"You Could Buy It for Just 400 Won"... Why Did the 'Treasure Trove' Cheaper Than Daiso Disappear?

Impact of the rapid growth of online shopping platforms
"Structural limitations, including rising costs, also..."

Until just a few years ago, “2-yuan shops” were a common sight on streets across China. At some point, however, they began to disappear.

Chinese outlet Jiemian News published an article titled “Where have all the 2-yuan shops on the streets suddenly gone?” It described them as “treasure-hunt spaces where people could buy to their hearts’ content even when they didn’t have much money, and places one generation will look back on with nostalgia.”

China's 2-yuan (about 380 won) shops are disappearing. China's Xiaohongshu.

A favorite among people of all ages... Disappeared amid the rise of online shopping platforms

China's 2-yuan (about 380-won) stores are disappearing. China's Xiaohongshu.

“People could buy not only dreamcatchers and truth rings, which became popular during the heyday of Korean dramas, but also idol posters, stickers and postcards,” the outlet said. “Cosmetics were also affordable, and schoolgirls flocked to shelves stocked with mascara, eyeshadow and blush.” Boys bought spinning tops, toy guns and yo-yos, while homemakers purchased household goods such as pots, frying pans, trash cans and cups.

But the golden age of 2-yuan shops came to an end after online shopping platforms grew rapidly from 2015 onward. Urban shops that had focused on “selling large volumes at low prices” largely disappeared. These days, even shops with signs saying “2-yuan shop” mostly sell goods priced at 5 to 10 yuan.

“Chinese government’s industrial policies and young generations’ consumption trends have had a major impact”

China's 2-yuan (about 380-won) stores are disappearing. Source: Xiaohongshu, China.

This trend is in step with the Chinese government’s industrial policy direction. In its “Made in China 2025” plan, announced in 2015, the government set out to shift the economy away from its past reliance on dumping exports and low-cost domestic sales and toward “industrial upgrading focused on high quality and high added value.” As a result, it tightened environmental regulations, labor standards and product safety requirements, while consolidating small manufacturers and factories that mass-produced ultra-low-cost goods. In the end, government policies to improve quality, rising costs and changing consumer attitudes converged, bringing the era of 2-yuan shops built on rock-bottom-priced small goods to a close.

Some shops responded by rebranding as 10-yuan or 20-yuan stores, while others sought to transform themselves into lifestyle variety stores like MINISO, known as “China’s version of Daiso.” They have maintained a high-volume, low-margin business model while upgrading their product selection, exterior design and in-store experience, and appealing to young consumers by emphasizing popular designs and character intellectual property (IP). Online e-commerce platforms such as Pinduoduo also offer ultra-low-priced goods through group-buying deals.

The outlet observed that “young people have increasingly shown a clear preference for values such as brand image, design and trendiness, even if that means spending more.”

The outlet also said that rising costs are a structural constraint for 2-yuan shops. “Monthly wages, which used to be 1,000 yuan (about KRW 200,000), have risen to 5,000 to 7,000 yuan (about KRW 1 million to KRW 1.4 million), while the cost of raw materials and eco-friendly additives has increased, pushing production costs to around 1.9 yuan, close to the original retail price,” it explained. “Selling goods for 2 yuan effectively leaves both factories and retailers unable to avoid losses.”

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