How to start a Miniso Franchise in India

The retailing sector in India is one of the vital pillars of the economy. The sector accounts for about 10% of India’s GDP making it one of the fastest-growing sectors across the globe with approximately 1.2 billion people.

The retailing sector in India is categorised into two parts.

Unorganised sector – This sector consists of private enterprises which are owned and managed by individuals on a proprietary or partnership basis.

Organised sector – This sector consists of incorporated enterprises which are governed by companies act whose trading activities are undertaken by licensed retailers. These include supermarkets, hypermarkets, retail chains and many more.

Meet Miniso – The Japanese lifestyle brand

Miniso is a fast-fashion Japanese brand retail chain which was founded by Miyake Junya, designer and Ye Guofu, an entrepreneur in Tokyo, Japan. In a very short time, Miniso has over 2000 operation stores in over 60 countries delivering highly affordable and curated products. These products have been designed for people who need a lifestyle change, thus challenging their physical retail competitors.

The Japanese company made its way into India in September 2017, with a huge selection of products in home and kitchenware, exercise equipment, stationery, fashion and many more. Miniso focuses on its main philosophy, “Simplicity, nature and good quality”. Their products are affordable, Eco-friendly with constant up-gradation in their products.

Below-Mentioned is list of products that are sold at Miniso store.

  1. Bags and accessories
  2. Daily life products
  3. Digital and electronic products
  4. Fashion accessories
  5. Health and beauty products
  6. Household and kitchenware items
  7. Seasonal products
  8. Stationary and gift items
  9. Textile products and
  10. Toy series

Miniso – The Japanese brand’s history

  • Miniso was operated by Miniso Industries Co. Ltd in 2013,
  • The company entered the Chinese market of intelligent consumer products in the year 2013, in Tokyo, Japan with Miyake Junya and Ye Guofu as their co-founders.
  • Miniso entered the Indian market in August 2017, to actively explore the international markets.
  • The company opened its first retail store in Ambience Mall Vasant Kunj, New Delhi in September.
  • As of 2019, Miniso India has over 106 retail stores across 43 cities across the country.
  • Currently, Miniso has strategic cooperation with over 60 counties and regions including South Korea, Indonesia, India, Sri Lanka, Armenia, Mexico, Singapore, Malaysia, Canada, Turkey, Germany, Morocco and many more along with a growth of 80-100 on a monthly basis.
  • With affordable pricing of products ranging from Rs.75 – Rs.450, Miniso has been earning major income and love from consumers aged between 18 years to 35 years.

In today’s world where everybody shops online, Miniso has created a strong foothold and built its empire around the business model of brick-and-mortar only. The only reason being that the brand follows a unique way of taking care of its customers, which most of the online stores are not able to provide (a great shopping experience).

What is the unique selling point of Miniso?

When it comes to lifestyle and fashion products, Miniso is the one-stop-solution to what you are looking for. The store has a huge collection of products which includes home and kitchenware products, fitness equipment, digital accessories, fashion and lifestyle products, storage equipment and may more.

All of Miniso’s products are affordable and economically priced. The company strives in enriching the lives of its customers by working tirelessly towards their three core values: quality, idea and low-price. This helps them to create a wide range of products for their customers at economical prices.

All their products are practically thought out, innovative, creative and pocket-friendly. Don’t you feel it’s a great deal that you get products at Miniso starting from Rs.75?

Do you like products that are cute? Then Miniso is the Go-to place for all your stationaries, toys, digital accessories and bags. Not only the but their hand towels have also got the Kawaii touch. Isn’t it just perfect?

Miniso’s products are highly innovative, Creative and also stylish at the same time. All their products are created based on the company’s philosophy and design concept “simple, natural and quality”. These product designs have been created based on their customer preferences which turn out to be highly favoured by all their customers.

Before the products are sent to the display area the products undergo rigorous screening. The perfect example being the “Water cube” an award-winning design which has been inspired by bubbles, the hottest selling product at the store.

What are the benefits of owning a Miniso franchise in India?

Miniso is focusing on developing local direct mining resources which would help them in producing goods at competitive prices. By doing so, Miniso is proving to be beneficial to both its customers and its franchise owners as well. This would further enable the store to manufacture selected merchandise in India and further export it to other countries.

The franchise owners don’t have to spend extra money on marketing, advertising or promotion of the store as Miniso is well-known for its high-quality and creative products. The store has always managed to uphold their philosophy of creating simple, natural and high-quality products after undergoing rigorous screening before the products go on the display area.

