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Lifestyle Products Retailer MINISO Files for IPO, GMV Reached CNY 19 Bn in 2019
COVID-19 and China
Image credit: MINISO

On September 24, lifestyle products retailer MINISO filed for an IPO on NYEX. Chairman and CEO Ye Guofu holds 80.8% of shares, and Hillhouse Capital and Tencent each hold 5.4% of the shares. The funds raised will be used to expand stores and retail networks, invest in warehousing and logistics networks, and improve digital operating systems.

As of June 30, 2020, the company served consumers primarily through a network of over 4,200 MINISO stores. It directly operated 129, including over 2,500 MINISO stores in China and over 1,680 MINISO stores across 80 countries and regions. The company's revenue reached CNY 9 billion (USD 1.3 billion) in the fiscal year ended June 30, 2020, with overseas income accounting for 32.7%. The aggregate GMV reached CNY 19 billion (USD 2.7 billion) in 2019, making MINISO the most massive global branded variety retailer of lifestyle products, according to Frost & Sullivan.

In the fiscal year ended June 30, 2020, MINISO offered consumers a wide selection of approximately 8,000 core SKUs. The vast majority are under flagship brand 'MINISO.' These products span across 11 major categories, including home decor, small electronics, textile, accessories, beauty tools, toys, cosmetics, personal care, snacks, fragrance perfumes, and stationery and gifts. The company also launched an average of over 600 SKUs per month. 

As of June 30, 2020, MINISO has cooperated with 17 world-renowned IPs, including Hello Kitty, Marvel, and Disney, to enhance brand value and popularity. Also, 416 million people visited MINISO's stores with smart store systems, and about 30% of consumers made purchases. In terms of user portraits, more than 80% of shoppers were over 40 years old, and about 60% of consumers were young people under 30. 

MINISO launched its membership program in China for the first time in August 2018. As of June 30, 2020, the number of members of MINISO exceeded 22.3 million.

Regarding the future development strategy, MINISO claimed that, firstly, the company would continue to tap the development potential of the domestic market, mostly to seize opportunities in lower-tier cities to increase overall penetration. The overseas expansion will mainly focus on the North American and Indian needs.

Second, in terms of product portfolio, it will expand into new categories and plans to improve the efficiency of the entire supply chain by reducing delivery time and increasing repurchase rate. 

Third, the company plans to dig more sales channels and seek more interaction with consumers, including strengthening cooperation with third-party e-commerce platforms and using social media such as WeChat to increase brand influence.

Editor: Luke Sheehan
ANALYST
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