MINISO
MINISO Group Holding Limited is a Chinese multinational retailer founded in 2013 by Ye Guofu and headquartered in Guangzhou, China.[1] The company specializes in affordable, design-driven lifestyle products, including cosmetics, accessories, plush toys, and household goods, with a focus on trendy items featuring collaborations with over 100 global intellectual properties such as Disney, Harry Potter, and Sanrio.[1] MINISO has pursued aggressive global expansion, reaching 7,504 stores across 111 countries and regions by December 2024, including flagship locations in major cities like New York, Paris, and London.[2] Its business model emphasizes offline retail supplemented by online channels, driving revenue growth of 22.8% in 2024 alongside a record gross margin of 44.9%.[3] The retailer listed on the New York Stock Exchange in 2020 and the Hong Kong Stock Exchange in 2022, positioning itself as a leading IP design retail group.[1] Early branding drew from Japanese minimalism aesthetics, which sparked controversy in 2022 when Chinese consumers accused the firm of misleadingly presenting itself as Japanese-origin, prompting a public apology and commitments to "de-Japanification" efforts.[4][5] Despite such challenges, MINISO's strategy of IP integrations and store openings has sustained strong performance, with overseas revenue surpassing domestic sales in recent periods.[6]
Founding and Early Development
Inception and Founding Principles
MINISO was founded in 2013 by Chinese entrepreneur Ye Guofu in Guangzhou, China, with its first store opening in the city's Haizhu District.[1][7] Ye, who had previously operated the lifestyle brand Aiyaya, drew inspiration for MINISO during a family vacation in Japan that year, where he observed specialty stores offering high-quality, low-priced everyday items akin to those in 100-yen chains.[1][8] This experience prompted him to collaborate with Japanese designer Miyake Junya to create a retail model leveraging China's manufacturing advantages for affordable, aesthetically pleasing products, distinguishing it from pure Japanese imports by emphasizing cost-efficient domestic production.[7][9] The company's foundational business principles centered on a "three highs and three lows" strategy designed to maximize volume sales through affordability while maintaining operational efficiency. The "three lows" encompassed low prices (typically under $10 per item), achieved via low production costs and low gross margins, enabling broad consumer access to lifestyle goods without premium pricing.[10][11] Complementing this, the "three highs" focused on high product quality, high operational efficiency, and high supply chain technology adoption to ensure reliable, appealing offerings despite slim margins.[11][12] This approach prioritized direct cost reductions in sourcing and logistics over branding extravagance, aiming to disrupt China's fragmented retail sector by delivering value-driven, simple designs for daily use.[13][14]Initial Growth in China
MINISO opened its first store in Guangzhou, China, in 2013, marking the beginning of its domestic operations focused on affordable lifestyle products.[15] The company pursued rapid scaling through an asset-light franchise model, with over 70% of stores franchised by the late 2010s, enabling quick penetration into urban shopping malls and high-traffic locations.[16] This approach facilitated hundreds of annual openings in the mid-2010s, capitalizing on China's growing middle-class demand for low-cost, trendy goods without heavy capital investment in owned real estate.[14] Key to sustained growth was a high-frequency product refresh strategy, featuring weekly updates and an inventory turnover target of approximately 21 days, which kept assortments fresh and aligned with shifting consumer preferences for value-oriented, design-inspired items.[17] This drove robust same-store sales in early years, as empirical demand for items priced under 10 yuan underscored the appeal of accessible novelty in a competitive retail landscape dominated by higher-end or utilitarian alternatives.[18] Initial hurdles in supplier coordination, including quality consistency and cost pressures amid fast expansion, were mitigated through deepened retailer-supplier partnerships and enhanced vertical oversight, fostering efficient integration and contributing to gross margins exceeding 40% by the late 2010s.[19] Such measures stabilized operations, allowing MINISO to refine its domestic footprint before broader pursuits.[20]Business Model and Operations
Core Strategies and Supply Chain
MINISO employs a lean operational model emphasizing direct sourcing from Chinese suppliers to achieve cost efficiencies, partnering with over 1,400 manufacturers that account for 80-90% of its product procurement. This approach bypasses intermediaries through bulk orders and integrated logistics, enabling low procurement costs and rapid production cycles aligned with demand fluctuations.[21][22] The company's supply chain supports high inventory turnover, with mainland China operations achieving approximately 72 inventory days—translating to over five annual turns—via data analytics for sales forecasting and just-in-time replenishment that curtails excess stock and waste, in contrast to traditional retailers' slower cycles. Overseas direct operations exhibit longer turnover at 153 days due to logistical variances, yet overall efficiencies stem from centralized warehousing and vendor coordination in Guangdong province.[23][24] To mitigate dependencies on external licensing and bolster proprietary control, MINISO initiated an in-house IP incubation program on September 30, 2025, focusing on original character development like PenPen and DunDun, which integrates with its existing supply network to sustain low-cost scaling without eroding margins. This strategic pivot complements core efficiencies by internalizing design inputs while leveraging China's manufacturing scale for quick iteration and global distribution.[25][26]Store Format and Retail Approach
MINISO stores adopt compact formats, typically under 200 square meters for standard locations, featuring minimalist designs inspired by Japanese retail aesthetics such as clean lines and simple shelving to create an organized, approachable shopping space.[27][28] These layouts utilize a grid configuration with parallel, medium-height aisles that guide customer flow efficiently while highlighting products on end caps.[29] The retail approach emphasizes impulse-driven sales through visual merchandising strategies, including strategic placement of low-priced, trendy items like cosmetics on prominent displays to trigger unplanned purchases.[30][29] Limited SKUs in each category support rapid inventory turnover, minimizing overstock and reinforcing the fast-paced, grab-and-go experience central to the model.[31] A franchise-dominant structure, with over 70% of stores operated via partnerships, enables broad scalability, while centralized elements in the supply chain—such as controlled product sourcing and distribution—preserve uniformity in store presentation and merchandise availability across franchised units.[16][32] This integration ensures consistent brand execution despite decentralized ownership, prioritizing experiential consistency over local deviations.[33]
