Shoppers visit the Muji store at Central Hat Yai Shopping Mall in Hat Yai District, Songkhla Province. The Japanese retailer is also expanding into homes and hotels. (Photo: MUJI Thailand)
Muji brings its minimalist aesthetic to the home.
The Japanese retailer, known for its simple, monochrome stationery, apparel and homewares, expects there will be just as much demand for no-frills homes and hotels, and is expanding its range of Muji-style accommodations at home and abroad. We are planning to increase the number.
“The concept is to build a huge accommodation service,” Hidetomo Nagata, executive officer and head of social goods and space design at Ryohin Keikaku, the brand's parent company, said in an interview. “Muji products are still strong, but we want to expand into this new lifestyle category.”
Earlier this month, Ryohin Keikaku announced MUJI STAY, a new business that brings the retailer's existing hotels, residences, and camps under one umbrella. In the future, we plan to renovate existing inns and hotels that are expected to be aging or lack funding, and to add projects such as “MUJI room,'' a space equipped with amenities such as bedding and pajamas. Fully remodeled.
Ryohin Keikaku, which will report its annual results on Friday, has seen strong growth in Japan, East Asia and the Americas. At the same time, the brand recently filed for administration of his Muji Europe Holdings in the UK due to poor performance. According to the company's January report, profits in the ASEAN region have also declined due to upcoming renovation costs and weak sales in Singapore, and sales in mainland China remain below levels from two years ago.
Muji could tap into new sources of revenue by leveraging its minimalist-chic philosophy. Boutique hotels, or small accommodations with a local feel, are on the rise, with the market expected to grow from $99.5 billion last year to $155.7 billion by 2030.
Mr. Nagata said, “We have a variety of facilities, and we believe this will be a source of revenue for our business.''
MUJI currently operates three hotels, one in Tokyo's upscale shopping district of Ginza, and one each in Beijing and Shenzhen, China. Nagata said rooms are often filled months in advance, indicating that new rooms may be available not only in Asia but also in the United States and Europe.
The minimalist brand also helped breathe new life into the housing complexes and public and semi-public housing built to support Japan's post-war economic recovery. Muji sought to attract residents seeking affordable housing by updating kitchens and bringing outdated features up to date. Daisuke Aiba of Iwai Cosmo Securities said the project was likely the starting point for Muji's plans to focus on housing and hotels.
“The renovation of the housing complex was quite successful,'' says Aiba. “Their thought process is that if they keep expanding that model, they can increase sales.”
A key part of the company's strategy centers around Airbnb rentals called MUJI BASE in Japan's culturally rich regions. Operating in more remote areas than Muji's urban hotels, this rental property introduces visitors to places they might not otherwise visit. Located in Kamogawa, about a 90-minute drive from Tokyo, this hotel is a renovated 100-year-old traditional wooden Japanese house near beautiful mountains and rice fields.
Mr. Aiba says, “We are aiming for faraway places and old houses, not famous locations, so we are trying to create a model with less competition.''
Muji plans to open about five more rental rooms and rooms this year, including one in Teshima later this month and another in Otaki Town, a prefecture next to Tokyo, this fall. Muji said it has received inquiries from local governments who would like to introduce such accommodations in their towns.
The broader goal, Nagata said, is to encourage people to stay longer and visit a destination multiple times, and to not only sell high-quality, affordable products, but also to promote local and He cited the company's 2030 vision, which aims to have a positive impact on its residents.
Mr. Nagata says, “I hope that in the future, MUJI fans will become local fans.''