On February 18th, Miniso announced a new strategy to diversify its business and incubate more sub-brands. In addition to expanding the Miniso brand, Miniso also hopes to become a platform for selling other brands.
On December 18, 2020, Miniso launched the trendy toy brand TOPTOY and opened nine stores in five Chinese cities in six weeks. Due to the “Chinese trend” in China in the past two years, especially the popularity of toys represented by blind boxes, many new retailers have set toys as the key development direction. Toys are also a strategic category for Miniso, from 2021 onwards.
China’s new retail brands already have some influence. There are tens of thousands of products under Miniso, covering all aspects of daily life. Overseas, especially in East and Southeast Asia, Miniso is also gradually entering the market at the rate of hundreds of stores every year. As of the third quarter of 2020, Miniso had more than 1600 overseas stores and more than 2600 in China. In the third quarter of 2020, according to the financial report, the quarterly revenue of Miniso reached 2.07 billion yuan.
Due to too many categories, it is really necessary for Miniso to establish another sub-brand in order to better plan the development direction of the brand. Moreover, most of the goods of Miniso are relatively cheap, even selling for less than 10 yuan, and the profit space of the brand itself is limited. After solving the channel problem, Miniso’s future revenue and profits may be guaranteed by launching sub-brands with higher profit margins.