Miniso, a brand that claims Japanese inspiration but is driven by the vision of Chinese entrepreneur Ye Goufu, has achieved remarkable success in a short span of time. Despite its Chinese roots and operations, Miniso positions itself as a Japanese brand, leveraging Japanese designers to build credibility and distance itself from the perception of "cheap" Chinese products. Founded in 2014, Miniso now boasts over 3,500 stores across 79 countries, including a significant presence in India, one of its top five revenue markets. Here's an in-depth look at the brand's strategies that have made it a global powerhouse.
Marketing Myopia? Not for Miniso
Theodore Levitt’s seminal concept of Marketing Myopia cautions companies against focusing solely on selling products without truly understanding consumer needs. Miniso defies this trap by placing customer satisfaction and experience at the core of its business model. Through a combination of innovative marketing, strategic branding, and operational excellence, Miniso has created a model that consistently resonates with its target audience.
Key Pillars of Miniso’s Marketing Strategy
1. The In-Store Experience- A Retail Wonderland
Miniso’s stores are meticulously designed to offer more than just a shopping trip—they provide an engaging, sensory experience. Inspired by minimalist Japanese aesthetics, the interiors are bright, organized, and inviting, with wide aisles, neatly curated shelves, and a soothing color palette. This thoughtful design turns casual browsing into a tactile, enjoyable activity.
Additionally, the visual appeal of the products themselves—sleek designs and modern packaging—tempts shoppers to make unplanned purchases. Miniso’s stores are deliberately compact, ensuring an intimate yet organized space where products are easy to find but still feel like hidden treasures waiting to be discovered.
2. Strategic Collaborations- Riding Pop Culture Waves
Miniso’s partnerships with globally recognized franchises like The Pink Panther, Hello Kitty, and Marvel Studios have solidified its appeal to younger demographics and pop culture enthusiasts. For instance, the launch of Marvel-themed merchandise during the release of Avengers: Endgame created a massive surge in store visits and product sales.
Even beyond pop culture, Miniso aligns with premium suppliers to ensure product quality. Its collaboration with Givaudan Fragrance Company, a renowned name in the perfume industry, resulted in the brand selling an astonishing 3 million bottles of perfume each month. These partnerships highlight Miniso’s ability to marry accessibility with exclusivity.
3. Social Media Buzz- The Power of Influencers
In the digital age, Miniso has capitalized on the immense reach of social media. Platforms like YouTube are flooded with "Miniso Haul" videos, where influencers showcase their purchases, further driving curiosity and foot traffic. These organic endorsements, paired with targeted collaborations with social media influencers and celebrities, have made Miniso a trendy yet approachable brand. The company understands the value of relatability, and its products often feature in aspirational yet attainable lifestyles.
Operational Efficiency- The Backbone of Miniso
Miniso’s operational strategy, encapsulated in its “three highs and three lows,” provides the foundation for its success:
● Three Highs- Higher efficiency in operations, higher adoption of technology, and higher product quality.
● Three Lows- Low prices, low costs, and low profit margins.
This philosophy allows Miniso to maintain a steady stream of new, affordable products without compromising quality. Through its volume quotation system, the brand sources products in bulk at reduced prices. By eliminating intermediaries and maintaining a lean supply chain, Miniso ensures a fresh inventory every seven days, creating a sense of novelty for returning customers. The brand’s ability to manage gross profit margins at 38% while achieving high sales volumes demonstrates its operational finesse.
Target Audience and Positioning- Affordable Sophistication
Miniso positions itself as a "fast fashion designer" brand, catering to consumers who seek stylish, high-quality products without breaking the bank. Its primary audience includes homemakers and young adults, particularly college students and early-career professionals. By offering trendy, functional, and affordable products across categories such as home goods, beauty, and electronics, Miniso keeps its product range dynamic and relevant.
The minimalist aesthetic of its designs further reinforces its "affordable sophistication" brand image, making it a go-to choice for consumers seeking both utility and style.
