Since its listing on the New York Stock Exchange on October 15, 2020, Miniso has experienced stock price fluctuations, with shares returning to the issue price of USD 20 on November 25.
On November 25, Miniso's shares soared 11% to USD 20, thanks to its expansion in Europe and other markets around the world. Since October, the low-cost retailer offering various design-led products has opened more than 20 stores in Asia, Africa and the United States.
Focusing on 'value for money' products, Miniso keeps the price of 95% of its products below CNY 50 and expands rapidly through franchising. As of June 30, 2020, the company established 4,200 Miniso stores, of which 129 are directly operated. Among all stores, 40% are located in China, and 60% across 80 countries and regions.
As an offline retailer, the company has two main ways to increase revenue: one is to accelerate the expansion of stores, and the other is to increase same-store sales. Therefore, after Miniso opened its 100th physical store after its IPO in Madrid in November, investors' reaction in the secondary market is justified.
However, the integrator has not yet achieved profitability, which is why the stock price has been hovering at the issue price. The invasion of Alibaba's one yuan store, the emerging brands such as Nome and the shift of online consumption habits are powerful threats for Miniso. Stabilizing its moat, whether through strengthening supply chain management to control costs or exploring new profit engines to continuously win investors' favor, should be Miniso's priority.