An emerging fast-fashion retail brand, whose pace has been as rapid as having 3900+ of its stores located in over 70 countries with an estimated total sale of $2.4 billion in 2019 and that too without incorporating a need to establish an e-commerce presence.
The brand which makes it look so easy and which has made this possible goes by the name “Miniso”
Miniso is a brick-and-mortar only which has been built around the reality of the world urging towards e-commerce. It offers high-quality products at affordable prices through variance in lifestyle products ranging from cosmetics, accessories to stationary, kitchenware and much more.
A store which you should definitely visit if you’re budget savoury yet you have a good taste and dig sensible design which resonates with your personality.
HISTORY OF MINISO
Now that you are reading this article and are probably aiming to acquire this franchise here are the facts about Miniso which would attach you the brand and give you more than just reasons to do so :
• Miniso was founded in 2011 by a young entrepreneur Ye Guofu and co-founded by Japanese designer Mr. Miyake Junya.
• Miniso was first established in China and began its expansion in Asia from there on. Building a presence in USA, Europe, Egypt, India and so on from 2016.
• Miniso was built around the philosophy of taking the consumers “back to the essence” and “ returning back to nature” with their products rather than let them buy it to emphasises their personality
Everything you need to Know:
Unique Selling Point for Miniso Franchise:
• Products in-house design, efficient SCM and bulk purchasing makes it possible for you, this franchise retailer to keep the costs low.
• Without an e-commerce presence and a low-cost-high-quality model, lacking in every other fast-changing-fashion store would give reasons to your customer to choose you over other retailers.
Benefits of Starting a Miniso Franchise:
Easy inventory management: Miniso’s SKU ( stock keeping unit) model of limited assortment of quantity and also variety of SKU, fosters :
• Easy tracing of stock available
• Predict the threshold limits to make new business purchases
• Benefit of fast-changing-fashion : Miniso’s products turnover in every 21 days and new one’s arrive in every 7 days that makes the consumers come back with urgency and take advantage of the limited stock.
• Brand reputation : Miniso has acquired a global presence by landing itself in the biggest consumers markets like USA, India, China, giving you an opportunity of carrying this brand name
• Benefits of Indian demographics : Miniso is targeted at the consumers between 18-35 who aim for a sensible, minimal yet lush lifestyle at the prices Miniso offers, and India is dominated by this specific demographic
Profits for Miniso Franchise:
Miniso offers phenomenal profit margin with a reasonable claimed payback period between 12-18 months.
Requirements and Qualifications for miniso franchise in India:
|Carpet area||Gate Width||Location|
|500-1200 sqf is preferred||2 meters above is prefered||Prosperous commercial area / High Streets and Malls in Miniso specified cities(mainly for tier 3 or smaller cities)|
• It requires you to have an ample investment of ₹70 lakhs which is when you qualify to take up a franchise.
• Credibility in your business acquisition background.
Investment Needed to Run Miniso Franchise in India:
|Fee Items||Amount||Timing to pay||Remarks|
|1||Security Deposit for Branding||3 Lakhs||At the time of signing the LOI||Refundable after LOI/contract termination.|
|2||Franchise Fee||1.5 Lakhs||At the time of signing the franchise agreement (Including GST)||At the time of signing the franchise agreement(Including GST).|
|3||Training Fee||INR 18,000||Pay for first year after signing Franchise Contract, (the price includes GST)||For staff training, INR 18,000/Year, be paid yearly.|
|4||Estimated Price of Fixtures||appx 8 Lakhs||Advance payment will be paid at the time of signing franchise contract.
Balance will be paid before delivery.
|Mainly including fixture, lights, cash resgister, etc.
Advance payment: 60% of estimated amount
Balance: =actual amount – advance amount
The price excludes GST
The amount is for reference, Ffinal amount will be as per actual.
|5||Fit-Out deposit||5 Lakhs||At the time of signing franchise contract||Pay 100% at the time of signing franchise contract. Refundable after interior work acceptance by MINISO.|
|6||Estimated Fit-Out fee||appx 5 Lakhs||Before start fit-out||Fit-out vendors could be franchisees’ option or MINISO designated.
Investor will pay to vendor directly.
The amount is for reference, under certain conditions amount will be in the range.Final amount will be as per actual.
|7||Estimated Cost of Goods Purchase(for the 1st time)||depend on store size & estimated sales||Advance need to be paid at signing franchise contract,
Balance need to be paid before delivery.
|Advance payment: 60% of estimated amount (appx 1.3 times of estimated sales & INR3000/sqf )
Balance: =actual amount – advance amount
The price excludes GST
Final amount will be as per actual(up to store projected revenue and area).
MINISO FRANCHISE MARGINS
|Products are 38.5%-45% off excluding GST on average|
HOW TO APPLY FOR A MINISO FRANCHISE
• You can either visit the official website of Miniso and leave your contact information and franchise related query, once shortlisted the application process can begin
• Or you can contact the Miniso zonal offices from their website, they can then guide you through the application process.
Here are some pointers for you if you are still struggling with your senses to whether or not to file for this franchise :
• Firstly, Miniso has entered India because it is one of the top five markets of the world with an ever rising demand for lifestyle goods. So it’s probably for the best you got your hands on it.
• Secondly, Miniso plans to have 10,000 stores in 100 countries by 2022 with a sales goal of $15 billions, with such global presence comes likely profits
• Lastly, the only drawback is the amount of investment in its franchise. It sure asks asks for more but it is the fast-changing-fashion industries which are the future of lifestyle products, so a one-time-investment.
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