File photo/Zhang Xiaoyin (NBD)

July 25 (NBD) -- In face of several quality disturbances and lukewarm growth in China, Japanese retailer Muji is looking for ways to turn the tables.

Interviewed by news agencies recently, Satoshi Shimizu, revealed that Muji is about to launch a "strategic store" plan in the Chinese market, making tailored differences from its Japanese stores and increasing the proportion of local products.

Shimizu now serves as managing director and executive officer with Muji's parent Ryohin Keikaku Corp and also takes the position as head of China Business Group.

According to Muji, the firm intends to elevate the proportion of local products in total grocery commodities up to 50 percent by 2023.

Fourteen years after entering the Chinese market, Muji now has more than 250 stores in the country. In comparison to rapid expansion of Muji, the company's performance in the country has slowed down since 2016.

From the latest financial results for the fiscal year of 2018, National Business Daily (NBD) noticed a rare drop of 2.1 percent in Muji's same-store sales in mainland China.

In recent years, the Japanese retailer is facing increasingly fierce competition from local players such as traditional home furnishing labels, e-commerce brands, and new retailers. Competitions, together with product quality issues, led to weakened sales of Muji in the country, noted some industry insiders. In response, Muji has previously made 10 price cuts in China.

Despite the dim performance, Muji still sees China as an important market with huge development space. Muji opened its first hotel in Shenzhen last Junuary and the company keeps the pace of opening over 30 new stores in China every year.

Email: gaohan@nbd.com.cn