Founded in 2013, Chinese lifestyle brand Miniso unveiled its largest flagship store yet in Jakarta, Indonesia, last month – and promptly set a new global single-day sales record of over US$166,000. The store, located in Jakarta’s Central Park Mall, boasts nearly 3000sqm and was under construction for nearly 10 months. It features a design concept of Dream Castle Park and offers eight product categories with three IP zones: Harry Potter, Sanrio, and Disney. “Indonesia, as the
Founded in 2013, Chinese lifestyle brand Miniso unveiled its largest flagship store yet in Jakarta, Indonesia, last month – and promptly set a new global single-day sales record of over US$166,000. The store, located in Jakarta’s Central Park Mall, boasts nearly 3000sqm and was under construction for nearly 10 months. It features a design concept of Dream Castle Park and offers eight product categories with three IP zones: Harry Potter, Sanrio, and Disney. “Indonesia, as the world’s fourth most populous country and the largest economy in Southeast Asia, has immense market potential,” Bella Tu, VP and GM of Miniso’s overseas directly-operated markets, told Inside Retail. “In Miniso’s overseas markets, Indonesia consistently ranks in the top five in terms of gross merchandise volume (GMV), and this year, the market has maintained a steady growth trajectory. The launch of our largest global store in Indonesia further cements this market’s importance.” Why Indonesia? Miniso selected Indonesia as the location of its largest shop rather than its homeland, China, given the country’s economic growth is outpacing the world average, with GDP growth at 5.05 per cent. The country also has a demographic aligned closely with the brand’s: the world’s fourth most populous country has a relatively young population, with nearly a quarter of residents (24 per cent) aged 15 to 29 as of 2023.According to Tu, Indonesia’s affordable rental and labour costs make it a cost-effective market to open stores.The company entered Indonesia in 2017 and has ambitious plans to create 1000 stores throughout the country during the next five years, focusing on opening larger and better stores, upgrading store locations, growing the product variety, and developing a more experienced team.“Our primary market strategy is focused on offline channels,” Tu added. “In the current phase, we are concentrating on opening stores in shopping malls. The next phase will involve expanding into community stores and street-front locations. The majority of our operations – about 90 per cent – are still centred around traditional offline channels.”As a retailer, “TThe core of localisation is the products themselves,” she added. Taking advantage of China’s robust supply chain, Miniso’s team of more than 600 product developers at its headquarters uses data from local market insights and customer trends to customise product creation by market. “Currently, we estimate that about 30 per cent of the products in Indonesia differ from those in China,” said Robin Liu, VP and chief marketing officer of Miniso. Such localised products in Indonesia include snacks, cosmetics, and some region-specific toys – sourced locally to fulfil the demands of Indonesian customers better. Of the store’s 13,000 SKUs, 4000 to 5000 of them come directly from local suppliers. “We’ve made significant adjustments based on the preferences of local consumers, and the categories of snacks, cosmetics, and toys have performed exceptionally well.” New retail concept Miniso started out by focusing its product range on everyday basics such as skincare, cosmetics, perfumes, and scents, but now has evolved to highlight IP co-branded products prominently.Miniso reports that in the first half of this year, IP collaboration products accounted for more than 30 per cent of its global offers, with the figure approaching 50 per cent outside China.Miniso’s IP collections, such as Disney and Sanrio, are popular. Indonesia was the first global country to introduce Sanrio’s licensed items, opening the brand’s first Sanrio-themed store in Depok in October. Indonesian customers also like Japanese and Korean IPs, such as One Piece and Zanmang Loopy from Korean anime. “We chose IP collaborations as our differentiation strategy due to the high enthusiasm and demand for IP products in international markets,” Liu told Inside Retail. “For instance, the annual per capita retail value of IP products in the US is 60 times that of China, and in Japan, it is 11.5 times higher.” Liu also mentioned that three years ago, Miniso prioritised IP strategy to distinguish its brand from rivals. While Chinese competitors can easily create cheaper towels, cups, and slippers to compete with Miniso, they cannot easily obtain licensing for top global IPs such as Disney, Sanrio, or Harry Potter.“In Southeast Asia, particularly in Indonesia, consumers tend to favour Japanese and Korean IPs. We regularly receive requests for specific IP collaboration products. Our product development and IP selection are driven by consumer insights,” he said. Miniso has the ambition to become a world-renowned IP design retail group. “We’ve introduced IP-themed stores, pop-up formats and innovative flagships this year to merge IP design with fresh retail experiences. We’re also working on exploring niche store formats tailored to specific customer interests and different markets, helping us diversify our offerings while staying true to our core values of affordability, creativity, and fun,” Liu added. Miniso caters to young, design-conscious consumers who prioritise emotional satisfaction and self-expression. To maintain a fresh and engaging shopping experience, the company said it updates its product line by launching about 100 new products every seven days from a vast library of 10,000 ideas.Global expansion plansMiniso is not only expanding its footprint in Indonesia but also eyeing growth in other markets such as the US, France and the UK. It is strategically opening flagship stores in prime locations, including Santa Monica in California, New York City’s Times Square, and Paris’s ultra-chic Champs-Élysées.“Opening a store in a globally renowned landmark like Paris is largely aimed at enhancing the brand’s global influence, especially in the Chinese market,” Liu said. “Chinese consumers often perceive a brand with a presence in iconic locations such as New York’s Times Square or Paris’s Champs-Élysées – surrounded by flagship stores of Apple, Disney, and Louis Vuitton – as a major, prestigious brand. Even though the products are affordably priced, the brand is viewed as having a higher status.” Miniso’s global operations follow two main models: direct operations and franchising. More than 90 per cent of its US stores are directly controlled; however, in 80 countries (excluding Mainland China), the brand employs the franchisee model, in which a single franchisee partner serves one market. In Indonesia, after eight years of expansion, Miniso has both directly operated stores and joint ventures with partners, which it says “helps us better meet market demands and enhance our brand’s influence”.