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The Cult Japanese Retailer Making Billions Breaking All the Rules (bloomberg.com)
78 points by pseudolus 5 hours ago | hide | past | web | favorite | 49 comments





No discussion about Don Quijote can be complete without the theme song playing in the background: https://www.youtube.com/watch?v=iJyYrrDKYZE

This plays on continuous loop at all stores.


They have an English version in Singapore. They relented on the continuous loop, but you still hear it quite often.

They also have hilariously bad Engrish on their in-store signs. I assume it's deliberate, because anyone I talked to there speaks English just fine.

The baked yams the article mentions are really super popular here, too.


Continuous loop? I feel for their employees' sanity.

It really is one of the worst examples of a retailer anywhere. Shelf after shelf of semi-disposable, plastic tat, destined for landfill. Crap, processed food. Knock off cosmetics. Crowded, uncomfortable, unfriendly.

If this is the future, I don't want it.


I guess it really depends on the actual location. The one I went to in Iwate was awesome, not multi-storey but a one-floor, jungle-like layout. Very good food section, bought a rug, travel neckpillow, and some crockery, I'm still using them now after months.

>destined for landfill

I've always referred to crap at discount stores as "future garbage." Sure, that's end-of-the-line for most things, but these discount stores peddle stuff with an exceptionally short useful life. Especially targeted towards kids, I feel! I guess it's easier for a parent to give in to a child's wants when the toy is only a buck.


As The Onion had it recently, “Child amused for 5 minutes by toy that will take 1,000 years to biodegrade”.

This is now considered Carbon Sequestration, and will help save the planet.

The greatest regret of all parents. They should have added "Parent feels guilty about giving in for 10,000 years."

Crowded and uncomfortable? I never really felt it was that bad. I lived in Hyogo-ken and would sometimes stop in at one on my way home from university. It was a fun place to be, a sensory overload perhaps though you get used to it pretty quickly. I usually just bought snacks there, a halloween costume... It's like an upgraded dollar store.

it's not crowded for a typical japanese store and not crowded for a typical east asian megacity store. i've seen "supermarkets" that have just as much walking space. that's just the nature of the use of space in that part of the world.

also i feel like almost every city will have a business like this that sells everything under one roof that does very very well. japan itself has a lot of these kind of businesses - daiso, tokyu, etc. places like donki just happen to be the most well known of them all.


Oh, you are going to 'love' Daiso then. Everything 200 Yen. (Or 2 SGD where I live.)

Mmm Daiso. Guess it depends on what you're looking for. I love it because it has all sorts of useful things you can repurpose as a maker that you wouldn't find anywhere else locally. (Or at least not cheaply.)

Large silicone mat for $1.50, Nice bamboo slab for $3, stainless steel rulers, fine-point dry erase markers, etc... There are some gems in there.


Actually it's 100 yen at Daiso in Japan, with very few exceptions.

It sounds a bit like Five Below here in America.

It is a discount store, that is what they have.

Yes, and the point is that we are destroying the environment by selling stuff that has no real usefulness, this isn't really a great future.

The article mentions that they only buy returned overstock items from manufacturers at steep discounts. So this stuff was getting made anyways.

I bought a suitcase there and used it to travel the world. I would definitely consider it "useful".

These look like a more corporate version of your regular "百貨公司".

I agree, it makes the dollar store in the USA feel like a high end retailer. They sell absolute junk. Things you would find in the garbage that other stores might throw out.

I've been into these shops a couple of times when traveling in Japan, and while I mostly didn't end up buying much, they're definitely a lot of fun to browse.

I like Muji, I like Daiso (branded as Living Plaza here, and which I always describe to people as "what if Muji did a pound shop?") and I'm looking forward to the first Don Quijote store opening in Hong Kong later this year!


I find it somewhat amusing that it's mostly thanks to low inflation that Daiso can keep the 200 yen / 2 SGD price point for so long.

I've been witnessing a new store being built very near to our house.

A typhoon tore away the sign of a pachinko place near us (it hit a nearby building), and apparently instead of fixing their store they decided to close it down and sell the building to Don Quijote.

Seems like a good match for them, as the pachinko place is huge, with 6 wide floors that used to be gambling machines shoulder-to-shoulder, but I guess will now be tightly packed cheap goods instead.

Everyone here is excited by it, as we have no interesting stores otherwise nearby. The first I heard the rumors was from wife's barber, and they quickly spread and other random people started telling me about the new store.


