Daiso Background
Daiso Background

Daiso Background

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  • Pages: 2 (729 words)
  • Published: June 26, 2018
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Introduction about the brand Daiso or The Daiso- is the largest franchise of 100 yen shops in Japan owned by Daiso Sangyo Corp. (headquarters: Higashihiroshima, Hiroshima Prefecture). Daiso has a range of over 100,000 goods, of which over 40 percent are imported goods, many of them from China. Many of these are own-brand goods. Daiso sets itself apart from other 100 yen shops by choosing not to sell closeout or factory second merchandise.

Instead, they keep prices low by purchasing directly from manufacturers in very high volume, a strategy often compared to Wal-mart. Daiso often uses such locations as previous pachinko parlours for its retail outlets. They spend a lot of money on shelving and fixtures to help the stores compete with more high-end retailers. The stock of items retailed at each shop is varied frequently in order to increase repeat customers. Daiso categorizes all its own-brand items on sale using the morpheme zap (? ), the Japanese representation of the English word “the”, plus a category.

For example, za hanabi is the category for fireworks, and za purasuchikku is the category for plastic items such as plastic buckets or trays. In 2004, Daiso also started selling items priced at multiples of 100 yen, such as 200, 300, 400 or 500 yen. Extra: In the past, Singapore do have similar concept shop, The 1. 99 shop, however due to huge ambitious by the owner(outlets all over the place, be it expensive rental or lousy place), it actually cost the entire company to make a loss instead of any profit. Two main groups of consumers

In fact Daiso’s consumers can


be anybody, there are no specific groups of consumers, because you, and I would seriously love having items at a much affordable price. Be it woman, man, children and teenagers. As Daiso offered a huge variety of items, from home basic like plates, bowls, to clothes, like singlet, socks, underwear, ties, and to gardening item, pets, tidbits, arts basics, and etc. It’s just like a $2 mega mart. So my point would be that, the two main groups of consumers for Daiso would be just “YOU AND ME”. Factors of which may influence the buying decision of product -Affordable. Eg. $2 for a pot, $2 for broom, $2 for yarn, $2 for shopping bag, $2 for pillow, $2 for slippers)

  • Wide range of items (egg. babies’ stuff, knives, wig, cosmetic, facial mask, canned food, drink, tie, sunglasses, pots, decoration flowers, handicraft)
  • One stop shop. (The lazy consumers like me, really hate to travel to different places to get things right, so Daiso, seriously save the trouble. )
  • Japan Brand (Because Daiso is a Japan Brand, people would just group it with the “affordable” group instead of the low class name “cheap”? Though 40% of the product is made in China. Accept Nets. Also the credit card (for some other countries)
  • Quality (so far, Daiso’s item has not disappointed me with the quality, so I assume this would be one of the factors which others visit Daiso too. )
  • Island wide (7 stores, and the upcoming 8th in Singapore)

Marketing management orientation

As the product were mainly from China and Malaysia, and since, Daiso, has a huge number of outle

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worldwide(roughly 3078 stores), they would be producing a huge or in fact massive amount of goods to be distributed in these places, so in fact the cost price would be lowered.

Since cost price is being lowered, Daiso could then offer an affordable price, and in fact, they wouldn’t need to spend hundreds and thousands on promoting the stores, as there’s a huge selling point, and often, people would just spread verbally or through internets when they found a good bargain. So in fact, this is why Daiso could survive despite of the fact that they are selling items at 2bucks! Also the I’ve mentioned in earlier part, Daiso is like a megastore, they focus on customer’s need and wants, be it hobbies(handicraft), home(plates, bowls), clothes(singlet, tee shirt, tie), footwear(slippers), and etc.

At the same time, Daiso do consider on the location of the spot, like Ion and Dhoby Ghaut for the huge traffic flow, IMM, Rivervale mall for the neighborhood. Thus, I could conclude the success of Daiso has got to do with the Huge range offered, affordable price, location, quality, brand name, Point of origin, and the guts to explore to set up 3000 outlets, this should be why DAISO succeed and survived.

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