MINISO pumps about RM1.5 million into Malaysia’s flagship store

MINISO has launched its first flagship store in Setia City Mall in Selangor. Vincent Huang (pictured below), MINISO’s VP of the International Business Department, said: A+M that the Malaysian main licensee’s investment in the new flagship store was approximately RM 1.5 million and expects to see a return on investment within two years.

The new store concept, called MINISO 3.0, emphasizes a family-friendly shopping experience and is especially aimed at the younger, tech-savvy audience. Therefore, MINISO will focus on social media advertising and leverage KOLs influence to share stories about the new flagship store. An online to offline strategy is also paramount for attracting visitors. In addition to working with Weber Shandwick, it also partnered with Lendlease to promote the launch of MINISO 3.0.

According to Huang, the biggest difference between the flagship store and other MINISO stores is the brand new toy department. It not only presents popular licensed products from world famous intellectual property owners, but also MINISO’s original MINI Family collection.

The toy section takes up 20% of the retail space in the store and is the most appealing to shoppers. This section also includes trendy and modern design in the decor and display, with a unique plush wall, blank box wall and a building block play area.

In addition to toys, Selangor’s flagship store has a fragrance wall with a variety of MINISO scented products, including perfumes and home perfumes. This addition was made after MINISO noticed that many Southeast Asian consumers were more interested in purchasing fragrances or fragrance products. One study estimated that figure to be about 72%. The eye-catching walls also act as photo sports for consumers, and there are also special walls to display kitchenware and fitness products. A lounge area with chairs and sofas in the shape of the winking face of the MINISO logo is also available. Meanwhile, most of the products available in the store range from RM10 to RM20.

Miniso Selangor Interior

MINISO first entered Malaysia in 2016 and Huang describes it as a “melting pot of ethnicities, religions and cultures”. “MINISO also constantly takes inspiration from different cultures and reflects it in our products and stores. It is a perfect match for us,” said Huang.

While the uncertainties caused by COVID-19 persist, accompanied by inflation, Huang said MINISO is working very closely with its main licensee in Malaysia and has developed a total of 10 product categories for the new store, including cosmetics, decor, accessories, toys , personal care, gadgets, beauty tools, textiles, fragrances and perfumes, but also stationery and gifts.

Now that Malaysia’s borders have reopened, MINISO is looking forward to the return of tourists, which Huang says will boost sales for all retailers, including the company. “E-commerce still has great potential in Malaysia and we seized the opportunity to build our e-commerce ecosystem across Shopee, Lazada, the website and the app,” he added.

(Also Read: Interview: Southeast Asia’s Fragmented Markets Open New Opportunities for MINISO)

Meanwhile, Huang cited the growing power of social media in retail as one of the trends he’s watching. According to the Department of Statistics Malaysia, the number of people using the internet has increased from 84.2% in 2019 to 89.6% in 2020. Huang said the high internet penetration rate and the increase in the number of active social media users in Malaysia are having a huge impact. have potential in social commerce and the rise of local influencers in the country. “MINISO is an omnichannel retailer and also has a presence on popular social media platforms. We see the opportunities and would like to translate these into sales, both online and offline,” he says.

“The other thing is that Malaysian consumers in the post-pandemic environment have experienced subdued inflationary pressures. Against this background, people are more conscious when it comes to spending,” Huang said. He added that MINISO upholds the company philosophy by introducing high-quality, easy-to-use, beautiful, fun, affordable and cost-effective products to meet consumer needs. “We plan to cross over with different industries to create more value for our consumers,” he added.

Separately, Robin Liu, VP, CMO and head of eCommerce at MINISO, told: A+M in an interview last year that Southeast Asia is younger than the majority of MINISO’s other global markets, and this fits the brand’s target audience well. In addition, both Japanese and Chinese culture have a huge influence on the region, which is the key design aesthetic that MINISO embraces. These are reflected in its IP partnerships, as Hello Kitty, Sanrio and Budding Pop are the most popular in the region.

Like Huang, Liu sees e-commerce as a huge opportunity in Southeast Asia. He explained that MINISO’s e-commerce sales increased 250% in the first quarter of last year compared to the same quarter in 2020, and that online channel sales represented 13% of total revenue in Indonesia in that quarter.

MINISO currently operates a 7-1-1 strategy, meaning it will launch approximately 100 new products every seven days, carefully selected from a large library of 10,000 product ideas. The goal is that customers will never get bored while exploring the stores as there will always be something new.

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