Attention: Famous, Innovative And Excellent Products Are Listed In NYSE With Mnso Code

"Miniso, brand company and address: Zhuzhou club, mingchuangji industry, 7F, Jingwu building, Ginza 3-10-7 Ginza, Central District, Tokyo."

Such "noble" origins are marked on the slippers with 19.9 yuan per pair, 10 yuan / dozen storage boxes and 5 yuan / bag of spicy strips.

This is a small "trick" by Hubei native Ye Guofu, but it succeeded.

On the evening of October 15, Beijing time, mingchuang Youpin entered the New York Stock Exchange with the code of MnSO. The issue price was $20, and the opening price rose by 22%, and the final increase narrowed to 4.4%. The market value was temporarily set at $6.347 billion.

Listing is the recognition of certain strength. In the prospectus released last month, mingchuangyu summed up its achievements with several figures: the total turnover of global stores was 19 billion, covering 80 countries and 4200 stores.

When it comes to the market, famous, innovative and excellent products have innovations that can't be ignored, such as brand sense plus cost performance, more products and fast update; for example, under the unique mode of attracting investment and joining, stores can expand rapidly.

But going public also means spotlights. Those operations that once missed the ball began to be examined and magnified, and the missing behind those accidental problems began to become hidden dangers.

"The world's No.1 retailer of private brand lifestyle products", which is the definition of famous creative products. However, it depends on the degree to which he is more open to the competition field.

(photo: China service. Com)

Several key points of famous, creative and excellent products coming to the market

At the bell ringing ceremony, ye Guofu responded to the three most frequently asked questions, one of which was "what is the core competitiveness of famous innovative products?"

The answer he gave is very direct: * cost performance and high-frequency on the new.

This is a pioneering work of famous and excellent products: cutting down the middlemen and selling factory goods to consumers at a very low price.

Its prospectus shows that more than 95% of its products by June 30, 2020 will not exceed 50 yuan. Ye Guofu also boasted that the gross profit rate of mingchuang's commodities was no more than 8%, which was quite a bit like Lei Jun's initial Xiaomi mobile phone.

"101 new retail details of famous products" gives a more accurate figure: the gross profit rate of commodities is 12% - 15%, which is far lower than the average level of the retail industry. We should know that the gross profit of the clothing industry can reach more than 50%, and the gross profit rate of the dollar tree of the same type of U.S. dollar store listed companies also has more than 30%.

Another key to the success of famous creative products is to update frequently and maintain users' stickiness with freshness. Data shows that famous, innovative and high-quality products will produce an average of 600 new products a month. Ye Guofu also further explained that "our internal name is 711, which means 100 new products will be added in 7 days."

***Cost performance with the speed of Zhou Shangxin, plus the store opened in large shopping malls with Japanese life brand, famous and excellent products give people a sense of beauty, low price and style. This is the logic of single store success.

But to go public, we still need large-scale expansion. After all, 90% of the revenue still depends on sales.

It has to be mentioned that the investment strategy of famous creative products is similar to that of full trusteeship.

Specifically speaking, franchisees should pay brand franchise fee of 80000 yuan + 750000 yuan of goods deposit + at least 560000 yuan of decoration advance payment to mingchuang, and pay employees' wages, shop rent and other expenses by themselves. Generally, the total investment is more than 1.8 million yuan.

Correspondingly, franchisees don't have to deal with the management of stores, but they can get 38% of the store sales in the end.

For franchisees, the light mode of investment without effort soon laid the foundation for the expansion of famous and innovative products.

According to the data of the prospectus, by the end of June 2020, there were 4222 brand chain stores in the world, but only 129 of them were directly operated stores, and more than 90% of them were franchisees.

It seems that it has opened 100 million stores throughout the country and created 100 million new stores in 2021.

Ye Guofu, the founder of the company, believes that the epidemic situation has caused the retail market to reshuffle, which should be the most rare opportunity for famous and innovative products. "The closure of retail enterprises has left a large number of high-quality properties with good location and low rent, creating opportunities for the expansion of famous and innovative products."

From another point of view, the successful listing of famous and innovative products is inseparable from two groups.

***Behind the cost performance ratio and frequent updating, it relies on the complete supply chain of Chinese factory directors, while the rapid expansion relies on the desire of thousands of franchisees to make money.

But do these two groups, as always, are just solid partnerships?

Franchisees and suppliers are both armor and weakness

Making money is the core appeal of franchisees.

