Muji Expands in China with Affordable Stores Targeting Middle-Class Shoppers

Ryohin Keikaku, the owner of the Muji retail brand, is set to launch small, low-cost stores in China this summer. These new outlets will cater primarily to middle-class shoppers by offering products priced at 500 yen ($3.20) or less. This strategic move comes after the Japanese retailer's larger stores struggled to attract the middle-class consumer base.

The forthcoming stores represent Muji's first venture into establishing outlets overseas. Ryohin Keikaku currently operates approximately 400 Muji stores in China and heavily relies on supply chains within Asia, particularly China. By launching smaller versions of its outlets in China, the company aims to tap into the vast middle-class market more effectively.

Ryohin Keikaku's decision to focus on China reflects its broader strategy of prioritizing business operations in Asia. The company anticipates facing growth challenges in North America due to potential additional tariffs on Chinese imports imposed by the U.S. under President Donald Trump's administration. As a result, the retailer is concentrating its efforts on solidifying its presence and expanding its footprint within the Asian market.