Summary of the Key Points in Plain Language
This article analyzes the most counterintuitive phenomenon in the retail industry recently: in the first half of 2026, the total amount spent on goods nationwide only increased by 1.3% year-on-year, indicating that most sectors are struggling in a cold environment of declining consumer spending. However, Miniso achieved its best results in nearly three years, with its domestic revenue increasing by 26.2%.
Over the years, Miniso has changed its official positioning at least five times, claiming to be a design company at one point and then an IP platform. Essentially, it has always relied on two core competencies that remain unchanged: first, its expertise in retailing, which involves minimizing the costs of its supply chain, logistics, and stores to maximize efficiency, ensuring that its products are both affordable and of high quality; second, its ability to quickly identify new consumer trends and turn them into affordable items that ordinary people can purchase. The current strategy of combining IP with large stores is a new approach built on these two strengths. However, to achieve its ultimate goal of becoming a “global top-tier IP platform,” Miniso still needs to overcome two major challenges: developing its own IP and expanding into overseas markets.
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Detailed Explanation of Each Point
1. Understanding the Context: Why Are Others Hesitant to Spend While Miniso Is Growing Faster?
Many people think that trendy toys are a niche interest for young people and not a viable business model. In fact, trendy toy stores have become highly sought-after in shopping malls, representing one of the few sectors in the retail industry still experiencing rapid growth. Unlike Bomba Mart, which focuses on selling trendy toy blind boxes, Miniso takes a different approach by integrating popular toy IPs into everyday items such as pens, scents, keychains, slippers, and plush toys. This expands its customer base from enthusiasts of trendy toys to anyone who visits affordable department stores, significantly increasing its growth rate even in a weak consumer market.
2. Miniso’s Changing Identity: A Cost-Effective Retailer at Its Core
Since its initial public offering in the US in 2020, Miniso has changed its official self-description five times. It has described itself as a retailer of design-driven lifestyle products, a trend company focused on IP products, and most recently, a high-growth retailer. Regardless of the label, its core competency remains cost efficiency. It maintains a wide range of products (over 8,000 different items) with 95% of them priced below 50 yuan, and it selects new products every 7 days, introducing more than 7,000 new items annually. For example, it was able to offer popular IP collaborations at prices between 19.9 and 69.9 yuan, not because of exclusive IP rights, but because of its scale, which allows it to control supply chain and logistics costs more effectively than its competitors.
3. Miniso’s Ability to Transform Trends into Affordable Products
Miniso’s unique ability to quickly turn consumer trends into affordable items for the general public is crucial. When trendy toys became popular, it adapted by adding popular IP designs to its products, making them more appealing to a broader audience. It has also evolved its store formats to provide a more engaging shopping experience, with themed areas that encourage customers to stop and buy more. As a result, its average transaction value has increased from 38 yuan to 41 yuan, with little noticeable price increase for consumers, while profits have significantly increased.
4. The Strategy of Larger Stores: A Cost-Effective Move?
Miniso plans to convert 80% of its stores into larger ones, with each store covering an area of 400-600 square meters. While this may seem like a costly investment, financial analysis shows that it is highly profitable. Larger stores generate three times the revenue per unit area and have a 7% higher average transaction value. The faster turnover of goods also reduces the risk of inventory expiration. Additionally, most of the costs associated with rent, decoration, and labor are borne by franchise partners, minimizing Miniso’s own financial risks. However, the overseas market has presented challenges, with declining revenue at some stores, prompting Miniso to focus on profitability rather than simply increasing store numbers.
5. The Road to Becoming a Global IP Platform
Miniso’s goal is to become the world’s leading IP platform. To achieve this, it must overcome two key challenges: first, maintaining its ability to quickly identify and capitalize on consumer trends; second, preserving its cost-effective reputation. While it has successfully adapted to previous trends, it needs to ensure that its cost-effective approach remains effective in the new context of larger stores and international expansion. If it fails to do so, it may lose its competitive edge.
In summary, Miniso’s success stems from its ability to innovate and adapt to consumer trends while maintaining its cost-effective foundation. By continuously improving its operations and expanding into new markets, Miniso is well-positioned to achieve its ambitious goal of becoming a global IP platform.