MUJI was founded in 1980. At the time, Japan was experiencing an unprecedented economic boom, and the market was overflowing with flashy and luxurious products. MUJI’s Japanese name, 無印良品 (Mujirushi Ryohin), means “good products without a brand.” This name reflects its philosophy—focusing on the essence of the product itself rather than relying on a brand label. MUJI prioritized simplicity by eliminating unnecessary design and packaging while maintaining high quality. This straightforward approach won people over.
For 20 years, MUJI thrived and was even called the “MUJI Miracle.” But in 2001, it faced a crisis. The company suffered a massive loss of 3.8 billion yen, and people began saying, “MUJI’s era is over.”
Why Did MUJI Struggle?
1. Weakening Brand Value
For years, MUJI had been growing steadily. But for the first time, its profits started to decline. The company had aggressively opened large stores, which required significant investment. To fill these stores, MUJI rapidly expanded its product range—doubling the number of items in just four and a half years. With so many new products, quality inevitably suffered, and there were no standout items to lead the brand forward.
The leadership team had become complacent, believing that as long as they opened stores, products would sell. But competitors studied MUJI’s products and launched similar ones at prices 30% lower. As a result, MUJI lost its unique value.
2. Straying from Its Brand Identity
When brands struggle, they often make panic-driven decisions—venturing into unfamiliar markets, targeting new consumer groups, or chasing trends without a clear strategy. These choices may seem like opportunities, but they often weaken a brand’s foundation.
MUJI made the same mistake. Its original concept focused on natural colors and materials. But in an effort to boost sales, product developers responded to market feedback that MUJI’s colors were “too dull.” They introduced bright, colorful items, hoping this would attract new customers. At first, sales improved. Employees, desperate to turn things around, heavily promoted these products.
But the success didn’t last. People come to MUJI for what other brands don’t offer—its unique simplicity. When MUJI lost that, customers no longer had a reason to choose it over other brands.
As MUJI’s President Matsui put it:
“The core of our brand—using natural colors and materials to create simple products—should never have changed. Adjusting strategies during a crisis is necessary, but if you touch the fundamental pillar of your brand, customers will leave.”
This highlights the importance of CORE vs. MORE in product strategy:
- CORE is the reason customers choose your brand. It’s your foundation. Yet, many brands overlook it when launching new products. MUJI’s failure showed the importance of strengthening CORE first.
- MORE refers to variation—like in music, where variations are built on an original theme. Expanding a brand should be like this: new ideas should still connect to the brand’s foundation. If a brand expands in a way that disrupts its identity, it weakens instead of growing.
3. Inconsistent Execution
A good strategy is meaningless without consistent execution. Customers don’t see strategies; they experience them.
At the time, MUJI relied heavily on individual store managers’ personal judgment. As a result, every store felt different—the layout, the product displays, and even customer service varied. This lack of consistency made it impossible for customers to have a unified brand experience.
How Did MUJI Turn Things Around?
To bring MUJI back to life, two key figures stepped in: President Matsui Tadamitsu and Art Director Kenya Hara. They tackled MUJI’s three major issues, and within two years, the company returned to profitability. By 2005, MUJI achieved record-breaking sales—140.1 billion yen, with a profit of 15.6 billion yen. How did they do it?
1. Refocusing on MUJI’s Essence
MUJI recommitted to its core philosophy—focusing on product essence and quality.
Previously, MUJI’s simplicity was about reducing production processes and packaging. Now, it took this idea further by enhancing the quality of essential products. The shift was subtle but powerful—MUJI moved away from being just a “cheap and simple brand” to one that stripped away the unnecessary while keeping only the best.
Kenya Hara explained it perfectly:
“We don’t design ‘a table for young people’ or ‘a table for an elderly couple’s bedroom.’ Instead, we create tables with the simplest design—so they can fit into any lifestyle, anywhere. That is MUJI’s vision of great design.”
By focusing on timeless, universal design, MUJI returned to its true identity.
2. Strengthening Brand Identify & Visualization
MUJI worked to clearly define its brand philosophy and visually express it. A great example is the “Found MUJI” project launched in 2003.
This project sent MUJI on a journey around the world, searching for timeless, essential products that seamlessly fit into everyday life. MUJI collected and showcased these items, reinforcing its identity.
In 2011, MUJI remodeled its very first store in Aoyama into a Found MUJI concept store—not to sell MUJI products, but to display and sell carefully curated, MUJI-like items from around the world. This became a place where customers could experience the essence of simplicity and thoughtful design.
These efforts strengthened MUJI’s brand identity. Today, whether you see MUJI’s 7,000 products or just one, they all connect harmoniously to form a single world.
3. Creating a Consistent Brand Experience
To provide customers with a seamless, unified experience, MUJI developed MUJIGRAM, a detailed store operations manual. It standardized everything – store layouts, product displays, customer service, and even mannequin styling. By ensuring every store followed the same high standards, MUJI created a cohesive, recognizable brand experience—no matter where customers shopped.
MUJI’s Legacy: A Lesson in Staying True to Your Brand
MUJI’s turnaround proves a powerful lesson: A brand’s true strength comes from staying faithful to its essence.
Even in tough times, chasing trends or quick fixes can do more harm than good. Instead, brands should:
- Strengthen their CORE—the unique value that makes them special.
- Expand through MORE—variations that stay connected to the brand’s foundation.
- Deliver consistent execution—so customers always experience the brand as intended.
Today, MUJI is more than just a brand—it’s a philosophy. A brand that values simplicity, thoughtfulness, and universal design. And that is why people continue to love it.