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                           APRIL 9, 2007
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                           Selling Minimalism
                                                                                                                           1. Texas Leads U.S. in
                                                                                              E-Mail This Story               High-Growth Cities
Customer Service
                                                                                              Reader Comments              2. Behind Rising
                           Muji, Japan's unbranded Ikea-cum-Target, is
                                                                                                                              Health-Care Costs
Full Table of Contents     planning its first outlet in America                                                            3. Most Expensive U.S.
Cover Story                                                                                                                   Small Town:
Up Front                                                                                                                      Sagaponack, N.Y.
Up Front -- Analyze This                         It sells sleek and functional designs
Readers Report                                   in a spare retail setting. Its prices      RELATED ITEMS                  4. Hyundai Hopes to
Corrections &                                    can't be beat. And it has legions of                                         Avoid Toyota Trap
Clarifications                                   fanatical devotees. Ikea? Nope. It's                                      5. Toyota's Lost Its
Technology & You                                                                                                              Quality Edge? Not
Media Centric                                    Muji. Though few Americans know it
                                                                                            GLOBAL BUSINESS
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BW MAGAZINE                Muji's full name, Mujirushi Ryohin, translates into "no-brand quality products." This fall,
Get Four Free Issues       the store is heading to the U.S. in hopes of wooing Americans tired of in-your-face logos
Register                   and over-the-top design. "To us, it's all about a product that's simple and functional,"
Subscribe
                           says Tadamitsu Matsui, chief executive of Muji's parent company, Ryohin Keikaku Co.
                           "Once you remove the price tag from our products, there's nothing to indicate what the
Customer Service           brand is."
ONLINE FEATURES
                           But Muji isn't just another generic brand. Its post-industrial designs tap into the less-is-
Book Reviews               more esthetic visible in Japan's temple gardens and haiku. Larger Muji outlets carry
BW Video                   more than 7,000 products that run the gamut from $4 striped socks to a $1,170 front-
Columnists                 loading washer-dryer combo. There's even a line of prefab houses that start at
Interactive Gallery        $115,000.
Newsletters
                           Muji already enjoys plenty of fans overseas. The company has 387 outlets in 15
Past Covers                countries, including 34 stores in Europe, and has been adding a dozen or more annually
Philanthropy               in recent years. To date its only U.S. presence has been at the New York Museum of
Podcasts                   Modern Art (MoMA), where its $8 aluminum business-card holders and $42 collapsible
                           cardboard speakers have been a hit. Muji estimates net profit for the year ended in
Special Reports
                           February rose 9.4%, to $90.7 million, on a 14.5% increase in sales, to $1.3 billion.
BLOGS
Auto Beat                  The question is whether Muji's celebration of the ordinary will play well stateside. The
Bangalore Tigers           Japanese retailer will be taking on heavyweights: Ikea and Crate & Barrel in furniture,
                           Gap (GPS ) in apparel, and Target (TGT ) in housewares, which cater to Muji's intended
Blogspotting
                           audience of consumers in their 20s and 30s. Although Muji hasn't yet determined what it
Brand New Day              will charge for its wares at a new 5,000-sq.-ft. store in midtown Manhattan, its prices at
Byte of the Apple          MoMa's two stores are roughly double those in Japan. Muji "will have to carve out its
Economics Unbound          own place," says David Marra, a retail consultant at a.t. Kearney Inc. in Tokyo.
Eye on Asia
                           Muji's chief is treading carefully. He expects the New York store to turn a profit within a
Fine On Media
                           year; outposts in Boston, Chicago, and San Francisco might follow. While Muji is riding
Green Biz                  the same Japanese pop-culture wave that has landed retailers such as Uniqlo in New
Hot Property               York in the past year, Matsui believes his brand has staying power: "Muji's roots are
York in the past year, Matsui believes his brand has staying power: "Muji's roots are
Investing Insights         Japanese," he says. "But we think our products will appeal for their simple, universal
Management IQ              designs."
NEXT: Innovation
NussbaumOnDesign
Tech Beat                  READER COMMENTS
Working Parents
TECHNOLOGY                   Review: i have never heard of this brand before, but looking at these comments makes me not want to have
                             anything to do with it!
J.D. Power Ratings
                             Date reviewed: Aug 24, 2009 4:43 PM
Product Reviews
Tech Stats                   Nickname: Rei
Wildstrom: Tech Maven
                             Review: Muji is all about minimalist design hype. Muji pays lip service to functionality and value to the customer but
                             they don't stand behind their products. It's all about cheap minimalist design - Ikea for twice the price.
