“It's cute. Would they like it if I buy this?”
On the afternoon of the 24th, the Miniso store in Hyehwa-dong, Jongno, Seoul, was filled with people who came to buy famous character goods (souvenirs). Starting from the entrance, various goods symbolizing the four houses (Gryffindor, Slytherin, Ravenclaw, Hufflepuff) of the British wizarding school Hogwarts from the Harry Potter series were displayed on one wall. On the other side, collaborative products using Disney intellectual property (IP) such as Minions, Snoopy, and Stitch stood out.
According to the retail industry on the 31st, Miniso, a dollar store known as the 'Chinese version of Daiso,' reopened its store in Hyehwa-dong, Seoul, on the 14th, marking its re-entry into the domestic market after three years. Miniso first entered South Korea in 2016 and operated about 70 stores but withdrew from the market in 2021 amid allegations of being a 'knockoff Daiso.'
Miniso is a fixed-price household goods store founded in 2013 by chairman Ye Guofu, based in Guangdong Province, China. It developed its business as a lifestyle manufacturing and distribution integrated (SPA) brand, benchmarking the Japanese dollar store Daiso, known as '1,000 won shop.' It was listed on the New York Stock Exchange in 2020.
However, Miniso has been plagued by allegations of copying products from famous brands, from its brand name that evokes Daiso and Uniqlo to its merchandise. Thus, it sought solutions through collaborations with famous characters. Miniso has since released products incorporating popular character IPs from Disney, Harry Potter, Sanrio, and Mattel, attracting character enthusiasts.
In the first half of this year, sales increased by 25% compared to the same period last year, reaching 77.59 billion yuan (about 1.45 trillion won), while net profit rose by 17.8% year-on-year to 1.241 billion yuan (about 230 billion won). Sales in the third quarter amounted to approximately 4.523 billion yuan (872 billion won), a 19% increase compared to the previous year.
The recently opened Miniso store in Daehakro is also drawing attention among Harry Potter fans for showcasing various collaborative products utilizing Harry Potter IP. According to search data analysis platform Black Kiwi, as of the 26th, Miniso's search volume reached 28,800.
In fact, the Miniso store visited by the reporter was very different from the past. Previously, it was simply a store that sold household items at low prices, but the returning Miniso resembled a collection of famous character goods. The store displayed various products, including character dolls and hats with logos from Harry Potter, fluffy slippers embroidered with the King’s Cross Station 9 and 3/4 platform, and a stitch mirror. Some shelves that featured phone grips were empty.
Prices were somewhat high for a fixed-price store, with caps at 14,900 won, slippers at 18,900 won, ballpoint pens at 8,500 won, and character key rings priced between 8,000 and 10,000 won. However, many enthusiasts felt that they were affordable considering they were products based on popular character IPs. One customer expressed satisfaction, saying, “I bought a cushion that would cost over 50,000 won at Universal Studios Japan for around 20,000 won.” Another customer acquired 200,000 won worth of Harry Potter goods.
One side of the store also carried inexpensive household items ranging from 1,000 to 5,000 won. Customers drawn to the character products were also shopping for affordable household goods. However, since it had only recently opened, the product display was a bit chaotic, and many items lacked price tags, requiring customers to confirm with staff individually, which was found to be inconvenient.
Ye Guofu, chairman of Miniso, announced during a presentation of achievements related to a global brand strategy upgrade in October that the company plans to open 900 to 1,100 new stores overseas by 2028. As of the first half of this year, there were 6,868 Miniso stores, with 4,115 of those located in China, and the plan is to increase the proportion of overseas stores to half.
The reason is that the response to character products is higher overseas than in China. According to Miniso, the average per capita consumption of global IP products is 227 yuan (about 44,000 won), with the United States having the highest at 3,077 yuan (around 600,000 won), followed by the United Kingdom, Germany, and Japan. China's consumption was limited to 51 yuan (about 10,000 won).
The industry analysis suggests that, following the threat posed by Chinese e-commerce platforms like Ali and Temu to the domestic e-commerce market, the character dollar store market is also now facing an offensive from China. In particular, Daiso, which is on the verge of achieving 4 trillion won in sales this year, is expected to feel increased pressure. Daiso has also been focusing on developing its own character products while broadening collaborations with various characters and expanding into beauty and fashion categories.
Miniso, which has re-entered the South Korean market, is reportedly preparing to open new stores in Hongdae and at Gunja Station following its location in Daehakro. A retail industry insider noted, “Famous character products are the best items to attract enthusiasts and stimulate impulse purchases,” adding that “a new breeze is expected to blow through the dollar store market that has been solely focused on low prices.”