What’s going on with the “most awesome 10-yuan store” now?

What’s happening with the “most awesome 10-yuan store” now? As of the end of last year, the number of Miniso stores exceeded 5,000. The first annual report submitted by Miniso after its listing was not satisfactory. In addition, operating losses have further expanded. What is happening to the "most awesome ten-yuan store" now. What's going on with the "most awesome ten-yuan store" now1

"Welcome to Miniso, pick and browse as you like." Since its establishment in 2013, Miniso has focused on multiple categories and high-looking products. A value-for-money and cost-effective collection of daily necessities, it has developed rapidly and was listed on the New York Stock Exchange in the United States in October 2020. It has more than 4,000 stores worldwide.

Today, Miniso has been on the market for more than a year, and its stock price has been on a "roller coaster", falling from a high of US$34.8/share in February 2021 to a low of US$9.25/share at the end of 2021. The market value has evaporated by nearly 7.5 billion US dollars and nearly 50 billion yuan.

Behind the decline in stock prices, Miniso’s losses are yet to be resolved. In fiscal year 2021, Miniso achieved operating income of 9.072 billion yuan, a year-on-year increase of 1 percentage point; operating profit was 401 million yuan, a year-on-year decrease of 47.72%; the full-year loss was 1.429 billion yuan, compared with a loss of 260 million yuan in fiscal year 2020 , the losses expanded.

As the largest daily necessities store, why does Miniso’s stock price not look good? Is Miniso, which claims to have "low gross profit, no quick money, and sustainable development," profitable?

The stock price "changed"

From Oiyaya to Miniso, Hubei boss Ye Guofu showed the outside world that "small products can also have big business." Now, as the stock price of Miniso continues to decline more than a year after its listing, Ye Guofu's business experience seems to be difficult to talk about.

On October 15, 2020, Miniso was listed on the New York Stock Exchange in the United States. The stock price closed at US$20.64 per share that day. Subsequently, its stock price continued to rise, rising to US$34.8 in February 2021. /share reached an all-time high, and its market value once exceeded US$10 billion.

However, the good times did not last long. Since then, Miniso’s stock price has continued to fall. As of January 10, 2022, its stock price closed at US$9.99 per share, a drop of 71.29% from its high point, and its total market value 3.1 billion U.S. dollars, and about 7.5 billion U.S. dollars evaporated from the high point.

Miniso’s stock price has plummeted and its market value has shrunk. It has also attracted market attention: As the world’s largest collection of daily necessities, why is Miniso not favored by the capital market?

According to the financial report, as of September 2021, MINISO has more than 4,800 MINISO retail stores around the world, including more than 3,000 in China and more than 1,800 overseas. As the scale of stores continues to expand, Miniso’s operating income and operating profits have not grown simultaneously.

In the fiscal year 2019-2021, Miniso’s operating income was 9.395 billion yuan, 8.979 billion yuan, and 9.072 billion yuan respectively, and its operating profits were 1.017 billion yuan, 767 million yuan, and 401 million yuan respectively. All show a downward trend.

In this regard, Miniso said in its financial report: "Affected by the epidemic, income from overseas business has decreased, and sales growth in China has slowed down."

It is understood that as of 2021 By the end of June 2019, 205 Miniso stores in overseas markets had not resumed operations, and most of the stores that had resumed operations were half-open or had reduced business hours, resulting in a year-on-year decline in international market revenue from 3.031 billion yuan in fiscal 2019. to 1.78 billion yuan in fiscal year 2021.

The operating income of Miniso in the domestic market also dropped by 5% to 6.044 billion yuan in fiscal year 2020. In fiscal year 2021, the operating income of Miniso in the Chinese market was 7.291 billion yuan.

Lai Yang, a member of the Expert Committee of the China Chamber of Commerce, analyzed China News Weekly that Miniso’s products highlight the characteristics of design and cultural creativity, giving people an interesting and inexpensive experience, but in actual development There are problems such as not having too many physical stores and the added value of cultural and creative products needing to be highlighted.

