Innovation of DAISO- Focused in Economies of Scale, Economies of Scope, Diversification -

Abstract

In May 1997, a 10-pyeong sized “1000 won sop” was opened in Cheonho-dong in Gangdong-gu, Seoul. It was the first store of DAISO. At the time, a range of prices had four kinds: 500 won, 1000 won, 1500 won, and 2000 won. Many people were first aware that DAISO dealt with low-cost goods only. However, since the opening of the 1st store, 1,060 stores are being run nationwide. Now, DAISO does not sell cheap goods only. It has not only changed into a shopping space where a total of 30,000 kinds of various and cheap products is sold but also serves as a meeting place of people. How has it achieved this development? The present paper tried to evaluate how DAISO succeeded by looking at its success in aspects of economies of scope, economies of scale, and diversification.