On March 3, Beijing time, Minchuang Premium announced its unaudited financial report for the second fiscal quarter of fiscal 2022 ended December 2021.
According to the financial report, the net profit of The Minchuang Premium Group in the quarter both increased steadily, the second growth curve tide played new business TOP TOY continued to exert force, overseas business recovered significantly, and the overall performance exceeded expectations.
During the reporting period, the total revenue of Minchuang Premium products reached RMB2.77 billion, an increase of 21% over the same period in 2021. Among them, domestic revenue was 2.05 billion yuan, an increase of 12% year-on-year, and overseas revenue was 720 million yuan, an increase of 55% year-on-year.
In addition, non-IFRS net profit for the quarter was $210 million, up 155% year-over-year. Minchuang Premium's net profit margin for the fiscal quarter was 7.7%. Judging from such eye-catching financial report data, the revenue and profit growth of Mingchuang Premium products exceeded expectations, and its profitability continued to recover.
Behind all this is the omni-channel layout and the steady growth of global business driven by the consumption of Minchuang Premium Products. How can MINISO Embrace Young People and Understand Target Consumers in a more complex dimension with interest consumption?
The global layout is blooming everywhere
Looking at the Q2 financial report data of Mingchuang Premium, it is not difficult to find that its net profit, revenue, private domain members, and the total number of stores have improved, and the net profit margin has hit a new high in 7 quarters since the outbreak of the epidemic.
At the end of the quarter, the total number of miniso premium stores worldwide reached 5,045. Among them, China's domestic stores reached 3168, a net increase of 133 domestic stores in the quarter; about 63% of the new stores came from third-tier cities and below, and the number of stores in third-tier cities and below exceeded 1300.
In terms of the number of overseas stores, The net increase of Mingchuang Premium products during the reporting period was 41, and the number of stores reached 1877. For a long time, offline has been the main battlefield of Mingchuang Premium, and overseas markets are an important part of its offline expansion.
This quarter, the Boston store in Massachusetts opened, becoming the 5,000th store in the world. The official opening of the first store in Nicaragua, an overseas new market, marks that Mingchuang Premium has entered 100 countries and regions in six continents, including the United States, France, Italy, Mexico, Spain, Iceland, Brazil, India and Indonesia.
Not long ago, in February, the official opening of the Miniso Premium Manhattan SOHO store caused a response at home and abroad.
According to reports, the Manhattan store of Minchuang Premium is its 110th $10'N Under ten dollar brand concept store in North America, with a total area of 740 square meters, and the store selects more than 3,000 products in the ten categories of Mingchuang Excellent Products, which is the richest and most complete storefront of all stores in North America.
It is worth mentioning that Miniso Premium is the first Chinese brand to enter Manhattan, USA. On the opening day, "Victoria's Secret Angel" Sanne Vloet parachuted here to meet with fans.
As a world-renowned fashion brand, "Victoria's Secret" is the vane of the world's fashion trends, and "Victoria's Secret Angel" not only interprets fashion, but also is the spokesperson for a better life, which also coincides with the image of Mingchuang Excellent Products - while creating "good-looking, easy-to-use, fun" life good things, but also for local young people who love fashion and trends to create different surprises.
According to the data, the overseas expansion model of Mingchuang Premium products is mainly "direct operation + brand authorization". The general view in the industry is that the global territory of Mingchuang Premium products benefits from strong supply chain capabilities. However, the deeper reason is that Mingchuang premium products really capture consumer preferences.
During the quarter, miniso premium's online channel (e-commerce + O2O) business revenue accounted for nearly 11%, the number of retained private domain users exceeded 14 million, and the number of monthly active users of Mini Programs exceeded 7.8 million.
This data also shows that although the main battlefield of Mingchuang Excellent Products is offline, the online business growth rate is also obvious, during the reporting period, the strategic advantages of Mingchuang Excellent Products are prominent, and the operating efficiency is also showing a trend of increasing quarter by quarter.
TOP TOY tide play business force
In fact, since the listing, Ye Guofu has turned more attention to the young people, which is not only reflected in the cooperation between Mingchuang Premium and the vane of fashion trends such as "Victoria's Secret", but also in the second growth curve of its focus - TOP TOY tide play business.
At the beginning of this year, Ye Guofu refined a new "three good" - that is, "good looking, easy to use, and fun" on the basis of the past "three highs and three lows" (high value, high quality, high efficiency; low cost, low gross profit, low price) around interest consumption, which can be combined with the tide play business TOP TOY.
During the reporting period, TOP TOY revenue reached 130 million yuan, an increase of 20% from the previous quarter. As of the end of December 2021, the number of TOP TOY stores reached 89, including 13 DreamWorks stores and 76 tide play collection stores.
