Figure 17. Organization’s structure of MUJI
MUJI administrative organization is divided into several sectors, including commodity headquarters, marketing headquarters, store development, and more. The main performance sources are 55% articles for daily use, 35% for clothing, 8.5% for food and 1.5% for other businesses. In the growth rate of performance, daily
necessities is also the highest, followed by clothing and food.
In the overseas business department and development department store, MUJI evaluation of overseas location, but also pay attention to the cultural factors, because the Asia Pacific region and Japanese culture are similar, now MUJI also accounted for the bulk of overseas bases in the Asia Pacific region, but also through the world MUJI plan to break the cultural distance, and Japanese culture is also one of its advantages.
When MUJI entered the China market, the trademark encountered plagiarism. After through the China court, they got certification and resolved, and China set up most overseas branches. Evaluation of overseas branch, also put the local economic level into the evaluation project.
2. Human resource management
1) Training and recruitment of employees
The company provides many kinds of courses and activities for employees, and they can learn the experiences from store work and interact with customers.
The training process includes new employee orientation, store learning and course of promotion. The company also holds annual learning courses, occasional lectures and annual training for supervisor.
2) Bonus system and employee benefits
In MUJI, different position will has different benefits.
3. Technology development
1) Product design
Some of the products in MUJI are specially designed. There’s a kind of shoes in MUJI are using a kind of special organic cotton which is not easy to get wet and stains developed by MUJI.
2) Product test
MUJI will double check if customer think their product design or the ingredient are good or need to improve by survey. They indicated that survey is one of their important way to improve their products and services.
3) Production process design
MUJI aims to gives their consumer their lifestyle and products of good quality.
As you can see, all of the packages of MUJI’s products are very simple. That’s not only to show the style of MUJI, but to reduce the unnecessary production process and package.
Figure 18. The concept of “So it is” in MUJI
4. Procurement
1) Shelf
2) Refrigerator 3) Display case
Figure 19. Shelf
Figure 20. Display case
Primary activities 1. Inbound logistics
1) The size of warehouse
MUJI reduce the area of their warehouse and make it only 10 percent big of their store to reduce inventory pressure.
2) Combination of warehouse and store
The open design of combine their warehouse and store can increase product visibility.
3) Evaluation of goods
In terms of commodity development, reduce the initial investment of goods to 80%, and evaluate the goods three weeks later. Sell the best 30% goods and stop selling the goods which are the worse 30%.
2. Operations
1) Branch Management (unified store style)
The biggest feature is minimalism and unified tone. The unified tone lets people feel relax and close to nature. This can make customers have deeper impression on MUJI.
2) Oversee the manufacturing process
Participate in the supervision of the vertical supply chain.
3) SOP manual (Store Service Guide "MUJIGRAM")
The purpose of the SOP manual is to organize a set of standard operating procedure, which includes all working skills and the experiences. The SOP manual could improve working efficiency significantly. For example, MUJIGRAM records
the standard of model’s collocation, the staff need to note the balance of color and do not use too many colors in order to show the simple style. In this way, both manager and staff can implement the style of MUJI. In addition, employees do not have to spend lots of time asking for manager’s advices, they could directly implement according to the guidelines in MUJIGRAM.
3. Outbound logistics
1) Retail store and online shop
MUJI is selling products to customers in both retail store and online shop. You can find MUJI not only in physical MUJI stores, but also in 7-11 and online stores, for example, Yahoo mall and Books.com. MUJI provides multiple ways to easily interact with customers and it also can impress MUJI image in customers’ mind. This activity is combine vertical integration and outsourcing together.
2) POS（Point of sale）
The POS system plays an important role in MUJI. POS system is a kind of widely used electronic systems in the retail, catering and hotel industry, the main function is the statistics of the sales, inventory and customer purchase behavior. The industry can improve the operating efficiency through this system. It can be said to be an indispensable tool in the modern retail business. In terms of store, POS (sales time point system) was adopted, and the warehouse area was reduced from 20% of the original store to 10%, and the open design of "stock and store combination" was adopted to increase the exposure rate and reduce the inventory pressure. MUJI would also analyze the sales data through the POS system, increase the sales volume of the top 30% products, and the back sale of the 30% poor products stopped selling.
4. Marketing & sale
1) The ability of communicate with customers
MUJI would be based on the needs of customers to design and develop products, and they would also use questionnaires to investigate and customers can leave their opinions and suggestions for products on the "quality of life research institute"
website.
2) Customize products
MUJI offered MUJI Yourself service, for example, stamps service, interior advisor, styling advisor and embroidery service. MUJI emphasizes simple style on their products, and they put the concept of “leave blank” in their design to let consumers create their own style on the product. For example, some of the MUJI stores provide seals, so consumers can design their customized notebooks, and they could also make their own bag by sewing patterns or drawing.
3) Promotion
Every year, MUJI will has annual theme. It’s kind of way to give customers different visual experience and impression. And the second way to promote the brand is their employees. Every employees in MUJI know their products well, so they can easily answer the questions from customers. Third, although MUJI emphasize its
“no-brand” philosophy, it still put many efforts on its advertisement. MUJI puts its advertisement on poster, newspaper, movies and magazines and try to deliver MUJI’s thinking and MUJI’s style.
Figure 21. MUJI’s ad Figure 22. MUJI’s ad
5. Service
1) Return and refund
If the received product is a defective product, it will be refunded or exchanged.
You need to afford the freight fee, if the product is non-defective one. And the display products will not provide return service
2) Delivery
Less than 10,000 charge 500 dollars shipping costs; spend more than 10,000 dollars and less than 30,000 will be charged for the sale price of 5% of goods;
purchase more than 30,000 will be free shipping.
3) Warranty
Warranty services are available for large furniture items purchased at MUJI entity outlets and MUJI online stores. To guarantee the warranty period of three years starting from the date of delivery.
4) MUJI Renovation
Interior Advisor
Providing recommendations for interior design and storage solution by using MUJI furniture and try to help consumers to create a relaxing living environment.
Figure 23. interior advisor service
Furniture customize service
MUJI provides customized services on carpets, sofa coverings and tables and chairs, customers can have more options for setting up your home décor by changing the colors, materials, sizes and customize the furniture to give bring a fresh feel in home.
Figure 24. furniture customize service
Figure 25. MUJI passport
5) MUJI passportMUJI passport is a phone application can provide customers’ products scan-searching information, store inventory check, lasts news and accumulate
MUJI mileage. The MUJI mileage can accumulate through shopping or other services and if you reach the threshold level you can get the product coupons.