Miniso Releases New Brand Strategy Amid Record High Gross Margin
On the 10th anniversary of its founding, Miniso, a Chinese discount retailer of lifestyle and household goods, announced its updated global brand strategy. The company will transform into a lifestyle super brand that brings joy to consumers through collaborations and original designs.
At the conference for the new strategy release in Guangzhou, CEO Jack Ye exclaimed, “To gain high-quality development on the global stage, Miniso has to evolve into a super brand by achieving three transformations: transforming from a retail channel to a lifestyle brand, from a retail company to a content creator, and transforming our customers to our users.”
Speaking of the reason for the new strategy, Ye pointed out that the “joy philosophy” has been crucial to Miniso’s ongoing success, and that a brand that can make consumers happy will eventually become an adored super brand.”
Taking inspiration from the company’s logo, Miniso decided to use the wink icon as its new brand symbol, which represents the “joy philosophy”. CMO Robin Liu explained that the wink icon has always been a part of the brand’s logo, representing beauty, warmth, and happiness. The main goal of extracting this simple symbol is to deepen the interaction with consumers and convey the concept of a “joyful and fun life.”
At the event, Miniso announced the establishment of a global product innovation center. The company will invest in the construction of four design centers in China, the United States, Japan, and South Korea.
In terms of supply chain, in addition to integrating more than 1,100 high-quality supply chain partners in China, Miniso will partner with top analytical organizations of global trends and consumer trends, such as WGSN and Pantone.
Ten years after its founding, Miniso broke out from its competition among century-old retailers. For its second quarter of fiscal year 2023 ending December 31 2022, Miniso recorded a revenue of 2,494.4 million yuan ($361.7 million), representing a decrease of 10.0% year-over-year and 10.0% quarter-over-quarter. Its adjusted net profit in the same period was 373.1 million yuan ($54.1 million), an increase of 82.1% year-over-year. Moreover, its gross margin for Q2 reached 40%, another record high.
As of December 31 2022, Miniso has over 5,400 stores globally, 3,325 of which are in China. Miniso has upgraded its storefronts, platform, and services, as well as launched a premium flagship store running on a brand-new model. On February 5, Miniso opened its first flagship store in Chengdu, Sichuan Province. Miniso will also open a global flagship store in New York’s world-famous commercial and tourist hub of Times Square. “Only super-large outlets can impress consumers and build brand image,” Ye noted.
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However, it can’t be ignored that Miniso‘s rivals are growing rapidly. KK Group, a retail unicorn startup, is currently applying for IPO. As of its last round of fundraising in 2021, KK Group’s valuation has reached 20 billion yuan ($2.88 billion). At a company meeting in January this year, Ye said, “We must maintain our striving spirit in order to remain invincible against fierce international competition.”