Miniso (MNSO) Booming Membership Growth Collides With A Struggling Global Expansion

Miniso Group Holding Limited reported a mixed earnings call on August 28, with strong growth in China contrasting a struggling global expansion. In China, the company experienced its fastest first-half growth in three years, with membership reaching 130 million people, up 31% year-over-year. Membership spending accounted for 77% of total China sales, up from 60% a year earlier.

Miniso's proprietary IP products, such as the YOYO brand, expanded to 53 countries and generated close to RMB 500 million in revenue in the first half of 2026. However, overseas markets showed declining profit contribution, with international profit contribution falling from 35%-40% in 2023 to 10%-15% in the first half of 2026. Distributor revenue across Asia and Latin America declined 10%, falling short of the company's own guidance.

North America, the largest directly operated overseas market, grew revenue by 37% to RMB 1.8 billion, but same-store sales growth slowed to a mid-single-digit pace. Inventory levels backed up, with overseas turnover stretching to 273 days, leading management to expect a high single-digit decline in full-year adjusted operating profit.

Despite the challenges, Miniso's China business demonstrates that membership and proprietary IP can drive growth in a sluggish retail environment. However, the overseas segment highlights the costs of scaling domestic strategies abroad.