Analysis of MUJI's Development Strategy in China under the Background of Consumption Downgrade

Abstract

In the current economic environment, Chinese consumers tend to pursue products with higher cost-effectiveness, and the phenomenon of consumption downgrading is significant. This article focuses on the development strategy of MUJI in the Chinese market, aiming to explore the competitive advantages and disadvantages of MUJI in the context of consumer downgrading, and propose corresponding development strategies. The study adopted the SWOT analysis method and focused on the operational data and relevant literature of MUJI in the Chinese market. By analyzing its strengths, weaknesses, opportunities, and threats, the study aims to gain a deeper understanding of MUJI's current development status and challenges in the Chinese market. The research data mainly comes from MUJI's financial reports, data from the National Bureau of Statistics, and relevant market research reports, aiming to provide targeted development recommendations for MUJI to adapt to the changes and challenges in the Chinese market. This study found that MUJI should focus on localized design and production, actively engage in digital transformation, strengthen brand value, and increase experiential retail to adapt to the trend of consumer downgrading, in order to achieve sustainable development in the Chinese market.