Muji priced itself as premium in China — then watched cheaper local brands eat its lunch

MUJI, the Japanese minimalist lifestyle brand operated by Ryohin Keikaku, entered China in 2005 and grew rapidly, appealing to urban consumers who valued its clean aesthetic and quality positioning. By the mid-2010s, China was MUJI's second-largest market, and the brand was expanding aggressively with new stores.

But MUJI's pricing in China was significantly higher than in Japan — often 50-100% more for the same products — positioning it as a premium brand. This left it vulnerable when Chinese competitors like NOME, Miniso and NetEase Yanxuan launched with similar minimalist aesthetics at dramatically lower prices. These brands understood the Chinese consumer and the local supply chain in ways MUJI did not.

MUJI's same-store sales in China began declining around 2018-2019, and the company was forced to cut prices multiple times. The stock of Ryohin Keikaku fell sharply. The case illustrated the danger of a foreign brand pricing on its home-market logic without accounting for local competition, and the speed at which Chinese competitors can replicate a brand's aesthetic at a fraction of the cost.