AUTOS                        Date reviewed: Jan 8, 2008 2:56 AM
Home Page
                             Nickname: Yetdesign
Auto Reviews
                             Review: I live in Milan so I know muji quite well. "no brand" yes. but "quality" no. never buy muji textile products. you
Classic Cars                 can only wear them twice.
Car Care & Safety            Date reviewed: Apr 13, 2007 8:35 AM
Hybrids
                             Nickname: Scott
INNOVATION
& DESIGN                     Review: I think the irony of Muji is that, in this age of ubiquitous branding, you have to go to upmarket Muji to buy
Home Page                    items without conspicuous branding. Its about the only place I can go in my city to get a shirt without a logo.
                             Date reviewed: Apr 11, 2007 12:34 PM
Architecture
Brand Equity                 Nickname: Michele
Auto Design                  Review: I live in Milan, i saw Muji last week.. Muji is a nice place, it offers a lot of original and not-conventional
                             ideas.
Game Room
                             Date reviewed: Apr 10, 2007 1:59 PM
SMALLBIZ
Smart Answers                Nickname: ccw
                             Review: Muji's products are execellent counterpoints, bringing Japanese design to the Ikea marketplace, in the same
Success Stories
                             way that Manga is growing in popularity stateside, Muji's goods should find a comfortable audience stateside.
Today's Tip                  Date reviewed: Apr 3, 2007 9:11 PM
INVESTING
                             Nickname: laura
Investing: Europe            Review: Yesterday I was looking up Asian design online; I am excited to get more simplicity for a modest price!
Annual Reports
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Stock Screeners
Free S&P Stock Report      By Kenji Hall, with Elizabeth Woyke in New York
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Mutual Funds                     Recruiting in the Finance Industry? Software for Recruiting, Applicant
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S&P 500                          e-Learning Basics White Paper Download Now. Select the right e-Learning
B-SCHOOLS                        solution to match your corporate goals
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Muji

  • 1.
    Search all ofBusinessWeek.com: enter a keyword or company Register Sign In Subscribe Now Risk - Free Issues Current Issue APRIL 9, 2007 GLOBAL BUSINESS Get Four Free Issues TODAY'S MOST Subscribe to BW Zen And The Art Of STORY TOOLS Printer-Friendly Version POPULAR STORIES Selling Minimalism 1. Texas Leads U.S. in E-Mail This Story High-Growth Cities Customer Service Reader Comments 2. Behind Rising Muji, Japan's unbranded Ikea-cum-Target, is Health-Care Costs Full Table of Contents planning its first outlet in America 3. Most Expensive U.S. Cover Story Small Town: Up Front Sagaponack, N.Y. Up Front -- Analyze This It sells sleek and functional designs Readers Report in a spare retail setting. Its prices RELATED ITEMS 4. Hyundai Hopes to Corrections & can't be beat. And it has legions of Avoid Toyota Trap Clarifications fanatical devotees. Ikea? Nope. It's 5. Toyota's Lost Its Technology & You Quality Edge? Not Media Centric Muji. Though few Americans know it GLOBAL BUSINESS So Fast Business Outlook today, that may soon change. The Business Week News & Insights Russia's New Deal SLIDE SHOW >> Get Free RSS Feed >> Zen And The Art Of Selling Minimalism Global Business Marketing MARKET INFO Environment Managing People Portfolio Service Update Science & Technology Info Tech Stock Lookup Industries Finance Executive Life Enter name or ticker Executive Life -- Parker on Wine Personal Finance Inside Wall Street Figures of the Week Ideas -- Books Ideas -- Face Time with Maria Bartiromo Ideas -- The Welch Way PREMIUM CONTENT MBA Insider BW MAGAZINE Muji's full name, Mujirushi Ryohin, translates into "no-brand quality products." This fall, Get Four Free Issues the store is heading to the U.S. in hopes of wooing Americans tired of in-your-face logos Register and over-the-top design. "To us, it's all about a product that's simple and functional," Subscribe says Tadamitsu Matsui, chief executive of Muji's parent company, Ryohin Keikaku Co. "Once you remove the price tag from our products, there's nothing to indicate what the Customer Service brand is." ONLINE FEATURES But Muji isn't just another generic brand. Its post-industrial designs tap into the less-is- Book Reviews more esthetic visible in Japan's temple gardens and haiku. Larger Muji outlets carry BW Video more than 7,000 products that run the gamut from $4 striped socks to a $1,170 front- Columnists loading washer-dryer combo. There's even a line of prefab houses that start at Interactive Gallery $115,000. Newsletters Muji already enjoys plenty of fans overseas. The company has 387 outlets in 15 Past Covers countries, including 34 stores in Europe, and has been adding a dozen or more annually Philanthropy in recent years. To date its only U.S. presence has been at the New York Museum of Podcasts Modern Art (MoMA), where its $8 aluminum business-card holders and $42 collapsible cardboard speakers have been a hit. Muji estimates net profit for the year ended in Special Reports February rose 9.4%, to $90.7 million, on a 14.5% increase in sales, to $1.3 billion. BLOGS Auto Beat The question is whether Muji's celebration of the ordinary will play well stateside. The Bangalore Tigers Japanese retailer will be taking on heavyweights: Ikea and Crate & Barrel in furniture, Gap (GPS ) in apparel, and Target (TGT ) in housewares, which cater to Muji's intended Blogspotting audience of consumers in their 20s and 30s. Although Muji hasn't yet determined what it Brand New Day will charge for its wares at a new 5,000-sq.-ft. store in midtown Manhattan, its prices at Byte of the Apple MoMa's two stores are roughly double those in Japan. Muji "will have to carve out its Economics Unbound own place," says David Marra, a retail consultant at a.t. Kearney Inc. in Tokyo. Eye on Asia Muji's chief is treading carefully. He expects the New York store to turn a profit within a Fine On Media year; outposts in Boston, Chicago, and San Francisco might follow. While Muji is riding Green Biz the same Japanese pop-culture wave that has landed retailers such as Uniqlo in New Hot Property York in the past year, Matsui believes his brand has staying power: "Muji's roots are
  • 2.
