This article is from WeChat public account: Consumption of Michael House (wicbyfangjiayi) , author: Fang Jia Yi, from the title figure: Figure worm
In 2017, the teacher of “Mizhuang Excellent Product”, a veteran of Japan’s Hundred Dollar Store, “Dazhuang Industry”, decided to start the IPO.
Daiso was founded 42 years ago during the Japanese oil crisis. When the boss of the Japanese hundred-yuan store industry for more than 30 years, facing the changing global market, Daiso finally let go of “no listing due to listing”. Jinkou, “the priority of consumer interests must always be prior to the priority of shareholders,” Jinkou plans to use the money and many newcomers like MINISO to compete in overseas markets.
Undoubtedly, it is worth learning that Daiso can achieve such success in a strong Japanese retail company. And as a teacher of Mingchuang, its development history provides ideas for China to become a “sinking version of Mingchuang”. But because it has never been listed and there is very little public information, few people can really understand such a company.
So I will take you to learn about Daiso today.
First set a small goal: sell him one billion a year
Darso ’s 0 to 1 is very difficult, and its founder is Hirohiro Yano
In terms of personnel management, there is only one way to save money. The proportion of regular members is reduced, and a large number of part-time employees are hired, but higher requirements are also placed on store training. Take a store in Daiso as an example: The entire store area is about 1500 square meters, divided into two floors, with a total of 26 staff members. Among them, the member of the club is usually only the manager, and all others are part-time employees, usually in the shop at the same time. The staff usually has 6-7 people. The hourly salary of regular members is not much higher than that of part-time employees. (average 60-70 yuan) , but will enjoy better company benefits.
In the early 1990s, Japan encountered a “Heisei no change” era. While major department stores and supermarkets closed down to dispose of assets, Daiso entered the market as a firefighter and connected to a large number of high-quality stores. The speed of 10 stores in the month of expansion is expanding rapidly. In 1998, the number of Daiso stores exceeded 1,200, with annual sales of 81.8 billion yen and a market share of 53.3%. Daiso’s ultimate cost-performance strategy has allowed it to form a solid barrier of “suppliing a supply chain monopoly with a channel monopoly and further forcing a channel monopoly by a supply chain monopoly”, which has steadily allowed it to gain a foothold in Japan.
Going to the sea with the momentum of breaking the bamboo, but why did you break China
The story of Daiso’s voyage to the sea is a bit like the Japanese army of that year. Sweeping Southeast Asia can hardly see the opponents, and when they arrive in China, they are muddled.
In early 2000, Japan was still hovering in the economic depression, and the market competition in the hundred-yuan store industry was also nearing its end. From the perspective of market structure, the top four are Daiso, Seria, Can do, and Watts, of which Daiso achieved an overwhelming victory with a market share of nearly 60%. Unlike Mingchuang, Daiso did not start its strategy to go to sea early. Yano had no interest in how big the company was long ago, so she never even thought about going overseas.
The final decision was made under the strong suggestion of a Taiwanese entrepreneur named Qiu Yonghan, taking into account the market capacity constraints of the Japanese island country market, and the problem of excessive competition in the future.To decide to go to sea.
So Daiso ’s first stop at sea is Taiwan. Yano and Qiu Yonghan established a joint venture. At that time, Taiwan’s economy followed the footsteps of Japan and fell into the trend of the Great Recession. After the first store opened, its performance increased rapidly. In terms of pricing, considering that Daiso can crush the local competitors in terms of cost performance, and the living standards of Taiwan and Japan were not much different at that time, the price of Daiso stores in Taiwan was set at 50 Taiwan dollars / piece “label =” Remarks “> (RMB11) , which is higher than the local price in Japan. Once launched, sales were hot in Taiwan.
The victory of the Taiwan market made Yano realize that the Baiyuan store format is a format that can survive regardless of regional development differences due to its strong countercyclicality. Therefore, in the layout of the global market, the strategy of increasing and reducing dimensions is launched simultaneously.
Different from most brands / channel brands who have traveled overseas and plated a layer of gold before returning to China, Daiso is a real knife and a real gun. For example, in Singapore, Daiso spent a year and a half to kill the local “199Shop” with 40 stores on the premise that the price was twice that of its competitors. In Canada, Yano used the same strategy to succeed because he It was found that most of the local Canadian dollar stores had crudely manufactured goods, and the decoration of the stores was general, and the lights were dim.
Until it came to the Chinese mainland market, Daiso’s winning streak ended abruptly. The terminator of the winning streak is the host of Huaihai Middle Road, Shanghai.
At that time, the person in charge of Daiso’s internal management of overseas business in China was Ohara. In 2012, he placed his first stop at China Plaza in Guangzhou, and his second stop at Huaihai Middle Road, Shanghai Ginza. Huaihai Middle Road was chosen because a Japanese company at that time recommended the store to Daiso at a very low price. Picking up the cheap Ohara was very happy to open the store, purchase, recruit people, engage in activities, everything is booming.
But just when he felt that the store had opened steadily, the Diaoyu Island incident broke out and Sino-Japanese relations deteriorated. The store owner ignored the previously signed 5-year lease contract and forced Ohara to move out. In the second year of opening, the Huaihai Middle Road store died abnormally. In desperation, Ohara had to look elsewhere.
The third and fourth stores of Daiso China were chosen to be located in the suburbs of Shanghai. The reason is to be close to the local people with high spending power in the villa area. Ohara thinks that the villa here is similar to a built building in Japan. Large plastic daily necessities are sure to sell well here. The result was wrong again.
So Ohara was in a hurry. I took the Japanese location model and followed the successive attempts, with low-cost operation as the core and opening the store.