MUJI’s way to build a global brand: integrating value communication into product and store development

Abstract

Purpose

The purpose of this paper is to clarify how to develop a global brand through examining the case of MUJI.

Design/methodology/approach

To build a global brand, a company is required to develop a repeatable business model that turns the source of differentiation into activity systems. So, from this hypothesis, the paper examines how the MUJI strategy worked and failed in the process of rapid growth.

Findings

MUJI succeeded in differentiation by proposing attractive value, developing products embodying its value and establishing its brand image through its stores. However, its rapid growth seriously damaged and diluted its brand image; and MUJI did not build a rational management system to respond to its expansion; consequently, MUJI’s business performance deteriorated. To revitalize its brand, MUJI reconstructed its product and store development and introduced a low-cost operating system through learning from another company.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The case study of MUJI suggests that building a global brand is required to integrate its value communication into product and store development and to develop a business model to sustain its business globally.

Citation

Isomura, K. and Huang, P.-Y. (2016), "MUJI’s way to build a global brand: integrating value communication into product and store development", Strategic Direction, Vol. 32 No. 4, pp. 8-11. https://doi.org/10.1108/SD-12-2015-0193