all its products, whether luggage, a handbag, or a belt. By modifying its product line to fit the needs of its elite custom- 3. Is thegative? Are there any circumstances in which counter. ers while preserving its iconic designs, Louis Vuitton has feiting can be seen as having some positive aspects? continued offering products that are synonymous with luxury, wealth, and fashion. 84 marketing SPOTLIGHT MUJI MUJI was founded in 1980 as a private label for Japanese supermarket The Selyu. At the time, foreign brands were becoming increasingly popular as the economy grew. As a result, cheaper, low-quality imitation goods became attractive alternatives for budget-conscious consumers. MUJI goods were created to fill the growing market for quality goods that were affordable and long-lasting. MUJI started with 9 household and 31 food products, which were advertised with the slogan "lower priced for a reason." Products were packaged in simple materials such as clear cellophane and brown paper. Over the next couple of years, MUJl expanded its product line to include stationery, clothing, kitchen appliances, and home furnishings. It also began opening its own stores across Japan. The company's full name, Mujirushi Ryohin, means "no-brand quality goods," a design philosophy that reflects the simplicity and functionality of its products. MUJI claims that its products are "brandless," which means that they do not have logos or distinct markings. They are designed not to stand out, but rather to look minimalist - as MUJI describes them, to be just "enough" to deliver the one function they were designed for. This can be seen in MUJI socks, which are made with a 90-degree angle rather than the normal 120 The right angle helps with heel slippage when the socks are worn inside boots and increases overall comfort. MUJ intends its products to be simple in both function and style, so they can be mixed and matched to suit any user's needs and lifestyle. MUJI follows three core principles to create quality, minimalist products that anyone can afford. First, MUJI carefully selects the materlals used to manufacture its products. The company has been known to use industrial materials that it can buy in bulk at low cost. This concept receive a good in-store experience, MUJI has fostered sustainable brand awareness. And by keeping marketing costs low, MUJl can keep its prices low and channel more resources into product development. By promoting itself as the "no brand" brand, MUJI has created a niche that has allowed the company to successfully expand globally. Even though the company offers over 7,000 items, MUJI does not customize its products for particular countries and regions. Rather, MUJI products are designed to fit into households all over the world. Each MUJI product is built for a specific purpose, so it is simple to use. MUJI also employs the same style of store design, layout, and merchandising for all its locations around the world. The uniformity in both retail location and products cuts the costs of regional adaptation. MUJI has stuck to a policy of adding more stores in new countries only when existing ones are running profitably, which has kept profits high and growth stable. Overseas business locations account for the majority of MUJI's stores, with East Asia accounting for the largest share. started with the food that MUJl carried in the early 19805; MUJI sold U-shaped pasta after buying the ends of spaghetti cut off after manufacturing, as well as canned salmon made from undesirable parts of the fish. Second, MUJI streamlines its manufacturing process; products typ be painted or dyed. This not only makes MUJI products uniform in color and material but also creates less waste and reduces costs. Third, MUJI uses bulk packaging for its in line with MUJI's "brandless" philosophy, the minimalist packaging saves resources and keeps the company envionmentally friendly. MUJl's "no brand" philosophy can also be seen in its promotional strategy. The company keeps its advertising budget modest by relying on word of mouth to spread aw TV and print of running huge advertising campaigns on press and in-store, MUJI prefers to reach people through salespeople store events. Resources are invested in the store managers are sent to physical locations. Locally hired on how to sell MUJI products. By ensuring that customers CHAPTER 10 BUILDING STRONG BRANDS 237 MUJI's insistence that its brand values permeate all aspects of the company has contributed to a strong, consistent brand and a sustainable business model. The "brandless" design of its products creates a unique aesthetic: Although MUJI intends its products to look indistinct, they are at the same time recognizable among heavily branded products. Adherence to its three core principles keeps the price of MUJI products low. Combining these advantages with the products simplicity in function and form, MUJI has created a winning combination for global expansion. Since its first store opened in 1983, MUJI has added over 1,000 locations worldwide. 85 Questions 1. What are the key drivers of MUJI's market success? What are MUJI's points of parity and points of difference relative to the competition? 2. What are the pros and cons of using the "no brand" strategy? 3. How should MUJl grow its brand