(Source- Indianretailer)
Chinese lifestyle retailer Miniso has unveiled ambitious plans to significantly increase its global presence in 2024. According to the Financial Times, the company intends to open 600 new stores overseas, marking a strategic pivot towards international markets. In addition to this global push, Miniso will also establish 400 new outlets within China. This marks a notable shift in the company’s expansion strategy, emphasizing international growth for the first time since 2019.
Chief Financial Officer Eason Zhang highlighted the challenges posed by the current economic climate in China, noting that consumer behavior is heavily influenced by economic uncertainties and future income expectations. “It’s a very, very challenging task for us at this moment, especially given the new normal of the Chinese economy. It’s no longer the stage of high-speed growth,” Zhang stated.
Impressive Financial Performance
Miniso’s global expansion plans come on the heels of strong financial performance. As of March 31, 2024, the retailer reached a milestone of 6,630 stores worldwide, with a net addition of 217 stores in the March quarter alone. The company reported a revenue of 3.72 billion yuan ($515.7 million) for the quarter ended March 2024, reflecting a 26% increase from the same period the previous year.
The growth in revenue is attributed to a 19.3% rise in the average store count and a 9% same-store sales growth at the group level. During this quarter, Miniso’s gross profit surged by 39.1% to 1.61 billion yuan, with a gross margin of 43.4%, up from 39.3% in the previous financial year. Operating profit also saw a significant increase, standing at 743.3 million yuan, a 29.1% rise year-on-year. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 36.7% to 965.3 million yuan, up from 706.36 million yuan in the previous year.
Strategic Vision and Future Goals
Miniso’s founder, chairman, and CEO, Guofu Ye, emphasized the company’s robust growth and future aspirations. “This past March quarter has seen our fastest pace of store openings for the first quarters ever, establishing a robust foundation towards our goal of a net addition of 900 to 1,100 stores in 2024. We also embarked on our path towards our five-year strategic goal with a stronger March quarter compared to the high base of the same period of 2023,” Ye stated.
Miniso’s product offerings include a diverse range of lifestyle items such as electronics, water bottles, toys, cosmetics, and snacks. This diverse product range, coupled with aggressive expansion plans, positions Miniso to strengthen its market presence both domestically and internationally.
The company’s strategic focus on global expansion reflects its response to the evolving economic landscape in China and aims to capitalize on opportunities in international markets. As Miniso continues to grow its footprint, the retailer’s ability to navigate the challenges of both domestic and international markets will be crucial to its sustained success.
