Topic > Muji Business Zen Analysis - 1003

A company with brand equity would have the benefits of incremental traction, cost advantages and a sustainable price premium. It is shown in the article: “In 2015, MUJI reported an 18% increase in revenue over the year, to $2.14 billion, and a 14% increase in profits, to $196 million. .” (The Commercial Zen of Muji, 2015 ) This shows that MUJI's implementation of "no-brand" branding has worked in their favor as the brand value increases MUJI's sales growth, inspiring the company to expand globally. It has grown from a national retailer to an independent $2 billion company with hundreds of stores not only in Japan but also around the world. At the same time, MUJI does not stop expanding its product range. Initially it only contained around forty different products, including snacks and household items. However, today it sells more than seven thousand items, from furniture to cosmetics (beauty and basic skin care products), allowing it to dominate the industry in terms of market share. A brand's market share and profitability can be increased through product positioning. Using its unique way of positioning and branding, MUJI manages to establish and develop brand image and brand identity which leads to greater brand equity. As shown in the article "The Commercial Zen of MUJI", we can see that brand equity benefits a brand by distinguishing it from its major competitors and creating greater sales growth. As a result, MUJI gains the potential for a higher market share. Therefore, it is necessary to properly position a brand and maintain it