“The operating costs of physical stores are high, and over-density of stores reduces the radius of each store’s business district, and the best store locations are becoming fewer and fewer, resulting in fewer locations for new stores. It’s not particularly ideal, and it’s hard to make good profits.” Lai Yang said that the number of stores should be appropriately controlled, while cultural and creative design should be strengthened to increase the premium of design and cultural creativity to ensure product profits.

Since its establishment, Miniso has implemented "asset-light" operations through the partnership model and expanded rapidly, but it still faces profitability problems.

Loss of 1.4 billion?

“In China, no more than 10% of people can understand the Miniso model.” Ye Guofu once said. So, what is the Miniso model?

The financial report shows that as of the 2021 fiscal year, Miniso has more than 900 domestic and foreign suppliers. Through planned centralized procurement, quantity-based pricing, buyout system, and quick payment within 30 days, Miniso has Cooperation model to establish stable supplier resources.

In the terminal market, Miniso has quickly “enclosed territory” through the partnership model.

Under this model, the traditional franchisee role becomes an investor, providing money and resources, responsible for store location selection, store rent, decoration fees, labor, electricity and other daily operating expenses, as well as paying The license fee is RMB 50,000 per year and the product deposit is RMB 600,000; while actual operations such as store layout and decoration, interior design, staff training, pricing, product management and inventory are handled by Miniso.

Wen Zhihong, a senior chain operation expert from Hejun Consulting, analyzed China News Weekly that the advantage of the partnership model of Miniso is that the company has strong control over stores and does not need to bear the burden. The investment in store expansion can maintain a relatively fast expansion speed; but on the other hand, the requirements for Miniso's operation management capabilities and supply chain capabilities are relatively high, and since the interests of both parties are shared, if the store's operating conditions are not good, It could be a lose-lose outcome.

Miniso’s public information shows that Miniso’s profit distribution policy for partners is: 38% of daily turnover is the income of investors, and 33% of food is %.

“Relying on a high-quality supply chain network and efficient commodity operation system, with cost-effective products as the core, the asset-light direct operation model expands channels to achieve economies of scale and sustained expansion.” Guoyuan Securities research report shows .

However, due to the effect of scale, Miniso’s net profit has fallen sharply.

According to Miniso’s financial report, it lost 1.429 billion yuan in fiscal year 2021, compared with losses of 294 million yuan and 260 million yuan in fiscal year 2019-2020, respectively, and the extent of losses further expanded.

According to Miniso’s financial report, the loss of 1.429 billion yuan in fiscal year 2021 was mainly due to the loss of paid-in capital that should be redeemed and other preferential rights or redeemable shares with other preferential rights during the reporting period. Changes in fair value, etc., excluding relevant indicators, the net profit of Miniso in fiscal year 2021 is 480 million yuan.

“Accounting standards require deductions, but there is no such loss in actual operations.” Industry analysts told China News Weekly.

Even so, compared with the net profit of 971 million yuan in fiscal year 2020, Miniso’s net profit in fiscal year 2021 still dropped by 50.57%, and its gross profit margin also fell from 30.4% to 26.8% during the same period. %.

What is the reason why Miniso will increase revenue but not profit in fiscal year 2021? China News Weekly wrote to Miniso about this related issue, but as of press time, the other party has not yet responded.

It is worth mentioning that in fiscal year 2021, in order to increase brand awareness and expand sales, Miniso has successively hired Wang Yibo, Zhang Zifeng, and Chen Feiyu as its global brand spokespersons. Affected by this, Miniso's marketing and advertising expenses in fiscal year 2021 were 215 million yuan, a year-on-year increase of nearly 70%.

How far can the low-price strategy go?

“Why can Miniso go global so quickly? I think it’s because of two persistences: one is insisting on making good products and good designs; the other is insisting on making low gross profit and not making quick money. "Ye Guofu once said.

