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MINISO to continue expanding

Released at: 17:21, 06/06/2018

MINISO to continue expanding

Photo: MINISO Vietnam

Forty existing stores to be joined by 50 more before the end of the year.

by Linh San

The Vietnamese subsidiary of lifestyle and household item retailer MINISO has opened nearly 40 stores in Vietnam and plans to open a further 50 by the end of this year, according to a company statement.

Mr. Ted Lan, General Manager of MINISO Vietnam, said there are currently 17 MINISO stores in Ho Chi Minh City, 19 in Hanoi, and four in other cities and provinces, all of which are performing handsomely.

MINISO has adopted a strategy of developing around “north-south” key cities, centering on Ho Chi Minh City in the south and Hanoi in the north. With high quality and affordable prices as well as exquisite designs, most MINISO products are priced between VND43,000 ($1.90) and VND500,000 ($22) and have won favor from customers, most of whom are aged between 18 and 35. Within this age group, however, tastes and behaviors vary in different regions.

Its largest consumer group is young women, Mr. Lan went on. Regardless of gender, however, most customers earn incomes in the medium to high bracket. They are keen shoppers, which is one of the major reasons Vietnam’s retail market has such great potential.

With an influx of foreign investment and a rise in the number of shopping malls as well as local consumption habits changing from traditional street shopping to shopping malls, MINISO, keenly aware of these trends, has adjusted its expansion strategy in the country, moving from crowded neighborhoods to shopping malls and shopping centers.

Last October, it reached a cooperative agreement with Vincom, Vietnam’s largest commercial real estate group, that paves the way for the brand’s future development in Vietnam’s major shopping malls. MINISO opened two stores last year, in AEON Long Bien and Vincom Times City, where sales have been very good.

For its future development, MINISO has not only worked with Vincom but also with Vietnamese superstar Son Tung M-TP, as its brand spokesman. Son Tung M-TP is a well-known singer in Vietnam, with fans from 16 to 30 years old, which fits MINISO’s target group. His Facebook page has over 10 million fans, making him highly influential. The cooperation aims to build a positive brand image for MINISO among local consumers and broaden their awareness of the brand.

Vietnam’s retail industry has major potential and there are new brands being introduced almost every day. Support from government policies, the rapid rise of the middle class, and the country’s relatively young demographics are among the factors contributing to the rapid growth of the retail market. The competitiveness of domestic retail brands, however, is relatively poor. There are many large-scale enterprises with large market shares in Vietnam’s retail market, such as Co.Op Mart, Vinmart, Fivimart, and SaigonCoop, but there are few brands similar to MINISO. Compared with these domestic brands, MINISO Vietnam’s advantages are clear.

MINISO has a strong supply chain to support its operations. A 10,000 sq m sorting warehouse in Ho Chi Minh City is scheduled to be put into use in the middle of this year, which will provide strong support for digital operations and analysis as well as the logistics supply chain. MINISO also has its unique branded products, meeting the consumption habits of local consumers and catering to the taste of the masses. At the same time, it does its best so that consumers love and rely on its products.

MINOSO’s development in the global market over recent years has been eye-catching. It has opened more than 2,600 stores worldwide, in 62 countries and territories, including the US, Australia, Canada, South Korea, Japan, China, and Indonesia. Turnover in 2017 reached $1.8 billion; double the figure in 2015.

With high growth, MINISO opens 80-100 stores around the world every month. It is expected to have 10,000 worldwide by 2022, of which 400 will be in Vietnam.

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