The Future of MUJI: A Global Strategy Aiming for 880 Billion Yen in Revenue

Ryohin Keikaku, the company behind MUJI, has announced its new medium-term business plan, aiming to achieve ￥880 biilionn in revenue by 2027. The plan focuses on overseas markets as the main driver of growth, with aggressive store expansion in China and Southeast Asia. In Europe and the United States, the company is prioritizing brand rebuilding after restructuring efforts. Tomo Shimizu, the current Vice President, will assume the role of President, steering the strategy to balance growth in both Asia and Western markets to achieve the ambitious targets.

Here is summary of  Ryohin Keikaku’s new medium-term business plan through FY August 2027.

Sales Targets

• Revenue Goal: ¥880 billion (33% increase from FY24), with overseas business growing 39% to ¥380 billion.
• Store Expansion Plan: A net increase of 60 stores annually, including 30 new stores in mainland China.
• Focus on Overseas Growth: Expansion centered on China and Southeast Asia, with efforts to strengthen the foundation in Western markets.
  • In China: Growth driven by an expanded store network and steady EC sales.
  • In Western markets: Post-restructuring branding efforts aim for growth from FY28 onwards.

Challenges and Solutions

• Re-entering Western Markets: Overcoming challenges such as high-cost store operations and the pandemic’s impact, while improving profitability.
• Sustainability-Focused European Market: Addressing difficulties in differentiation and building a strong brand presence.

Long-Term Goals

• Revenue of ¥3 Trillion: Rebuilding operations in Western markets is key to achieving this target.
• Localized Product Development and In-House Manufacturing: Strengthening competitiveness by meeting the specific needs of each region.

Leadership

• Tomo Shimizu to Become President: Currently serving as Vice President, Shimizu will take over as President on November 23, prioritizing Asian expansion and Western market development while continuing the strategies of the previous president.

Background and Market Response

• Stable Revenue Base in China: A strong foundation in China is critical for achieving the plan.
• Building Global Brand Recognition: Engaging fans in Western markets is essential for global brand establishment.

Shimizu emphasized, “¥1 trillion is not the goal; we aim to achieve it as soon as possible.”

Source: Ryohin Keikaku’s new medium-term business plan announced November 15th 2024.