As of fiscal year 2021, more than 95% of Miniso’s products have a retail price of less than 50 yuan in China. Miniso has gained the favor of consumers through its low-price strategy and has accumulated more than 33 million members. However, in recent years, frequent product quality problems, plagiarism and other incidents have touched the bottom line of consumers.

Recently, the Shanghai Consumer Protection Committee found through a comparative test of 50 pieces of thermal socks that many samples claimed to use specific fiber raw materials such as graphene and far-infrared to achieve thermal insulation purposes, but the thermal insulation rate of individual samples was not high. Ideal, including 110D velvet heated pantyhose (natural skin) with the nominal trademark MINISO, the thermal insulation rate is only 21%, which is far lower than the average thermal insulation rate of nearly 40% of the test samples.

From 2019 to 2020, Miniso has been banned by Guangzhou many times due to problems such as substandard quality of masks, excessive carcinogens in nail polish, and children’s tableware being found to be unqualified for melamine migration. The Municipal Market Supervision Bureau, Shanghai Market Supervision Bureau and other regulatory agencies named the names.

As of January 12, 2022, on the Black Cat Complaint Platform, there have been nearly 900 complaints about Miniso’s product quality, false propaganda, and deception of consumers.

At the same time, Miniso has frequently been involved in disputes over "infringement of design patent rights." Data from Qichacha shows that Miniso and related companies have been sued in more than 20 judicial documents, and disputes involving infringement of design patent rights account for about 37%.

China News Weekly noticed that Miniso’s “MINISO Marshmallow Oil Control Four-Color Loose Powder” priced at 25 yuan and the internationally renowned cosmetics brand Givenchy’s “Celebrity Four-Colored Loose Powder” have The appearance and color are very similar.

Picture source: Tmall Givenchy flagship store screenshot, Miniso Mini Program Pictures 1 and 2 on the left are MINISO Marshmallow Oil Control Four-Color Loose Powder, and the picture on the right is Givenchy Star Four Gongge Loose Powder

In Wen Zhihong’s view, “MINISO adopts a value-for-money and low-price strategy and OEM production. The profit margins of upstream manufacturers may also be very small, and product quality problems are prone to occur. . The core issue is whether Miniso has a very strict system to ensure product quality. ”

In addition, Wen Zhihong pointed out that the emerging retail format of Miniso is very popular in the United States and China. Japan also has similar "10-yuan stores" or discount stores, and their development is relatively mature. Therefore, Miniso is facing increasingly fierce market competition both at home and abroad.

Competition is intensifying, where is the road ahead?

According to the Frost & Sullivan report, the total GMV (gross merchandise volume) of the global brand retail market in 2019 was US$52 billion, and is expected to continue to grow at 11.6 billion US dollars from 2020 to 2024. % compound annual growth rate.

Under this situation, a large number of beauty and fashion collection stores such as HAYDON Black Hole, HARMAY Huamei, Tomato Pocket, and Jiumu Sundries Club have emerged, constantly challenging the business aspect of Miniso.

Tianyancha data shows that as of 2020, there are 5,480 registered companies in the country. Qichacha data shows that there are nearly 7,600 collection store-related companies in my country, and 1,471 new registered companies will be added in 2021 alone, a year-on-year increase of 18%.

The industry market is large, but market competition is becoming increasingly fierce. How does Miniso respond to market competition? How should it develop?

Lai Yang said that for Miniso, the scale of stores should be controlled, more image stores and experience stores should be used to display the brand image, and online sales should be gradually explored; some ultra-small stores should be laid out to sell some Necessities or products with the best sales can improve store efficiency.

Zhang Yi, CEO and Chief Analyst of iiMedia Consulting, believes that current domestic trendy gaming users are still concentrated in first- and second-tier cities, with low downward penetration rate, and overall market share is relatively scattered. There is room for further development. Empty market.

In this regard, daily grocery brands in mature overseas markets already have relevant experience.

