"They Used to Ask 'Why Buy This at Daiso?'... Now It's a Hit with Consumers"

Sales Surge Driven by Tryable Products
Both Consumers and Sellers Use Daiso as a "Laboratory"

Recently, Daiso, a lifestyle-focused retail channel, has emerged as a new choice for younger generations who value rational consumption, shaking up the landscape of the retail industry.

Daiso Emart Mokdong Branch, Yangcheon-gu, Seoul. Photo by Kang Jinhyung

According to the retail industry on September 21, as of the first half of this year, about 100 beauty brands were available at Daiso, marking a 66% increase compared to 60 brands at the end of last year. The number of product types also surged from around 500 to about 800. Daiso's cosmetics sales have shown rapid growth, increasing by 52% in 2021, 50% in 2022, 85% in 2023, and 144% in 2024 compared to the previous year. As of June this year alone, sales growth had already reached 110% year-on-year.

When Daiso first began selling cosmetics, consumer interest was limited. This was due to the perception that low prices would also mean lower quality. However, this perception changed rapidly with the launch of products like "Lidleshot" (VT Lidleshot Ampoule). Daiso hit the jackpot by offering a product that originally sold for around 30,000 won for 5ml as a set of six 2ml stick-type ampoules with simplified packaging for just 3,000 won. Following this, products such as "Son&Park Color Balm" and "Mayfeel Wrapping Mask" also received positive reviews, leading to a steady increase in sales.

However, Daiso's growth cannot be explained by price competitiveness alone. As the consumption trend among Millennials & Gen Z shifts from "ownership" to "experience," small-sized and low-priced cosmetics have become a convenient way for consumers to "try out" products. Experts believe that Daiso’s strategy has precisely targeted this shift.

Additionally, Daiso's nature as a lifestyle-oriented channel that can be visited casually in daily life enables a structure of "immediate consumption and immediate feedback" that is distinctly different from traditional distribution networks, making it attractive to companies. Some companies are already introducing new products through Daiso and quickly gathering consumer feedback. They can also attract younger consumers with affordable products and later encourage them to purchase premium items. Just as consumers do, sellers are using Daiso as a "small laboratory." Considering these factors, experts predict that Daiso could evolve into a platform for brand launches.

Given Daiso's growth trajectory, retail spaces appear to be evolving beyond simply selling goods to become experiential spaces where consumers and brands can interact closely.