Miniso store franchise owners do not have to put in extra effort to attract more customers. The store is known for giving the best shopping experience to its customers with amazing interiors, neat and easy-to-navigate aisles and stocks that are upgraded on a continuous basis by adding new items, thereby making your shopping experience better every time.

What are the requirements needed to become a Miniso franchise owner in India?

What is the area required to set up a Miniso franchise in India?

Miniso FOFO or Franchise Investment Model

  • The area required to set up a Miniso franchise investment store model needs to located in a commercial property, in a mall or on high streets.
  • The total area required to run a fully operational Miniso franchise is around 900 Sq.ft to 1100 Sq.ft.

Miniso Agent Investment Model

  • The area required to set up a Miniso Agent investment store model can be located in any location ensuring Miniso operational standards.
  • The total area required to run a fully operational Miniso franchise is around 900 Sq.ft to 1100 Sq.ft.

What is the skill required to run a Miniso franchise in India?

  • The franchise owner needs to possess entrepreneurial and leadership skills to run a franchise outlet.
  • The employees need to have complete knowledge of the products and should be able to help customers by directing them to their requirements.
  • The employees need to courteous and should know how to handle customer queries.

What are the regions of Miniso retail stores operations?

As of 2019, Miniso has over 106 stores across 43 cities in India including Delhi, Mumbai, Hyderabad, Chennai, Coimbatore, Gurgaon, Jaipur, Kanpur, Howrah, Hisar, Lucknow, Ludhiana, Pune, Salem, Surat and many more.

What is the training required to run a Miniso franchise in India?

A detailed operational manual is provided to every franchise outlet so that every staff member at the store can know how Miniso store operates and what are their operational standards.

Infield Training and assistance is provided at the opening of the franchise outlet so that the employees have adequate knowledge about the products and how they can help customers.

An expert guide is allotted to every franchise outlet in order to resolve any queries or any other difficulties faced by the franchise outlet.

What is the minimum staff requirement at a Miniso franchise store in India?

The minimum number of staff required at a Miniso franchise outlet is 3 to 4 employees.

What are the financial requirements needed to become a Miniso franchise outlet owner in India?

The total one-time investment required for both Miniso franchise investment store model and Miniso Agent investment store model is Rs.70 lakhs to Rs.90 lakhs.

This investment amount includes one-year franchise fees, a refundable product deposit post the contract period is over, store fitting-out fees and shop space leasing charges.

The profitability of Miniso franchise outlet can be explained through a hypothetical example given below

Total investment made in a retail store franchise = Rs.70,00,000

Expenses incurred in a month

  • Rent paid for a 900 Sq.ft area = Rs.3,25,000
  • Salaries paid to 3 employees (Rs.10,000*3) = Rs.30,000
  • Miscellaneous expenses incurred for the month = Rs.5,000

Total expenses incurred in a month = Rs.3,60,000

Income earned in a month

  • The average footfall of customers in a day = 100 customers
  • Average amount an individual spends in the retail store = Rs.500
  • Total income earned in a day (100*Rs.500) = Rs.50,000

Total income earned in a month (Rs.50,000*30) = Rs.15,00,000

Gross profit for the month

Gross profit for the month (50% of Rs.15,00,000) = Rs.7,50,000

Total profit for the month

Total profit earned in a month (Rs.7,50,000 – Rs.3,60,000) = Rs.3,90,000

You can get back your entire investment based on the profitability example within 17 to 18  months.

Conclusion

Miniso is not just a brand name, it is a lifestyle choice. The store is known for its customer service and providing them with the best shopping experience. Miniso has focused and has been successful in enriching the customer’s lives by creating innovative and creative products at nominal prices.

The retail store has been on an expansion spree by having its footprint in over 70 countries with over 2600 stores worldwide through self-owned stores and franchise outlets.  The company’s vision is to open about 800 operational outlets in India by 2020 with one core philosophy of “Simple, nature and quality”.

Do you know why Miniso came into existence? It was simply to fill the gap between consumer demand and the retail market. With a deep understanding of the market, Miniso has gained unparalleled advantages in many aspects. The company has always focused on creating consumer products with aesthetic values attached to it. By doing so, Miniso has managed to win consumers hearts and also the market through creative and innovative product design, high performance and comfortable shopping experience by delivering the concept of good quality to its customers.

The brand not only has excellent and skilled designers globally but it also believes in recruiting young creative designers from universities and institutions as well. This helps the store to manufacture and produce good products with good appearance, high quality and great performance for its customers.

So if you are looking to enter the retail industry in India, then Miniso is the best choice for you to invest it. This store will provide you with great customer footfalls and steady flow on profits and income and will also help you to create a name for yourself.

Leave a Comment

Your email address will not be published. Required fields are marked *