Retail Brands Fight for CCFA Innovation Award, MINISO Stands out with Excellent Supply Chain
On November 3, 2016, the “CCFA Annual Gala Dinner and 2016 Retail Innovation Award Ceremony” hosted by China Chain Store & Franchise Association (CCFA) was hold in Suzhou. Many top business leaders of renowned enterprises gathered at the gala dinner. It is reported that, the way to decide the innovation awards combines self-nominations and recommendation by specialists. CCFA invited authoritative specialists to compose a review committee. They make decisions in accordance with fair and scientific criteria, evaluating the candidates comprehensively from the respects of innovation, influence, development potential and value of reference. Among more than 200 applications, only 34 enterprises were elected on the list. The innovation award has been divided into five parts, which are format innovation, marketing innovation, customer experience innovation, management model innovation and supply chain innovation. Most of the enterprises on the list are the established enterprises, such as Yintai, BBK, JingDong, Suning, Homeinns, P&G, Yili, BreadTalk. Among them, a young dark horse appeared in the supply chain award-- that is the Japanese fast fashion designer brand MINISO.
(Illustration: Many top business leaders of renowned enterprises gathered at the CCFA Annual Gala Dinner and 2016 Retail Innovation Award Ceremony.)
MINISO was jointly founded by famous Japanese designer Miyake Junya and Chinese young entrepreneur Ye Guofu in September, 2013. Although MINISO has been established less than three years, it grows far faster than other similar brands. It is said that MINISO has established in 40 countries and regions including the U.S, Canada, Australia, Russia, Thailand, Singapore, Hong Kong (China) and Macao (China). It has opened than 1,400 stores around the world with an average expanding rate of 80 to 100 stores opened monthly. In 2015, MINISO’s global revenue reached RMB 5 billion, which is expected to exceed RMB 10 billion in 2016.
There are many reasons why MINISO can obtain such achievements, but undoubtedly that the innovation in supply chain plays an important role in it. Just like the master of finance and economics Wu Xiaobo said, supply chain is the “waist” of retail industry. Only when the “waist” exerts its strength can the overall situation be controlled. After years of exploration in retail industry, MINISO finally forms a unique supply chain management system. It is divided into two parts: superior suppliers and unique supply chain management model.
(Illustration: MINISO was awarded CCFA Retail Innovation Award.)
First of all, MINISO chooses high-quality suppliers worldwide strictly to be its long-term cooperation partners. The OEMs are all foreign-trade manufacturers, among which there are many particular suppliers of famous brands. For example, the supplier of “Maiden” perfume series is the world’s leading essence corporation Givandan, which provides services to Dior, Chanel, Lancome and Hermes, etc. In addition, the supplier of “Porcelain Skin Cosmetics” is the Italian established cosmetic company Intercos. Among the world’s top 30 cosmetic brands, Intercos provides services to 26 of them, including Armani, Maybelline, L'Oreal, Revlon.
Cooperating with top suppliers definitely guarantees the quality of products, but MINISO is not content with it. In order to realize its original desire of “freeing the younger generation’s pressure on shopping”, MINISO has established a unique supply chain management system. MINISO attracts a large number of high-quality suppliers which are willing to offer low-price products by conducting procurement on a large scale and settling balance at one go. The large-scale procurement thus becomes the bargain chip for the suppliers to negotiate with raw material suppliers. Precisely because of its unique supply chain management system, MINISO can truly control the price and quality of products. At the same time, MINISO believes in the small profits but quick returns operation philosophy in Japanese business circles. By slashing profit margins to only 8%, MINISO really delivers high-quality but low-price products to consumers.
(Illustration: MINISO realizes providing high-quality but low-price products to consumers by excellent supply chain management, attracting a large number of customers.)
Currently, China’s consumption pattern has been upgraded, for which retail industry is facing unprecedented challenges. However, it is also a great opportunity for those enterprises having the courage to innovate and practice. Just like MINISO, it develops rapidly by its unique innovative model, especially the innovation to supply chain. Not only does it receive recognition by the masses, but also it makes beneficial explorations to the transformation of retail industry. In fact, the original intention of the retail innovation award election by CCFA is to recommend excellent innovative models having extremely strong trade representativeness, so as to promote retail industry and enterprises to develop in a stable, fast and healthy way.