Fashion
Japan’s Ryohin Keikaku, operator of lifestyle retail store Muji, plans to introduce more in-store services and new concept stores in Southeast Asia, as consumers in the region gain more spending power and their spending habits become increasingly sophisticated.
Satoru Matsuzaki, president of Ryohin Keikaku, told Nikkei Asian Review on Thursday that the company hopes to introduce “Muji Books” space, where curated books on themes such as fashion and interior design will be sold alongside Muji products, in its flagship outlet opening in Singapore next year.
The new store will be the company’s largest outlet in Southeast Asia, and will serve as a showcase to introduce new in-store services in the region, such as home decor consultation, fashion styling and tasting events for new food products.
The company just opened its 10th store in Singapore on Thursday. The 1,000 sq. meter outlet is the second in Singapore to house “Muji Cafe&Meal,” an eat-in space serving healthy meals and desserts. “We want to take this concept to other parts of Southeast Asia, such as Kuala Lumpur,” said Matsuzaki.
The idea is to create a new retail experience to grasp the hearts of young consumers and gain a solid foothold in Southeast Asia’s retail scene. “Foreign brands come and go at a fast pace in Singapore,” Matsuzaki said.
But he remained confident that there is a growing demand for Muji’s simple products as consumers in the region shift away from spending a fortune on luxury brands just to show off. “Consumers in this region are spending more on good-quality everyday items to enrich their everyday lives, and Muji can serve this need,” Matsuzaki said.
Ryohin Keikaku’s Asia strategy has so far been centered around China, where the company plans to have 200 stores by the end of the year. While high-end brands are suffering from sluggish demand amid the economic slowdown, Muji stores in China have seen steady sales growth. The company has already has introduced Muji Books and cafes in China to cater to the changing consumer behavior.
The company’s next bet is in Southeast Asia, where it runs a total of 38 stores in Singapore, Malaysia, Indonesia, Thailand and the Philippines. Southeast Asia’s store sales in the first six months of 2016 on an existing store basis logged double-digit growth year on year, faster than its growth rate in China. Stores in Singapore and Thailand are leading the pack.
The company aims to open about two stores every year in each market in Southeast Asia, and is currently planning to enter Vietnam by the summer of 2017. A new store in Mumbai is set to open on Aug. 5, marking Muji’s first entry into India, followed by another store in Bangalore in September.