On the "first anniversary" on December 18 last year, TOP TOY continued to optimize the brand value chain, attracting nearly 100,000 tide players across the country to participate in the punch card. Among the many stores, the TOP TOY Chao Play Dream Factory store in Guangzhou Grandview has a single-day flow of more than 10,000 people, and the store's explosive tide goods are sold out within 3 hours. The cumulative number of online related topics has also exceeded 700 million, and the total number of interactions of the official Douyin, Little Red Book, and video number of the anniversary live broadcast exceeded 100,000 people.
In terms of categories, in addition to blind boxes, building blocks have gradually become the second largest category loved by TOP TOY consumers, and regional stores have held 200+ Chinese building blocks New Year theme activities. In the Mid-Autumn Festival of 2021, TOP TOY pioneered the "Chinese Building Block Festival", and since then, it has quickly landed a number of "Chinese Building Block" theme stores across the country, and opened the "Chinese Building Block Assembly Classroom" activity to fully tap the commercial value of China's building blocks.
Up to now, TOP TOY has signed contracts with well-known artists such as Hiroshi Yokoyama, a famous Japanese model prototype designer, Philip Colbert, a representative figure of British new pop art, and hatched new designers such as Tintin and Bai Xiaomu within the team to continuously rivet and store energy for the continuous popularity of its trendy play products.
In terms of IP development, TOP TOY also combines e-sports, a popular pop culture element among young people, with trendy play to resonate with consumers of different ages and circles. In January 2022, TOP TOY reached a cooperation with the head e-sports club EDG to jointly launch a new product of tide play.
Different from Bubble Mart's habit of focusing on "running itself", TOP TOY is more willing to build itself into an inclusive platform, working with all kinds of young people's favorite IP to further pass on happiness in the name of co-branding.
What exactly is interest consumption?
It is certain that whether it is the data performance of Mingchuang Premium Q2 performance or the rapid growth of TOP TOY, behind it is Ye Guofu's accurate insight into interest consumption. Under the new competitive situation, Mingchuang Premium Group continues to optimize the brand value chain around "interest consumption".
"The era of 'interest consumption' has arrived, and it is necessary to read young people." ——At the 2020 "Annual Conference of Chinese Entrepreneur Leaders", Ye Guofu first proposed the concept of "interest consumption".
As the name suggests, "interest consumption" is to take personal interests and hobbies as the starting point, the use value of goods and emotional value are gradually separated, and more attention is paid to the consumption behavior of cultural attributes and emotional value, and in this process, it can also enhance the identity of young people to "a certain label".
At the end of 2020, TOP TOY came into being in the concept of interest consumption. At that time, more interpretation in the industry was - "This is Ye Guofu's mining of young people's consumption codes." ”
Ye Guofu said that this year's young people are dominated by interest, and consumption pays more attention to cultural attributes and emotional values, and chases good-looking, easy-to-use and fun products.
Ye Guofu once divided the era of consumption after the reform and opening up into three stages:
The first is the low-price consumption stage, from the reform and opening up to about 2010, price is the most concerned factor for consumers to buy products;
The second is the cost-effective consumption stage, from 2010 to 2018 around, the rise of consumer brands and Internet platforms such as Xiaomi, JD.com, Mingchuang Premium, Uniqlo, etc., consumers in addition to paying attention to price, also began to pay attention to product performance;
The third is the stage of interest consumption, which sprouted in the past two years, and as Generation Z became the mainstream, young people began to be willing to pay for emotional value.
In these three consumption stages, Mingchuang Premium products were born in the cost-effective consumption stage, and the cost performance can also be regarded as a major advantage of Mingchuang Excellent Products. Compared with the daily consumer groups in residential areas, the higher-income consumers gathered in the core business districts of the city are the main service targets of Mingchuang Premium, and therefore, Mingchuang Premium has been using the highest quality price to provide consumers with a higher-than-price experience and product quality.
Mingchuang Premium and Xiaomi have been mentioned together many times, both relying on the mature domestic industrial chain and manufacturing level, creating their own rapid development stage, and gradually expanding the market overseas.
After entering 2021, under the ravages of the global epidemic, "cross-cycle" has become one of the keywords of China's economy. At the same time, interest consumption can also help more enterprises go through the cycle and achieve long-term value. Therefore, In 2021, Miniso Premium launched more IP products that embrace young people, and was able to buck the trend in the context of the epidemic.
On the eve of "Double 11" last year, Mingchuang Premium co-branded Disney launched the "Strawberry Bear Hug" series of new products and launched marketing momentum. As soon as the new products of the "Strawberry Bear Hug" series were launched, the social media was detonated, the topic page views on the Little Red Book exceeded 12 million, the exposure of the whole network exceeded 200 million, and the GMV on the first day of the Strawberry Bear Live Broadcast exceeded 2 million.
