Stores Specialist Inc to grow Muji in Phl

MANILA, Philippines -  Stores Specialist Inc. and Japan’s Ryohin Keikaku Co. Ltd. are now crafting the business plan to grow the Muji retail business in the Philippines.

In an interview, SSI Group president Anton Huang said it would be able to expand Muji in the Philippines, carry more merchandise, bring down costs and possibly lower the price with the partnership.

“We signed the JV agreement so basically the JV takes effect in April this year and under the JV arrangement our costs will be lower which will allow us to carry more merchandise and lower pricing,” Huang said.

SSI and Ryohin agreed to form a joint venture company to be named Muji Philippines Corp.

Under the arrangement, SSI would invest P89.2 million for a 51 percent stake in the joint venture while Ryohin Keikaku would invest P85.75 million for the remaining 49 percent stake.

Furthermore, SSI would provide the joint venture with operational knowledge and apparel and retail sales expertise while Ryohin would provide brand management expertise.

Huang said the two companies are now working on a joint business plan to determine, among others, the number of Muji branches to be opened in the Philippines.

Muji carries clothing apparel, household items, food and a wide variety of unique consumer goods. At present, there are at least seven Muji branches in the country.

It was originally founded in Japan in 1980. Mujirushi Ryohin – Muji in Japanese – translates as “no-brand quality goods.”

There are around 700 Muji stores around the world, carrying more than 7,000 items ranging from clothing and household goods to food and even houses.

But while SSI entered into a joint venture with Ryohin, Huang said this is not necessarily the company’s new business model, noting that an opportunity simply came about.