Analysis Of The Commercial Zen Of Muji

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Positioning and branding
Positioning is a significant part of organizational or business strategy. MUJI, as a retail company, is consistently successful in branding and positioning within the contemporary global market. This is shown in the article “The Commercial Zen of MUJI” published on The New Yorker on December 2015. Began by describing the scene of MUJI opening a new flagship store on Fifth Avenue in New York, the author introduces the origin and current situation of MUJI. Throughout the article, she explains the ‘no-brand’ branding strategy, and discusses the ways in which MUJI position their brand image in consumers’ minds. MUJI promotes ‘minimalism’ design against waste in packaging and production, emphasizing on recycling and reusability …show more content…

A business with brand equity would have the benefits of incremental attraction, cost advantages and sustainable price premium. It is shown in the article, “In 2015, MUJI posted an eighteen-percent increase in revenue over the year, to $2.14 billion, and a fourteen-percent increase in profits, to $196 million…” (The Commercial Zen of Muji,2015) It demonstrates that MUJI’s implementation of ‘no-brand’ branding has worked in their favor as the brand equity raises MUJI’s sales growth, inspiring the company to expand globally. From a domestic retailer, it has grown into an independent two-billion-dollar company with hundreds of stores not only in Japan but also spread around the world. Simultaneously, MUJI doesn’t stop expanding the range of products. Initially, it only had about forty different products, including snacks and household goods. However, today it sells more than seven thousand items, ranging from furniture to cosmetics (beauty and basic skin care products) which allows it to dominate the industry in terms of market share.
A brand’s market share and profitability can be raised through product positioning. By using its unique way of positioning and branding, MUJI manages to establish and develop its brand image as well as brand identity which lead to greater brand equity. As shown in the article “The Commercial Zen of MUJI”, we can see that brand equity brings benefits to a brand by setting it apart from its major competitors and creating increased sales growth. Consequently, MUJI obtains the potential for higher market share. Hence, it is necessary to appropriately position a brand and maintain brand

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