“Joy and Surprise”. It is with these two words that Chinese entrepreneur Ye Guofu likes to describe Miniso, his accessories brand founded in 2013. With nearly 5,500 stores worldwide, the chain is one of the most successful entrepreneurs from China. According to its leader, it would even be the “first Chinese retailer internationally”, neck and neck with Xiaomi. What’s there? Everything, or almost: stuffed animals, kitchen utensils, stationery or beauty items… An abundant and “made in China” offer, which stands out with its neat design and playful spirit.
“The idea of creating Miniso came to me when I returned from a trip to Japan,” explains Ye Guofu. The entrepreneur founded his brand with the Japanese designer Miyake Junya. Together, they design uncluttered points of sale, modeled on the model of fashionable Japanese boutiques. The items are “kawai” inspired, from the name of this Japanese aesthetic based on the world of childhood. Their manufacture, on the other hand, is indeed “made in China”, as Ye Guofu claims. “Products made in China continue to improve, thanks to the quality and strength of the supply chain,” argues the leader.
Trendy and cheap: that was enough to convince the new Chinese middle class to rush to Miniso. More than 3000 shops have grown in the country in ten years. A commercial success that Ye Guofu also attributes to his disruptive economic model, which he has now presented at Harvard. “For all the Chinese shops, Miniso does not own its walls,” he explains. The premises remain owned by a third party, to whom Miniso transfers part of the turnover achieved in the store. The company also does not own factories, which leaves it free to choose the most attractive suppliers. “No factory, no capex, no debt”, sums up an employee. After experiencing several years of limited net margins – around 8% – Miniso is now managing to generate a net profit of 16%, a profit that should increase with the expansion of the international network.
Because Ye Guofu thinks big. Since the creation of Miniso, the businessman has had only one ambition: “to copy his model all over the world”. In 2020, the company entered the New York Stock Exchange, raising nearly $608 million. A few months ago, a Miniso store even appeared on the iconic Times Square. In total, Miniso has more than 70 stores in the United States. But the brand’s “land of conquest” remains Europe. The brand is already established there in several countries (United Kingdom, Spain, etc.), including France.
The stores are managed by local partners, on the basis of a franchise agreement. In France, Miniso has set its sights on the trio of entrepreneurs made up of Ariel Wizman, Jonathan Siboni and Nicolas Rey. “I was immediately seduced by the brand’s philosophy, its simplicity and its optimism”, confides Ariel Wizman, former journalist-host of Canal, converted entrepreneur. The opening of the first boutique, rue de la Chaussée d’Antin in October 2021, generated unexpected commercial enthusiasm. “It was madness, ten-meter queues for several days,” recalls Ariel Wizman.
The health crisis and its share of administrative closures has however tempered the appetite of French buyers – especially since the brand did not yet have a delivery service in France. On the other side of the globe, the parent company was also feeling the blow, as disruptions in the global supply chain increased the cost of imports from China. “But these obstacles are now overcome,” sweeps Ye Guofu. The Covid period has not altered his passion for physical retail. “While our strategy is omnichannel, the decor of Miniso stores remains decisive for the customer experience”. Miniso now makes 70% of its sales there, against only 30% online.
“Miniso is based on serendipity (unexpected discovery, editor’s note): you don’t go there for a specific purpose, but because you feel good there,” adds Ariel Wizman. We still have to convince customers to take out their wallets. With inflation still galloping, the task could become increasingly difficult. Ye Guofu isn’t worried though. “Inflation is an opportunity for our model,” he says. Miniso does not suffer from inflation on its manufacturing process in China, which makes it possible to maintain very competitive prices in Europe”.
No question of yielding, like other brands, to the sirens of “premiumization”. “A happy life has nothing to do with the price”, likes to hammer the businessman. This does not prevent the brand from refining its products again and again. “For the same price and the same product rotation as our competitors, we pay more attention to design and brand identity, says Ye Guofu. And then we have the licenses.
A few years earlier, the businessman had the good idea to obtain exclusive licenses from Disney, Marvel or even Toy Story. “The goal was for customers to identify Miniso by buying a Marvel-branded product, and that’s what’s happening,” Ye Guofu said. On the strength of this first success, the manager now wants to establish Miniso as a global “superbrand”, in the footsteps of Nike or Apple.
In this perspective, the establishment of Miniso in France is carefully scrutinized by the Chinese firm. “Paris in particular, because it is here that the branding is done (brand identity, editor’s note)”, notes Ariel Wizman. Year after year, the brand takes the lead in France, but struggles to revive the fever of the first days of opening. “After the two confinements, it was necessary to rebuild from scratch”, admits the entrepreneur, who nevertheless mentions a turnover in constant progression, “by around 30% each year since the end of the health crisis”.
Several store openings are planned in the coming months in Paris, Lyon and Marseille. “We are concentrating first on the metropolises before conquering the medium-sized towns”, explains the franchisee. Ultimately, the ex-journalist and his associates are aiming for a network of 100 to 150 stores. That is more than the current Hema network (85 stores). Established in France since 2009, the Dutch brand also relies on fun shopping and low prices. It is Miniso’s main competitor. “In a country like France, where luxury brands are legion, I’m sure that customers will be sensitive to the beauty of the Miniso model, to its atypical and affordable products”, concludes Ye Guofu, before leaving to smell the air of the Champs-Elysées. As in scouting.
