Redefining Value Retailing: The Transformation and Competition in Japan’s Household Goods Industry

As international circumstances shift, compounded by inflation and labor shortages, Japan’s household goods sector has entered a turbulent era. Key players such as MUJI, which has been leading the industry, are now facing stiff competition from similar brands like Nitori Home, along with price-advantageous companies like Daiso, Seria, and 3COINS. This evolving landscape requires a strategic reevaluation.

Daiso’s newly developed household goods brand, Standard Products, is rapidly taking over shopping centers across Japan. With a brand philosophy focused on making daily goods more exciting and ensuring quality persists, Standard Products has managed to capture the market’s attention. With fashionable, minimalist designs and affordable prices ranging from 300 to 1,000 yen, consumers have quickly accepted the brand.

Historically, MUJI’s annual sales of approximately 500 billion yen dominated Japan’s household goods industry. Its motto of “good products at reasonable prices” solidified its leadership position. Meanwhile, the market for 100 yen goods was primarily occupied by three major discount stores, all competing in a market environment of about 9,500 billion yen annually.