Exclusive: MINISO Secretly Files for IPO in the US
"The outbreak of the epidemic has accelerated the trend of pursuing 'cost-effectiveness' products," said Bruno Lannes, partner at Bain & Company.
According to people familiar with the matter who asked not to be named, MINISO has secretly handed in a prospectus for an IPO in the US. Established in 2013, MINISO has opened more than 3,900 stores in nearly 70 countries, with 3,000 kinds of products, 95% of which are priced between CNY 10 and CNY 29.
The rising star specializes in a strong supply chain, and places large orders from more than 800 suppliers to dilute the average cost, seeing a net profit margin of 8%.
Amid the pandemic, MINISO showed strong resilience. Under the case that FMCG sales declined 6.7% YoY in the first quarter of 2020, MINISO's sales, except for Hubei province, recovered to 70% to 80% through quickly launching 'contactless distribution' services. In contrast, the subsidiary of Japanese retail giant MUJI in the US and the men's clothing retailer Brooks Brothers filed for bankruptcy.
According to the China Consumer Survey report released by McKinsey, 60% of the respondents claimed that they prefer 'cost-effective products,' indicating an increasing potential market for MINISO.