As the largest affordable daily grocery retailer in the United States, Dollar General positions itself as a community grocery store, focusing on small packages, high-quality affordable goods, and small store areas, and deeply expands into sinking cities and low-tier cities. In cities and towns, it competes with large supermarket chains such as Walmart to quickly expand stores and create economies of scale.

Guoyuan Securities research report shows that in fiscal year 2021, Dollar General has more than 17,000 stores, achieving operating income of US$33.75 billion and net profit of US$2.65 billion. In the U.S. market The share rate is about 42.3%, ranking first.

In contrast, Miniso still has a lot of room for improvement. Frost & Sullivan's report shows that in 2019, Miniso's market share in China was 10.9%, ranking first, and its global market share was 5.2%.

Lai Yang believes that Miniso should also work hard to ensure product quality and avoid quality disputes. At the same time, it should increase research and development and design to improve the premium ability of products; products also need to be constantly innovated, " If we still stick to the product structure that was attractive to consumers in previous years without further breakthroughs, consumers will also become tired.” MINISO’s financial report shows that its core SKUs exceed 8,800. , launching approximately 100 new SKUs every 7 days.

In order to enhance competitiveness, Miniso began to get involved in the field of trendy toys, and launched the trendy toy brand TOPTOY in December 2020. As of September 2021, TOPTOY has a total of 72 stores, with 8 categories including blind boxes, building blocks, American comic figures, Japanese comic figures, and doll models.

According to iiMedia Consulting data, the scale of China’s trendy toy market reached 29.5 billion yuan in 2020, and it is expected that the scale of China’s trendy toy market will reach 57.5 billion yuan in 2023. Can TOPTOY become a performance growth point for Miniso?

In November 2021, KK Group, which owns four major retail brands, including boutique collection stores KKV and KK Hall, beauty collection store THE COLORIST, and fashion collection store X11, submitted a prospectus to the Hong Kong Stock Exchange. . As KK Group launches its impact on the capital market, it remains to be seen what changes will occur in the domestic brand retail industry. What's going on with the "most awesome ten-yuan store" now 2

In his prime, Ye Guofu took off his old suit, tie, and leather shoes, and replaced them with T-shirts, jogging pants, and sneakers.

He wants to "change his appearance" for himself. "What we do is the consumption of young people. We must understand what young people like in each era. We will follow what young people like."

It's not that Ye Guofu is afraid of getting old, it's Minso. High-quality products cannot be separated from young people.

"Value for money" is no longer an advantage, Ye Guofu has to find a new story

In 2004, Ye Guofu aimed at the low-price women's jewelry market and founded the "Aiyaya" chain jewelry store. In 2010, it has grown to nearly 3,000 stores, with annual sales exceeding 1 billion yuan. However, the rise of e-commerce a few years later caused the gradual decline of "Aiyaya", and Ye Guofu's first venture ended in failure.

Since 2011, Ye Guofu has frequently visited and studied in countries with relatively developed retail industries such as the United States, Japan, and South Korea. Once, he was surprised to find that there were many 200 yen stores in Japan. At that time, 200 yen was equivalent to 12 yuan. The key point was that most of the products in these stores were "Made in China." This gave Ye Guofu a great inspiration.

Two years later, Ye Guofu returned to China and founded Miniso with the combination of "Japanese design + Made in China". In November of that year, the first Miniso store was located in Guangzhou China Plaza. Relying on the cost-effectiveness advantage and the scale effect brought about by the rapid expansion of stores, Miniso has rapidly developed into major cities across the country, opening 273 stores one year later and reaching 1,075 stores in 2015.

In many interviews at the beginning of his business, Ye Guofu would emphasize that Miniso’s purpose is to allow people to buy higher-quality products at reasonable prices. When he was excited while chatting with the media, he lifted up his trouser legs without saying a word, pointed at his socks, and said proudly, "MINISO premium products, three pairs for ten yuan!"

October 2020 On the 15th, Miniso listed on the New York Stock Exchange with a price of US$20, issuing 30.4 million ADS (American depositary shares), with a market value of US$6.992 billion. Miniso, which has quickly emerged from the market, is called "the world's largest comprehensive private label retailer" by Frost & Sullivan.

