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(Yicai) Nov. 7 -- As well as more flagship store openings in major Chinese cities, Japanese clothing and homewares retailer Muji plans to experiment with new formats in its largest overseas market, according to its China business head, who said the local market is recovering quickly.
Muji has hiked its target for store openings in China to 40 to 50 per year, up from a previous goal of 20 to 25, Shimizu said, and the Tokyo-based company will continue to focus on first- and second-tier cities, while also expanding in third-tier cities.
It has 401 outlets in China and has been accelerating its store opening program for three years, Shimizu said.
There have been clear signs of a recovery in the Chinese market since September, according to Shimizu. China’s government has unveiled a major economic stimulus package since that month. The measures announced aim to tackle a range of challenges, including weak consumer demand.
Muji will diversify its product range by bringing out mobile-phone-related items, as well as goods for pets and camping. It will also try new business models, Shimizu said, such as opening specialty stores combining clothing and cosmetics and small stores stocked with everyday essentials to broaden the consumer experience.
The minimalist lifestyle brand has long enjoyed success in China, where it has become a favorite among middle-class consumers seeking simplicity and quality in everyday items.
Localization has been an enduring priority in the Chinese market, Shimizu noted, revealing that about half of Muji goods are designed in China, while about 70 percent of the groceries and food products it offers in the market have been developed locally.
Shimizu also said that 15 percent of the products Muji sells in China are made locally and then exported to other Asian markets. For example, clothing, bedding, and some functional items such as thermos cups, have been developed in the country and then gradually promoted in other Asian markets.
Editor: Tom Litting