30, 000 yen coffee machine drives "MUJI" to make a profit in Japan

MUJI launched the "automatic bean grinding coffee machine" in January this year. Although the asking price is 32000 yen (including tax), it has been out of stock since its advent. Even if the production line is expanded, it cannot keep up with the increase in orders. It is said that goods will not be available before the end of July.

The company that launched the "MUJI" brand quality project company has an outstanding performance. According to the financial results released on April 12, the turnover in 2016 (March 1, 2016-February 28, 2017) was 333.2 billion yen (an increase of 8.4% over the previous year) and operating profit was 38.2 billion yen (an increase of 11.1% over the previous year), representing six consecutive years of growth. The company expects profits to grow by more than 10% in 2017.

Reduce the price of socks and let customers return.

When it comes to the quality project, most people think that it is a retail industry that strives to expand into overseas markets, with more than 200 stores in China alone. However, in 2016, due to factors such as the appreciation of the yen, it was not abroad, but Japan, that drove the growth of performance.

In the face of stagnant consumption, the turnover of existing stores in Japan actually increased by 2.1% over the previous year. Curry-related goods in food and "Yuzhi matcha strawberry chocolate" and "lazybones" in groceries are all popular goods.

Another key is that the clothing category, which was once locked in a bitter battle with the same industry, has now "stopped falling and stabilized". For example, right-angled socks, which were launched in 2006 and are now a signature commodity, have been reduced to three pairs of 990 yen (including tax) from the previous three pairs of 1200 yen (including tax) in late August.

Socks sell so much in clothing that they are regarded as magnetic goods. After the price of socks was reduced in the autumn, the number of customers who bought clothes increased compared with the previous year. The company plans to launch strategic goods based on price in clothing in the future to stimulate customer growth.

Of course it's not just the price. The quality project has always been good at developing unique products, which keeps the domestic performance unchanged.

In January this year, the company launched an "automatic bean grinding coffee machine". Despite asking a price of 32000 yen (including tax), it has been out of stock since its advent, and even expanding its production line has not been able to keep up with the increase in orders. It is said that goods will not be available before the end of July.

President Hsiao Matsuzaki said with a smile: "from the beginning of accepting reservations to April 9, orders have reached 10, 3000 units." The total amount of reservations for our electrical products is more than 400 million yen, which is simply a top seller. "

Use one word to describe the characteristics of this product, that is, "exquisite". The company has jointly developed with home appliance maker Twinbird Industries, such as a bean grinder that allows coffee beans to be ground evenly, with each detail being developed from scratch. Sales methods are also very fastidious, this is the first appointment for the sale of home appliances. One of the reasons for the success of sales comes from the effect of TV publicity, but it is a success story that wins word of mouth not only by price, but also by high added value.

How long will the growth last?

At the same time as the quality plan released its results, it also announced a four-year medium-term business plan up to 2020. the goal is to increase turnover by five percent to 500 billion yen, business profit by 57 percent to 60 billion yen, and the number of stores worldwide to reach 1200. The number of stores in Japan and abroad is expected to reverse in 2017.

For domestic stores in Japan, the company will promote modification and large-scale. "the standard store area is 200 Murray 300 ping, but we will convert the existing store to about 100 large stores with 500 ping," Matsuzaki said. " As for overseas, we will continue to actively display stores in China, with 30 stores scheduled to be opened each year, and existing stores will also be converted.