Daiso Sales Near 4 Trillion Won...Driven by Growth in the 'Beauty' Sector

Sales Growth Driven by High Cost-Effectiveness Demand
Beauty Sector Leads Performance Surge Amid Inflation

Daiso recorded nearly 4 trillion won in sales last year. Operating profit grew significantly, reaching the 370 billion won range. This was mainly due to increased demand for products with high cost-effectiveness (performance relative to price) amid high inflation and economic downturn. In particular, the 'beauty' sector saw rapid growth, driving the upward trend in performance.

According to the Financial Supervisory Service's electronic disclosure system on the 14th, Asung Daiso, which operates Daiso in Korea, reported sales of 3.968 trillion won last year, a 14.7% increase compared to the previous year. Operating profit rose 41.8% year-on-year to 371.1 billion won.

Daiso's annual sales have been steadily increasing each year. Sales, which were 2.6 trillion won in 2021, rose to 2.9 trillion won in 2022 and 3.4604 trillion won in 2023. Operating profit also increased from 283.9 billion won in 2021, 239.3 billion won in 2022, and 261.7 billion won in 2023, surpassing 300 billion won last year.

Daiso explained, "Last year, due to high inflation, the consumer polarization trend settled into a rational consumption pattern, increasing demand for products with high cost-effectiveness (performance relative to price). Additionally, seasonal and series strategy products gained popularity, boosting sales." They added, "Operating profit increased due to sales growth and a reduction in cost of sales ratio through economies of scale."

It was analyzed that the growth in the beauty sector particularly drove the rise in performance. Recently, Daiso has been strengthening its competitiveness in categories such as beauty and health functional foods (health supplements), which have high profit margins and appear to have contributed to the increase in operating profit. Last year, Daiso's cosmetics (basic and color makeup) category sales grew 144% compared to the previous year.

An Asung Daiso representative stated, "This year, we will focus the company's business capabilities on customer-centric management to ensure all customers are satisfied by providing a variety of products, high quality, and cost-effective fixed-price products through well-equipped stores and logistics systems." They added, "We will strive to implement a management strategy faithful to the basics of fixed-price household goods sales."