Muji will cut prices on 40 percent of its products from January 2018 to pass on cost savings to its customers.

However, Muji Singapore confirmed on Nov. 15 that the store's largest-ever markdown will take place next year but only for stores in Japan.

A Nikkei Asian Review report had highlighted this reduction.

Household goods

Some 2,400 products will have prices reduced by 14 percent.

The majority are household goods. These include laptop bags, socks, curry and tea products.

The prices of Muji's best-selling mattresses, for example, are expected to fall from ¥35,000 (S$420) to ¥29,000 (S$348).

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Achieving economies of scale

A net 50 to 60 Muji stores are opened a year by parent company Ryohin Keikaku.

It now operates about 850 stores worldwide, mostly outside Japan.

Muji has 14 stores in Singapore. It opened the region's first flagship store at Plaza Singapura in July.

Production costs of goods have been lowered through standardisation of products, among other measures.

The expanded sales volume has helped Muji reduce procurement costs.

A logistics overhaul and simplified packaging have also helped cut costs.

Such economies of scale help make products cheaper.

Japanese culture that is admirable:

Top photo via Takasi