Remember when we glanced dismissively at MINISO, labeling it as just another "cheap alternative" store? Many saw it merely as an upgraded version of a dollar store, synonymous with low-quality goods. Today, this underestimated brand is defying expectations with its explosive global growth.
While traditional retail giants struggle with stagnant growth or face bankruptcy, MINISO charges ahead like a dark horse, conquering global markets at an astonishing pace. What's the secret behind this success? Is it charting a new course beyond the typical "price war" strategy for international expansion? The answer is a resounding yes!
MINISO is proving that Chinese brands can break free from the "cheap" stereotype. This article examines the key factors behind MINISO's overseas success, revealing how differentiated strategies, supply chain optimization, and localized operations helped reshape its global brand image and achieve profitable growth.
1. Financial Performance: Overseas Markets Fuel Explosive Growth
The numbers speak for themselves. MINISO's recent financial performance demonstrates remarkable strength and vitality, with all key indicators showing upward momentum.
As of June 30, 2023, MINISO operates 5,791 stores globally, including 3,604 in China and 2,187 overseas. Total annual revenue reached 11.47 billion yuan (approximately $1.58 billion), with 7.65 billion yuan from China and 3.82 billion yuan from international markets.
The most impressive figure comes from June quarter overseas revenue of 1.11 billion yuan, surging 42% year-over-year. International markets now contribute over 40% of operating profits, representing more than one-third of total revenue and nearly 40% of stores.
Despite early perceptions as a Chinese "dollar store," MINISO avoided extreme low-price strategies while achieving superior profitability. These stellar numbers illuminate MINISO's path forward and signal an even brighter future.
2. Pricing Strategy: Moving Beyond Price Wars to Brand Value
Founder Ye Guofu revealed during Q4 earnings that average overseas prices double domestic levels, tripling in developed markets. For example, a plush toy dog sells for 30-40 yuan in China but $18.99 (≈138 yuan) on Amazon - nearly four times higher.
This isn't mere price adjustment but a fundamental brand revolution. By abandoning cutthroat pricing, MINISO enhances product value and premium potential. While leveraging China's robust supply chain keeps costs stable overseas, higher prices create wider profit margins.
Company-operated stores demonstrate particularly strong performance, with nearly half of new overseas locations being directly managed. Overseas direct-sales revenue jumped 85% annually, while 90% of U.S. stores reached profitability in June, significantly boosting international operating margins.
3. Three Pillars of Overseas Success: Partnerships, Supply Chain, Differentiation
MINISO's international achievement stems from three foundational elements developed through continuous exploration.
3.1 Partnership Model: Leveraging Local Resources for Rapid Expansion
The company operates through direct stores and third-party partnerships (retail partners and distributors). This flexible approach allows customized market entry strategies. MINISO provides store design, management systems, staffing solutions, and industry insights while partners handle capital investment.
In Mexico, collaboration with retail giant Carlos Slim's Carso Group enabled rapid deployment of 180+ stores plus e-commerce integration. This "local resources meets global expertise" model dramatically improves market penetration efficiency.
3.2 Supply Chain Advantage: Scale and Speed as Competitive Edge
While China's manufacturing strength provides the foundation, MINISO's supply chain sophistication creates true differentiation:
• Extensive production network: 1,100+ OEM factories ensure capacity and cost efficiency
• Rapid product refresh: The "711" principle selects 100 new SKUs weekly from 10,000 concepts
• Operational excellence: Production scale, cost control and efficiency enable all other strategies
3.3 Differentiation Strategy: Building a Superbrand Experience
Facing competition from Costco and Sam's Club, MINISO pursues distinct positioning through:
• IP collaborations: Partnerships with Marvel, Barbie and others add value while helping shed the "dollar store" image
• Flagship stores: Landmark locations like Times Square (the first Chinese brand there) elevate brand perception
• Localization: Region-specific products (like fragrance preferences) and holiday collections tailored to each market
A multinational design team and data-driven consumer insights support these localization efforts.
4. Challenges and Outlook: The Path Forward
After ten years of growth, founder Ye Guofu maintains that becoming a "super brand" remains essential for global competitiveness. MINISO's success offers a new blueprint for Chinese brands going global - competing through value rather than just price.
Challenges include maintaining consistent brand management across markets and deepening consumer engagement. Continuous innovation remains critical as competition intensifies.
MINISO demonstrates that "Made in China" can mean quality and innovation, not just low cost. Its journey inspires confidence that more Chinese brands can achieve global success through distinctive value propositions.