[Company analysis] Daiso Industries Co., Ltd. (大創産業)

「Daiso Industries Co., Ltd. (大創産業)」operates「Daiso(ダイソー)」which is a famous 100-yen shop. It has about 3,300 stores in Japan and about 2,000 stores overseas. In the 100-yen shop industry, they established an overwhelming position by owing 60% of the total 100-yen shop in Japan. The number of consolidated employees is approximately 21,185.

 

1. Company Profile

2. Summary and Features

3. Major Business

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Daiso Industries Co., Ltd.
Company name (Japanese)	大創産業
Date of establishment	December 1977
Headquarters location	〒739-8501 広島県東広島市西条吉行東一丁目4番14号
Capital	2,700
Consolidated sales	454,800
Consolidated number of employees	21,185

 

 

 

2. Summary and Features

 
In Japan, there were 100-yen shops have existed since the 1980s. However, the majority of 100-yen shops at that time only focussed on procurring products with minimum cost. As a result, there was a limitation in product quality. However, founder of「Daiso」, Yano Hirotake(矢野博丈) took a strategy to improve product quality by procurring items with little lower than 100 yen. Of course, this deicision deteriorated the profitability in short term. But in the end, they acheived a reputation that products of Yano's 100-yen shops has relatievely better quality than others. This reputation attracted a large number of customers, so eventually,「Daiso」became the largest 100-yen shop chain in Japan.

 

In addition to the low price of 100 yen, they also have a variety of products centered on miscellaneous goods related to daily life. So, just only one visiting to the Daiso's store, customers can purchase various kind of miscellaneous goods at the same time. Conclusively, due to the aftereffect caused by the collapse of bubble economy,「Daiso」achieved rapid growth. Eventually, it grew into a nationwide retail company.

Now,「Daiso」handles about 100,000 kinds of products, and develops more than 700 kinds of new products every month. In addition, about 80% of the products thay they handle are developed under their own brand. In order words, they manages the entire process from product development, production, distribution, and sales to in-house. As a result, they were able to acheived lower costs compared to other general retail industry and advantages based on prompt customer feedback.

In the 100-yen shop business, there are competitors such as「Selia(セリア)」,which is concentrated on character products of Disney and cosmetics, and「Candu(キャンドゥ)」that expands standard product lineup. Even though, 「Daiso」has overwhelming presence with huge number of chain stores. Since 2001, this company has made full-scale entry into overseas markets such as Taiwan and South Korea, and now has more than 2,000 of oversea stores.

 

 

 

3. Major Business

 

■ SPA (Manufacturing and Retailing) business
They manage the entire process of product development, production, distribution and sales in-house.