复旦大学：《中国市场营销 Marketing in China》课堂展示案例_ANGELA LUH & YINHWEE LIM Marketing in China

無印良品 THE BRAND WITHOUT A BRAND A MINIMALISTIC AND CONSERVATIVE APPROACH TO MARKETING ANGELA LUH YINHWEE LIM Marketing in China Fall 13

ANGELA LUH & YINHWEE LIM Marketing in China | Fall ‘13 THE BRAND WITHOUT A BRAND: A MINIMALISTIC AND CONSERVATIVE APPROACH TO MARKETING

MUJI PRESENTATION OVERVIEW 無印良品 IST FASHION MARKET IN CHINA MARKET FIGURES AND MARKET SHARES LEADERS 23 MUJI COMPANY BACKGROUND ITS EXP ANSION IN CHINA BUSINESS MODEL SALES COSTS PROFITS □国国 MARKETINGIRETAILING STRATEGY FOUR PS

1 2 3 Fast fashion market in China: • Market figures and market shares • Leaders MUJI Company Background + its expansion in China Business model • sales, costs, profits Marketing/retailing strategy 4 • Four P’s PRESENTATION OVERVIEW

MUJI PRESENTATION OVERVIEW 無印良品 COMPETITOR ANALYSIS ENGTHS. WEAKNESSES OPPORTUNITIES. THREATS ACTION PLAN

5 6 7 SWOT: Strengths, Weaknesses, Opportunities, Threats Competitor analysis Action Plan PRESENTATION OVERVIEW

Chinas growing fast fashion market and its focus on mass middle apparel market

China’s growing fast fashion market and its focus on mass & middle apparel markets 1

MUJI 無印良品 a brief look at the Chinese apparel mass market

A brief look at he Chinese apparel mass market

MEu Chinas retail and apparel market Expenditure on clothing from 2007-2011 1,800 1.0 120 Annual per Urbanites on average Q.0 disposable spent 1, 674.70 RMB on grew urban art clothing annually, 11% of % grew by their total annual RMB 21.810R expenditures 2.0 0 2007 2008 2010 2011 Per capita urban annual expenditure on clothing Clothing"here i Per capita rural annual expenditure on clothing Share of clothing in per capita urban annual expenditure hats, and other ci Share of clothing in per capita rural annual expenditure Source: National

China’s reail and apparel market: Expenditure on clohing from 2007-2011 Apparel sales grew by 24.2% in 2011, reaching 795.5 billion RMB Annual per capita disposable income in urban areas in 2011 grew by 8.4% to 21,810 RMB Urbanites on average spent 1,674.70 RMB on clothing annually, 11% of their total annual expenditures

MUJI Domestic 無印良品 Lower-tier and rural markets domestic v foreign?/3 Metersbonwe a3/% t wms I ey players Anta (35% 1. Mass market Foreign: 2. Luxury market Urban, first-tier cities 3. fast fashion Top brands by market value 1) Louis Vuitton, 2)Chanel, 3) Gucci Foreign: Characterized by popular designs and affordable prices Expanding into lower-tier citi Most well-known: Zara, Uniqlo, H&M, C&A, Gap

Key players: domestic v foreign? 1. Mass market 2. Luxury market 3. Fast fashion DomesJc Lower-Jer and rural markets Top brands by market value: 1) Metersbonwe (33%), Semir (26%), Anta (35%) Foreign: Urban, first-Jer ciJes Top brands by market value: 1) Louis VuiWon, 2) Chanel, 3) Gucci Foreign: Characterized by popular designs and affordable prices Expanding into lower-Jer ciJes Most well-known: Zara, Uniqlo, H&M, C&A, Gap

MEu Chinas retail and apparel market Changing purchase habits While the majority of Chinese consumers still purchase for need-based reasons. the influence of discounts and the appeal of Influ new fashions has paved way for a new motivato Resp affordable fashion

China’s reail and apparel market: Changing purchase habits Motivators for purchasing new clothing 2011-2012 While he majoriy of Chinese consumers still purchase for need-based reasons, he inluence of discounts and he appeal of new fashions has paved way for a new motivator: “ afordable fashion

MUJI 無印良品 Fast fashion fast manufacturing and affordable prices a smaller inventory that is replenished frequently y smaller initial orders instead of bulk orders allows a company to keep up with current trends and to eliminate products that elicit low sales during an inventory cycle

Fast fashion: + fast manufacturing and affordable prices + a smaller inventory that is replenished frequently + smaller initial orders instead of bulk orders = allows a company to keep up with current trends and to eliminate products that elicit low sales during an inventory cycle

Semir Store count of fast fashion brands in china 2010(blue) and 2011(red) 120 100 0 60 40 0 zara H&M C&A Gap Uniqlo

Store count of fast fashion brands in China: 2010 (blue) and 2011 (red)