MINISO Investment Conference in Singapore: Making a Fruitful Interaction with Retail Representatives from Different Countries
On December 11, MINISO, a Japanese fast fashion designer brand held a three-day investment conference named "Hello! World MINISO -- Saiman Fund International Conference on Global Investment" in Singapore. Mr. Miyake Junya, Global Co-founder and Chief Designer of MINISO, Mr. Ye Guofu, the Global Co-founder of MINISO, Mr. Li Minxin, Vice President of MINISO Asia-Pacific and Mr. Huangzheng, Director of MINISO International Operation Department, together with over 250 agents, potential agents and suppliers from more than 100 countries attended this grand conference.
Compared with other retail giants, MINISO is a relatively young brand. Although it was established less than three years ago, it has developed far quicker than other brands of the same kind, and was awarded first place at the "Chinese Franchise 50" awards for two consecutive years. MINISO has opened more than 1,400 stores in over 40 countries and regions so far, becoming the most rapidly expanding retail brand in the world. In 2015, its global revenue reached USD 750 million while revenues for 2016 are expected to exceed USD 1.5 billion.
In order to explain to attendees how this brand can develop at such a high pace, Mr. Miyake Junya was present and gave a speech on the "MINISO model". He took Singapore as an example to explain how MINISO has developed in Singapore. Although Singapore has been listed as a developed economy since 2010 by OECD, it is restricted by its relatively small area and population. Therefore, its economic development has stayed weak in recent years, and the retail industry is rather depressed as well. However, after MINISO opened three stores in Singapore at the same time, it stimulates the development of this country and followed by opening more than 20 other locations stores in the year after. In addition to its quick development, the turnover of MINISO repeatedly achieved local sales records, developing far faster than any other retail brand. Mr. Miyake Junya believes that MINISO's success owes to its powerful brand force. It is all about the "high-quality, creative and low-priced" products of MINISO, the unique shopping experience and its efficient and reliable supply chain.
(Illustration: Mr. Miyake Junya took Singapore as an example to illustrate the so-called “MINISO model”.)
A store visit was arranged for leading the guests to experience MINISO's powerful brand force. Guests were invited to visit five major MINISO stores in Singapore and one warehouse on that very day. Due to its efficient store management, everything was organized perfectly even though customer traffic surged. The well trained clerks observed people's facial expressions carefully and provided services at the right moment. While organizing the goods, they also made sure to replenish the goods as rapidly as possible. The store manager told guests that MINISO was decorated in an ivory white style, which makes the store look brighter and more welcoming. Besides that, the new makeup series displayed at the front attracted a large number of shoppers to step inside the store. In addition, MINISO cooperates with top quality suppliers such as Intercos, Givaudan and Jiacheng Groups. They are beautifully designed, durable, practical and ornamental. With batch and outright purchase, MINISO ensures a gross profit as small as 8%, which makes it possible to keep prices low and guarantee product quality at the same time.
When visiting the warehouse, guests were told that in order to improve delivery efficiency, MINISO has built seven large-scale central warehouses around the world. Products will be delivered directly to warehouses as soon as they leave the plant, and are distributed to stores in different areas. The whole procedure is of high efficiency. It cuts down the redundant costs of the intermediate link, and shortens product launch time. As a fast fashion brand, MINISO launches new products every three days and completes a goods circulation of the whole store every 21 days. It keeps up with the trends and makes customers feel fresh every time they step in the store.
(Illustration: MINISO held investment conference in Singapore. Suppliers from different countries were taking a group photo.)
The highly-efficient operation, good social reputation and powerful brand force of MINISO impressed the guests. For their better understanding, Mr. Ye Guofu, co-founder of MINISO also spoke at the conference, discussing the essence of a brand with competitiveness, which in his opinion is performing well in the field of "new retail". Different from the new retail of combining on-line and off-line which was put forward by Jack Ma, Ye believes that there is no "essential difference" between on-line and off-line. The off-line B2B model is of the same competitiveness as on-line platform as long as it can be operated well. The key is how operator manages to do it. After deep consideration, Ye defines "new retail" as: extreme product design, high cost performance and excellent shopping experience. As for Ye Guofu, the traditional retail industry must undergo transformation. It is not only because of the impact from e-commerce, but most importantly due to clever consumers. While they require high quality products, they also pursue high cost performance. MINISO was born under such circumstances. Ye Guofu indicated that MINISO has always adhered to the philosophy of not chasing excessive profit but rather providing authentic products. They are particular to the design, price and consumer experience, with a goal of letting every consumer spend less money to buy better products. MINISO has gained popularity among consumers via word of mouth and never looks to make "quick money" at the expense of service or quality.
(Illustration: Ye Guofu, global co-founder of MINISO was addressing at the investment conference held in Singapore, discussing about the brand mission of MINISO.)
Mr. Ye Guofu expressed at the signing ceremony that, MINISO has regarded "making consumers experience the happiness of shopping" as its duty since the first day it was established. In these three years, from the high quality but low-price products, comfortable shopping environment to the easy but thoughtful way of cooperation, MINISO has never gone against its original intentions. It has responded positively to "the Belt and Road Initiative" of China and it hopes to further promote its global development after the Singapore investment conference. It is expected that by 2020, MINISO will have opened 6,000 stores around the globe and delivered happiness to people throughout the world.