Dollar store chain Daiso is growing phenomenally here as Koreans plump for cheap goods amid runaway inflation, even as other offline retailers struggle.
Founded in 1997 as ASCO Even Plaza to sell products for W1,000, the company concentrated on bathroom and kitchen products until 2010, before expanding to Halloween costumes and sweets (US$1=W1,298). Renamed Daiso Korea when the Japanese company bought into the business, it now sells gardening, camping and other hobby goods to appeal to younger customers, and has evolved into something like an affordable department store with cosmetics and even clothes at rock-bottom prices.
A constantly changing product lineup with cheery colorful designs appeals to fickle consumer tastes, and the company has been agile in adjusting to the unique tastes of Korean consumers.
Daiso's sales in Korea are expected to surpass W3 trillion this year from the 1,500 stores in areas with a lot of pedestrian traffic.
Daiso's strength lies in the 30,000 different products on sale. The company's product development team meet representatives from around 30 suppliers every month to come up with some 600 new products. At present, it sells products from 900 manufacturers in Korea and 3,600 from 35 other countries.
Daiso has some 45 merchandisers, most of them in their 20s and 30s. The traditional moon jars that hit shelves last month, for example, were the brainchild of a merchandiser in his 20s who is a fan of K-pop group Bangtan Boys, also known as BTS. The porcelain jars became famous after BTS member RM posted a selfie hugging one on social media, and Daiso has sold 9,500 of them for W3,000 here.
Similar jars being sold in the souvenir shop of the National Museum of Korea cost between W40,000 and W70,000.
"Bamboo products are supplied directly from Vietnam, while stainless steel products come from India and glass and porcelain goods from Turkey," a staffer said. "Large volume orders enable us to buy them at low prices."
The store has become the go-to place for essentials or just for fun among youngsters. It also appeals to singles since products like pots and bowls are typically smaller than mainstream ranges.
Some products are so unique that tourists are dropping into the shops. Credit card purchases by foreigners in the first 10 months of this year surged 141 percent on-year.
