, our aggressive store openings in China contributed to increased sales. In terms of product categories, the percentage of gross profit decreased due to an increase in clothing and sundries inventories to be cleared, but sales of housewares did well thanks to strong sales of small articles in general. In addition, we began to sell food products in China. A total of 20 stores were opened during FY2009, including our first store opening in Indonesia. Above all, we accelerated in the rapidly growing Chinese market, where we opened 8 stores (13 stores as of the end of the fiscal year). We are making company-wide efforts to raise awareness of our brand in China. As a result, China now has the most stores in Asia after Taiwan.
We will continue to expand in FY2010, with plans to open 33 stores a year (with two to be closed), including our first store to be opened in Poland (Warsaw).
The Café&Meal MUJI Business Department, established in 2000, operates Café MUJI and Meal MUJI, with the concept of “simple food”. In FY2009, we experienced strong sales as new stores were opened in response to the relocation and renewal of MUJI Futako-tamagawa in October 2009. In FY2010, we are planning in March to open Café MUJI Atrévie Sugamo adjacent to the small MUJI.com Atrévie Sugamo store.
Under the slogan of “No extra service but nature is abundant,” MUJI operates three campsites: Tsunan Campsite (opened in 1995 in Tsunan-machi, Niigata Prefecture), Minami-Norikura Campsite (opened in 1996 in Takayama, Gifu Prefecture) and Campagna Tsumagoi Campsite (opened in 2004 in Tsumagoi-mura, Gunma Prefecture). The number of registered customers at present is about 120,000. Managing 231 hectares of forest (combining the three campsites), we operate the campgrounds so that they take root in their local communities. For example, we run outdoor classrooms during the Golden Week holiday period and summer vacation, inviting lecturers from the local community. We view this campsite operation as a significant business operation that can contribute to society.
Under the theme of “Living with greenery and flowers,” Hana-Ryohin operates the “Hanayoshi” florists, Hana-Ryohin, and the Internet-based Flower MUJI, aiming to bring people closer to greenery and flowers. To enhance our profitability and achieve new growth, we are currently focused on online sales and developing new products such as floor-sized plants with foliage.
The Living Space Planning Division of MUJI.net proposes a lifestyle based on the MUJI concept of living in a MUJI house, which is constructed in a way so that everyone feels safe and free, and which is durable. MUJI houses are designed by separating the building into two parts: a “skeleton” exterior, which is a very durable box, and the interior “infill”, which can be modified to satisfy various lifestyles. Partitions can be easily moved to match family lifestyles. To meet our customers’ needs, we are currently running sales promotions at 21 model houses installed nationwide, with the focus on three particular products: “Ki no ie (’house of wood’),” which won a good design award in 2006; “Mado no ie (’house of windows’),” which won a 2008 good design award gold prize; and “Asa no ie (’morning house’),” which won a 2009 good design award. In 2010, our business was designated as a “leading model project providing long-term good housing”. We expect that preferential tax treatment as well as the Eco Points program for housing will enable further sales increases.
IDÉE Co., Ltd. is active in the home furnishing business, planning, manufacturing and selling home furniture, interiors and other items. The company is well experienced in manufacturing furniture of its own design as well as furniture devised by product designers. Besides retailing products including its original furniture and sundries, antiques, curtains and rugs, IDÉE engages in space-related production, design and consultation. It also has various other lines of business including restaurants and a flower business. IDÉE proposes comprehensive lifestyles. Our benefit structure was improved in FY2009, thanks to a cost-saving relocation of headquarters as well as increased sales at LFL stores.