This is a familiar story that is, of course, not unique to Japan:

“Danchi”, or apartment blocks built by Japan’s housing agency during the country’s high-growth period, may look grim and outdated in today’s Tokyo, where flashy glass and steel towers reign.

However, I only just learned that, since 2013, the Japanese houseware brand Muji has been renovating apartments within these housing blocks in an attempt to reduce vacancies:

But danchi are becoming hip again, thanks to modern renovations by lifestyle brand Muji, which is turning the poky, multi-room flats into open-plan studios.

The above excerpts are from a 2015 article, but this partnership between Muji and Japan’s Urban Renaissance (UR) Agency continues to this day. Today, they’re also focused on creating a greater sense of community within these danchi neighborhoods.

It’s a logical collaboration. Both want to bring good and affordable design to the masses. And obviously there are brand benefits for Muji. It’s a way to expose more people to their products.

But what I find particularly interesting is that it, once again, shows the potential of a strong brand within the real estate industry.

According to the same 2015 article, as soon as Muji completed its first round of apartment renovations, UR saw 2x the number rental applications from people in their 20s and 30s. Perhaps the number is even higher today.

Clearly what happened is that you had young followers of the brand who said to themselves, “oh if Muji is involved, it must then be cool and nice, and so I’d like to live there.”

I mention this because, as a gross generalization, real estate companies don’t seem to focus on their own brands in the same way other companies do. (Again, I’m making a gross generalization.)

Instead, they often rely on 3rd party brands — hotel brands, fashion brands, and whatever else — to augment as needed. (See “Dubai is now the capital of branded residences.”)

Maybe this is truly the optimal way to do it. Just partner as needed. Or maybe more real estate companies should invest in their own brand.

Photo by taro ohtani on Unsplash