Chinese retailer MINISO has applied for listing on the Hong Kong stock exchange, becoming another Chinese company seeking a dual primary listing in Hong Kong as it could be delisted from US exchanges.

The Guangzhou-based retailer filed its application with the Hong Kong Stock Exchange on March 31. In October 2020, it raised US$608 million in an initial public offering in New York. In his proof of applicationMINISO said its revenue from markets outside China was 1,780.5 million yen ($279.4 million) and 1,340.6 million yen ($210.4 million) during fiscal years ended June 2021 and the six months ended December 31, 2021, representing 19.6% and 24.7% of its total revenue for the same periods.

The company also mentioned several factors that could affect its international operations, including wars, political and economic instability; trade restrictions; and customs tariffs and duties and classifications of our goods by applicable government agencies.

“A number of factors could negatively impact our results of operations if our international expansion efforts are not successful. These factors include changes in market needs and product trends, economic fluctuations, turmoil political and social issues, the relevant countries’ or regions’ relations with China, changes in legal regulations or other conditions, and difficulties in employing and training appropriate local managers and employees,” the company said.

He cited the example of escalating tensions between China and India, which resulted in the Indian government banning a number of mobile apps developed by Chinese companies and operated in India.

“We are unable to predict how the international relations between China and India will develop, and what actions the Indian government will take with regard to the products and services provided by Chinese companies and the business operations of Chinese companies. Chinese companies in India. There can be no assurance that we will not be targeted or affected by similar actions in the future,” the company added.

MINISO said it opened its first store in China in 2013 with two brands MINISO and TOP TOY. In 2021, the total gross merchandise volume (GMV) of products sold through our MINISO network reached approximately 18.0 billion yen (2.8 billion US dollars). As of December 31, 2021, MINISO served consumers mainly through a network of more than 5,000 MINISO stores, including more than 3,100 MINISO stores in China and approximately 1,900 MINISO stores overseas. The company’s footprint also spans more than 100 countries and regions.

Last year, in an interview with MARKETING-INTERACTIVE, Robin Liu, Vice President, Chief Marketing Officer and Head of E-Commerce, shared that while many retailers struggled to keep their operations afloat, MINISO exploded across the world and has established its presence all over the world. . Here in Asia, given its role as the economic hub of the region and its wide market influence, Singapore is now one of MINISO’s most developed and important markets in Southeast Asia. . Indonesia is a close second in presence, due to its large population and maturing e-commerce.

Currently, in Asia, MINISO localizes a large part of its products to adapt to the culture and nuances. For example, since many of its Indonesian customers are Muslim, the company has adapted its beauty line to be more flexible to their religious customs. Since Muslims cannot wear makeup during worship, the company has developed a peel-off nail polish so that customers can look stylish everyday and easily and quickly remove their nail polish for worship.

“It’s subtle but impactful localization,” Liu said. But the challenges across Southeast Asia are many.

Southeast Asia is a fragmented market made up of markets with different levels of economic development and disposable income, cultural and religious customs and taboos. Collectively, these naturally lead to more dynamic consumer behavior trends and present a great adaptability and localization challenge for brands such as MINISO that are rapidly expanding to serve local customers.

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