SAN FRANCISCO-Locally headquartered Daiso is expanding all over the world. GlobeSt.com recently chatted with the firm's SVP, Yoshihide Murata. About why they like the US and west coast in particular and what their upcoming plans are in this exclusive Q&A.
GlobeSt.com: Tell me about your entrance into the U.S. What prompted your expansion here? When did it start? Where do you have stores?
Murata: Daiso is expanding all over the world and the US is a large market that clearly makes sense for us to expand into. We started in 2005 by opening stores in the Seattle area then the Bay Area. After some success in those markets, we have focused on growth in Southern California where the population density, income levels and diverse demographics are a very good fit for our stores.
GlobeSt.com: Why is the West Coast such a big focus for you?
Murata: Of our 3,400 stores worldwide, almost 3,000 are is Asia. There is a strong Asian presence on the West Coast which is why we are starting here for our US expansion.
GlobeSt.com: What are you goals for U.S. expansion over the next two years? Five years? What is next after the West Coast?
Murata: Currently there are 27 stores in the US with all but five in CA. Our focus is Southern California where we hope to have another 20 stores by year end 2014. As we grow in Southern California, we will better understand how our stores do in non-Asian areas and this will help us determine how and where we expand. We hope to better know about expansion in the next two years.
GlobeSt.com: What is your ideal location in terms of real estate and demographic?
Murata: Our ideal stores are 7,000 square feet to 11,000 square feet and we prefer locations in areas with Asian percentages of at least 15%. As we expand, it will be harder to find locations in higher Asian areas. Our second demographic is in higher income areas preferably in areas with at least $75,000 average household incomes and good population density. We prefer to be in grocery anchored or larger power center properties.
GlobeSt.com: How is Daiso different from the Target, Walmart, Dollar General, etc?
Murata: We like to think our shopper is a Target customer too. We differentiate ourselves from other discounters by not selling close outs, discontinued items, etc. Daiso sells mainly items specially made for Daiso and private labeled for us in Asia. Some of these items are not typically sold in the US.
GlobeSt.com: Who is your targeted consumer?
Murata: Our current focus is Asian customers but we know that we must change that focus as we expand. We focus on upscale areas and women shoppers. Approximately 75% to 80% of Daiso's shoppers are women and we gear our stores towards a higher income shopper.
GlobeSt.com: How is distribution impacting your expansion?
Murata: We currently are headquartered in the Bay area with a distribution facility there that serves Seattle and the Bay Area. We have third party distribution in So Cal until our growth here stabilizes.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
