The discount store Daiso offers shoppers a range of 70,000 products. Delores Johnson / The National
The discount store Daiso offers shoppers a range of 70,000 products. Delores Johnson / The National

Japanese discounter Daiso adds another store in Dubai Mall



The Japanese discount chain Daiso aims to open up to seven stores each year across the Arabian Gulf as part of a regional expansion plan.

The brand opened its latest branch this week in The Dubai Mall, bringing the total number of stores in the region to 35 outlets, 20 of which are in the Emirates.

"We are very pleased to receive such an amazing response, popularity and growth in the Daiso Japan concept in the UAE," said Hirotake Yano, the president of Daiso.

"Daiso in the UAE has been a true success story and therefore the UAE is a very important market in our Daiso map," he added.

Worldwide the brand has more than 3,300 stores, the majority of which are in its home market, where it opens up to 20 branches a month. Daiso has annual sales of about US$3 billion (Dh11.01bn).

"If you ask me, is there a finite number of Daiso stores in our business plan, the answer is no," said Jayant Ganwani, the chief executive of Lals Group, which operates the Middle East franchise in partnership with the Damas Group.

"The only objectives we have are, is the location right? Is the target customer present in that area? And are we going to be able to provide a reasonable experience for the customer? If the answer is yes and the location works, there is no limit to where we could be."

In addition to the UAE outlets, the franchise partnership operates stores in Saudi Arabia, Kuwait, Qatar and Bahrain. All of the markets show the potential to grow, but Saudi holds the most promise because of the population size.

Finding the right property in the GCC can be a challenge, but the store is adaptable, said Mr Ganwani.

"You can have a store ranging from 500 square feet to 12,000 sq ft, depending on the space availability."

Daiso offers shoppers a range of 70,000 products, ranging from glassware to gardening accessories, crockery, do-it-yourself kits, cosmetics and toys. Almost all of the items are developed in-house. The brand sells 147.5 million batteries each year, equivalent to five every second.

"We are only as good as the product innovation that takes place," said Mr Ganwani."Daiso produces roughly 800 to 1,000 new products every month. Of those we reckon close to 300 or 400 or 500 are very relevant for our market, so a customer who comes into our store today will come back next week and find something very different on the shelves."

Daiso operates in 30 countries worldwide and aims to open outlets in Europe this year, as well as expand its presence in the United States.

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