The specialist retailer in Australia and New Zealand, Aumake Limited shared on Thursday that it has entered into a distribution agreement with a Japanese-inspired lifestyle product retailer MINISO Master Franchisee Pty Ltd (MINIS0).
As per the agreement, MINISO will provide operational support and products to three of Aumake’s physical stores initially, strategically picked for their high foot traffic locations and traction with Asian customers.
The key terms of the distribution agreement include:
- Initial physical stores are located in Chinatown, World Square CBD and Burwood in Sydney, NSW.
- Physical stores to be dual-branded as Aumake and MINISO.
- MINISO will pay Aumake a percentage of sales (GST incl.) in exchange for using Aumake’s premises to sell the products.
Aumake’s deal with MINISO creates a significant revenue opportunity and subsequent reduction in overhead costs due to increased physical foot traffic, especially when the restrictions on international borders are likely to be eased for Asian tourists and international students in the coming weeks.
In addition, the cooperation between the two companies will also provide Aumake with an opportunity to introduce and expand new skincare and cosmetic brands.
Meanwhile, the stock AUK was spotted trading 10% higher at AU$0.016 per share at 2:00 PM AEDT.