The proportion of single-person households in South Korea has reached a record high of 34.5%(2023), bringing significant changes to the consumer market. This trend is not limited to younger generations but is also evident among middle-aged and older consumers. As a result, practicality and cost-effectiveness have become increasingly important in purchasing decisions.
How are companies responding to these shifts in consumer behavior? Today, let’s take a closer look at Daiso’s success strategies as it continues to grow steadily in this evolving market.
Consumer Mindset: Prioritizing Practicality and Cost-Effectiveness
With the rise of single-person households, consumer purchasing criteria have also changed. Rather than simply looking for cheap products, consumers now prefer affordable yet high-quality items. Additionally, small-scale purchases and convenient shopping experiences have become essential factors in their decisions.
Value-for-Money ShoppingConsumers are focused on reducing unnecessary expenses and prioritizing products with high cost-effectiveness. Discount events, membership benefits, and group purchases are particularly popular.
Small-Scale Purchases & PracticalityInstead of buying in bulk, consumers prefer to purchase only what they need. As a result, functional and practical products are in high demand.
Product Comparison & Review-Based DecisionsConsumers actively use online shopping platforms and social media to compare products and analyze real user reviews before making a purchase.
Daiso’s Differentiated Marketing Strategy
Modern consumers are not just buyers; they seek to connect with brands and share values. As a result, community-based marketing has become more crucial than ever.
Building Social Media CommunitiesDaiso actively operates its official social media accounts to strengthen communication with consumers. Marketing strategies such as hashtag campaigns and user-generated content (UGC) have proven to be highly effective.
Leveraging UGC (User-Generated Content)Customer-generated reviews and testimonials tend to be more trustworthy than traditional brand advertisements. By actively utilizing UGC, Daiso naturally enhances its brand awareness and credibility.
Co-Creation & CollaborationMany companies are now incorporating crowdsourcing into their product planning process, allowing consumers to participate directly. This approach helps strengthen brand loyalty by making customers feel more connected to the brand.
Daiso’s Transformation into a “Lifestyle Platform”
As consumer behavior evolves, Daiso is shifting from a simple discount store to a comprehensive lifestyle platform. Expanding beyond basic household goods, it now offers beauty, fashion, and food products, establishing itself as an essential shopping destination.
Multi-Category ExpansionDaiso has broadened its product range beyond household essentials to include beauty, food, and fashion items, enabling consumers to meet multiple needs in one place. In particular, its beauty category has grown rapidly, with sales increasing by 150% year-over-year.
Frequent Product Turnover & New ReleasesBy launching hundreds of new products every month, Daiso keeps its shopping experience fresh and exciting. A fast product replacement cycle and trend-driven product development encourage repeat visits and keep customers engaged.
Why Daiso Continues to Grow in the Offline Market
Daiso has evolved from a discount store into a comprehensive lifestyle platform, expanding into beauty, food, and fashion to meet the growing demand for cost-effective and practical shopping among single-person households.
A key to its success is aligning product development with changing consumer mindsets. By prioritizing affordability, practicality, and convenience, Daiso continuously analyzes trends and quickly introduces relevant, in-demand products.
With fast product cycles and frequent new releases, Daiso keeps customers engaged and adapts swiftly to shifting preferences. Its ability to identify and respond to consumer needs has been crucial in the competitive offline retail market. It will be interesting to see what new strategies and innovations Daiso brings next.
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