MINISO opens biggest global store in Jakarta

The Chinese retailer aims to hit 1,000 stores in the next five years from about 300 now.

Chinese retailer MINISO has opened its biggest store in the world at Jakarta’s Central Park, as it tries to capitalise on household consumption that makes up more than half of economic output in the world’s fourth most populous nation.

MINISO’s flagship store in Indonesia spans 3,000 square meters and was designed like a Dream Castle Park featuring three themes — Harry Potter, Sanrio, and Disney.

“Indonesia consistently ranks in our top five overseas markets in terms of gross merchandise volume,” Bella Tu, vice president and general manager at MINISO’s Overseas Business Division, told journalists covering the Aug. 31 launch.

Household consumption accounts for 54.5% of the Indonesian economy, which grew by 5.05% in the second quarter from a year earlier.

MINISO, which is operated by MINISO Group Holding Ltd, is banking on the country’s growth promise, low rental and labor costs, and its young population to drive its retail expansion. The company, which entered the Indonesian market in 2017, aims to hit 1,000 stores in the next five years from more than 300 now.

The expansion could be challenging in a highly competitive Southeast Asian market, whose growth is driven primarily by rising consumer expectations, technological advancements, and changing demographics.

MINISO’s flagship store in Jakarta combines shopping, leisure and entertainment. It has eight product categories — perfumes, fragrances, beauty, snacks, toys and stationeries, MINISO original design, a rest area with plush toys, and blind boxes, whose contents remain a mystery until they are opened.

MINISO’s success in Indonesia is largely attributed to its ability to localise its products and continuously innovate. The brand has 13,000 product types in the Jakarta store alone, as many as 5,000 of which are obtained locally.

Robin Liu, vice president and chief marketing officer at MINISO, noted that to become a global brand, it is important for customers to recognize and prefer you.

“When consumers have a specific need, they should immediately think of your brand,” Liu told journalists.

This focus on brand preference and MINISO’s strong supply chain that integrates Chinese and local suppliers, has been a key differentiator in the highly competitive Indonesian market.

MINISO is experiencing rapid expansion across Asia, where it has more than 1,400 stores outside mainland China. The company seeks to open all over the world as many as 1,100 new stores yearly in the next five years, according to MINISO CEO Jack Ye.

“Since opening our first international store (outside mainland China) in 2015, MINISO has steadfastly pursued our global expansion strategy, now operating over 6,800 stores across five continents and bringing our innovative and appealing products to every corner of the globe,” he said in a statement.

“Looking ahead, we will continue to focus on key markets like Indonesia and the US, enhancing our global presence through our Super Store strategy and strategic IP (intellectual property) partnerships,” he added