China Business Emerges as a Key Growth Engine

MINISO enters the second half of 2026 with a stronger domestic growth profile but a more cautious international strategy. The company reported 22.4% revenue growth in the first half, with China revenue increasing 26.2%, supported by store upgrades, proprietary intellectual property and stronger membership engagement. Management said MINISO China’s GMV grew about 20% year over year in July, while same-store average daily sales increased at a mid-single-digit rate, pointing to continued resilience despite softer conditions across China’s broader retail market.

The company expects mid-double-digit revenue growth in China during the second half. A major part of that outlook rests on larger store formats, including MINISO LAND and Super MINISO. These locations generate roughly twice the sales per square meter of regular stores, while flagship formats have an average payback period of about one year. MINISO plans to expand the broader large-store family toward 1,200 locations within a Chinese network target of 7,000 to 8,000 stores.

Proprietary IP and Membership Strengthen the Retail Model

MINISO’s proprietary IP strategy is increasingly becoming a differentiator rather than simply a product-category extension. YuYu generated nearly RMB 500 million in revenue during the first half, while Total, the company’s second proprietary IP, has already experienced demand exceeding supply. Management said proprietary IP products carry margins above the company average, with inventory turnover maintained at approximately 30 to 40 days.

Membership is another important component of the strategy. China membership sales accounted for 77% of sales in the second quarter, up from 72% in the first quarter, while the membership base increased 31% to 130 million. Members generate an average transaction value roughly twice that of non-members, while customers buying IP products through the membership ecosystem generate transaction values more than three times higher. This suggests MINISO is increasingly using its customer base to improve both monetization and retention rather than relying solely on store expansion.

Overseas Expansion Shifts From Scale to Quality

The more difficult part of the growth story is overseas. International revenue increased 44.1% in the first half but fell short of the company’s previous expectations. Distributor revenue declined 10%, while geopolitical conditions, currency movements and inventory digestion created additional pressure.

MINISO is responding by moving from a “scale-first” to a “quality-first” approach. The company plans to slow store openings and close lower-efficiency locations, resulting in a projected net reduction of 100 to 110 distributor stores in the second half. International inventory turnover also weakened to 273 days from 240 days, underscoring why management is prioritizing channel health over headline store-count growth.

North America remains a major strategic opportunity, with MINISO maintaining its full-year target of $4 billion in sales and a 10% net margin. However, weaker second-quarter same-store sales reflected gaps between IP launches, stock-outs of popular products and investment in new stores.

Going forward, investors will be watching whether MINISO can translate its stronger Chinese operating model into sustainable international economics. The company ended the period with RMB 7.39 billion in cash and continues to return capital through dividends and share buybacks, providing financial flexibility as it recalibrates expansion. The key test will be whether slower overseas growth ultimately produces healthier stores, stronger margins and a more durable global retail platform.