Japanese retailer Muji is betting on its value-for-money skincare products to drive growth at home and abroad. These items, featuring simple formulations and transparent labeling, have doubled in revenue recently. The company targets a significant operating profit increase by 2028.
Muji, the Japanese retailer famous for minimalist household goods and unbranded clothing, is positioning its rapidly expanding skincare line as a key driver for future growth domestically and internationally. Mariko Ohashi, director of household merchandising at parent company Ryohin Keikaku, stated in an interview that the company sees "great potential" to scale globally with products emphasizing simple formulations, transparent labeling, and naturally derived ingredients at accessible prices.
In Japan, Muji's beauty items, typically priced below ¥3,000 ($19), have gained popularity alongside apparel and essential household products. Revenue from domestic beauty and health products roughly doubled over two years in the last fiscal year, reaching about ¥100 billion and comprising around 13% of total sales.
Although beauty still represents a minor portion of Muji's overall revenue, this swift growth highlights the brand as one of the few Japanese companies tapping into new market opportunities. The firm aims for a 46% rise in operating profit to ¥108 billion by 2028, with expansion in mind for regions like East Asia and China.