[Company analysis] Ryohin Keikaku Co., Ltd. (良品計画)

「Ryohin Keikaku Co., Ltd. (良品計画)」operates, develops, manufactures and sells "MUJI" and MUJI branded retail stores. This company sells furniture, clothes, sundries, foods, etc. in Japan and overseas, and also carry out online stores and hotel related businesses. Originally, it was a company that started from the「Seiyu Group」, but after the dismantling of the Saison Group, there is no connection with past brother companies. Only「Credit Saison(クレディセゾン)」is participating in「Ryohin Keikaku」as a shareholder. The number of consolidated employees is approximately 4,795.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Ryohin Keikaku Co., Ltd.
Company name (Japanese)	良品計画
Date of establishment	Friday, May 18, 1979
Headquarters location	〒170-8424 東京都豊島区東池袋4丁目26番3号
Capital	6,766
Consolidated sales	409,697
Consolidated operating profit	44,743
Consolidated total assets	260,075
Consolidated capital	195,189
Capital adequacy ratio	75.1%
Consolidated number of employees	4,795

 

 

 

2. Summary and Features

 
"MUJI", the core brand of the「Ryohin Keikaku」, began with the PB product brand of Seiyu, one of Japan's mass retailers. At that time, the representatives of the「Saison Group」had doubts about the phenomenon that prices would go up just by adding a brand name to a product. Conversely he thought, if they could reduce price by releasing product without brand, this may appeal to consumers. According to this concept, "MUJI" was launched.

 

In fact, the above consideration was correct. So the「Ryohin Keikaku」continued to grow steadily even after the collapse of bubble economy. Rather, long term recession in economy, the products of "Muji" has high cost-efficiency became popular. However, in the 2000s, business performance deteriorated due to the growth of discount stores such as「Don Quijote」. But「Ryohin Keikaku」succeeded in the business reform, so now they recovered their business performance of heyday.

Other companies usually put the designer's name on the product's logo or conduct branding, but in the case of "MUJI", strictly follow its principle that they never writte anything about designer. In other words, "MUJI" is targetting on being the most general product, not the unique product. Accoding to this feature, their items easy to be accepted by various ages, and eventually it has become the brand power.

However, recently,「Ryohin Keikaku」confronted in price competition with「Nitori(ニトリ)」or「Don Quijote」in household goods. To overcome this, "MUJI" started to concentrate on the food business. Because it has a clean image with no brand(no additives used), so other competitors like「Nitori」cannot easily benchmark. However, instead of selling food products sold at convenience stores or supermarkets, they are selling them in their own store.

 

 

 

3. Major Business

 

■ MUJI business
They have developed highly practical products while maintaining the three viewpoints of "Selection of materials", "Inspection of process" and "Simplification of packaging". 

■ Cafe business
They also carry out a cafe business under the name of "Cafe Meal(カフェ･ミール)".

■ Camping business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		333,281	379,551	409,697
Consolidated operating profit		38,278	45,286	44,743
Consolidated total assets		214,705	238,313	260,075
Consolidated net assets		157,018	174,426	195,189
Breakdown of sales	Japan domestic business	215,716	234,791	246,269
	East Asia business	89,704	109,803	122,340
	Europe business	17,603	21,225	24,495
	Southwest Asia・Oceania	10,256	13,729	16,589
	Others	1	1	2