Japanese retail giant, Miniso has disclosed plan to aggressively increase the number of its shopping stores in Nigeria by an additional 200 before the end of next year.
The Managing Director of Miniso Nigeria, Mrs. Key Yang, said this during an interview with journalists in Lagos at the weekend.
According to Yang, the lifestyle designer retail brand which was founded in 2013, by two notable gentlemen – Japanese Designer, Mr. Miyake Junya and a young Chinese Entrepreneur, Mr. Ye Guofu in Tokyo – specializes in household and consumer goods.
“It is the fastest growing fashion brand on a large global scale, with its product focus mainly in leisure lifestyle, which include creative homeware, health and beauty, fashion accessories, digital accessories, stationery and gifts, unique toys series, seasonal products, Kitchenware, etc.
“Miniso has made a name for itself worldwide and has beaten all odds with an average monthly growth rate of 80 – 100 stores across countries including the United States, Canada, Russia, Singapore, the United Arab Emirates, Korea, Malaysia, Kazakhstan, Australia and Many more and all this has been achieved within a 5-year mark,” Yang added.
She pointed out that aside the unique shopping experience, Miniso was committed to employing about 8,000 Nigerians.
Furthermore, she disclosed that by 2020, the company would start procuring most of its raw materials locally.
Also speaking, the company’s Franchise and Investment Manager, Jason Zhou, noted that since its creation, Miniso has actively explored the international market and has opened more than 2,900 stores in over 60 countries over the years.
He said the retailer was also in the process of opening stores in 20 more countries.
Miniso’s business turnover stands at $1.5 billion in 2016 and nearly $1.9 billion in 2017.
“The flagship store in Nigeria was opened on the 10th of September 2017 in Lekki, Lagos. Eleven stores have since 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, MINISO would have successfully reached the south-eastern states of Nigeria as documentation processes are being concluded for over 10 stores.”
He stressed that Miniso remains one of the most profitable businesses in Nigeria that yields returns on investment between 10 – 18months.
According to him, the process of investing in Miniso was simple, transparent and hassle-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 choice 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 franchisee, the individual or company involved would get 40 per cent of the total monthly sales turnover as profit (to cover the store rental, store staff salary, electricity fee, and 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 per cent 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.
Also, speaking, the company’s franchise specialist, Mr. Eze Igwe, who noted that the Nigerian retail market was growing rapidly, reiterated the need for investors to take advantage of the opportunity created by Miniso.