New Delhi: Miniso, a lifestyle products Chinese retailer, looks to expand in tier 1 cities of India with its large size stores (100-200 square metres) as it sees huge growth potential in big and populous cities, Bella Tu, general manager of Miniso overseas operations shared with ETRetail in an exclusive interview.
The brand currently has over 200 stores in India and recently added 3 more stores in December.
Sharing about India business, Tu said, “During the pandemic, we followed a more cautious path by opening stores in lower-tiered cities and maintaining our presence in India.”
She further said, “One of the biggest challenges is to localize and cater to the needs of Indian customers.” So, to suit Indian consumers’ preferences, the brand sources many of its products locally and refreshes stock in a timely manner.
Strategies and Propositions
The brand added 30 distributors, mostly in India during its previous fiscal that ended June 30, 2022. On this, Tu said, “We’ll continue to look for new partners to work with and accelerate the business growth of Miniso in India.”
In terms of strategies, Miniso is working on deepening consumer engagement and driving an omnichannel experience. Tu shared, “We are not only expanding our brick-and-mortar retail network, but also have plans to cooperate with local e-commerce platforms.”
In India, Miniso is working with top e-commerce platforms such as Amazon and Flipkart to make their products more accessible to Indian consumers.
The brand said enhancing product development and supply chain capabilities is vital for Miniso. Many markets including India are experiencing inflation and consumers are worried about financial instability and are more cautious when making purchase decisions. So, it aims to maintain and improve the value propositions of its products to stay competitive.
In major markets, the retailer has built capabilities to launch products in a “711” manner where every 7 days, it launches approximately 100 new products, selected from a large library of 10,000 ideas.
Overall Business and Gross Merchandise Value (GMV)
Miniso is headquartered in Guangzhou, China, and is listed on New York Stock Exchange (NYSE).
Its total revenue in September quarter(Q1 FY23) reached USD 389.7 million. Its revenue from overseas markets stood at USD 129.4 million, accounting for 33.2 per cent of its total revenue and representing an increase of 47.6 per cent year-over-year.
The global retailer’s total revenue grew 11.2 per cent to USD 1,505.7 million in FY22 that ended June 30, 2022 and its gross profit rose 26.3 per cent YoY.
It said the COVID-19 pandemic has impacted the company’s operations and results in the quarter ended September 30, 2022, mainly in China.
However, the gross merchandise value (GMV) of Miniso stores in overseas markets in the September quarter increased by 41 per cent year-on-year (YoY), and has recovered to more than 95 per cent of the level in the same quarter of 2019, the company said.
On the company’s results in its first quarter(Q1 FY23), Tu said, “We’ll adhere to our long-term goals – carrying forward our globalization strategy, bolstering the strength of our product offerings and optimising our store network.”
In India, during Diwali month, the brand saw a 27 per cent surge in the sales of scented products as against its previous month. Also, the brand’s plush toys contributed to most of its sales in India. This year, its GMV on Black Friday went up 168 per cent in comparison to the same period last year. In Miniso’s directly operated stores, personal care products’ GMV rose 125 per cent as against last year.
Now, the company expects an 80 per cent GMV increase in India during the Christmas-New Year period as against the same duration last year.
Tu shared that the brand will continue to expand its footprints globally and dive deeper into major markets such as India and the US. Further, the retailer remains optimistic about its revenue and profit growth potential as it saw overseas operations move further along the path of recovery.