SWOT ANALYSIS

Strengths

• Muji’s strong visual aesthetic, eco-friendly and sustainable practices make for a strong brand identity and a positive consumer perception of the brand. This results in higher brand loyalty and ability for existing consumers to buy into new collections/features introduced by Muji

• High quality, ‘Made in Japan’ identity

Opportunities

• Incorporate the latest technology to increase engagement of desired consumer base

• Expand clothing range into trendier items to attract generation Z and millennials. Consider the use of ‘Beautiful Impermanence’ trend for a limited-edition clothing line

• Consider sourcing and manufacturing locally to reduce overall cost

• If the pop-up store is successful, Muji could consider incorporating those features into their flagship stores

Weaknesses

• Have a very limited clothing range which could discourage generation Z or millennial shoppers who are fashion conscious

• In the UK Muji prices are considerably higher than Japan due to import cost thus becomes out of reach for younger consumers. This could reduce sales from intended target consumer

• Has low engagement with its consumers as they do not use aggressive marketing strategies as it goes against their brand values. Instead word of mouth is relied on (Lau, A. 2014)

Threats

• Retail competitor Ikea has a head start in AR technology and have a strong customer base in the UK which could threaten Muji’s foothold in the market