India- A Jewel in Miniso’s Crown
India has emerged as one of Miniso’s most critical markets, contributing significantly to its global revenue. As of 2018, Miniso had over 100 stores in the country, generating an impressive ₹700 crore in revenue. Delhi NCR alone boasts 21 outlets, reflecting the brand’s popularity in urban centers.
Miniso’s franchise model has been instrumental in its expansion into Tier 2 and Tier 3 cities, enabling it to reach a diverse audience. By aligning its offerings with local consumer preferences and maintaining affordability, Miniso has successfully penetrated a competitive retail landscape.
Financial Highlights
Miniso Group Holding has reported significant growth in revenue and profit over recent fiscal periods. Key financial metrics include:
● Fiscal Year Ending June 2023 Revenue: RMB 11.5 billion
● Six Months Ending December 2023 Revenue: RMB 7.6 billion
● YTD Price Performance: 0.67%
● Average Trading Volume: 1,878,885
● Technical Sentiment Consensus Rating: Sell
● Current Market Cap: $8.21 billion
The company’s strategic focus on dynamic product development and digitalization has contributed to its success. The MINISO brand’s broad product offerings and the expansion of the TOP TOY brand into the emerging pop toy market have strengthened its market position and operational efficiency, delivering positive implications for stakeholders.
End Note
Miniso’s journey from its inception to becoming a global retail brand is a story of understanding what customers truly want—products that are affordable, practical, and delightful. By blending simplicity with trendiness, Miniso has managed to carve a niche for itself in the competitive retail market.
Its ability to adapt to different cultures, markets, and consumer preferences shows the power of a well-thought-out strategy rooted in operational efficiency and customer satisfaction. From creating visually appealing stores to forging smart collaborations, Miniso’s approach demonstrates that success often lies in the details.
As it continues to expand into new markets and product categories, Miniso serves as a reminder that creating "affordable joy" isn’t just a tagline—it’s a business model that resonates deeply with people.
FAQs
1. Is Miniso Japanese or Chinese?
Miniso is a Chinese company founded in 2013 by entrepreneur Ye Goufu. While it positions itself as a Japanese-inspired brand and works with Japanese designers, its roots and operations are firmly Chinese.
2. What makes Miniso’s business model unique?
Miniso operates on the “three highs and three lows” model:
● Three Highs: High efficiency, high technology, and high quality.
● Three Lows: Low price, low cost, and low margin.
This balance allows Miniso to provide quality products at prices accessible to a wide audience.
3. How does Miniso keep its products fresh and relevant?
Miniso regularly updates its inventory, introducing new products every seven days. Collaborations with popular franchises like Marvel and Hello Kitty also keep the brand trendy and appealing to younger shoppers.
4. What are Miniso’s best-selling products?
The brand offers a wide range of items, but categories like home decor, beauty, stationery, and fashion accessories are particularly popular. Limited-edition collections and collaborative merchandise often sell out quickly.
5. Why is the in-store experience so important for Miniso?
Miniso’s stores are designed to make shopping enjoyable, with clean layouts, minimalist interiors, and neatly arranged products. This attention to detail encourages spontaneous purchases and leaves customers with a positive impression.
6. How has Miniso performed financially?
Miniso has shown steady financial growth, with revenues of RMB11.5 billion in the fiscal year ending June 2023 and RMB7.6 billion in the following six months. Its market cap of $8.21 billion reflects its strong position in the global market.
7. What’s the idea behind the TOP TOY brand?
TOP TOY is Miniso’s foray into the growing pop toy market, a niche segment gaining popularity worldwide. It diversifies the company’s offerings while tapping into a dedicated customer base.
8. Why is India such an important market for Miniso?
India is one of Miniso’s top-performing markets, with over 100 stores across the country. Its affordability and consistent quality have made it a go-to brand, especially in smaller cities where access to stylish and affordable products is limited.
9. What can other businesses learn from Miniso?
Miniso’s story highlights the importance of:
● Regularly refreshing product offerings to stay relevant.
● Maintaining a balance between quality and affordability.
● Creating a shopping experience that feels effortless and enjoyable.
● Building trust through consistency and innovative marketing strategies.
Miniso proves that success comes from understanding your audience and delivering what they didn’t even know they wanted.
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