After a two-year absence from Hong Kong, Japanese clothing and houseware retailer Muji has outpaced initial revenue projections since its return to the market in April.

The company had originally estimated sales of HK$26 million (US$3.3million) this year, but Muji’s managing director Shintaro Kondo said that figure would be surpassed long before the end of its first year. “Business is good. Our products are selling better than we expected.”

Muji set up a 5,200 sq ft store in the new Seiyu Department Store in Shatin, the first in Southeast Asia, with an initial investment of HK$13.3 million (US$1.7million). Muji Shatin is operated by Seiyu (Shatin) Co Ltd. There are plans for a second store of 10,500 sq ft in Causeway Bay. “Hong Kong is a key city in Asia. The SAR’s attention to trends has become more acute. We can no longer afford to lag behind.’’

Muji’s appeal stems from the bare-essentials and eco-friendly nature of its merchandise, which ranges from stationery and wooden beds to storage boxes and DIY products made from recyclable materials. It sells 45 per cent clothes, 45 per cent houseware and 10 per cent food. A Chinese language portal is being considered so customers can buy their products online. At present, consumers can visit Muji’s Japanese website at www.muji.co.jp

Founded in 1979, Muji has 277 stores in Japan and an international presence of 16 stores in the US, nine in France and one in Belgium.