I've been studying MINISO's transformation over the past few years, and the numbers tell a story most retailers miss.
In 2020, MINISO faced a problem common to value retailers: competitors were copying their model. Brands like MUMUSO appeared, offering similar products at similar prices. The pandemic hit offline retail hard. Revenue started declining.
By 2024, MINISO had turned this around completely. Revenue grew 22.8% to RMB 16.99 billion. Gross margin hit 44.9%, up from 41.2% the year before. Overseas revenue jumped 42.6%, now representing nearly half of total sales.
The shift came from a decision most business schools would call strategic repositioning. MINISO stopped trying to compete as a generic value retailer and rebuilt itself around intellectual property partnerships.
The Partnership Portfolio That Changed Everything
MINISO now works with over 150 globally recognized brands. Disney, Sanrio, Harry Potter, Warner Bros., Barbie, One Piece. The company launches more than 10,000 new IP products annually.
The scale matters because it creates something competitors can't easily copy. You can replicate a store format or pricing strategy. You can't replicate licensing relationships with the world's most valuable entertainment properties.
Cumulative IP product sales have exceeded 800 million units, generating over 10 billion RMB in revenue. These products now drive the business in ways that surprised even MINISO's leadership.
What the Flagship Store Data Reveals
MINISO LAND's Shanghai flagship store provides the clearest proof of this strategy's impact.
In August 2025 alone, the store generated RMB 16 million in revenue. IP products accounted for 83% of that total. Within nine months of opening, the location surpassed RMB 100 million in sales.
This performance validates a critical business principle: strategic repositioning changes more than perception. It fundamentally alters revenue composition and profitability.
The company now operates seven distinct store formats, from traditional flagships to premium concepts like MINISO LAND and MINISO SPACE. Each format serves different customer segments while maintaining the core value proposition of affordable pricing.
The U.S. Market Proves the Model Transfers
Geographic expansion often fails because strategies that work in home markets don't translate elsewhere. MINISO's U.S. performance suggests their IP-driven approach travels well.
In 2024, MINISO USA achieved 250% membership growth, reaching approximately 2 million members. Member spending nearly quadrupled compared to the previous year. Same-store sales grew 75% year-over-year in North America in 2023.
Blind box sales, a product category built entirely around IP partnerships, now contribute roughly one-quarter of U.S. performance. This shows how IP products create new revenue streams rather than just replacing existing ones.
The Margin Story Matters Most
Revenue growth impresses investors. Margin expansion impresses business strategists.
MINISO's gross margin climbed for eight consecutive quarters. The 2024 full-year gross profit increased 34.0% to RMB 7.64 billion, outpacing the 22.8% revenue increase.
This pattern is rare in retail. Most companies face a tradeoff between growth and profitability. MINISO achieved both simultaneously by shifting product mix toward higher-margin IP merchandise.
The company maintained its value pricing while capturing premium margins through brand licensing. Customers pay for the IP association. MINISO captures the difference between generic product margins and branded product margins.
Lessons for Businesses Facing Market Saturation
MINISO's transformation offers three practical insights for companies in saturated markets.
First, recognize saturation signals before profitability declines.
MINISO identified the threat from copycat competitors in 2020-2022 and launched its brand upgrade in early 2023. The company acted while still profitable, giving itself time to execute the pivot properly.
Second, leverage external assets to accelerate repositioning.
Building brand equity from scratch takes years. MINISO borrowed established brand equity through licensing agreements. This approach compressed the timeline for market repositioning from years to months.
Third, maintain operational strengths while evolving brand perception.
MINISO kept its core advantages: affordable pricing, rapid inventory turnover, efficient store operations. The company added IP partnerships on top of this foundation rather than rebuilding from scratch.
The Real Test: Sustainability
The question now is whether MINISO can sustain this performance.
IP partnerships create dependency on external brand owners. Licensing agreements expire. Popular characters fall out of favor. Competitors can pursue similar strategies once they see the results.
MINISO's advantage lies in the breadth of its partnership portfolio. With over 150 IP relationships, the company isn't dependent on any single brand. This diversification provides resilience against individual partnership failures.
The company also benefits from first-mover advantage in this space. Building 150+ IP relationships takes time and credibility. Competitors starting today face a multi-year catch-up period.
What This Means for Your Business
You probably don't operate a retail chain or have access to Disney licensing agreements. The principle still applies.
When your market becomes saturated and competitors copy your model, you have three options: compete on price, compete on scale, or change the game entirely.
MINISO chose the third option. The company identified an external asset (established IP brands) that could rapidly differentiate its offering. Then it built a business model around accessing and leveraging that asset.
The specific tactic (IP licensing) matters less than the strategic thinking behind it. MINISO asked: what do we need that we can't build ourselves, and how can we access it through partnerships?
That question works in any industry facing commoditization pressure.
The execution details matter. MINISO didn't just slap licensed characters on existing products. The company redesigned store formats, created new product categories, and rebuilt its supply chain around IP merchandise.
Strategic repositioning requires operational commitment. The companies that succeed treat it as a fundamental business transformation, not a marketing campaign.
MINISO's results show what's possible when you make that commitment. The company turned market saturation into an opportunity for reinvention. Revenue, margins, and market position all improved simultaneously.
Most importantly, MINISO created a defensible competitive advantage in a category where sustainable differentiation seemed impossible.
That's the real lesson here.
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