Monday, June 20, 2005
No Brands (Blog referencing my blog subscription)
Came across an interesting article on my blog subscription to Fastcompany, this is about a Japanese "NO BRAND" retailing company Muji. This is kind of interesting to see a successful business with out any brands where in today’s marketing world revolves around the buzzword “Branding”. Secondly lot of business thinks if there is no brand, there’s no business.
I really didn't surprised about the companies success because of following reasons.
1. Companies can market quality goods with no label. There is possibility that brands add additonal price to the product with out adding any additional value to the consumer.
2. Branding is about certain customers, not all customers.
3. Because of high quality goods this store might have "Store loyal" customers.
On the other hand I think they are trying to do too much by eliminating all the brand and labels. They are going to the level of designing a product for their stores, like involving in the design of CD players ...etc. In my opinion company should concentrate more on their core business rather than involving things which might not have much value add to consumers for better business results.
They are also trying to expand to other international markets. It would be interesting to see how they would perform in international markets.
I really didn't surprised about the companies success because of following reasons.
1. Companies can market quality goods with no label. There is possibility that brands add additonal price to the product with out adding any additional value to the consumer.
2. Branding is about certain customers, not all customers.
3. Because of high quality goods this store might have "Store loyal" customers.
On the other hand I think they are trying to do too much by eliminating all the brand and labels. They are going to the level of designing a product for their stores, like involving in the design of CD players ...etc. In my opinion company should concentrate more on their core business rather than involving things which might not have much value add to consumers for better business results.
They are also trying to expand to other international markets. It would be interesting to see how they would perform in international markets.
# posted by Rambo @ 1:37 PM 
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Interesting article; No brand retailing and very succesful! It seems to me however, that this (no brand) can be a problem when expanding to international markets. Certain cultures are very brand-sensitive and buy brand products for status. Also teenagers are very sensitive to brand clothes.
this sentence sums up my perspective:
" Of course, Muji's no-brand stance is a branding exercise in itself."
" Of course, Muji's no-brand stance is a branding exercise in itself."
But someone wearing no-brand Muji's clothes can not proof that these clothes are from Muji's. So will people who believe that brand clothes give them a certain status still want to buy it?
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