    York in thepast year, Matsui believes his brand has staying power: "Muji's roots are Investing Insights Japanese," he says. "But we think our products will appeal for their simple, universal Management IQ designs." NEXT: Innovation NussbaumOnDesign Tech Beat READER COMMENTS Working Parents TECHNOLOGY Review: i have never heard of this brand before, but looking at these comments makes me not want to have anything to do with it! J.D. Power Ratings Date reviewed: Aug 24, 2009 4:43 PM Product Reviews Tech Stats Nickname: Rei Wildstrom: Tech Maven Review: Muji is all about minimalist design hype. Muji pays lip service to functionality and value to the customer but they don't stand behind their products. It's all about cheap minimalist design - Ikea for twice the price. AUTOS Date reviewed: Jan 8, 2008 2:56 AM Home Page Nickname: Yetdesign Auto Reviews Review: I live in Milan so I know muji quite well. "no brand" yes. but "quality" no. never buy muji textile products. you Classic Cars can only wear them twice. Car Care & Safety Date reviewed: Apr 13, 2007 8:35 AM Hybrids Nickname: Scott INNOVATION & DESIGN Review: I think the irony of Muji is that, in this age of ubiquitous branding, you have to go to upmarket Muji to buy Home Page items without conspicuous branding. Its about the only place I can go in my city to get a shirt without a logo. Date reviewed: Apr 11, 2007 12:34 PM Architecture Brand Equity Nickname: Michele Auto Design Review: I live in Milan, i saw Muji last week.. Muji is a nice place, it offers a lot of original and not-conventional ideas. Game Room Date reviewed: Apr 10, 2007 1:59 PM SMALLBIZ Smart Answers Nickname: ccw Review: Muji's products are execellent counterpoints, bringing Japanese design to the Ikea marketplace, in the same Success Stories way that Manga is growing in popularity stateside, Muji's goods should find a comfortable audience stateside. Today's Tip Date reviewed: Apr 3, 2007 9:11 PM INVESTING Nickname: laura Investing: Europe Review: Yesterday I was looking up Asian design online; I am excited to get more simplicity for a modest price! Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report By Kenji Hall, with Elizabeth Woyke in New York SCOREBOARDS BW MALL SPONSORED LINKS Hot Growth 100 Mutual Funds Recruiting in the Finance Industry? Software for Recruiting, Applicant Tracking, Onboarding, CRM and more! FREE DEMO Info Tech 100 S&P 500 e-Learning Basics White Paper Download Now. Select the right e-Learning B-SCHOOLS solution to match your corporate goals Undergrad Programs Applicant Tracking System Complete Talent Platform, including Applicant MBA Blogs Tracking, Onboarding, CRM and more MBA Profiles MBA Rankings Download: Keeping Talented Employees Download this White Paper for 10 key actions that will help keep talent around. Who's Hiring Grads BW EXTRAS Learn to Harness Volatility Free guide - Spot trends in forex with GFT. BW Digital Buy a link now! BW Mobile BW Online Alerts Get BusinessWeek directly on your desktop with our RSS feeds. Dashboard Widgets Podcasts Add BusinessWeek news to your Web site with our headline feed. RSS Feeds Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or Reprints/ Permissions video. Conferences Research Services To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page Copyright 2007, Bloomberg L.P. Terms of Use | Privacy Notice Media Kit | Special Sections | MarketPlace | Knowledge Centers