China’s Miniso doubles US stores and pandemic adds New York’s flagship store to significantly reduce mall rents

© Reuters. File Photo: The logo of Miniso, a retailer of low-priced lifestyle and consumer products in China, was taken in Tokyo on August 10, 2018. REUTERS / Kim Kyung-Hoon

Sophie You and Brenda Go

Beijing (Reuters)-Chinese retailer Miniso Group will open its “flagship store” in New York this year, nearly doubling its US store. A $ 4 stapler shaped like a cat and an avocado.

Miniso’s presence in the United States is diminished by huge low-priced retailers like Dollar Tree (NASDAQ :) and its Chinese headquarters with nearly 3,000 stores, while having less than 60 stores. ..

However, Miniso said it was moving fast to take advantage of the pandemic slump in rents in the U.S. economy, and Vincent Huang, vice president of the company responsible for overseas operations, eventually said, “Numbers. He told Reuters that he anticipates the possibility of a “thousand” US store.

The plan, which was founded in Guangzhou just eight years ago and now has annual sales of approximately $ 1.41 billion, highlights the great ambitions of a company listed on New York with a market value of $ 4 billion. .. Stock prices have fallen 2.3% since the October 2020 fluctuations amid a slump in retail due to COVID, but investors include Chinese tech giants Tencent (HK :) and Hillhouse Capital.

This expansion is also a crucial moment for malls across the United States, with many well-known retailers succumbing to a plunge in sales that quickly followed the first wave of the 2020 coronavirus pandemic.

Among the brands that disappeared from the U.S. retail industry was Flying Tiger Copenhagen, a Danish variety store chain that rivaled Miniso in many markets around the world. 13 stores have been closed.

Huang said Miniso has approximately 4,800 stores worldwide in more than 90 countries and 54 stores in the United States by the end of this year, up from the original 30 stores.

“We are currently choosing to expand our presence in the United States for several reasons, including the low cost of opening new stores following COVID-19,” Huang said in a recent interview.

New stores include the city’s first store of Miniso, which opened in November at Tangram Mall, an area known for its vibrant Asian-American community, recently launched in Flushing, New York. increase. In a square foot space slightly larger than a tennis court, we sell everything from neck pillows to notebooks and makeup.

“Strategic market”

Expansion costs in the United States have fallen by about 20%, primarily due to rent cuts, and the pandemic has made it easier to secure good locations, he said.

“We have always believed that we are an international business and North America is our strategic market,” he said.

Miniso is self-proclaimed as a “Japanese-style lifestyle product retailer,” and has been compared to the MUJI chain run by Ryohin Keikaku, which has been listed in Tokyo in the past.

However, the busy stores and bargains of Miniso have been positioned in the segment occupied by Daiso Industries, Japan’s famous $ 1 store chain that has existed in the United States since 2005, and is also the first East Coast branch for flushing. There is a network of nearly 80 stores, including.

Miniso hasn’t disclosed the exact number of US stores that opened its first store in California in 2017, but last month it was about 20% of total sales of 9.07 billion yuan ($ 1.41 billion). Was reported. It ended in June from 1,800 overseas stores in Mexico, Indonesia, India, etc.

According to Huang, Miniso’s US sales have recovered to pre-COVID-19 levels, with sales in the first half of 2021 up 73% year-on-year. “We’ve been more popular than ever since the pandemic,” he said.

Boosting its popularity is a recent product collaboration collection with major trademark holders such as Disney, Coca-Cola (NYSE :) and Marvel Entertainment, including items such as Mickey Mouse Facial Cream, Coca-Cola Ceramic Mug and Spider-Man Mouse Pad. Was born.

“After all, consumers don’t care if we’re Chinese or Japanese, American or European,” Huang said. “Consumers are concerned about whether they can buy high-value products for the least amount of money.”

($ 1 = 6.4511 RMB)

China’s Miniso doubles US stores and pandemic adds New York’s flagship store to significantly reduce mall rents

Source link China’s Miniso doubles US stores and pandemic adds New York’s flagship store to significantly reduce mall rents

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