A few years ago, I came across a Japanese consumer goods brand called Muji. What struck me was their rationale and contrarian approach to building their product-based business.
Their tagline – “Lower prices for a reason” – communicates that their products are low-cost, not because they are cheap, but because their manufacturing process is efficient.
Their three steps to achieving low cost are:
- Selection of raw materials
- Streamlining of processes
- Simplification of packaging
They give an example on their website:
In a world full of over-embellished, shiny, refined products, simplifying raw materials and processes gave Muji a competitive differentiation while reducing prices for their customers.