[Exclusive] Daiso Draws Shoppers for "3,000-Won Cosmetics"... and Also Boosts Sales at Nearby Olive Young

Sales Within 3 km Rose After Daiso Opened
Stationery Stores and Opticians Also Saw Increases
53% of Visitors Also Went to Nearby Stores
Researchers: "Daiso Serves as an Anchor Store in the Local Community"

Credit card sales data show that sales at nearby health and beauty (H&B) stores increased after Daiso opened new locations over the past five years. The findings run counter to expectations that Daiso would compete directly with Olive Young, Korea's largest H&B retailer, by offering cosmetics priced at 5,000 won or less that deliver value for money.

Sales also rose at household goods stores that carry overlapping products, as well as at stationery stores, opticians, and pet-related retailers. The analysis suggests that, contrary to concerns that Daiso—a fixed-price household goods retailer—would encroach on nearby neighborhood businesses as it expanded into beauty products, food, and stationery, it serves as a commercial hub connecting visiting customers with nearby stores.

According to an empirical study titled "An Empirical Study on Daiso's Role as an Anchor Store," conducted by a research team led by Professor Cho Chun-han of Gyeonggi University of Science and Technology and released on October 8, sales at H&B stores within a 1-kilometer radius rose 30.8% in the year after Daiso opened nearby, the largest increase among 18 business categories. They were followed by household goods retailers (29.8%), confectionery, coffee, and bakery shops (16.8%), supermarkets operated by corporations (SSMs, 15.1%), and pet-related retailers (12.9%). Within a 3-kilometer radius of new Daiso stores, sales rose the most at household goods retailers, by 24.0%, followed by H&B stores (15.5%).

The research team analyzed Daiso's ability to attract customers and changes in sales at nearby businesses using a consumer survey and credit card sales data. The card sales analysis covered 379 Daiso stores that opened between January 2021 and June 2025 and for which data were available for one year before and after opening. The team also surveyed 797 consumers about their shopping behavior.

Sales Also Rise at Specialty Stores Selling Overlapping Products

Stationery store sales rose 1.8% after Daiso opened within 1 kilometer, 5.2% within 1 to 2 kilometers, and 5.0% within 2 to 3 kilometers. Sales at opticians rose by 9.3%, 5.9%, and 3.9%, respectively, across the three distance bands. Sales at pet-related retailers increased by 12.9%, 12.5%, and 9.7%, respectively.

Daiso's expansion into new product categories has been seen as a competitive threat to existing specialty stores. At a press conference in September last year, the Korea Stationery Industry Cooperative, the Korea Stationery Distribution Cooperative, and the Korea Stationery Association criticized Daiso and Coupang for treating stationery as a "loss leader" to attract consumers. They argued that ultra-low prices created price competition that small stationery shops could not afford to match.

However, this analysis found no across-the-board decline in sales at nearby businesses simply because they sold overlapping products. Instead, sales increased in 16 of the 18 business categories within 1 kilometer of Daiso stores before and after they opened, while 15 categories saw sales growth within 3 kilometers. Within 1 kilometer, sales fell at supermarkets (-1.8%) and appliance and furniture stores (-2.4%). Within 3 kilometers, sales declined at big-box retailers (-1.1%), supermarkets (-1.1%), and appliance and furniture stores (-2.3%).

These sectors have been struggling as consumer spending shifts online and the offline market stagnates. In fact, they fared relatively better compared with control areas where Daiso did not open stores. A difference-in-differences (DID) analysis showed that sales increased by 4.0% at big-box retailers and by 5.2% at furniture and appliance stores.

However, an increase in sales for a business category does not mean that every individual store in that category performed better.

The More Often People Visit Daiso, the More They Also Shop at Nearby Stores

The survey findings also support these results. More than half of the 797 respondents (53.1%, or 423 people) said they visited nearby stores along with Daiso. Those who did so visited an average of 1.85 other locations. The most common places they visited were cafes (33.3%), big-box retailers (31.7%), convenience stores (27.7%), and restaurants (22.2%).

People who visited Daiso more frequently were also more likely to shop at nearby stores. Among those who visited at least once a week, 61.2% also visited nearby stores. The figures were 52.3% for those who visited two to three times a month and 37.0% for those who visited once a month or less. The gap between the most frequent and least frequent visitors was 24.2 percentage points.

Consumers cited location (64.6%), competitive prices (62.9%), convenience (57.2%), and product selection (56.2%) as Daiso's competitive advantages. Multiple responses were allowed. The results appear to reflect the combination of easy-to-access locations with product planning tailored to the 500-to-5,000-won price range and strengths in procurement and logistics. Some 71.9% of respondents said they could reach a Daiso store within a 15-minute walk.

Daiso, a Playground for Teenagers...More Than 40% Visit at Least Once a Week

Consumers also visited frequently. Some 40.4% said they visited at least once a week, while 41.3% visited two to three times a month. Among the seven retail channels compared, Daiso scored highest for "browsing and exploring," with 78.8 points on a 100-point scale. It ranked first for "unplanned purchases," with 71.8 points, and also received the highest score for "regular purchases." The findings show that shoppers buy what they need while also discovering new products.

Daily necessities accounted for the largest share of purchases. Some 69.6% of respondents said they chose Daiso to buy daily necessities. Cosmetics accounted for 39.0%, while hair, body, and hygiene products and snacks each accounted for 37.5%. Daiso also ranked highest among the seven retail channels compared, with 66.66 points on the "Emerging Anchor Index," developed by the researchers to combine customer base, shopping at multiple stores, connectivity, and the visitor experience.

Consumers also gave positive assessments of Daiso's role. The average score was 4.15 out of 5 for easing the cost-of-living burden, making shopping enjoyable, and providing local convenience. The positive response rates were 81.4% for easing the cost-of-living burden and providing local convenience, and 82.7% for making shopping enjoyable. Daiso also scored an average of 4.00 for helping small and medium-sized businesses develop sales channels and grow, with a positive response rate of 74.7%.

Professor Cho said, "Taken together, repeat visits, shopping at nearby stores, and the relationship with local sales show that Daiso is a 'neighborhood anchor store connecting visitor demand with nearby spending.' It is more than a store that sells products; it is a hub where everyday consumption comes together."

Customers at the Daiso Emart Mokdong store line up at the checkout. Photo by Kang Jinhyung.

This content was produced with the assistance of AI translation services.