Daiso is one of the single-price Japanese chains in Vietnam. In the Republic of Korea, it sells small things for household use at the single price of 1,000 won, or VND20,000. At Daiso Vietnam, each product sells for VND40,000.
Though only 30-40% of goods at Daiso Vietnam are from Japan, the chain still can attract a high number of Vietnamese customers.
At Daiso, goods are imported from China and Taiwan, and Vietnam-made products are available as well. However, Vietnamese still go to Daiso when they need essential goods.
When asked why she often goes to Daiso, though Vietnamese tend to turn their back to Chinese goods, Hoai Thuong, a housewife in Dong Da district, said the goods available there are diverse.
“There are many items which cannot be found elsewhere in the market,” she explained, adding that the price of VND40,000 per product is ‘reasonable’.
At Miniso, another single-price chain, nearly 100% of goods are reported as ‘designed by Japanese and made in China’. Miniso is the brand founded by a Japanese designer and a Chinese manager.
Thanks to the Japanese-Chinese cross-bred brand, the items are believed to have higher quality than Chinese products.
Central Group, a conglomerate from Thailand, operates Komonoya, the single-price chain which competes directly with Daiso. The goods at the chain, located in Big C supermarket chain, are all VND40,000. Of the thousands of items available there, many are from China.
Many Vietnamese-owned single-price shops opened nearly 10 years ago offering VND5,000-10,000 per products. However, they were unsuccessful.
The low price levels set by the shops could not attract customers, who did not think that they would be able to get good products with such modest money. The goods on display were mostly school supplies and souvenirs targeted by students aged 7-17.
However, foreign owned single-price chains have thrived in Vietnam. With professional branding, diverse products and original style, the chains have replaced Vietnamese owned shops.
A representative of Daiso said 10% of products at the chain have value equal or higher than the selling prices, while 90% have cost prices lower than the quoted prices. This means that it takes a loss on 10% of products so as to make profit on the remaining 90%.