(Source: Internet)

But Ye Guofu’s ambition is far greater than this. In 2017, he boldly formulated the strategic plan of "Thousands of Stores in Hundreds of Countries", "MINISO will enter 100 countries in 2019, open 10,000 stores, and achieve annual sales revenue of 100 billion."

As of the end of last year, the number of Miniso stores exceeded 5,000. As for the unfinished above-mentioned plans, Ye Guofu adjusted the deadline to 2022.

However, for Ye Guofu, there are more pressing matters at hand.

The first annual report handed over by Miniso after its listing was not satisfactory. According to Miniso’s financial report, from June 30, 2020 to June 30, 2021, its total revenue was 9.072 billion yuan, a year-on-year increase of only 1.03%. During the same period, the adjusted net profit was 480 million yuan, -50.55% year-on-year.

In addition, operating losses have further expanded. The financial report shows that its operating losses from June 30, 2020 to June 30, 2021 were 1.429 billion yuan, an increase of 5.49 times compared with the loss of 260 million yuan in the same period last year. .

In Q3 of 2021, Miniso’s revenue growth is also worth noting. According to its financial report, in Q1, Q2, and Q3 of 2021, it achieved revenue of 2.229 billion yuan, 2.472 billion yuan, and 2.654 billion yuan respectively, with year-on-year growth of 36.51%, 59.18%, and 28.09% respectively. In other words, compared with the growth rate of Q2, Q3 has declined. Not only that, according to Miniso’s estimates, Q4 revenue in 2021 will be between 2.5 and 2.7 billion yuan, a year-on-year increase of 8.8%-17.51%. further decline.

Under the unsightly financial report data, there are also rumors such as Hillhouse’s entry and withdrawal of investment.

In the third quarter of 2021, Hillhouse reduced its holdings of approximately 5.4 million shares of Miniso. During this period, Miniso's stock price dropped from the closing price of US$20.79 per share on June 30, 2021, to the closing price of US$15.42 per share on September 30, 2021.

On December 23 of the same year, multiple media broke the news that Miniso was cooperating with Bank of America and UBS to discuss a secondary listing in Hong Kong and expected to raise hundreds of millions of dollars. , Miniso declined to comment.

However, there are various signs that the “cost-effective” halo of Miniso is fading, and the dream of “thousands of stores in hundreds of countries” must find a new support point.

Give up cost performance and embrace new retail?

On weekdays, Ye Guofu often does two things, one is going to the store, and the other is reading the Little Red Book.

In the past, he would “shop” every week. He might arrive in a certain city late on Thursday night, go shopping for two days, and then return to Guangdong on Saturday night. “I visited shopping malls all over the world! "Whenever Ye Guofu visits the store, he must not miss the details such as door openings, walls, shelves, displays, and new gadgets. After browsing, he must "output his opinions one by one" to the employees.

In addition to getting inspiration for new consumer demands through "going to stores", he also gets inspiration from Xiaohongshu. "I have to read Xiaohongshu for more than an hour almost every day. When I see good things, I forward them to the product center."

The growth rate of Miniso has slowed down, making Ye Guofu anxious. He also realized that the era of cost-effectiveness has passed. “Now it is not enough to be cost-effective. Products must be unique and well designed.

"

The cooperation with Marvel gave Ye Guofu new hope. In 2019, the Miniso Guangzhou Marvel Black Gold Store opened in Tianhe Game City. "There are queues every day, it's scary." There are many The price of the product is at least 30% higher than that of non-IP products, and it is still very popular, with sales more than 2 times that of non-theme stores. Ye Guofu also sees from this, “Interest is really valuable. "

(Source: Internet)

Having tasted the benefits of co-branded IP, Miniso accelerated its layout. As Ye Guofu said, " We used to mainly focus on lifestyle furnishings, but now we are gradually adding some trendy items. ”

On October 29, 2020, Miniso joined hands with Disney to launch the “Strawberry Bear Hug” series of co-branded products. It also opened up online and offline channels and built 12 offline Strawberry Bear themed stores. The "Take Strawberry Bear Away" campaign was launched online and 11 "Strawberry Bear" themed communities were established, with an average daily interaction volume of over 6,000. It is reported that there are over 700,000 related notes in Xiaohongshu. The pre-sale period was all sold out.

