Miniso, a Japan-based designer brand, has announced plans to expand its business in Nigeria. The Managing Director of Miniso Nigeria, Mrs. Key Yang, made this known to journalists in Lagos this weekend. She revealed that the company is planning to increase the number of stores it operates in Nigeria by 200 before the end of 2019.
Miniso is a lifestyle designer retail brand which specializes in household and consumer goods and was founded by Mr. Junya Miyake, a Japanese Designer and Mr. Ye Guo Fu, a Chinese Entrepreneur.
The company’s fashion brand is fast growing on a global scale and its products range from creative homeware, health, beauty, and fashion accessories to digital accessories, stationery, and gifts, unique toys series, seasonal products, Kitchenware, etc. Majority of the company’s designs come from Japan, Korea, Sweden, Denmark, Singapore, China and Malaysia and are made with the mantra, “good quality with low price”, because it believes that the actual value of a brand should be beneficial to millions of people irrespective of their social class in the society.
Since the company started operations, it has actively explored the international market, opening more than 2,900 stores in over 60 countries in the process. The company’s business turnover was $1.5 billion in 2016 and over $1.8 billion in 2017 and it is also in the process of expanding its business to 20 more countries.
Mrs. Yang added that Miniso has made a name for itself worldwide, beating all odds in the process and is growing at an average monthly rate of 80 – 100 stores across different countries including the United States, Canada, Russia, Singapore, the United Arab Emirates, Korea, Malaysia, Kazakhstan, Australia and many more. All of this, it has achieved within a 5-year period.
She said that apart from the unique shopping experience Miniso offers its customers, the company remains committed to creating employment for locals and contributing to the growth of the manufacturing sector in the country. She disclosed that 8,000 Nigerians will gain employment from the expansion and by 2020, the company will commence procurement of raw materials locally.
Miniso opened its first store in Nigeria on the 10th of September 2017 in Lekki, Lagos. Since then, eleven stores have been opened across Nigeria in Ikeja City Mall; Palms Mall, Victoria Island; Novare Mall, Sango-tedo; Maryland Mall; Festival Mall, Festac; MMA2 (Departure Lounge); Jericho Mall, Ibadan; Palms Mall, Ibadan; Apo Mall, Abuja; Jabi Lake Mall, Abuja and Gateway Mall in Abuja between September 2017 and March 2018. Four other stores are set to open at Surulere, Lagos; Abuja and Port Harcourt by the end of 2018. They are also in the final stages of the documentation process to open over 10 stores in the south-eastern part of Nigeria.
Miniso’s Franchise and Investment Manager, Jason Zhou, described the company as one of the most profitable businesses in Nigeria with returns on investment between 10 – 18 months. He further stated that the process of investing is simple, transparent and stress-free.
“We have two investment models, known as the franchising model and the agent model. The franchise model requires you to simply secure a store size of around 200m2 at any chosen location, shopping mall or high street.
“Our business development team can assist with getting a perfect location. The rough budget for a 200M2 franchised store is about N70-N80 million and it covers a one-year franchise fee, product deposit (refundable after the contract)”.
“Under the franchise model, Miniso will be responsible for the unified store operation, sales, goods replenishments, store staff recruitment, training and other works of store management,” he explained.
In terms of profit-sharing, he disclosed that as a franchise, the individual or company involved would get 40 percent of the total monthly sales turnover as profit (to cover the store rental, store staff salary, electricity bill, and other logistics at the end of every month).
On the other hand, the agent model takes a slightly different dimension. This investment model also requires you to secure a store size of around 200M2 at any location of your choice, but an agent is required to pay a compliance deposit (refundable) which ensures the agents maintain Miniso operation standards, then the agent reserves the right to operate as a Miniso representative under the expert supervision from Miniso to ensure all standards are met.
“Under the agent model, the agent purchases merchandise from Miniso at a highly reduced 40 percent discounted price. The store operations are handled by the agent; however, all the goods must be sold at the same price as set by Miniso,” he said.