Polarization in High Inflation Consumption... Maximum Users of Cost-Effective Daiso Mall... Luxury Brand Apps Decline

WiseApp, Retail, and Goods Survey
Expansion of Beauty and Fashion Categories
Analysis of Consumption Trends Influenced by Economic Recession

The number of users of Daiso's proprietary application (app), a uniform-priced daily necessities specialty store, has reached an all-time high. This appears to be due to an increase in cost-effective (performance relative to price) consumption influenced by recent high inflation and economic recession. In contrast, the number of users of luxury commerce apps showed a declining trend, creating a stark contrast.

Monthly User Trends of Daiso Mall App. [Image provided by WiseApp]

On the 28th, WiseApp, Retail, and Goods, app and retail analysis services, conducted a sample survey of Korean smartphone users and found that last month, the number of users of the Daiso Mall app was 2.69 million, a 140% increase compared to the same period last year.

WiseApp explained that this is the highest number since the launch of the Daiso Mall app. The number of users of the Daiso Mall app, which was around 1.22 million in October last year, surged to 2.18 million in January this year and increased to 2.69 million last month. The previous record for the highest number of Daiso app users was 2.49 million in July 2019.

WiseApp attributed this to "the recent expansion of Daiso's beauty and fashion categories and the influence of recession-driven consumption trends."

Monthly User Trends of Major Luxury Commerce Apps. [Image provided by WiseApp]

On the other hand, the total number of users of major domestic luxury commerce apps last month was 510,000, showing a 23% decrease compared to the same period last year. This is interpreted as a decrease in demand for luxury goods due to the economic recession.

The number of users of luxury commerce apps, which surged to 1.13 million in October 2021, peaked at 1.49 million in April 2022 and has been declining every month since. Last month, the number of users of luxury commerce apps dropped to about one-third of the level in April 2022.

Meanwhile, this survey was conducted by WiseApp through a sample survey of Korean Android and iOS smartphone users. The data are estimates and may differ from actual figures.