Muji, the Japanese retailer known for pared-back household goods and logo-free clothing, is betting on its fast-growing, value-for-money skincare products to drive growth at home and abroad.
The company sees “great potential” to scale globally with its skincare products built on simple formulations, transparent labeling, and naturally derived ingredients at accessible prices, Mariko Ohashi, director of household merchandising at Muji’s owner Ryohin Keikaku Co., said in an interview.
Typically priced below ¥3,000 ($19) in Japan, Muji’s beauty products have gained traction alongside apparel and core household goods. Revenue from beauty and health products at home roughly doubled to about ¥100 billion in two years last fiscal year, accounting for about 13 percent of its total sales, as the company targets a 46 percent increase in operating profit to ¥108 billion by 2028.
While beauty remains a relatively small share of Muji’s overall sales, its rapid expansion signals something broader: the minimalist retailer is emerging as one of the few Japanese brands finding fresh growth in the competitive beauty market, where fast-moving Korean and Chinese companies are scaling quickly.
Encouraged by domestic momentum, Muji is gradually rolling out the range in mainland China, Muji’s biggest overseas market, as well as Hong Kong, Taiwan and South Korea with broader international expansion in sight.
“People overseas already know through social media that the lineups are well received in Japan,” Ohashi said. “We sense an expectation even before product launches.”
The push coincides with a shift in consumer behavior, as ingredient-savvy shoppers increasingly favor transparency and perceived safety over brand prestige. For Muji, it’s less about competing head-to-head with major cosmetics players, more about extending its philosophy into adjacent categories.
Unlike pure beauty companies L’Oreal SA and Estee Lauder Cos. and Shiseido Co. which rely heavily on prestige counters and specialized retailers, Muji sells its lotions and moisturizers alongside its pajamas, storage boxes and food at its outlets, lowering the barrier to trial and reinforcing its lifestyle positioning.
However, Shiseido’s recent struggles offer a cautionary lesson. Once a formidable challenger to L’Oreal and Estee Lauder, the Japanese marquee brand is now reeling from a North American setback and intensifying competition from Asian rivals — underscoring how quickly global momentum can fade.
Muji still trails Shiseido and Kao Corp. in cosmetic sales, but rapid expansion in beauty is narrowing the gap at home.
East Asia is already showing how its skincare line can travel, as the region, home to most of Muji’s stores outside Japan, is already proving the appeal of its beauty products. In the first quarter ended November, the segment revenue in the region rose more than 30 percent from a year ago, outpacing overall sales.
For Muji, the takeaway is clear: confidence must be tempered with careful tailoring abroad and avoiding overreach. Overseas assortments remain narrower than in Japan because of regulatory constrains and local preferences, Ohashi said. Consumer tastes in Asia differ from those in Europe and the US and research is underway to identify which items are likely to resonate in each market, she added.
To support the growth, the company, which operated 1,474 outlets as of August last year, is expanding aggressively, opening flagship stores in France, Thailand and Vietnam, alongside its large footprint in China.
In Japan, growth is extending beyond its traditional female base. Younger and male shoppers are increasingly adding lotions and moisturizers to baskets already filled with curry packs, storage boxes or T-shirts, said Ohashi.
“We don’t think ourselves as a cosmetics company and that has worked in our favor,” Ohashi said. “For many people, cosmetics counters are still intimidating. With us, it feels like you are just taking a quick peek.”
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