In December 2020, Miniso announced its first independently operated fashion toy brand "TOP TOY", positioned as "Asia's fashion toy collection store". Officially entering the trendy toy market. The first store opened in Guangzhou Zhengjia Plaza on December 18, 2020, with an area of ??over 400 square meters and more than 4,000 SKUs, bringing together IP and trendy products such as Hello Kitty, Marvel, Disney, DC, and Naruto. Play with brands.

As of September 30, 2021, TOPTOY has a total of 72 stores, including 9 DreamWorks stores and 63 collection stores. According to the financial report, TOPTOY achieved revenue in Q3 2021. 109 million yuan, exceeding 100 million yuan for the first time, a month-on-month increase of 64%. It is understood that TOPTOY "has been included in the listing system due to its good performance."

It seems that it is marching towards trendy games, co-branded IP, and MINISO. I have found the consumption code of young people, but trendy play is not that simple.

Miniso’s trendy play chips

Ye Guofu seems to have torn apart Miniso. It’s a trendy way to play, but there’s still a lot to fill in.

First of all, the number of TOP TOY stores is also growing, and the expansion brings the most. The direct problem is the increase in operating costs and the slowdown in gross profit growth. According to financial report data, revenue costs in the latest quarter were 1.55 billion, of which marketing and sales costs increased 18.9% year-on-year to 341 million.

< p> At the same time, Miniso’s gross profit margin growth began to slow down in the third quarter of 2021, and has never exceeded 28%. Compared with the peak gross profit margin of 32% in 2019, there is still a certain gap.

< p> The most important thing is to fill in the IP.

Under Miniso, in addition to its own IPs such as Twinkle and Yoyo, there are also co-branded IPs such as Strawberry Bear and Marvel. . It is understood that Miniso has reached strategic cooperation with more than 80 IP copyrights around the world, including Marvel, Disney, Naruto, etc.

However, non-exclusive joint IP means that you Yes, others can also have it. It is not unique in itself, so it loses its barriers. (Source: Internet)

Lack of self-ownership. IP creation, such a problem also exists in TOPTOY. Currently, TOPTOY mainly purchases and cooperates with IP fashionable toys. The ratio of brand external purchasing and original products is about 7:3, which is more like the relationship between well-known fashionable toy products and IP. Collection store.

Even creating IP is not an easy task for Miniso and TOPTOY. At present, with the favor of capital, the number of competitors has increased sharply, and the trendy play track is crowded, including strong opponents such as Bubble Mart, 52Toys, Twelve Buildings Culture, and Kule Trendy Play.

Last year, among the 85 IPs operated by Bubble Mart, there were 12 self-owned IPs and 22 exclusive IPs. Unlike Miniso’s co-branded IP, which is difficult to get out of the circle, according to Bubble Mart’s 2020 annual report, non-exclusive IP’s sales increased from 159 million yuan to 444 million yuan, and its proportion of revenue increased from 9.5% in 2019. to 17.7% in 2020.

Today, TOPTOY’s shortcoming may be that the low proportion of original products makes it difficult to build high enough barriers to competition, and there are still doubts whether the model can be sustained.

Let’s look at the trendy game track. On the surface, it is booming, but if you look closely, you will find that it is also difficult to sell trendy toys to young people. Young people's preferences are ever-changing, and the trendy toys themselves have fresh and fun characteristics, which also puts Miniso's product capabilities and design capabilities to the test.

