"Canceled Rocket, Switched Over"… Daiso Mall Threatening Coupang with 'Same-Day Delivery' [Evolution of 1000-Won Items]

Strengthening Online Beyond Offline: Daiso Expands Services with Same-Day Delivery, Bulk Orders, and Subscription Delivery
Concerns Remain Over Delivery Fees

Yang (29), an office worker living alone in Guro-gu, Seoul, recently canceled his Coupang Membership subscription, which costs 7,890 KRW per month, and signed up for Daiso Mall, where he can use points linked to the Daiso stores he frequently visits. Yang said, "Popular products that are often out of stock in stores are easy to find on Daiso Mall," adding, "If you meet the free shipping conditions, you can receive cost-effective items delivered just like Coupang, which is convenient."

As Daiso recently strengthened its delivery services and targeted the online market, the number of users of Daiso Mall has surged. According to WiseApp Retail, an app and retail analytics service provider, the number of Daiso Mall users last month was 3.62 million, a 69% increase compared to 2.14 million in the same month last year. The number of users, which had decreased from 1.42 million in February 2021 to 1 million in February 2023, began to rebound last year and has been rising sharply as the company recently intensified its online market strategy.

A Daiso store located in Jongno-gu, Seoul. Photo by Jo Yong-jun

Having grown by increasing offline stores mainly in areas with high foot traffic such as station districts, Daiso is now accelerating its efforts to secure online customers by introducing various delivery services, including 'Same-Day Delivery.'

Since last month, 'Same-Day Delivery' has been piloted in some areas of Gangnam, Seocho, and Songpa districts in Seoul. This service allows delivery drivers to pick up ordered products directly from nearby stores and deliver them on the same day. Orders placed between 9 a.m. and 5 p.m. are delivered the same day, while orders placed after 5 p.m. are delivered by 3 p.m. the next day. In addition to this, Daiso Mall offers various online services such as ▲store pickup ▲bulk orders ▲subscription delivery.

As the distribution industry competes in quick commerce with services like 'same-day delivery' and 'within one-hour delivery,' Daiso, which had focused on offline stores, has inevitably expanded its services toward online growth.

Daiso, which grew by selling fixed-price products at 1,000 KRW, 3,000 KRW, and 5,000 KRW mainly through offline stores, has integrated its previously separate online malls, Daiso Mall and Shop Daiso, into one Daiso Mall. It has been securing users by offering various benefits such as delivery discount coupons for new customers, and strengthened its connection with over 1,500 offline stores nationwide by providing a store inventory lookup feature. Consumers can check the stock of desired products before visiting, reducing unnecessary store visits and enabling more convenient shopping.

It also operates a service that shows real-time popular products by category. This strategy aims to enhance Daiso Mall’s competitiveness while improving consumer accessibility and convenience.

However, some criticism has arisen regarding the burden of delivery fees. In particular, the 'Same-Day Delivery' service requires a minimum order amount of 15,000 KRW, with an additional delivery fee of 5,500 KRW. Considering that typical delivery fees range from 2,500 to 3,000 KRW and that Daiso sells low-priced products under 5,000 KRW, this can be a burden for consumers purchasing small quantities.

A student is purchasing items at Daiso Emart Mokdong Branch in Yangcheon-gu, Seoul. Photo by Kang Jin-hyung

There are also opinions that the bulk order service’s delivery fees, ranging from 20,000 to 30,000 KRW, are burdensome. This service can be used only when purchasing a single product worth more than 100,000 KRW or two or more products totaling at least 200,000 KRW. Delivery fees vary depending on the type of delivery vehicle, with motorcycle delivery costing around 20,000 KRW and truck delivery around 30,000 KRW.

For regular delivery services, the high threshold for free shipping is also cited as a dissatisfaction point. To qualify for free shipping, customers must purchase at least 30,000 KRW worth of products, but since product prices are low, many find it difficult to meet this criterion with only the necessary items. This leads to complaints about having to add unnecessary products to save on delivery fees.

Series on 'The Evolution of 1,000 KRW Items'

- Sharing recommended items on Japanese SNS: "Daiso has become a foreign tourist attraction" ① Foreign tourists, Daiso’s 'big spenders'
- How Daiso became Korea’s representative shopping destination ② Daiso seizes the economic downturn as a growth opportunity
- Daiso part-timers over Coupang: "OK to work 2 hours" ③ Daiso’s penetration into side jobs
- "Submitting Daiso scams": Children’s playground ④ The secret to Daiso capturing teenagers "What did you come to buy?"
- Daiso, the ant’s nest for adults ⑤ Targeting diverse interests from beauty to camping and home gardening
- "They even sell this?": Daiso’s popular 'new clever items' fighting high prices ⑥ Exploring clever items like capsule coffee and pillow air fresheners
▶Daiso Mall threatening Coupang... Same-Day Delivery at the flick of a finger ⑦ Daiso strengthening online beyond offline