Union Group, the franchise holder for H&M and COS in Israel and the official importer for Toyota and Lexus, will operate stores of Japanese retail chain Daiso in Israel. The chain's first two stores are scheduled to open this summer.
Daiso, founded in 1977, is a chain of stores on the "every item for a dollar" model. In Israel, it will compete with chains such as Max Stock and Hastock, due to its combination of large stores and cheap products.
The chain is expected to market a wide variety of 100,000 products at a fixed low price, including design and accessories products for different parts of the home: kitchen, living room, bedroom, children's rooms, and the bathroom, in addition to accessories, toys, design aids for birthdays, work tools, gardening tools, electronics products, auto products, sewing tools, animal accessories, etc. Most of the products to be offered in the stores are made exclusively for the Japanese chain's private label.
Daiso Japan operates 4,900 stores in 26 markets. In addition to 3,000 stores in Japan, Daiso has nearly 2,000 branches outside Japan. The large selection of its products, which are offered at bargain prices, ranges from bags to children's dolls, and is sold worldwide, including in Latin America, the Persian Gulf, and all over Asia.
According to the "The Economist," Daiso dominates a sector estimated at $5.8-7.7 billion in Japan alone, and is the only chain of its kind to expand outside Japan. The company's revenue totaled $4 billion in 2015. The chain's rock bottom fixed price consistently attracts Japanese consumers concerned about economic problems in their country. The chain's most popular items are batteries and small products for the home.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 24, 2018
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