MUJI Faces Competition, Copyright Challenges in China

The struggles of MUJI in China reminds us that even if the U.S. can secure a trade deal with China, can it secure equal treatment of American companies by Chinese media, Chinese courts, Chinese regulators and Chinese businesses?

Nikkei Asian Review: Muji, Japan's 'no brand' brand, battles copycats in China

On Nov. 1, the Japanese company's Chinese-language website declared it will continue to use the Muji name in China despite a legal challenge over the trademark by a local company. This followed inaccurate reports in the Chinese media that the Japanese retailer had paid a penalty to the Chinese plaintiff. Ryohin Keikaku stressed that "the lawsuit is still ongoing."

When Ryohin Keikaku entered China in 2005, it secured local trademark rights for "Mujirushi Ryohin" in four Chinese characters, pronounced as "Wuyinliangpin" in Mandarin and meaning "no brand, quality goods." The company also registered its international brand name "MUJI," in block letters.

The retail group locked in the trademarks for most of its products, and China has since become its largest market outside Japan.

One problem: A Chinese company snagged the brand name rights for certain woven fabric products, including bedcovers and towels. This company later transferred the rights to an entity called Beijing Cottonfield Textile. When Ryohin Keikaku began selling Muji-branded bedcovers and towels, Beijing Cottonfield Textile filed the lawsuit.

On Christmas Day in 2017, the intellectual property court in Beijing ruled in the plaintiff's favor. Ryohin Keikaku is now appealing that decision.

At the same time, Ryohin Keikaku laments the growing number of stores in China that mimic both the products and interior design of real Muji outlets, and is threatening legal action of its own.

...Miniso Industries, operator of MINISO stores, has adopted a similar strategy to that of Muji by selling what it bills as Japanese-designed "simple, natural and high-quality" household products in more than 1,000 stores. MINISO is a brand co-founded by Chinese and Japanese designers, according to the company’s website. Matsuzaki has dismissed the idea that Miniso poses a threat to Muji, saying it is "something completely different from us."

Some Chinese consumers would disagree.

"I find their qualities not that different. I can tell that Miniso is trying to imitate Muji in terms of design, but it's cheaper and pretty good quality," said a man who identified himself as Du, who was buying facial cream at a Miniso outlet in Shanghai.

Zhou Yimin, an 18-year-old woman in the city, sees more of a gap between the two. "I admit that some products in Miniso are similar to Muji but their qualities are very different," she said. "I buy in Miniso things I don't expect to use for a long time."

Either way, Miniso's robust growth and the trademark litigation can both be taken as signs that Muji faces more years of wrangling with various imitators.

This is a top story at iFeng: 无印良品困局 (Muji Dilemma)

According to Japanese media reports, due to the detection of excessive levels of carcinogen bromic acid, MUJI plans to take the initiative to remove bottled "natural water" and "mineral bubble water" a total of about 590,000 bottles, and globally Start the recall. It is reported that the goods involved are sold in Japan, Taiwan and Hong Kong.

Time Weekly reporters logged in to Muji Japan's official website and learned that MUJI had posted an apology and notice on February 22. In the official website of China, as of press time, there is still no statement about this matter.

Muji China headquarters responded to the Times Weekly reporter that the two "natural water" products mentioned in the media reports have never been sold in mainland China. One of the "carbonated water" products mentioned in the MUJI Japanese official website statement is not currently sold in mainland China.

Although the products involved in this area of ​​China were not affected, in less than two months, this is the second time that MUJI has been covered with cancer.

On January 15th, the Hong Kong Consumer Council released a test report that MUJI was produced in Malaysia as a hazelnut oatmeal biscuit with genotoxic and carcinogenic glycidol and acrylamide.

MUJI officially stated that the products involved “have not added any food raw materials and food additives that violate Chinese laws and regulations and national standards”, but considering the concerns of consumers, “the company temporarily removed the unprinted imports from Malaysia. Good hazelnut oatmeal cookies."