DAISO’s Ambitions in Its 23rd Year of Overseas Expansion After Starting with a Mobile Truck

984 Stores in 25 Countries and Regions Overseas! Where Does DAISO’s Appeal Lie?

The “100 yen shop” market continues to grow. According to Teikoku Databank, the domestic 100 yen shop market, centered around the four major companies, is expected to be around 1.2 trillion yen for fiscal year 2023, which is 1.5 times the value of 10 years ago.

DAISO is showing enthusiasm for overseas expansion, with 984 stores in 25 countries and regions as of the end of February 2024, and has received favorable reviews. What is the appeal of Japanese 100 yen shops, both domestically and internationally? We asked Koichi Goto from DAISO’s Global Public Relations Department about the impact of yen depreciation and the surprising items that are selling well abroad.

‘First Choice is the 100-Yen Shop’ The Major Changes in Shopping Trends

In Japan, where salaries remain stagnant but price hikes are relentless, 100 yen shops are a true oasis. With a single price point and a wide range of products, they offer an entertainment value that often leads to impulse buys. And since everything is just 100 yen, there’s no guilt in making bulk purchases. The demand for 100 yen shops is reportedly increasing year by year, with higher expectations from customers.

“In the past, it was about how we could provide items sold at the market for 100 yen. But now, the shopping flow has changed to where the first action is to look at the 100 yen shop, and if it’s not there, then search elsewhere.

In response to that, the biggest challenge is how quickly we can capture customer needs and develop products that meet those needs” (Koichi Goto, Daiso Global PR Department / hereafter the same).

Daiso develops 1,200 new products every month. The ability to quickly sense trends and commercialize them comes from the vast experience of developing countless products over 50 years, and that speed is what can be said to be Daiso’s strength.

Exactly the Real ‘Cool Japan’—The Secret to Overseas Popularity is Affordable ‘Japanese Culture’ and ‘Japanese Food’

There are many stores overseas similar to 100 yen shops, including America’s ‘Dollar Stores.’ So, why is Daiso so popular abroad?

“From what we’ve heard from customers, Daiso is considered something different from other brands. For example, while Daiso products in the U.S. are priced from $1.75, they are seen as very affordable and of good quality locally. Additionally, Japanese culture itself is well-received, and there are comments about how nice it is to be able to easily buy Japanese-themed gift items.”

Daiso’s overseas stores generally carry the same product lineup as in Japan. For example, small plates used for soy sauce are sometimes repurposed as accessory holders. While this is a testament to the imagination of the users, it can also be seen as a way of providing Japanese culture.

“Since the lifestyle culture is different from Japan, it can be challenging to appeal beyond just the novelty; we need to communicate how to use the products. Therefore, we use social media to promote their uses.”

We handle approximately 76,000 types of products, with about 90% being private brands and the remaining 10% mostly food items.

“Currently, there is a really high level of interest in Japanese food abroad, and many counterfeit products are circulating. While major food manufacturers likely have their own distribution channels overseas, we encourage manufacturers who are unsure about how to expand internationally to consider using Daiso. We hope to contribute to the revitalization of Japanese food culture in any way we can.”

 

 

The ‘Best-Selling Products’ Vary by Country.

Among the products, there are some that, from a Japanese perspective, might seem puzzling as to why they sell so well. However, there are reasons behind their success. Looking at the best-sellers in each country.

[America]

◇ Hoippurun
A facial cleanser foaming device that creates rich, fluffy bubbles just by adding facial cleanser and water and shaking it.
“It was surprising and received great acclaim, being called a ‘miracle.'”

• ◇Dishwashing sponges
• Sponges with face designs and animal shapes are popular. It seems to be unusual for consumables to have a sense of fun, and for the same reason, scented paste erasers are also popular.
• The playfulness that we take for granted is one of the reasons why people enjoy our products. From a foreigner’s point of view, it may seem uniquely Japanese.

Brazil

• ◇Vegetable cutter with handle
• Pulling the handle rotates the cutter for easy chopping.
• In Brazil, we use fine chopping for many dishes. “In Brazil, there are many dishes that require fine chopping.

Australia

• ◇Cleaner sheet
• Selling well because the dry climate makes it easy to get dusty.
• Conversely, dehumidifiers are often found in countries with high humidity.

[Japan Japan】 ◇ Metal jigs (fishing tackle)

• ◇Metal jigs (artificial bait for fishing)
• This is what it’s all about these days!
• A YouTuber’s video saying, “You can catch fish even for 100 yen” became a hot topic.

• ◇Mestin (rice container)
• A big hit with the COVID-19 crisis. This product is useful not only for outdoor enthusiasts, but also for use in times of disaster.
• Prices start at 500 yen for one cup, and although it is not 100 yen, it is a product that offers value above and beyond its price. The company’s attitude of providing value above and beyond the price has not changed since its establishment.

By 2030, aiming to be a 1 trillion yen company with 10,000 stores. Targeting a global lifestyle infrastructure!

Daiso started developing products that exceeded the 100 yen limit more than 20 years ago. The motivation came from customer requests for items like a slightly larger bucket or garden stake longer than 100 yen versions, which led to the development of such products. Recently, 300 yen shops have become well-established, and while there were concerns about whether the weak yen would force price increases, it seems that’s not the case.

“The weak yen does have some impact, but for over 50 years we’ve designed products within a set price limit, so changes due to the yen’s fluctuations are not a major concern.”

As expected, they are quite composed. Additionally, to ensure the smooth operation of their global logistics system, they are also undertaking worldwide initiatives.

“Currently, we are constructing a large logistics center in Malaysia, which will serve as a hub starting in 2027, allowing us to dispatch products to countries around the world.”

Regarding their international presence, many may have noticed Daiso’s logo on advertisements at Dodger Stadium or on panels during Shohei Ohtani’s interviews, as shown in the opening photo. It seems they are particularly focusing on expanding in the United States.

“Currently, there are 134 stores in the U.S. (as of the end of June 2024), with nearly 80 of them located in California. As a Japanese company, we would be delighted if advertising there could increase our recognition in California and across the U.S. We also hope that our local staff feel proud to have our name as a sponsor at such popular stadiums.”

 

Still, it’s quite something. I understand seeing ANA as a sponsor, but alongside them is Daiso. It’s just 100 yen; it’s not the same as flying an airplane. I’m starting to feel dizzy wondering how many items need to be sold at a thin profit margin to secure a sponsorship deal with the Dodgers.

“In terms of unit prices, we take pride in the fact that achieving such a vision requires strong support from many customers.”

I’ve heard that when Daiso was founded, it started with mobile sales using trucks. To think that such a future awaited them 50 years later is impressive—truly a Japanese dream. It’s a perfect example of ‘dripping water wears through stone.’ Finally, let’s look at Daiso’s future outlook.

“By 2030, we aim to have 1,000 stores in the U.S. and 10,000 stores worldwide, with a sales target of 1 trillion yen. We will focus on developing products that are well-received by customers in each country and strive to become a global lifestyle infrastructure provider!”

Note: Product availability may vary by store, and items may be out of stock.