Miniso, often compared to Japan’s discount retail chain Daiso for its affordable and diverse selection of lifestyle products, has returned to the South Korean market after a three-year absence.
On Dec. 14, Miniso opened a new store in Seoul’s Hyehwa neighborhood, drawing crowds with a wide range of products, including collaboration items featuring popular characters like Harry Potter and Disney properties.
Just 10 days after its reopening, the location was bustling with shoppers eager to explore its character merchandise. From the entrance, one wall displayed items inspired by Hogwarts’ four houses—Gryffindor, Slytherin, Ravenclaw, and Hufflepuff—from the Harry Potter series. Another section featured collaboration products using Disney IP, such as Minions, Snoopy, and Stitch.
Miniso first entered the S. Korean market in 2016 and operated around 70 stores. However, it withdrew in 2021 after facing criticism and earning the label of a “Daiso look-alike” due to its similarities to the Japanese chain in branding and product offerings.
Miniso, founded in 2013 by Ye Guofu in Guangdong Province, China, is a vertically integrated brand specializing in private-label products, streamlining both manufacturing and retail. The company went public on the New York Stock Exchange in 2020.
To distance itself from its past controversies, Miniso shifted its focus to collaborations with well-known intellectual property (IP) brands. The strategy has proven successful, drawing in fans of popular franchises like Disney, Harry Potter, Sanrio, and Mattel.
In the first half of 2024, Miniso’s global revenue increased 25% year-on-year to 7.76 billion yuan ($1.06 billion), while its net profit rose 17.8% to around $169.8 million. Third-quarter revenue was up 19%, reaching $622.3 million.
The recently reopened Hyehwa store has gained significant attention among Harry Potter fans for its themed collaboration products. According to Black Kiwi, a search data analysis platform, Miniso-related searches totaled 28,800 as of Nov. 26.
Alongside its character merchandise, the store offers affordable household goods priced between $1 and $5. This approach not only appeals to fans of popular characters but also encourages impulse purchases of low-cost items.
Miniso Chairman Ye Guofu announced in October plans to open 900 to 1,100 new international stores by 2028, with the goal of increasing the proportion of overseas outlets to 50% of its total 6,868 locations. As of the first half of this year, Miniso operates 6,868 stores globally, with 4,115 of them in China.
This expansion reflects the higher global demand for character merchandise business. Miniso reports that the average per capita spending on IP-related products globally is 44,000 won ($30), with the United States leading at around $408, followed by the United Kingdom, Germany, and Japan. In comparison, China lags at approximately $7.
Industry experts note that Miniso’s return, alongside other Chinese e-commerce players like Alibaba and Temu, is reshaping S. Korea’s retail landscape. Competition is expected to intensify, especially for local giant Daiso, which is projected to hit 3 trillion won in annual revenue this year. Daiso has been expanding its offerings to include beauty and fashion products and developing its own character merchandise to keep up.
Miniso is also preparing to open additional stores in popular neighborhoods such as Hongdae and Konkuk University Station. A retail industry insider noted that “character merchandise is great at drawing in fans and prompting impulse buys in S. Korea, which could bring changes to the fixed-price market that has mainly focused on low prices.”
