Have you heard of MINISO? – this Chinese retailer currently only has UK stores in Cambridge, Ealing Broadway and Cardiff, but is actually already an international juggernaut with over 3,500 stores in 70 countries (boasting annual sales of $2.6 billion USD in 2018). According to Euromonitor, MINISO has been the fastest growing retailer in China and after raising $140 million in 2018, the retailer has aspirations to have a staggering 10,000 stores in 100 countries by 2022.
So what is the MINISO phenomenon and what makes this retailer special? The brand was founded by Chinese entrepreneur Ye Guofu and Japanese designer Miyake Junya. Their value proposition is simple – in the style of Japanese 100 Yen shops, MINISO is packed to the brim with low cost yet high design lifestyle products across beauty, fashion and consumer electronics. The icing on the cake is a super-modern and very clean store design that perfectly captures the fashion-forward zeitgeist.
Its low cost business model means stores have a limited assortment, with no more than 3000 SKUs. A limited assortment is paired with short production runs, giving shoppers an incentive to grab products while they can ‘treasure hunt style’ and keeps people coming back for more. New products arrive every 7 days and products turn over in 21 days. Most products retail for between £3 and £6.
So who shops in Miniso stores?
MINISO targets a price-sensitive and savvy urban shopper between 18 and 35, attracted by the combination of low prices and high-end style designs.
This target demographic has also been lured in by a number of product licenses that MINISO holds. The brand has ranges that cover Marvel, Hello Kitty, Sesame Street and the Pink Panther. This has made the stores a real destination for lovers of these entertainment franchises.
Members of the Valley team have visited MINISO stores in a number of countries including South America and the Middle East. The stores really are incredibly seductive and from personal experience, it’s difficult to leave the store without making a purchase since there is such a dizzying array of cute collectibles and smart homewares at very seductive prices.
At Valley, we believe that the fast growth of MINISO shows there is still great opportunity for store-based retail when the value proposition and the store design is optimised. Whilst MINISO does offer e-commerce in some markets, the treasure hunt experience is what really drives the MINISO shopper.
Have you been to MINISO? – share your experience with us.