The recent controversy over "non-members cannot check out" is still fresh, and MINISO Group Holding Limited (ASX: MNSO) has found itself embroiled in a new wave of negative online buzz. In recent days, hashtags such as "MINISO A Lei Diary," "MINISO Apologizes," and "MINISO Involved Blogger Account Made Private" have surged to the top of trending lists. From the aggressive "scan-to-register" tactics in physical stores to the boundary-pushing "suggestive marketing" online, these controversial actions seem starkly at odds with the company's recently reported stellar earnings showing a massive profit surge. On one side lies impressive financial performance; on the other, a series of public relations disasters. What is really happening at MINISO?
Using Voyeurism of Women as Marketing Material?
Netizens discovered that a video posted by a Douyin blogger with over 500,000 followers, "A Lei Diary," contained content depicting peeping on a female resident downstairs after floor renovations. Crucially, the video's caption was tagged with "MINISO," "MINISO Home Textiles," and "Dormitory Memory Foam Thin Mattress"—a product specifically marketed for its "thin and light" properties. A review of the blogger's content on other platforms reveals that the controversial video is part of an ongoing series called "The King of Home Renovation," which uses absurd and exaggerated scenarios to humorously depict "what happens when you hire your friend to renovate your home to save money."
This creative choice, which trivializes voyeuristic behavior while being associated with a brand and product, quickly sparked widespread consumer backlash and criticism. Many female consumers, in particular, felt deeply offended. It is worth noting that the young woman being spied on in the video represents MINISO's core customer base. Huaxin Securities research indicates that MINISO's primary consumers are students and young female office workers aged 16 to 28. On e-commerce platforms like Tmall, promotional videos for MINISO bedding and related products also predominantly feature women. Following the uproar, the involved blogger's account has been switched to private. MINISO issued an urgent apology letter on the evening of July 13, announcing the termination of the collaboration and the removal of all related content across the internet.
Not the First Marketing Misstep
In fact, this is not the first time MINISO has alienated its core audience through marketing blunders. In 2024, the official MINISO flagship store used inappropriate descriptors like "mentally disabled crybaby," "crazy screaming," and "pants" when introducing products featuring the popular IP "chiikawa." This not only exposed the brand's lack of basic understanding of its collaborative IP but also directly hurt the vast fanbase purchasing these products, leading to significant discontent. From disrespecting consumers' beloved IPs to now using a male-gaze voyeurism narrative to promote home textiles primarily purchased by women, MINISO's apparent lack of control over its marketing is becoming increasingly evident.
Commenting on this phenomenon, public relations expert and senior digital marketing director Wen Sha pointed out from an operational perspective that in the algorithm-driven era of product seeding, large-scale fast-moving consumer goods brands often outsource online campaigns to agencies or marketing firms, with the brand typically only setting broad promotional directions. "With a massive volume of marketing materials, it is indeed challenging for a brand to strictly vet every single piece of content. A micro-influencer with 500,000 followers might create inappropriate content for traffic, but for a listed corporation, this cannot serve as an excuse to shirk responsibility. Allowing content to descend into vulgarity is, in itself, irresponsible towards the brand's reputation," Wen Sha emphasized.
In contrast, industry analyst Zhang Shule adopted a stricter stance. He noted that since this was a commercial collaboration, it is implausible that the brand did not pre-approve the video. Turning a blind eye to such suggestive, traffic-driven content exposes the "traffic KPI" nature of its marketing strategy. Zhang Shule stated that women are the primary decision-makers for household consumption, and using a male-oriented marketing angle shows the brand's failure to truly understand its target audience's experience, leaving it "helpless beyond issuing a standard, impersonal official statement."
It is noteworthy that the apology letter, stamped with the official seal of "Mingchuang Youxuan Technology (Guangzhou) Co., Ltd.," was issued from an account named "MINISO Home Textiles Hetong." As of the evening of July 15, this account had only 63 followers. Tianyancha App shows that the former company is wholly owned by MINISO (Guangzhou) Co., Ltd., while the latter's corporate entity is Nantong Hetong Textile Co., Ltd., which, upon ownership tracing, shows no direct connection to MINISO. Meanwhile, MINISO's primary official accounts across various platforms have remained silent on the matter. PR expert Wen Sha believes this, to some extent, suggests an attempt to exploit a loophole: "It usually indicates a wait-and-see attitude, with subsequent actions depending on how the situation develops. If it becomes severe, the issued statement can serve as a 'lifesaver'; if not, the matter will likely be left to fade away."
Underlying Issues Behind the Scenes
The disorder and lapses in online promotion seem to share the same underlying logic as another recent offline controversy involving MINISO. Previously, consumers in multiple locations complained that MINISO physical stores were enforcing a blanket policy requiring customers to scan a code and register as members to check out, even for purchasing a single bottle of water. The company later clarified that the member restriction applied "only to popular trendy toy categories like blind boxes and vinyl plush dolls." While this response provided a literal clarification, it also tacitly admitted a fact: MINISO attempted to use high-demand, trendy products as a tool to forcibly convert public foot traffic into private domain members.
Whether it's using suggestive, lowbrow online content to grab eyeballs and traffic or leveraging popular IP dolls offline to强行拉新 and harvest user data, these operations reflect the deep-seated anxiety within MINISO to sustain its high-growth narrative. On paper, MINISO's Q1 FY2026 report card appears exceptionally strong. The financial report shows quarterly revenue reached 5.688 billion yuan, a year-on-year increase of 28.5%; period profit soared to 1.248 billion yuan, a massive surge of 199.7%. However, a closer look at the profit structure reveals that the explosive profit growth in Q1 largely depended on unrealized gains from its early-stage investment in the AI unicorn MiniMax. The financial report indicates that the fair value change of this investment generated an unrealized gain of 874.6 million yuan. Excluding this non-recurring gain and exchange rate effects, MINISO's adjusted net profit growth for Q1 was actually 8.1%. Looking back at the full year 2025, dragged down by factors including its share of an 812.7 million yuan loss from Yonghui Superstores, MINISO's net profit for 2025 fell by approximately 54% year-on-year. This implies that, setting aside the volatility from cross-sector investments, MINISO's core physical retail business is facing challenges.
Growth Pressures and Strategic Disconnects
By the end of Q1 FY2026, the MINISO Group had 8,565 stores globally. With market saturation in first and second-tier Chinese cities, the logic of driving growth through store expansion may be hitting a bottleneck. As offline foot traffic naturally reaches a ceiling, building a massive private membership pool through aggressive user acquisition has become a crucial bargaining chip to prove its sustained monetization capability to the capital markets. This not only explains why store staff face consumer complaints while enforcing mandatory registrations but also, to some extent, explains why the online marketing team resorts to extreme measures for traffic conversion rates.
MINISO has harbored grand strategic ambitions in recent years, striving to shed its "low-end ten-yuan store" image and transform into a global "super brand." However, a disconnect seems to be widening between its high-end strategic vision and its crude, end-level execution. Zhang Shule pointed out that MINISO's ten-yuan store image is too deeply ingrained. Overly attempting to elevate its positioning强行 through trendy toy IPs may instead lead to a撕裂 in brand image. Building on this, Wen Sha added that MINISO built its business on channels and商业模式. While it has achieved massive scale, it has yet to truly establish a great brand value system that resonates with contemporary youth. "Operating solely from the dimensions of data, sales, and product seeding will inevitably lead to a disconnect between brand tone and proposition. Building a profitable company is hard, but building a great one is clearly even more difficult," she concluded.
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