During the pandemic, where production costs skyrocketed, many businesses had no choice but to increase their product prices just to break even.
However, in the past two years, MINISO has successfully maintained the price of its products while launching more than 200 new products every two weeks. The secret behind this is big data!
In this series of Exabytes Retail Heroes, we will give you an in-depth understanding of how MINISO, a brand with more than 6,000 stores in 107 countries around the world, uses big data strategically to get closer to their customers.
Filled with Fun and Happiness
MINISO: Life is for fun
Most people’s impressions of MINISO are that it has all kinds of products, ranging from children’s toys, electronic products, snacks, hygiene products, perfumes, and even lipsticks! You can find them all in MINISO stores! What’s more, these items are exquisite and affordable.
But price and quality alone are not all the advantages MINISO has. Another advantage of their products is that every single product they produce, even as a simple table lamp, has a pleasing and interesting giraffe shape.
Therefore, walking into such a store, whether it is an elderly person in their 70s, a 45-year-old adult, or a 5-year-old child, the store would never fail to surprise them with their products and let them have their fair share of fun.
Ben Lee, the General Manager of MINISO Malaysia, told the Exabytes New Retail team that the company doesn’t just sell products, but promotes a way of life that emphasizes “life is for fun” to make sure the entire product experience is fun, aesthetically pleasing, and easy to use.
So, every product made by MINISO must have a close connection to people’s lives and offer customers surprises and fun. For example, MINISO’s “Blind Box” series, which is popular all over the world, not only creates surprises for consumers but also makes them feel happiness and a sense of accomplishment.
Big Data: The Secret of Offering Your Customers Great Value
But from the merchants’ point of view, how can they really understand what customers want and make sure their products always surprise them? According to Ben Lee, the answer lies in big data.
Ben Lee added that MINISO has 6,000 stores in 107 countries around the world. Through big data, the company is able to study the culture, appearance, and buying habits of people in different countries so it can make accurate decisions about how it develops and sells its products.
“Basically, we have nearly 200 new products added to the shelf every two weeks. Big data technology allows us to track the status of each product in real time, and the production line can also make the most timely response according to the sales status, which could maximize the profit of the company.”
“In this way, we can ensure that products are sold at the most affordable price without compromising quality.”
He pointed out that the pandemic has brought earth-shaking changes to the domestic retail environment in the past two years. During this period, the prices of freight and raw materials have increased. But with the help of big data optimization, MINISO was able to retain the prices, so customers could still buy high-quality products at prices they could afford.
Ben Lee said that using big data technology not only improves MINISO’s supply chain and sales strategy but also helps the company improve its management and set up better, clearer internal communication.
“At present, our stores in each country, from the head office to the local manufacturers, have data monitoring, so we can make accurate judgments based on the data in purchasing, logistics, and other aspects of decision-making.”
MINISO Stores: Come in Happily, Leave Happily
Life Is for Fun
Another benefit that big data management brings to MINISO is that it helps the company strengthen its membership system and build a more efficient communication channel with its customers, allowing them to access product information more conveniently.
“MINISO believes that life is full of fun. Therefore, we also hope to bring this concept to our consumers’ hearts, so that consumers can come in and leave happily.”
According to Ben Lee, the strategy of MINISO’s “interesting life” concept can be divided into three directions. One is the store layout. The store staff at MINISO always welcome people with a smile. At the same time, the decoration of the store creates a happy and relaxing atmosphere so that customers who walk into the MINISO store can feel joy and happiness.
In addition, MINISO also holds “MINISO Day” every Wednesday of the week in all its stores around the world. This event happens simultaneously around the globe, allowing consumers who become members to buy their favorite products at a special offer every Wednesday. This way, MINISO also successfully extended the time customers spend in the store.
Ben Lee added that when it comes to Corporate Social Responsibility, MINISO also upholds the belief of ‘Life Is for Fun’. This is clearly seen in one of its CSR projects, PenPen与你“童”行, which makes charitable donations to children in need.
Never compromise. Present the best and happiest things to everyone on earth.
– Ben Lee (General Manager, MINISO Malaysia)
Post-interview
In traditional business, answers to questions such as ‘what products do you want to sell?’ and ‘how much materials should I buy?’ are all decided based on experience and feelings.
But from what MINISO told us, we can see that through big data, we can get a better idea of how products are selling and what can stop people from stockpiling products and cutting down on losses.
In fact, the power of big data goes far beyond that. With the first year of new retail coming up in 2022, the best way for Malaysian retailers to move forward is to use big data to integrate offline and online stores.
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