Founded in September 2013, Miniso, a Japan fast fashion designer brand advertised as “ten yuan each, quality of life”, has quickly occupied the Chinese market while the retail industry suffers from a bleak winter. It has opened over 1400 global shops within two years with sales exceeded 5 billion in 2015 with its high-quality, low-cost, fast-fashion features. Miniso’s success relies on its unique strategy. Depending on the volume quotation system, the price of the product can be negotiated to a competitively low price, therefore Miniso successfully achieves the economies of scale and enlarged marginal benefit with guaranteed quality of goods. In the collapse of the middle class of M-shaped society, “cost-effective” is indeed the best chance of growing format. At present, Miniso has more than 1000 shops in the first-class commercial walk street and shopping centers of the first-tier cities in China. The store has more than 3000 kinds of global carefully selected low-cost and high-quality goods and launches a hundred kinds of new products per week. At present, Miniso has completed the layout of Malaysia, Singapore, United Arab Emirates, South Korea, Australia, Thailand, Mexico, Turkey, Hong Kong and other countries and regions. It is expected to set up 3000 shops overseas by 2020.
Upgraded consumer demand
In recent years, with the rapid development of e-commerce and upgraded consumer demand, the traditional retail entities face changes. The cost-effective consumption has become one of the most important factors driving economic development. The Chinese consumer behavior in the new era of consumption includes the life needs and emotional needs, which means practicality, convenience, higher cost performance than ever, but also to meet the spiritual needs at the same time. What the enterprise needs to do is to explore and trigger the aesthetic sense of the consumer’s mind with the interaction of brand building and consumer value. In this context, the excellence contrarian rise of the retail brand Miniso will be not at all surprising.
Miniso unique marketing strategy
Compared with the traditional retail industry, Miniso creates a new product style “Miniso style”at a low price, high quality with rich design in the sense of products to meet the needs of today’s consumers. This is a new business model called “three high and three low”. The so-called three low refers to low price based on low cost and low margin while the three high means high efficiency, high technology, and high quality. In order to ensure the price advantage, Miniso adopts the volume quotation system to enhance the bargaining power of large scale procurement. Unlike traditional retail which includes heavy intermediate channels, Miniso implements the buyout customization which put an end to the supplier on the possibility of a final product pricing. At the same time, once the goods are in the warehouse, they are settled promptly according to the process in order to ensure the new arrivals in the store every 7 days. In addition, the control of gross margin is also important. The company’s gross profit margin is controlled by about 8%, while the gross profit in shops is controlled below 38%, in order to guarantee the real low prices. At the same time, Miniso works with global first-class foreign trade suppliers and sets up a global design team headed by Miyake Junya who brings the life concept of back to the original nature, feeling comfortable, pure and blissful. This is also designed in Miniso’s products with the simple spirit to appease the citizens’ impetuous, restless heart, to bring them back to nature.
Miniso Intensive management
Goods sold in Miniso are full of brand characteristics, from the commodity packaging design and pricing, which fully stresses the brand’s “three high, three low” business model. Product design is rich in imported elements and a variety of products are ten yuan each. Each store’s decoration is in a unified style of simple fashion and focusing on the Miniso awareness. Shop assistants tend to create a scene of impulse shopping environment. This intensive management of these chains strongly relies on the background management online of the entity. Network management is responsible for completed market research, product design and development, merchandise inventory management and control, the shop’s overall planning, sales data analysis, terminal marketing plan formulation, the whole network brand marketing strategy, and the improved logistics distribution system. These modules are truly in place to effectively support the normal operation of the chain stores’ management.
Headquarters vertical management
Another bright spot of Miniso’s business model is the direct management of the headquarters. This cooperation mechanism avoids the management of investors, thus can make all the policies of the headquarters really fall in place. This model is the reflection of Aiyaya’s business model. The founder of Aiyaya is Ye Guofu who’s also the founder of Miniso. Aiyaya is also a living goods shop brand and owns about 3000 stores in its boom period. These stores signed a franchise agreement and are subject to the company management, but the fact is that basically all shops are out of control, which leads to the failure in final to some extent. Investors must be subordinated to their own interests when there is a conflict between the interests of the company and themselves. Now, therefore, the business model of Miniso achieves the real implementation of the truly unified and efficient.
To Know more about Fast Fashion Industry in China contact us at email@example.com
Follow us on Twitter: https://twitter.com/DaxueConsulting