“3 trillion won in sales at a time like this”...one reason why Daiso will never go bankrupt
Secret of Daiso's 3 trillion won sales myth
There are 1,500 stores nationwide with 1 million visitors every day and 420,000 items sold every hour.
Although our main product is 1,000 won products, our annual sales amount to 3 trillion won, and we have never had a net loss over the past 25 years.
This is the story of Daiso, a flat-price household goods store called the national store.
Recently, the book ‘Manage 1,000 Won’, which contains the founding story of Asung Daiso Chairman Park Jeong-bu, is very popular in bookstores.
Chairman Park became unemployed in 1988 at the age of 45. He had no choice but to resign from the company where he had worked for 16 years when he was blamed for failing to properly manage the strike.
A business started with a desperate feeling to protect children and family. It started as a trading business that exported low-priced household goods to and from Japan.
I took a night train and traveled through every corner of Japan through the early morning fog. Although I worked so hard, I could not avoid the humiliation and contempt I experienced in a foreign country.
A new fighting spirit welled up in Chairman Park’s heart. Let’s try to make it a success by opening a uniform price shop in Korea.
The starting point is the first Daiso store, which opened in Cheonho-dong, Seoul in 1997. Word of mouth spread as a store with good value for money, and as the IMF foreign exchange crisis struck, a culture of frugal consumption became popular and products sold like hotcakes.
Since then, it has continued to grow by 20-30% every year, with Daiso's sales exceeding 100 billion won for the first time in 2006, and becoming a 1 trillion won company in 2014. Since then, it has been growing even more rapidly, reaching 2 trillion won in 2018 and 3 trillion won in 2021.
3 trillion won is the amount that can be earned by selling 3 billion items worth 1,000 won. This is why Daiso is called the Daiso myth and the national store.
Face it directly, the field is the answer.
Chairman Park Jeong-bu's book contains the incredible challenges and achievements of a late-start entrepreneur who was not a low-income person. This is why many readers are excited about this book.
Chairman Park cites the importance of the field as one of the secrets to Daiso's success. Chairman Park is said to visit Daiso stores across the country from Jeju to Goseong, Gangwon-do at least once or twice a month.
We encourage our employees and pay close attention to every reaction from our customers. Chairman Park's philosophy is that a store should always be full of vitality and vitality.
This is because we must continue to supply products that provide new enjoyment and value, and make efforts to change the store composition and display little by little every day to keep customers coming back. In fact, Daiso releases 600 new products every month.
Chairman Park says that when he goes on a business trip for a week, he spends five days and nights providing consultations and two days doing market research. It is said that he personally sells products from cheap stores to high-end stores, always learning about what is different, and coming up with the idea that 'Korea would also need these products.'
At an age when others are thinking about retirement, I belatedly jumped into the business of starting a business, and the experiences of success and failure I personally experienced served as the foundation for the creation of Daiso with current Chairman Park Jeong-bu. In particular, it is receiving the attention and attention of many prospective entrepreneurs as it is the result of Chairman Park's own efforts without any background, capital, or personal connections.
Although there is a generation gap, SPM CEO Choi Seok-min, who is considered an exemplary example of restaurant management, is in a similar situation. Representative Choi, who graduated from a local university's engineering school, came to Seoul after his discharge from the military with no foundation and only vague hopes for success.
With the sole intention of succeeding, he started working at random jobs, from selling insurance to consulting on wedding venues. At the same time, he began to change his life by visiting successful people, learning the DNA of success, and experiencing numerous trials and errors.
A franchise store run by CEO Choi Seok-min ⓒCider Economy
At first, he started his business by running a cafe in the basement, but he was unable to avoid a loss. The only money I had at the time was about 5 million won.
Representative Choi thought hard to overcome this. He succeeded in branding by personally planning seminars and holding lectures at a cafe that were helpful to students.
Now, just 6 years after starting the restaurant business, we have succeeded in achieving annual sales of KRW 8 billion by operating 15 direct stores and 80 affiliated stores for 10 brands, including Cho Dining and Eoseul Cheongdam.
With his excellent commercial analysis and branding strategy, he is becoming famous as a CEO in his 30s who grew annual sales by a whopping 250% between 2020 and 2021, when the aftermath of COVID-19 was in full swing.
The answer comes only when you meet in person and hear it.
CEO Seok-min Choi, who continues his own startup story, reveals the know-how of successful business that he has accumulated.
We are joining hands with Cider Economy, a platform specializing in economic and financial education, to open a ‘super growth class startup start-up class’ for prospective restaurant business start-ups.
CEO Choi plans to share everything from his success and failure experiences to commercial area and item selection, store operation management, and branding and marketing know-how.
He focuses on having all students write and execute a business plan that will not fail.
To this end, we provide one-on-one customized consulting to all students, and provide business investment of up to 50 million won to students who complete an excellent business plan.
The Super Growth Class Startup Startup Class will be held as an online live lecture once a week for 4 weeks from the 21st to March 14th. We hope you will learn all the know-how and secrets to starting and operating a restaurant business that never fails.