Can a no-brand retail store muscle into the brand hotel space?

Spot the difference? Hmm... Muji Hotel Shenzhen's classic minimalism (far left); its sparse woody corridors (centre left); The Dubai EDITION (centre right); and the Muji Ginza (right) has echoes of a Grand Hyatt room

WHEN flint-eyed Clint Eastwood strode out in Sergio Leone’s spaghetti Westerns as the ‘Man with No Name’, audiences were spellbound. The less he said, the more his fans grew. In 2020 Empire magazine voted the “laconic anti-hero” of the “Fistful of Dollars” trilogy as the 33rd greatest movie character of all time. Quite a plaudit for an unnamed lead.

Do brands and names matter? Is Muji the no-brand Japanese store less desirable than some Italian designer label that would have you think twice about ruffling the linen? Making its point the Japanese retailer has moved into the hotel business with its trademark low-key approach. Muji Hotel (hotel.muji.com/en/), which operates in Shenzhen, Beijing and Tokyo, launched in the heart of the Ginza in April 2019 atop its flagship Yurakucho store.

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As with its retail, Muji has picked choice hotel locations downtown for young city professionals who form its loyal base. Stretch space and linen thread count apart, for many, the clean woody monochrome interiors at the Muji Hotel Shenzhen or Beijing may seem no different to say an EDITION or a designer property that favours a  similar unadorned less-is-more look.

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Muji serves up central locations with beautiful trademark minimalism and affordability (Shenzhen starts at around US$120 for 26sq m) that has cross-generational appeal. With its unique mix of hotel, retail, art galleries, salons, dining, workshop and mixer space, it is often described as a ‘social experiment’, a real-time lab constantly trialling and polishing Muji products and aesthetics. Could this be the future? It is after all the ultimate in work-and-play integration, quite different from other so-called lifestyle hotels.

{with its unique mix of hotel, retail, art galleries, salons, dining, workshop and mixer space, Muji Hotel is often described as a ‘social experiment’...

Luxury hotels have long argued, and rightly, that brand is king. Hospitality conglomerates have spent fortunes over decades building their marque, brand appeal, and delivery. The pandemic was a brutal leveller, resetting the travel needle. This was evident post-lockdown as travellers set about cherry picking deals regardless of labels. After that four-year hiatus customer loyalty lay in tatters.

In truth, international operators like Muji and fellow Japanese competitor Uniqlo have come to be seen as brands in their own right as are the Swedish H&M and the Spanish Zara. Other fast fashion retailers have not followed Muji into the bed battle but upscale labels like BVLGARI, Armani and Louis Vuitton have all sought to leverage their luxury appeal for a slice of the lifestyle and designer hotel pie.

Despite the tumultuous hotel consolidations and mergers of the past decade, the majority of global rooms today are still operated by non-brand non-chain players. There is a huge range of independent choice then for brand-blind millennials less enamoured of loyalty programmes.

Youthful travellers are seeking inspiration from social media influencers while older and more cautious Baby Boomers and Gen-Xers continue to trust names with a track record and  standardised products.  

Moulded by the internet, hyperconnected but socially distant marooned-with-mum Gen-Zs are caught in a spreading ‘loneliness epidemic’. Unsurprisingly, they crave authentic experience and greater connection with local communities. They also take a keen interest in issues like climate change and sustainability. The Muji model appeals to a youthful clientele with its simple functionality, community, emphasis on recycled stuff, and informality

While conventional hotels are sexing up their offerings, Muji has simplified the experience and eliminated all fuss in a throwback to earlier times before the world went on steroids. There is comfort in this back-to-basics approach.

Interestingly, Muji Hotel room rates do not spike or drop depending on the season or vagaries of demand and supply. They are consistent. It is a radical approach and one that communicates integrity and belief in the product. Can Muji become the no-brand brand of the future?

While a well-articulated brand can be a potent travel magnet for many, especially the older set, younger wanderers prefer bespoke travel built around their interests and wallets. This offers them flexibility of budget and location.

To be sure, no sane person has a clue what megabrands represent these days or how much they encompass. The Chinese Jin Jiang group weighs in with around 13,000 hotels, Marriott with 8,700, Hilton (7,400), InterContinental (6,400) and Accor (5,600). Then consider proliferating sub brands — Fairfield, Protea, Tempo, Mono, Spark, Adagio, Mercure, voco, Vignette, Avid, Dream Hotels, Caption, Breathless…

It's a lot to take in, leave alone comprehend. Here’s the brand promise from some, entirely in their own words: voco (consistently thoughtful and distinct); Adagio (apartment that feels like home); Protea (unique service culture and consistent amenities); Caption (alluring and approachable spaces); Vignette (stays that are authentic… and considerate). Then there’s, “Tempo by Hilton — A stylish, contemporary experience that matches the momentum of active ambitious travelers.”

If you hear bodies smacking into bedroom walls middle of the night, it’s probably travellers with excessive momentum. Muji’s sparse calming rooms could be just the tonic for them. Is a brand just so many banal words, more or less? Or is less truly more? We’ll find out in time. Do share your thoughts.

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