MUJI Multiple "New Pricing" Or Will Continue To Cut Prices To Turn Over.

For the high cold MUJI products, the "new pricing" has become a euphemistic and decent discount price reduction strategy.

Recently, MUJI products have been cut again, including star products.

This is the tenth price reduction in China with no prints in China.

However, Muji has been in a bad life in China, and sales in the same market in China have been declining. Recently, the two food products suffered from genetic carcinogens.

One industry insider pointed out to reporters: "Muji has been successively frustrated in the Chinese market, and many price cuts may be a good way to please the Chinese market."

Price cuts have failed to restore the decline. How will Muji go next?

In the past five years, about 2 times a year.

For pricing, Muji is mentioned in the information sent to reporters that it will continue to review the price.

MUJI's "high-end" position is different from other grocery stores.

In the market, the grocery store can get a few yuan to protect the neck. It can easily get 200 yuan for Muji, and sales are good.

"The quality and quality of their homes should be reassured."

A consumer in Wuhan told reporters that Muji was playing the role of green consumption, which naturally led consumers to believe that its quality is environmental protection and pure nature.

Under the promotion of all kinds of labels, Muji has entered the Chinese market smoothly, and there are more than 200 stores in China.

In 2016, Muji finished its best in China.

At that time, Muji finished the gratifying achievement of the annual sales of 307 billion 500 million yen, of which East Asian sales reached 83 billion yen, while about 60% of East Asian business contributed by the Chinese market.

However, such a growth rate halted in 17 years.

Public information shows that in 2017 Q2 to 2018 Q2, its operating income in the Chinese market increased by 22.6%, 21.2%, 18.3%, 14.8% and 10.4%, respectively.

Even worse for Muji, the decline in performance is not just due to price reasons, because Muji has been playing the "price reduction strategy" since entering the Chinese market.

Since October 2014, Muji has launched the "new pricing" strategy 10 times in China, and the frequency of price reduction has basically reached two times a year.

Turning over the trap of "biscuits carcinogenic door"

At that time, manufacturing and retail industry still had high gross profit margins.

But now, the price of manufacturing is more and more pparent, which leads to the shrinking of corporate profits. On this basis, if prices fail to bring about the desired results, the blow will be worse.

Judging from the current performance, frequent "new pricing" initiatives have failed to turn Muji into the Chinese market.

According to the financial report, in the two quarter of fiscal year 2018, the Muji China market declined by 2.2% compared with sales. The half income of the Chinese market in the half year fiscal year was 36 billion 168 million yen, down 0.2% from the same period last year.

From the two quarter of fiscal 2018 to the two quarter of fiscal 2019, the company's operating income in the Chinese market increased by 22.6%, 21.2%, 18.3%, 14.8% and 10.4%, respectively, and the revenue growth slowed down gradually.

In addition, today's grocery stores close to Muji models have sprawled everywhere, and have also created some "muchmen" who have different positioning.

Take the famous brand products, NOME and other brands as examples in recent years, the appearance of the products imitated MUJI products, but the price is relatively low. Some of the explosive products are only 1/4 of the same MUJI products, and quickly seized their marginalized users.

At the same time, NetEase, such as Yan Xuan, has begun to seize the electricity market and make the competition in the grocery market more intense.

MUJI products in China showed a retreat.

"Consumer groups are divided into high and low levels, and there is a big difference between Muji location and famous brand products."

A fast food consumer told reporters: "Muji" in the grocery store "high cold" status and low price competition is still a gap, the future market is very large, there is room for development.

In this regard, industry analysts believe that due to quality upgrading, consumer sensitivity to price is declining, price reduction will not necessarily cater to the needs of consumers, and how to achieve price and quality balance in the future is a permanent solution.

However, the "high cold" status, which is known for its simplicity and quality, is also facing turmoil.

In January 15, 2019, the Consumer Council of Hongkong released a test report that it purchased 58 biscuits from Hongkong from August 2018 to October. Some samples were found to contain genotoxic and carcinogenic epoxide propanol and acrylamide.

In the pre packaged samples that were not pre packaged or exempted from nutritional labels, the content of epoxy propanol and acrylamide in a hazel oatmeal biscuit produced in Malaysia was the highest.

Faced with many doubts, last week, reporters sent an interview outline to the China for printed products. Before the deadline, MUJI China headquarters said it needed time to confirm the problem.