On August 30, Miniso Group (NYSE: MNSO, HKEX: 9896) released its performance report for the first half of 2024. In the first half of the year, the group not only achieved steady growth in performance, but also exceeded market expectations in key operating indicators such as gross margin and the number of new stores.

Miniso's financial report for the first half of 2024 is not only an impressive report card, but also a vivid reflection of its business model's resilience and strategic foresight. Financial data shows that Miniso Group achieved significant revenue growth in the first half of the year, with a 25% increase compared to the same period last year, reaching a total of 7.76 billion RMB. The gross margin reached 43.7%, a 4.1 percentage point increase from the same period last year, setting a new record.

In terms of profitability, the adjusted net income (based on Non-IFRS financial reporting standards) reached 1.24 billion RMB, an 18% increase compared to the previous year, with a net profit margin of 16.0%. In addition, the group announced the distribution of mid-term cash dividends, totaling 0.62 billion RMB.

In terms of store expansion, Miniso Group has also achieved remarkable achievements. The total number of the group's stores has now exceeded 7,000, with a net increase of 502 stores in the first half of the year alone. This milestone growth not only reflects Miniso's physical presence in the global market, but also demonstrates its expansion speed and market penetration. It is worth noting that the overseas markets of the MINISO brand and the TOP TOY brand have achieved the fastest opening in the first half of the year, with same-store sales growth rates in double digits, providing strong support for the overall performance growth of the group.

In fact, Miniso's global strategy, especially its IP strategy and super store model, has become a key factor driving the company's growth. Through collaboration with over 100 well-known IPs worldwide, Miniso has successfully increased the sales proportion of IP collaborative products to over 30%. Furthermore, Miniso continues to enter high-potential commercial areas around the world, opening up the ceiling for global growth through its IP strategy and super store model.

Milestone of global expansion: The group's number of stores has exceeded 7,000.

Miniso's retail stores are not only a bridge connecting consumers, but also a crucial stage for brand image shaping.

Currently, the number of Miniso Group's stores worldwide has exceeded 7000, and with the speed of opening numerous new stores every month, it continues to take root in city centers around the world.

Since the beginning of 2023, Ye Guofu, Chairman and CEO of Miniso Group, has proposed the grand vision of building Miniso into a "super brand". He has always believed that only flagship stores with scale and influence can establish a strong brand image in the minds of consumers and thus drive significant growth in performance.

In the first half of this year, Miniso has continued to create "super stores" in high-potential business districts worldwide, such as the Singapore Changi Airport store, the American Dream IP Collection Store in the USA, and the largest flagship store on the Champs-Elysees in Paris, Europe. This has effectively enhanced the brand power and market awareness.

Grand opening of Miniso's flagship store in Central Park, Jakarta, Indonesia

On August 31, Miniso's largest global store - Central Park flagship store in Jakarta, Indonesia, officially debuted, marking the beginning of a new chapter for global super stores. This store is a brand new upgrade of Miniso's "super store," demonstrating new heights in spatial layout and scene design, successfully driving consumer interest in overseas markets. On the opening day, the Central Park flagship store in Jakarta, Indonesia was extremely popular, and the sales exceeded 1.18 million RMB, setting a new record for single-day sales in Miniso's global stores.

The opening of these "super stores" has brought positive market response to Miniso. The financial report for the first half of 2024 showed that Miniso's overseas store number reached 2753, with a net increase of 266 new stores. The number of stores in the USA has exceeded 200, making it the largest Asian consumer brand in terms of sales network (most offline stores) in the USA. Miniso's overseas business income exceeded 2.7 billion, achieving a 43% year-on-year growth rate.

Consumer interest crosses cycles: Jointly creating differentiation through IP

The growth of Miniso's performance ultimately stems from its accurate insight into 'interest consumption'. Keeping in sync with the needs and emotions of the young consumer group is the key to unlocking business success. Accurately grasping the interests of young people has become the core driving force behind driving business development and leading the transformation and upgrading of the consumer market.

As early as 2020, Ye Guofu, Chairman and CEO of Miniso Group, recognized this trend and first proposed that 'interest consumption' would become the leading trend in future consumer behavior.

Miniso keeps up with the trends and focuses on 'interest consumption', empowering product innovation through IP collaborations, and creating a series of 'good-looking, fun, and practical' products.

Miniso X Chiikawa themed pop-up stores have been crowded with young people.

Products collaborated with Chiikawa IP have triggered a phenomenal consumption frenzy in themed pop-up stores in cities such as Shanghai, Beijing, and Guangzhou. Ye Guofu, Chairman and CEO of Miniso Group, directly summarized this collaboration with five 'unprecedented' elements: unprecedented performance, unprecedented speed, unprecedented efficiency, unprecedented courage, and unprecedented enthusiasm from Chiikawa fans.

The collaboration between Miniso and Barbie IP has sparked a global consumer frenzy in pink. On the occasion of Barbie IP's 65th anniversary, Miniso and Barbie jointly created the Miniso × Barbie 65th Anniversary National Float Parade 'Sisters in Pink', deeply resonating with young users in terms of visual aesthetics and emotional connection. In addition, the BT21 series launched by Miniso in overseas markets has also continuously refreshed the IP sales records in multiple overseas markets, demonstrating its strong market influence and brand appeal.

As of June 30, 2024, Miniso has collaborated with over 100 globally renowned IPs, including Disney, Sanrio, Marvel, and Barbie. In the first half of 2024, IP products accounted for more than 30% of Miniso's sales. Among them, the domestic IP proportion has further increased to nearly 30%, with sales growth of nearly 40%, while the overseas IP sales proportion has increased to nearly 50%, doubling the revenue.

The IP strategy has broken through the ceiling of product innovation and market expansion for Miniso, becoming an important driving force for its performance growth. By leveraging the global influence of super IP, Miniso effectively increases product gross margin and avoids price wars with e-commerce platforms. This strategy not only enhances the value perception of its products, but also establishes a deeper level of user loyalty and brand identity through emotional connections with IP, which cannot be matched by traditional price competition. Financial report data shows that Miniso's gross margin in the first half of the year increased from 39.6% in the same period last year to 43.7%, an increase of 4.1 percentage points, reaching a historic high.

Miniso's keen insight into market trends and deep understanding of the needs of young consumers have enabled it to stand out in the highly competitive retail market.

Conclusion:

In the first half of 2024, against the backdrop of the ever-changing global market, Miniso has become the focus of attention in the industry with its outstanding financial performance.

Behind Miniso's rise is the intergenerational transition of consumer trends. Users are willing to pay a premium for interest and emotional value, and high growth is no longer achieved through price wars, but by achieving both high growth and high profit margins. Brands that provide emotional value and satisfy happiness can transcend cycles and achieve sustained growth, just like Miniso.

With further deepening of its global business and continuous advancement of its IP strategy, Miniso is expected to occupy a more important position in the global retail market and continue to write its growth legend, moving towards becoming a global super brand.