How variety store s of MINISO became a megasuccess?
Miniso has been originated as a famous global retail chain founded by famous Chinese designer Ye Guo Fu. How has Miniso applied its marketing strategies to achieve rapid growth during the past 7
The marketing mix
China is considered the "main market" of Miniso. However, this brand quickly opened and signed contracts with thousands of stores around the world. On average, about 80 to 100 stores are opened every month, such an amazing growth rate. Miniso is committed to bringing "high quality with at middle innovation, low price" products to consumers. And indeed, Miniso's products are simple, of good quality, and always follow global fashion trends. Most of the products are priced at 10 yuan and aimedincome customers between the ages of 18 and 35. At a time when the global retail industry was facing signs of slowing down, Miniso opened 1600 stores worldwide in 2 years and hit a huge revenue of 10 billion yuan in 2016. With the impact of dig ital technology and the wave of ecommerce, the sales of the retail industry are declining seriously year by year, but Miniso has become a shining star thanks to the application of the perfect marketing mix strategy.
Product
Miniso's products are designed to be simple but essential. The main designer of Miniso, Mr. Mitsuzaku, is a graduate of the Japan Academy of Fashion Culture. His design style is famous for simplicity, naturalness, and diversity. This shows attention to the tangible benefits of consumers. In addition, Miniso's products are mainly for life and entertainment, including a vast number of product categories ranging from healthcare products, beauty products, fashion decorations, office supplies, to souvenirs, etc. Each product is devel oped from the user's point of view, focusing on product rationality and durability in use.
Price
"A premium but low price" is Miniso's competitive strategy. Among the more than 3000 kinds of goods, the product prices start from 10 yuan, and are of the s competitor products in the market. Miniso's secret is "low cost, lowame quality but cheaper than profit margin and low price". First, Miniso usually makes largescale purchases from 10,000 to 100,000 units per order to create price advantages and reduce procurement costs in negotiations and transactions. Second, bulk purchasing and 100% buyout help them push our production costs to the lowest possible. Third, by eliminating intermediaries, products go directly from the factory to the store, cutting off d istribution links, saving distributor commissions and some marketing costs, and thus significantly reducing prices. Finally, with the support of Miniso's strong logistics system in each province, products do not go through any distribution level. A spotl ight on the pricing strategy of Miniso is about enhancing its market segmentation. Miniso classifies products and their prices on a scale from 10 to 100. This method of price positioning grants consumers many options that serve their different needs.
Place
Most of the goods in the market follow the traditional retail that is through the chain of manufacturers wholesalers retailers, and thus makes the price of goods more expensive. Understanding the scene, Miniso has considered and selected di stribution channels that bring the most benefits and the most profits. Miniso divides its distribution channel into direct and indirect ones, according to whether the products are distributed through intermediations. A direct sales channel applies an integrated management method of production and marketing, in which it transfers products from the production domain to the consumption domain without going through any intermediaries. However, this method consumes more investment capital, space, and human resources.
Promotion
Miniso regularly offers promotions and discounts to attract consumers. "Voucher" is considered a brilliant marketing method of Miniso. In addition, Miniso knows how to increase brand coverage by densely promoting their discounts on billboards at cinemas, crowded streets, cafes, apartments... on every promotion occasion to stimulate consumer demand. DISCUSSION Please discuss the questions below with evidence from the case study, and try to relate your discussion to marketing concepts/theories you have learned so far in this course. You might support your reasoning with external sources if needed.
Point 1: Positioning and differentiation strategies that Miniso has applied to offer its product to the market
Point 2: The product decisions that Miniso has applied to develop its product portfolio
Point 3: Pricing strategies applied to building a strong customer base
Point 4: Distribution channels and intermediaries
Point 5: Among 4P’s of the marketing mix, which P contributes the most to the success of Miniso in your point of view? Explain
