Expiring goods, tail goods, and discount goods are the so-called retail "outlets" in recent years, but there are very few companies that can persist in doing it and become bigger and stronger in China. In 2024, the weakening of the yen exchange rate will make tourists from all over the world flee to Japan to buy, buy, buy, and buy, and many people will choose to go to this "poor man's supermarket".
Asia's No. 1 Poor People's Supermarket: Japan has lost 30 years, but there is such a supermarket that has bucked the trend in the past few decades, and its annual sales are 10 times that of China's Fat Donglai. The performance has maintained growth for 30 consecutive years, with annual sales of more than 100 billion yuan, it is don Quijote.
Tracing the origins of don Quixote, we go back to the late 80s of the last century, a small daily necessities store founded in Tokyo by founder Takao Yasuda. From humble beginnings, don Quijote has gradually expanded its product line to include everything from daily necessities to high-end luxury goods, from household appliances to snacks of all kinds. This "one-stop shopping" concept, which was rare at the time, quickly attracted a large number of customers. Don Quijote is designed like a jungle of goods, where customers enjoy a treasure hunt through the intricate aisles, an experience that has become its unique charm.
Closely follow consumers and lay out a convenient shopping circle
Don Quijote has a shrewd location strategy, often located in city centres or near metro stations, ensuring high foot traffic and convenience. This layout makes it easy for shoppers to walk into the store on their way home from work or on weekends to meet their immediate shopping needs. At the same time, don Quijote's business hours break the convention, often open late at night or even all year round, catering to the flexible and changeable pace of life of modern urbanites, and has become the first choice for "night owls" to shop.
Create a "treasure hunt-style" shopping experience
Compared to the spacious, bright and neatly arranged traditional department stores, don Quijote is in a unique way. There is no excessive decoration here, the shelves are closely arranged between them, and the goods are dazzling, which seems to be disorganized but actually hides mysteries. Such a layout, while crowded at first glance, creates a sense of excitement about exploring the unknown. Here, customers feel as if they are in a treasure hunt, and every time they bend down and look down, they may find unexpected surprises. This unique shopping experience has made don Quijote a cultural phenomenon that has attracted countless consumers to "treasure hunting".
Don Quijote's success is largely due to its precise merchandising strategy. The store not only sells tail goods and discounted products from major brands, but also actively develops its own brands, forming a dual attraction of price advantage and quality assurance. Tail goods and discounted goods meet consumers' pursuit of cost performance, while private label products ensure the uniqueness and profit margins of goods. This diversified product portfolio allows don Quijote to stay ahead of the competition.
A grocery store that goes global
As the business continues to expand, don Quijote's footprint extends beyond Japan. With more than 700 stores worldwide, covering Singapore, Thailand, Hawaii, Hong Kong, Macao and Taiwan, it has become a force to be reckoned with on the international retail stage. Entering 2024, Japan has once again become a shopping paradise for tourists from all over the world, and don Quijote is a must-visit destination for many overseas tourists due to its rich variety of products and favorable prices. This not only brought more international exposure to don Quijote, but also injected new impetus into its performance growth.
Industry insiders' comments: When learning from the experience of don Quijote, Chinese offline retail enterprises should combine the characteristics of the local market, focus on improving cost performance, innovating consumption scenarios and strengthening supply chain flexibility, rather than mechanical replication, in order to have the opportunity to carve out their own unique path in the highly competitive market. Learn to seek opportunities in the face of adversity and achieve sustainable growth through innovation and refined management.