Under the background of the revival of the national tide, more and more brands such as Li Ning, Canon, realme mobile phones, and Guangliang Liquor have cooperated with IP such as the Forbidden City and dunhuang Museum. Based on the insight into the consumption trend of national tide interest, Mingchuang Excellent Products once again joined hands with the Palace Palace Culture last year to launch the aromatherapy 2.0 series, setting off a wave of national tide consumption online and offline.
To be sure, interest consumption has become a widely recognized megatrend that can cross the economic cycle.
Brand strategy upgrade in the first year
In the global market, Mingchuang Premium products are using their own supply chain advantages to promote the concept of interest consumption and the national tide culture to the world.
In fact, the anchor point that Mingchuang Excellent Products can quickly spread its business and continue to grow comes from its vertical integration ability of the supply chain. The three major capabilities of strong logistics and distribution system, advanced digital management system and rapid product update and iteration jointly support the fast turnover model of Mingchuang Excellent Products similar to fast fashion brands such as Uniqlo and ZARA. In the view of some insiders, the supply chain capability of Mingchuang Excellent Products has become a powerful moat, which is the key to its inability to be surpassed and imitated by competitors, which is the market's reward for innovators and revolutionaries.
Up to now, Minchuang Premium has more than 8,000 core SKUs, the average number of SKUs in stores is about 3,000, and the company still carries out product iterations with 600 new SKUs per month, which is the embodiment of the brand's supply chain capabilities.
Specifically, Mingchuang Excellent Products has the world's top design resources, after the completion of the product design draft, the designer will communicate with the buyer and supplier about the texture and material of the product for proofing. After the sample is produced, Mingchuang Premium will also invite some senior talents among fans to experience and feedback the experience report. Miniso then corrects the product according to the feedback report, so that the product can be continuously iterated.
In addition, Ye Guofu also pointed out that the development strategy and brand positioning of enterprises need to move with the times, and 2022 will be the first year of the brand strategy upgrade of Mingchuang Excellent Products. Next, Mingchuang Premium will further enhance the brand value around the value proposition of "a better life", and at the same time grasp the core strategy of "starting from the product and finally recognizing", closely follow the theme of "interest consumption", and systematically exert efforts in the four aspects of product, communication, channel and internal operation to upgrade in an all-round way.
With the rise of the wave of interest consumption, Mingchuang Premium Products will continue to export good-looking, easy-to-use and fun products to the global consumer market on the basis of continuing to maintain high cost performance, light up the beautiful life of 99 countries around the world, and become a global interest consumer enterprise with Internet genes.
"Cycle catcher" Ye Guofu
Combing through Ye Guofu's entrepreneurial path, it is not difficult to find that every time he successfully steps on or even leads the context of the times, it is because he can capture the new space left in the process of economic structure and power switching, and this time window is fleeting.
At the beginning of the establishment of Mingchuang Premium, another aspect of Chinese business at this time was: the rapid development of the Internet, the rapid rise of comprehensive e-commerce such as Jingdong and Taobao. A few years later, the domestic brands represented by Li Ning and ANTA fell into the inventory crisis brought about by blind expansion, and the entire offline entity became dismal due to the impact of online e-commerce.
However, Ye Guofu has always believed in the value of the offline real economy, and when a large number of commercial real estate in the country fell into an "empty window" due to the withdrawal and poor management of stores, Mingchuang Excellent Products took advantage of the trend, which also laid the foundation for Mingchuang Excellent Products to expand in China.
At that time, just into 2016, Chinese brands have begun to take shape in the sea, and Mingchuang Premium products have quickly opened their own globalization process in 36 countries. Of course, this process is also accompanied by controversy, after all, unlike electronic products and the Internet, the sea of physical retail is relatively difficult.
Ye Guofu's reasoning is very simple: although the level of development and living habits of each country are different, the people's hearts are the same. Especially in many Southeast Asian countries, the global information received by young consumers in this group of cities is consistent, so their needs are also consistent with those in China, and there is a market where there is demand.
Pulling the gaze back to the present, behind the "interest consumption" is more or the original intention of "grasping young people", Ye Guofu has always believed that the beautiful pursuit of life by young people must be one of the biggest dividends of the times.
In an earlier media interview, Ye Guofu also pointed out, "In recent years, Li Ning has been so hot, Huawei mobile phones are so easy to sell, and there are emotional values in them to guide consumption." For every enterprise, in the future, we must develop products that customers are interested in, whether you sell cameras, sell water glasses, sell clothing, sell shoes, sell anything, and study user interests. ”
In his view, the biggest difference between the consumption concept of this generation of young people and the previous consumption theory is that they have broken through the setting of the demand level and upgraded from the basic consumption at the bottom to the spiritual satisfaction of the high level, which may also be the reason why many brands tend to meet the "novelty" hunting of young consumers through product innovation.
From the above point of view, Ye Guofu can grasp the market cycle behind, more is his accurate prediction of consumer trends and dare to change. It's a race with no end in sight and always against the self.