In short, Miniso is trying to rely on TOPTOY and Chaowan to continue its dream of "hundred cities and hundreds of billions of stores", but there is a long road ahead. What’s happening to the “most awesome 10-yuan store” now 3

Recently, Miniso has been rumored to be “seeking to return to Hong Kong to be listed”. Even though the official did not comment on this, its revenue has slowed down and its stock price has halved. And frequent capital operations inevitably make people think about it.

For Miniso, which is in an embarrassing situation, on the one hand, it has the small goal of "hundreds of countries and hundreds of billions of stores", but it is surrounded by many problems; on the other hand, founder Ye Guofu is trying to follow Young people are running, but they are overwhelmed by the impact and encirclement of emerging trend brands.

Returning to Hong Kong for an IPO is not a panacea. Miniso is going through a period of growth pains.

Since 2016, Miniso’s strategic focus has shifted overseas. As the boss of the company, it is natural for Ye Guofu to cheer and encourage. However, the situation is stronger than others. Recently, Tencent reduced its stake in Singapore Internet company Sea Limited to 18.7%. The relevant news made many people feel stunned, which means that Goose Factory has voluntarily given up its control over Sea. Ability and strategic contraction are obvious.

Some media analyze that under the current international political and economic situation, the golden age of Chinese companies going overseas may have passed, and many companies that have been listed on the US stock market have begun to return to Hong Kong stocks. On December 23 last year, a number of media broke the news that Miniso would return to Hong Kong for listing in 2022, and had hired Bank of America and UBS to arrange the listing.

Although Miniso officially stated that it would not comment on the listing rumors, there are various signs that the news is not groundless. Why has Miniso been able to open thousands of stores in just a few years? Will expanding overseas markets help Miniso grow or save itself? Can Miniso achieve the goal of “hundreds of countries and hundreds of billions of stores” by 2022 as Ye Guofu once said?

Currently, Miniso has 850 franchisees in China. Its model is simply summarized as the franchisees pay but do not participate in daily operations; the personnel management and daily operations of the store are all managed by The company headquarters has firm control.

On the one hand, the quasi-franchise model allows franchisees to help Miniso quickly occupy the market, increase market share, have more say in front of suppliers, and expand economies of scale. However, for franchisees, the gross profit margin of Miniso is not enough to support the company's operations, so the risk is transferred and allocated to itself from the headquarters.

On the other hand, Miniso’s rapid expansion relies heavily on franchisees. The uneven level of franchisees leads to diverse opinions on issues related to dealers’ interests (such as dividends), and the process of the headquarters Management will inevitably encounter resistance to implementation.

Essentially, Miniso is a B2B company. Only by accelerating its expansion can we ensure that sales will grow and the headquarters will make more money.

At the C end, the quality is not good and the price is not cheap; if it is low, it will not be high.

From its establishment to the present, Miniso’s secret is “extreme cost-effectiveness”. Until now, the price of more than 95% of the products in Miniso stores has remained within 50 yuan, which is why it is known as the "most awesome 10 yuan store".

Although today’s Miniso products still have the aura, some problems have gradually become prominent, which have also become possible risks of Miniso products:

< p> First, Miniso has not been immune to the impact of the epidemic. The sudden epidemic in 2020 has dealt a heavy blow to the entire retail industry. For new retail companies like Miniso, although the company has many shining points, it is still the retail industry in the final analysis. Since it is the retail industry, there is no way to avoid its own problems. The problem is, this is the impact of the epidemic on retail. Therefore, under such circumstances, Miniso’s performance in 2020 is actually less than expected. Moreover, in 2021, the impact of the epidemic will continue across the world, and from time to time there will be With the emergence of new virus strains, Miniso will naturally experience ups and downs with market fluctuations. Although this phenomenon is more due to macroeconomic reasons, the market fluctuations of Miniso are indeed problems in the market. .

Faced with the unwelcome attitude of the capital market, returning to Hong Kong is an option. However, before returning to Hong Kong, Miniso may still need to tell more new stories to the capital market. Only in this way can Hong Kong truly be The capital market is convinced.