Daiso Prices, Muji Quality? A Look at Leading Uniform Price Stores Worldwide [The Evolution of the 1,000 KRW Item]

'Beyond 100 Yen': Japan Pursues Premiumization
China Focuses on Design and Character Goods
Emphasizing Low Prices Amid High Inflation in the US
Diverse Strategies Tailored to Local Markets

Uniform price stores that emphasize low margins and high volume, similar to Korea's Daiso, are gaining popularity around the world. In Japan, Seria, Can Do, and Watts are among the leading brands, while in China, Miniso has established itself as a representative player. How do uniform price stores in various countries differ from Daiso?

Now Moving Beyond '100 Yen'... The Strategy of Japan, the Originator of '100 Yen Shops'

Japan, the birthplace of uniform price stores, is home to a variety of high-volume, low-margin retailers. These stores, known as '100 yen shops' because they sell items for just 100 yen (about 1,000 KRW), have four major industry leaders: Daiso Japan, Seria, Can Do, and Watts. In 2023, the combined sales of these four companies surpassed 1.02 trillion yen (approximately 10.29 trillion KRW).

The 100 yen shops expanded during Japan's prolonged economic stagnation known as the 'Lost 30 Years.' Because the nature of discount stores attracts customers during economic downturns when consumer sentiment is weak, these shops thrived. This background aligns with how Daiso in Korea was able to grow.

Daiso Japan's newly launched 'Standard Product' store. Daiso Japan website.

However, recently, even these companies are facing limitations as store openings have reached saturation. In particular, the continued depreciation of the yen has made it difficult to import raw materials, leading suppliers to complain that it is hard to meet the 100 yen price point. 'Shrinkflation,' in which product sizes are gradually reduced in ways consumers may not notice, has also occurred. Still, as even these cost-cutting measures reach their limits, some suppliers have announced they will halt production.

As a result, Japan's 100 yen shops are now actively pursuing a 'beyond 100 yen' strategy. Instead of sticking solely to 100 yen products, they are diversifying price points to 200 yen, 300 yen, and more, aiming to attract customers with different purchasing power.

In response to these circumstances, Daiso Japan has launched several sub-brands. For example, it introduced 'Threeppy,' a 300 yen shop focused on unique designs and high quality, which has received positive feedback. In Saga Prefecture, where there is a large population of families with children, Daiso has renovated existing stores into 'Standard Product' locations, which sell only women's accessories and household goods. Although these products are priced higher, at 200 to 300 yen (2,000 to 3,000 KRW), the main customer base is women in their 30s and 40s who come for shopping, so the company believes purchasing power will not be an issue.

'Daiso Prices, Muji Quality'... Miniso in China Emphasizes High Quality

Among Chinese brands, 'Miniso,' which was founded in Guangzhou in 2013, is a representative example. The Chinese name of Miniso emphasizes good quality. When entering the market, Miniso hired Japanese designers to help with store design and brand direction. As a result, the brand adopted a Japanese aesthetic, but it has been criticized for strategically borrowing the look of Japanese brands like Uniqlo and Daiso to erase its Chinese identity.

Harry Potter merchandise showcased at Miniso. Miniso website.

Miniso promotes itself as offering 'high quality at low prices,' claiming it can do so because it operates its own system for everything from design to production and distribution. While its prices are similar to those of Japanese 100 yen shops, Miniso advertises that its product quality and design are comparable to Muji or Uniqlo. The company pursues a flexible strategy by varying its product lineup according to local consumer demands, and now operates stores in 112 countries, including those in Asia, the United States, Europe, the Middle East, and Africa.

Miniso entered Korea in 2016 but withdrew in 2021 amid controversy over being a 'Daiso knockoff.' However, it re-entered the market this January, starting with a store in Daehak-ro. The brand is currently popular for selling global character merchandise, such as Sanrio and Harry Potter, at affordable prices.

Even If It's Expensive, Still Under $5... Low Prices Emphasized in the US and Europe

In the United States, brands that emphasize low prices right in their names are gaining popularity. While Japan has 100 yen shops, the US has 'dollar shops' where items can be purchased for one dollar. 'Five Below,' which only sells items under $5, and 'Dollar Tree,' which offers uniform price products, are representative examples.

Five Below offers a wide range of products, including novelty and character items, while Dollar Tree tends to focus on household goods. Notably, Five Below directly operates a TikTok account, drawing the attention of teens and people in their twenties by posting videos recommending cosmetics and fancy items. Items priced over $5 are labeled as 'Five Beyond' to distinguish them.

Five Below's TikTok account. It promotes various fancy items targeting people in their teens and twenties. Five Below TikTok.

Dollar Tree had previously set its price floor at $1, but due to rising raw material costs, it has raised prices by $0.25 to $1.25. However, due to ongoing inflation since the presidency of Donald Trump, some high-priced items now cost as much as $7.

American uniform price stores are closely monitoring President Trump's tariff policies. Sixty percent of all products at Five Below and forty percent at Dollar Tree are made in China. To maintain low prices, these stores have increased their reliance on Chinese imports. In this context, higher tariffs are widely expected to lead to future price increases.

Meanwhile, in the UK, 'Poundland,' which means you can buy items for one pound, is popular, while in Poland and Ireland, 'Euroshop,' which means you can buy items for one euro, is gaining traction. All these brands emphasize price competitiveness right from their names, which is especially relevant in this era of high inflation.

'The Evolution of the 1,000 KRW Item' Series Order

Sharing recommended items on Japanese social media" Daiso becomes a tourist attraction for foreigners
① Foreign tourists are Daiso's 'big spenders'
How did Daiso become Korea's representative shopping destination?
② Daiso seized the economic downturn as an opportunity for rapid growth
Daiso over Coupang for part-time jobs..."Working two hours is OK"
③ Daiso even penetrates side jobs
Submitting 'Daisokkang'" Daiso as a playground for children
④ The secret to Daiso's appeal among teenagers
"What did I come in to buy?" Daiso as an irresistible trap for adults
⑤ Targeting diverse interests from beauty to camping and home gardening
"They even sell this?" Daiso's 'unique items' gain popularity amid high inflation
⑥ Exploring unique items like capsule coffee and pillow air fresheners
Daisomall threatens Coupang...Just a tap for same-day delivery
⑦ Daiso strengthens its online presence beyond offline stores
"Inquiries about starting a Daiso franchise are surging"...Stable but initial investment over 400 million KRW is a burden
⑧ Growing brand awareness leads to more franchise inquiries
"Why do so many people work at Daiso?" Daiso as a major employer with 12,500 jobs
⑨ Daiso increases jobs amid economic downturn
▶Nothing compares to Daiso...but Miniso, Dollar Tree, and other leading brands in each country
⑩ Uniform price stores around the world