11 Price Cuts Without Fruit? Muji Is Abandoned By Chinese Middle Class Consumers?

MUJI has been trying to "please" Chinese consumers from "middle class" to frequent price cuts.

Recently, the official WeChat of Muji, WeChat, said: "since March 29, 2019, we have re examined the price. MUJI has developed a series of" China's needs "commodities in China's perspective and made changes for China. The price of 8840 yuan before the bed will be converted to the size of 1.2 x 1.5 meters standard size in China, and the length of the bed and mattress will be changed from 2 meters to 1.95 meters.

MUJI developers said in official micro, "no longer regret because they know that goods do not conform to the" little embarrassment "of" China needs ".

We hope to improve customer satisfaction and enhance the brand 'good sense'.

In addition, the price of the adjusted size product has also been substantially reduced.

Among them, the price of new size bed products dropped to 560 yuan, equivalent to 36% reduction.

At the same time, the price reduction also includes T-shirts, from 78 yuan to 58 yuan; some stationery products, the tag price is 35 yuan, and the discount price is 18 yuan, a drop of nearly 50%.

In fact, in order to seek development in the Chinese market, Muji has introduced "new pricing" measures since 2014, and this adjustment has been the eleventh price cut for Muji in China.

In the industry view, "price reexamination" is the concept of Muji's commodity re pricing strategy, which is "euphemistic and appropriate" with the "new pricing" instead of "big sale".

In this regard, many netizens expressed support for this practice, and some netizens also said that Muji has finally been "enlightened". It has not been easy to make adjustments and changes in the Chinese market for so many years.

In fact, Muji has repeatedly been forced to adjust its price.

According to the 2019 fiscal year results released by the Muji printing company parent company's good plan (hereinafter referred to as "good plan"), the sales of Muji in the first three fiscal season (March 2018 to November) dropped by 9% over the same period last year.

From the time before the price reduction and financial performance, Muji's performance often rebounded after the new pricing was implemented, but this strategy began to achieve little effect in the second half of 2017.

In addition, combing found that in the past two years, the quality of MUJI products sold frequently.

Following the detection of suspected carcinogens in biscuits in January of this year, the suspected bottled water was detected again with suspected carcinogen bromate.

In March 15, 2017, Muji was exposed by CCTV's 315 evening party. Some Chinese food labels on the Japanese food were labeled with Chinese labels, but when the Chinese label was opened, the real origin of these products was revealed, which is suspected to be from Japan's nuclear pollution area.

However, after that, Muji claimed that it was a misunderstanding and said that the origin information on the label was the parent company's name and its legal registration address, not the origin of imported food.

In January 29th last year, according to Xinhua news agency, the first batch of 8 typical cases investigated and dealt with in the special coverage of "question map", which was quoted by the State Bureau of surveying, mapping and geo information, was carried out in the first batch of typical cases in the "Muji" shop. The problem of maps inserted in the catalogue of autumn and winter furniture in 2017 was found to be a problem.

Before March 15th last year, a number of consumers reported to the media that the mugs, cosmetics boxes and other items purchased by Muji shop did not label, could not see the place of origin, material and usage, and the children who had broken the cup were scratched.

In addition, there are several MUJI products in the sale of electronic products, and there is no maintenance service in the Chinese market.

In September last year, a staff member from a shop in MUJI Beijing caused a public outcry because he refused to cooperate with the local industry and Commerce Bureau for sampling inspection.

And shortly after, the local industry and Commerce Bureau informed the official website of the quality inspection results of Muji clothing, and 10 batches of clothing failed, involving problems such as fiber content, color fastness and other indicators.

It is undeniable that Muji has also been repeatedly complained by consumers to store products without labels, unidentified origin, material and usage, quality and worry, as well as a variety of electronic products repeatedly sold by consumers for a long period of time.

At the same time, the market advantage of Muji has been constrained by the attack of various life class e-commerce platforms and offline brand stores.

Today, NetEase, such as Yan Xuan, Xiaomi products, suing poles and other electronic business platforms and famous brand products, NOME, and other offline brand stores want to have a share in the home market.

Insiders say that Internet companies have changed the supply chain to reduce costs through the use of the electricity supplier mode. The implementation of high performance price ratio has made the Internet channel more aggressive than Muji, and has a great impact on MUJI products.

In the industry view, because of the quality upgrading, consumers' sensitivity to price is decreasing. Price reduction will not necessarily cater to the needs of consumers. In the future, how to achieve the balance between price and quality is a permanent solution.