Miniso steps into toy land

Miniso Group Holding, the newly New York-listed Chinese budget retailer, is making its first foray into the US$86 billion global toy market as it tries to take on heavyweights like Toys “R” Us Inc. on its home turf and beyond.

Known for selling low-cost items ranging from household goods to electronic gadgets with a clean aesthetic, Miniso will open the first store of its new chain “Toptoy” this month in Guangzhou, Founder and Chief Executive Officer Ye Guofu told Bloomberg in an exclusive interview in November.

The company’s entry into toy stores comes shortly after Miniso went public in the U.S. as it rides a global boom in discount retailers accelerated by the pandemic’s economic devastation. Miniso is now hoping its low prices and popularity can give it a foothold in China’s US$12 billion toy market, which Ye says is bifurcated between “old-fashioned,” higher-end retailers like Toys “R” Us, and cheap, low-quality goods peddled at small stores and supermarkets.

The company’s shares have fallen by 0.3 percent in New York since its debut in October.

“China still doesn’t have a good home-grown toy brand to serve children,” said Ye, a former pipe factory worker who became a billionaire following Miniso’s initial public offering.

Toptoy will differentiate itself from traditional toy retailers by focusing on specific products popular among children and young adults in China, like so-called “pop toys” -- collectible cartoon figurines -- and 40 yuan (US$6) “blind boxes” containing dolls based on anime characters. Buyers don’t know what they get exactly in blind boxes until after purchase, and the element of luck adds to the fun.

According to Bloomberg Intelligence, China’s toy market is slated to become the biggest in the world by 2022, passing the US$25 billion U.S. industry.