However, according to the information provided in the prospectus, the annual turnover of famous creative products in China is 6.35 million yuan. Taking into account the proportion and gross profit rate, the gross profit obtained in one year is only 360000 yuan. After excluding the rent and labor costs, compared with the 1.8 million yuan invested by the official guidance, the possibility of loss is greater.

"E-commerce online" has previously reported two extreme cases of Hangzhou franchise stores. The monthly turnover of the shops with sales performance of * * is nearly 1 million yuan, while that of the worst is only 170000 yuan. According to the data of mingchuang sales personnel, the monthly income of two stores in Xiasha District of Hangzhou is 700000 yuan and 400000 yuan respectively. It is unlikely to make money based on the extraction income.

The interface has previously reported that since August 2019, more than 850 stores have been closed by mingchuang, accounting for nearly 1 / 3 of the number of stores at that time.

The epidemic is another shock. The data shows that in 2020, the revenue of famous innovative products decreased by 19.8% compared with the previous year, and the sales volume of the same store decreased by 32.6% year on year.

More and more do not make money, franchisees also began to silence and lose confidence.

"E-commerce online" contacted two franchisees in Anhui and Zhengzhou through enterprise inspection and China referee network. When asked about the profit situation of the store, the other side avoided talking about it. One of them was still in the dilemma of being chased for rent by shop owners because of business problems.

In terms of suppliers, a slipper manufacturer in Ningbo told "e-commerce online" that compared with live broadcasting and other online channels, the order volume of mingchuang high-quality products accounts for a small proportion in his factory, and the trade is conducted through middlemen, and there is no direct communication.

He mentioned that their factory is a large-scale factory in this category, with 400 workers and more than 20000 flat factories, and the daily output of cotton tow can reach 150000 pairs.

In other words, for them, the order quantity of famous and innovative products has not yet reached the standard of the ex factory price of * *. The above-mentioned manufacturers also mentioned that slippers with a factory price of 6-7 yuan are sold for at least 20 yuan in famous and innovative high-quality products. Compared with the price of about 12 yuan in online channels, there is no advantage.

On the one hand, it exposed the weak control of famous and innovative products on the supply chain. On the one hand, it also shattered the illusion that they were directly connected to the factory.

This is also reasonable. For the 11 categories and 8000 SKUs of famous innovative products, it is almost impossible to control the supply chain. But as a result, once strong points may also become weak points.

On the eve of its launch, mingchuangyu products were also hot searched because of the news that a nail polish carcinogen exceeded 1400 times. Standing in the spotlight in the future, similar quality control problems will only evolve into a more serious crisis of public opinion.

Post IPO issues

If we say that franchisees and suppliers have contradictions on both sides of the same body, then some real problems will have to be faced up to.

The first is the sense of brand itself.

Pretending to be a "pseudo Japanese" brand can attract attention at first, but in the long run it can only attract ridicule. Yuanqi forest has changed its logo as soon as it is good, while mingchuangyoupin has a black momentum.

"The brand logo is like UNIQLO, the store is like Muji, and the goods are like Dachuang". Long before the famous brand products were launched, plagiarism was rampant.

Not only in appearance, but also in private brand products, famous and innovative products have been brought to the court many times. In the enterprise investigation, the risks of famous and innovative products are as high as 72, including 4 copyright and patent disputes in 2020.

The second is the expansion of channels.

In the past assumption of famous, innovative and high-quality products, going out of China and going to the world and opening crazy stores can guarantee its growth. In the past few years, we can also see that other Asian countries, Europe and America are the markets with faster growth.

But with the spread of the epidemic situation from other countries, the epidemic situation must be looked for. Online is a problem Ye Guofu has to overcome.

Looking back on his previous remarks, "e-commerce is" inherently deficient ", and new retail must be born out of the entity." in the past 3-5 years, a large area of physical retail has died. From 2016, a large number of e-commerce will die in the next 3-5 years ". Cognition is the first problem that must be overcome.

Fortunately, the action of famous creative products is not slow. Since the outbreak of the epidemic, the company launched the "employee purchase of famous, innovative and high-quality products". It also cooperated with famo, meituan and Shunfeng to deliver goods in the same city. It also started the live delivery of goods. One of the fundraising purposes of this listing is also the development line.

However, entering a market where other people have already cultivated mature and even fierce competition, the situation of famous and innovative products is still worth worrying about.

Online retailers of general merchandise have Netease and taobaoxin in the front, pinduoduo in the sinking market, and Taobao's special price version behind. How many cakes can famous, innovative and high-quality products get?