Muji's strategy of offering stylish yet affordable products tailored to local tastes has driven a sales surge in China, and the Japanese retailer now plans to replicate this playbook in the US and Europe.
The China success has lifted parent company Ryohin Keikaku's shares by 64 per cent this year to a record high. Investors are betting that a shift from three decades of Japan-centric management toward stronger regional leadership will support global expansion.
This renewed ambition follows a five-year turnaround launched by former president Nobuo Domae, who transformed Muji from a niche brand into a lifestyle brand with broader appeal. Annual net profit has more than tripled since 2023 to ¥76bn ($482mn), while revenues jumped about 60 per cent to ¥923bn ($5.8bn).
Analyst Sho Kawano of Goldman Sachs noted that international expansion is key, though the challenge remains sustaining progress in marketing, large-format stores and productivity. Muji's China team now leads product development and marketing, launching hits like rice-bran shampoo and cooling-fabric bedding, with sales rising over 16 per cent in the year to August.
Source: Financial Times Companies · Summarized by HeadlinesBriefing