Product Offerings and Innovation
Product Categories and Sourcing
MINISO's product assortment encompasses categories such as cosmetics, household goods, toys, accessories, electronics, fashion, beauty and wellness items, snacks and beverages, and lifestyle products.[34] [35] Typical stores stock over 3,500 stock-keeping units (SKUs), with the company introducing approximately 100 new SKUs weekly to maintain variety and responsiveness to consumer trends.[20] [21] Nearly all items are priced under $10, emphasizing affordability and accessibility for everyday purchases.[36] [37] The company's sourcing relies heavily on a network of over 1,400 suppliers, with 80-90% of procurement originating from Chinese factories, facilitating cost efficiency and quick turnaround for production.[21] [38] This China-centric supply chain supports the rapid launch of new products, averaging around 940 SKUs monthly under the core MINISO brand as of mid-2024.[39] Certain product lines incorporate licensed intellectual property collaborations, including partnerships with Disney and Marvel, which extend to themed items in categories like plush toys, accessories, and apparel.[40] [41] These licensed offerings, spanning multiple categories, enable MINISO to integrate popular characters into its low-price model, such as Marvel-themed products across 13 categories launched in 2019.[42]Design Practices and Quality Management
MINISO's product designs emphasize a minimalist aesthetic inspired by Japanese principles, characterized by clean lines, simple forms, and functional simplicity, often infused with playful pop culture motifs through licensed intellectual properties (IPs) such as characters from Disney and Sanrio.[43][44] This approach targets young consumers seeking affordable, visually appealing everyday items like accessories and home goods, differentiating from cluttered fast-fashion alternatives.[45] In 2025, MINISO intensified efforts to develop proprietary IPs through an in-house incubation plan, signing nine artists to create original characters like YOYO for global launches, aiming to elevate originality and reduce dependence on external licensing that previously drew inspiration from popular trends.[25][46] Company executives stated this strategy targets 30% of sales from self-developed IPs by fostering unique, interest-driven products amid rising demand for branded merchandise valued at over $3.7 trillion globally in 2025.[47][25] Quality management integrates supplier evaluations, unannounced factory inspections, and onsite audits of production systems to enforce standards across the supply chain, with procedures embedded from design to delivery.[48][49][50] MINISO conducts random product testing and dynamic supplier assessments to maintain consistency, prioritizing affordable yet durable goods suitable for its price-sensitive demographic.[31] These controls correlate with a reported repeat purchase rate of approximately 60%, reflecting functional adequacy and consumer tolerance for the brand's value proposition despite occasional criticisms of variability in lower-tier items.[51] Sustained growth in same-store sales and customer engagement metrics further indicate that quality perceptions align with expectations for budget lifestyle products, countering unsubstantiated claims of inherent inferiority by prioritizing empirical retention over anecdotal defects.[52][53]Global Expansion
Timeline of International Entry
MINISO initiated its international expansion in August 2016 by opening its first overseas store, a flagship location in Seoul, South Korea.[54] This marked the company's entry into Asian markets beyond China, followed by openings in countries such as the United Arab Emirates and Malaysia during 2016 and 2017.[1] By 2018, MINISO extended its presence to Europe, establishing initial stores in the region, and began operations in the Americas, including early entries in North and Latin American markets.[55][56] The company's New York Stock Exchange initial public offering in October 2020 provided capital that supported accelerated direct-operated flagship developments abroad, shifting from primarily franchise-based models in select regions.[57] MINISO reached over 100 countries by 2023, with approximately 107 markets served and more than 2,100 overseas stores operational.[58] Post-2023, expansion intensified amid global economic challenges, with plans for 900 to 1,100 annual net new store openings through 2028 to sustain growth momentum.[59]Key Markets and Adaptation Strategies
MINISO maintains a regional operational framework dividing international markets into North America and Latin America, Southeast Asia, the Middle East, and Europe to tailor strategies effectively.[21] This approach enables localized product assortments and merchandising, with Southeast Asia emerging as a stronghold due to cultural resonance with value-driven variety retail; the region hosts nearly 1,500 stores across Asia excluding China, including 300 in Indonesia where high population density and price sensitivity align with MINISO's model.[60] In the Middle East, similar affordability appeals drive penetration, supported by franchise partnerships that adapt store layouts to local shopping habits. In the United States and Europe, MINISO counters higher market entry barriers by emphasizing urban flagship stores in prime locations, such as Times Square in New York and Champs-Élysées in Paris, alongside hybrid e-commerce integrations to test consumer response before scaling physical footprints.[61] [62] Product adaptations include regional flavor profiles in snacks and beauty items, alongside increased local sourcing—reaching 60% in the U.S. to mitigate tariffs and appeal to preferences for domestically produced goods.[63] These tactics have yielded empirical gains, with same-store sales growth turning positive in the June 2025 quarter, marking the first such uptick in four quarters and reflecting successful navigation of initial cultural and preference mismatches via data-informed assortment refinements.[53] [64] Franchise model adjustments further prioritize partner incentives aligned with local regulatory and consumer dynamics, fostering resilience over rigid global standardization.