This study analyzes Daiso’s corporate strategy, which has achieved successful results based on the low margin, high volume strategy in the domestic household goods distribution market. Daiso has built its own market competitiveness by combining low-...
This study analyzes Daiso’s corporate strategy, which has achieved successful results based on the low margin, high volume strategy in the domestic household goods distribution market. Daiso has built its own market competitiveness by combining low-cost sales policy, efficient supply chain management, cost reduction through mass purchase, and consumer-centered product planning.
In particular, it formed consumer trust by securing quality for price and secured popularity by increasing accessibility through expansion of store networks nationwide. In addition, it strengthened its position in domestic and international markets by simultaneously achieving cost reduction and quality management using a global sourcing system. This strategy was more effective in conjunction with the rational consumer sentiment of consumers during the economic recession. When Daiso first started Savor, it broke away from the traditional marketing method of using advertisements or models. In the general 4p method, it provides a variety of products from daily-life products to props, kitchenware, and stationery in terms of products, and the product range is wide and practical. Price provides a clear and consistent price experience to consumers through a uniform price policy, so there is a factor that differentiates it from other companies in a market with high price sensitivity.
This study, it showed that Daiso’s success was not just a simple low-cost sale but a combination of the three key drivers of systematic distribution innovation, consumer-customized product development, and continuous cost innovation. This case provides important implications for retailers to seek sustainable growth even in the midst of a recession in the future.