The Successful Fast-retailer MINISO

Miniso is a Chinese low-cost retailer in the fast-retail space, and is the largest variety lifestyle goods retailer in China. Miniso was founded in 2013 by the Chinese entrepreneur Ye Guofu and the Japanese designer Miyake Junya. Miniso has previously stated their global expansion plans — 10,000 stores in 100 countries by the end of 2022. So far they have opened more than 4200 stores worldwide. The interesting fact is that Miniso is mainly been focusing on brick and mortar (physical stores), and not as much on e-commerce as their rivals. They are convinced that the ‘touch and feel’ experience that consumers get in-store will not fade away, but they have neither denied the growing importance of e-commerce.

Miniso recently raised $608 million in an initial public offering in New York. Miniso stock opened with a gain of 22 per cent before tapering off. Their ultimate goal is to reach “every corner” of the world, and so far they have had success by replicating their business model to other parts of the world.

Miniso operates a so called low-cost, low-price business model where focus is on keeping prices low and offer a limited assortment to create a sense of urgency for shoppers. Moreover, this leads to fast inventory turnover and high store traffic. The limited assortment is both in terms of variety of products and quantity per product. They want to ensure low cost, high quality goods with a stunning design.

“MINISO embraced this model, carrying only 3,000 SKUs on average per store. The products turn over in 21 days and new products arrive every seven days.”

– Forbes

Looking at Miniso’s business model, they ensure to have an efficient supply chain by buying big volumes of products. The products are also produced and designed in-house. Their goal is to have new arrivals in-store every 7 days. Miniso is backed up by the big tech giant Tencent, and this explains their big expansion plans.

Mexico's Grupo Sanborns to increase its stake in Miniso - Retail in Asia
Image credit: retailinasia.com

Miniso has continuous focus on product design, and since one of the founder is a designer, this will most likely also be an important aspect going forward. Miniso wants to entice the consumer with new and engaging design. In 2020, Miniso launched a new slogan: “Life is for fun, MINISO”. Furthermore, their mission is that a better life has nothing to do with price. This mission is brought into their product development to deliver high quality goods with well crafted design.

To keep that product pipeline full and in a continued commitment to original design, we have established the MINISO Design Academy (MDA), and teamed up with some of the best designers from Finland, Denmark, Norway, Spain and South Korea to create high-quality products that skillfully blend creativity and practicality – winning the brand a series of international design accolades such as the iF, Red Dot and A’ Design awards.

– Miniso

Source:

https://www.forbes.com/sites/michellegrant/2019/06/21/this-chinese-retailer-is-building-a-global-empire/#69487a974dea

miniso.com/EN

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