Miniso’s Global Success: How Strategic Partnerships and Localization Drive Record Profits

Summary:

Miniso’s midyear financial report for 2024 reveals significant growth, driven by its global expansion and strategic IP partnerships. The company, which operates over 7,000 stores worldwide, saw record profits in the first half of 2024. This growth is particularly notable in its international segment, which has become a key focus for the market.

Key Financial Highlights:

Miniso’s domestic business generated RMB 5.027 billion (USD 708.4 million) in the first half of 2024, a 17.2% year-on-year (YoY) growth.

The overseas division brought in RMB 2.732 billion (USD 385 million), a 42.6% YoY increase.

By the end of Q2, Miniso and Top Toy stores worldwide exceeded 7,000.

Miniso’s stock price rose sharply following the earnings report, with Hong Kong-listed shares jumping over 10% on August 30 and September 2.

Analyzing Miniso’s Overseas Growth

Miniso’s overseas segment has shown rapid expansion and increasing importance in the overall business structure. The company’s aggressive store expansion strategy has been a significant driver of this growth.

Key Overseas Growth Metrics:

Miniso operated 2,753 stores overseas by the end of June, a 26% YoY increase.

Overseas GMV surged by 41% YoY, reaching RMB 6.401 billion (USD 902 million).

Same-store GMV for international outlets rose by 16.3%.

International GMV nearly matched domestic GMV, which stood at RMB 7.097 billion (USD 1 billion).

The structure of Miniso’s overseas stores, including directly operated, franchise, and agent-operated stores, played a decisive role in driving profitability. Directly operated stores, which grew by 95% YoY, tend to be more profitable and significantly boosted Miniso’s overall profits.

Miniso’s Secret Sauce: IP Strategy and Localization

Miniso’s success abroad is rooted in its strategy of partnering with well-known IPs to create co-branded products. The company has partnered with over 100 IPs, including Loopy, Chiikawa, Barbie, Lotso, and Pokemon. These partnerships allow Miniso to quickly roll out new products tailored to specific markets and consumer preferences.

Key IP Strategy Highlights:

The Chiikawa series has been a top-selling IP, capturing the attention of young consumers with its quirky design.

Miniso has diversified its product range to include everyday items like tote bags, lunch bags, mini fans, and water bottles.

The Chiikawa pop-up store at Jing’an Joy City in Shanghai set a single-day sales record.

Localization has also been crucial to Miniso’s success. The company carefully evaluates target markets and tailors its approach to each location. Asia, excluding China, has emerged as a key market, with the largest number of stores and highest GMV in the first half of 2024.

Key Localization Highlights:

Miniso operates nearly 1,500 stores across Asia (excluding China), with 300 in Indonesia.

Indonesia, with its high economic growth and young population, offers substantial consumer potential.

Miniso’s decision to open a Sanrio-themed store in Indonesia in 2023 led to strong sales.

Miniso’s Outlook

Looking ahead, Miniso faces both opportunities and challenges. The weak economic recovery in China has dampened consumer spending, particularly on discretionary goods. However, this trend has also driven demand for value-oriented products, creating a mixed outlook for Miniso’s domestic business.

Future Growth Drivers:

Miniso’s reliance on its IP strategy is yielding positive results, driving sales and key operational metrics.

The international segment is expected to remain the primary driver of Miniso’s growth.

As global interest rates decline and policies shift to spur consumption, Miniso’s performance should align with broader market trends.

News source

Key Points:

Key Point 1: Significant Financial Growth

Miniso’s midyear financial report for 2024 shows record profits, driven by both domestic and international segments.

Domestic revenue reached RMB 5.027 billion (USD 708.4 million), a 17.2% YoY growth.

The overseas division saw a 42.6% YoY increase, generating RMB 2.732 billion (USD 385 million).

Key Point 2: Rapid Overseas Expansion

Miniso operated 2,753 stores overseas by the end of June, a 26% YoY increase.

Overseas GMV surged by 41% YoY, reaching RMB 6.401 billion (USD 902 million).

Same-store GMV for international outlets rose by 16.3%, outperforming the domestic market.

Key Point 3: Strategic IP Partnerships

Miniso has partnered with over 100 IPs, including Loopy, Chiikawa, Barbie, Lotso, and Pokemon.

These partnerships allow Miniso to quickly roll out new products tailored to specific markets and consumer preferences.

The Chiikawa series has been a top-selling IP, capturing the attention of young consumers.

Key Point 4: Effective Localization

Miniso carefully evaluates target markets and tailors its approach to each location.

Asia, excluding China, has emerged as a key market, with the largest number of stores and highest GMV in the first half of 2024.

Miniso’s decision to open a Sanrio-themed store in Indonesia in 2023 led to strong sales.

Resources:

Miniso’s Midyear Financial Report 2024

This report provides detailed insights into Miniso’s financial performance, highlighting significant growth in both domestic and international segments.

It includes key metrics such as revenue, profit margins, and store count, offering a comprehensive overview of the company’s financial health.

Read the full report

Chiikawa Series

One of Miniso’s top-selling IPs, the Chiikawa series features quirky, relatable designs that appeal to young consumers.

The product range includes plush toys, tote bags, lunch bags, mini fans, and water bottles, showcasing Miniso’s ability to diversify its offerings.

Learn more about Chiikawa

Sanrio-Themed Store in Indonesia

Miniso’s decision to open a Sanrio-themed store in Indonesia in 2023 led to strong sales, highlighting the effectiveness of its localization strategy.

The store features popular Sanrio characters like Hello Kitty and Kuromi, tailored to local consumer preferences.

Explore the Sanrio-themed store

Next Steps:

1. **Expand IP Partnerships**: Continue to secure and leverage top-tier IP partnerships to drive product innovation and consumer engagement.
2. **Enhance Localization Efforts**: Further tailor operations and product offerings to meet the specific needs of local markets, particularly in high-growth regions like Asia and Latin America.
3. **Monitor Economic Trends**: Keep a close eye on global economic trends and adjust strategies accordingly to capitalize on emerging opportunities and mitigate potential risks.