Japanese retailer Muji will increase investments in China by expanding brick-and-mortar stores as well as strengthening the supply chain, and reinforce its localization strategy to tap into the immense consumption potential of the world's second-largest economy.

"The transformation and upgrading of China's consumption structure have enabled the Chinese economy to unleash a strong endogenous driving force and more robust development momentum, bringing about greater market potential," said Satoshi Shimizu, president and representative director of Muji, in an interview with China Daily.

China is not only Muji's most important overseas market but also its largest market besides Japan, he said, adding that the company remains fully confident about the Chinese market, which has maintained a positive development momentum.

Data from the company showed that the Chinese mainland market achieved sales growth for 12 consecutive months. As of the end of August, the number of stores in the Chinese mainland had increased by 24, bringing the total to 422.

"This positive development benefits from China's promising and dynamic consumer market, as well as the world's most complete industrial chain and supply system in China, which have brought significant benefits to our development and operations," he said.

"We will continue to strengthen store and channel development, maintaining our plan to open approximately 40 new stores annually," he said.

Shimizu emphasized that, while opening large stores in first and second-tier cities, the company will also continue to expand in the third-tier cities.

"Additionally, we will proceed with the renovation of existing stores, continuously optimize the layout and design of these stores, and steadily enhance the customer shopping experience."

Since 2019, the company has been fully advancing its localization strategy in China.

It will expand product range, maintain an attitude of learning from the local market and strive to become a localized enterprise rooted in China, so as to establish a closer connection with the market and consumers.

Shimizu said the company will also strengthen the construction of localized supply chains ranging from local raw material sourcing to final delivery to customers, and expand cooperation with local partners.

"Muji will continue to make efforts to select suitable local raw materials in China and gain insights into the essential daily needs of Chinese consumers, which will serve as the basis for product design."

This year's Government Work Report listed vigorously boosting consumption and expanding domestic demand across the board as top priorities among major tasks for 2025.

Shimizu said China has a vast consumer market and holds enormous development potential, while Chinese consumers are increasingly focusing on the most fundamental needs in life, which increasingly aligns with the values that Muji has always adhered to and underpins the company's confidence in future growth.

Moreover, against the backdrop of sustained growth in China's online retail sales, more diverse and flexible consumption methods have emerged. For Muji, online and offline channels are not in a relationship of replacement, but rather complement each other and jointly enhance the consumer experience, he noted.

Currently, Muji has established official stores on China's major e-commerce platforms, with online sales maintaining strong growth. "In the coming years, online channels will also become one of our key growth engines. Moreover, we have launched instant retail services — such as express delivery via food delivery platforms — which cater to consumers' demands for convenience."

"However, we have always believed that offline stores hold irreplaceable value," he said.

Offline stores can provide consumers with a holistic experience, including the texture of products, the atmosphere of stores and interaction with staff members — elements that cannot be replicated in online shopping, he added.

In the future, the company will continue to strengthen the integration of online and offline operations to meet consumers' evolving shopping habits and needs, he said.

At this year's China International Import Expo, Muji is showcasing achievements in localization across multiple product categories, such as apparel, household items, food and skincare products within the exhibition area. "We aim to take the opportunity of the CIIE to reaffirm Muji's commitment to creating a sustainable life for Chinese consumers."