We had a similar thing happen in our town -- pachinko place went bust, and they bought it.

Next town over they bought an old local supermarket (again, with huge amounts of floor space)


Don Quixote is infamous. Murakami (the other one) highlighted it in his long essay on Japan and pop culture, 'Earth in My Window', as emblematic of post-WWII Japanese consumerism: https://www.gwern.net/docs/eva/2005-murakami

While not explicit, I do get the sense that they are trying to glamorize these atrocious stores. If you are American just imagine a 6 story "Big Lots!" that happens to also sell designer bags and sex toys.

Those stores are a mess inside and I can only imagine make a profit because they sell everything. In central Tokyo, most of them are just tourist traps at this point.


They’re certainly not tourist traps; they’re a staple for people living in central Tokyo.

Many years ago I lived in Shibuya and Donki was the only place I could get a lot of basic supplies, including even groceries, at a reasonable price. Now I live somewhere else in central Tokyo and don’t go nearly as often thanks to Amazon, but it’s still the only place to buy a lot of items.


I went to the Akihabara location while in Tokyo, mostly to see the gamers. Went up 6 escalators and was not disappointed by the intensity of local gaming going on up there. There were dudes who’d brought their own electric fans and towels to keep them comfortable while they DDR’d the night away.

Perhaps not many years ago, but they are certainly full of tourists now. Check out the Shibuya or Roppongi Donki on any given day, and the number of tourists is far greater than that of locals -- same with Daiso, recently.

Also my comment doesn't preclude Donki having some daily necessities. As for calling it a "staple" for central Tokyo, that's a bit of a stretch. If you said outside of the 23 wards, then I would agree.


You're taking the two places that have the most tourists and lowest residential concentration in Tokyo. Obviously it's going to be mostly tourists in the shop.

Go see a Donki in a residential neighborhood and it'll be full of locals. I live in Shirokane, an upscale highly residential neighborhood off of Meguro station, and even if it's reputed as one of the richest place in Tokyo there is a Donki and it's packed with local families shopping.


Fair enough. I also live in a upscale residential area of Minato (Azabu Juban). I'm actually considering a move to Shirokane, as Juban is getting a bit too crowded.

I admit I am biased in that my nearest Donki is the Roppongi location.


There are Donki in totally residential parts of Tokyo that get almost no tourist activity.

You’re overgeneralizing from limited experience. Not everything in Japan is like Shibuya or Roppongi.


When I said central Tokyo, I should have been more clear. I was referring to Shibuya, Shinjuku, and Minato ku.

I'm well aware of the diversity (or sometimes lackthereof) of Japanese cities/neighborhoods. I've been living here for 10 years.


> And they come anytime they please, since all locations stay open 24/7

Not quite right, they do open till very late but the one I've been to (in Iwate) closed at around 3 am.


"Store managers control merchandising, negotiating prices directly with suppliers"

This sounds like it ought to make scaling to different countries difficult. If you don't have a unique supply chain, then what advantage do you have over a mom and pop discount store?

Uniqlo, Muji, and Daiso (which is less well known but has quite a few US stores) seem to source centrally, just like other global retailers.


> If you don't have a unique supply chain, then what advantage do you have over a mom and pop discount store?

In the article it mentioned those managers dictate what gets on the shelf and mention how they chase after surprise hit (wax nose hair). It seems they're more agile than their competitors and let managers living in those area decides what products to stock.

Perhaps they don't need a unique supply chain?


Muji is interesting in that many individual stores only carry specific departments (which are listed on the website).

The one in Zest Oike, Kyoto for example was quite small and dominated by a very large selection of socks.


I've been to the one on O'ahu (Hawaii), I thought it was a fun store and great place to buy omiyage(souveniers)

The Hawaii stores were taken over from Daiei (Japanese supermarket chain) and I don't think they've changed that much, still a different animal from the Japanese Donki stores I've been to. In comparison they've opened a couple Daisos in Hawaii recently and the goods are identical to what you find in any Daiso in Japan.

Bloomberg is paywalled so I wasn’t able to read much of the linked article; Reuters, however, wrote about Don Quixote in August 2018 [0].

Interesting retailing concept. I do wonder if Japanese consumers will ever tire of the novelty. Then again, 29 years of growth might suggest otherwise.

[0] https://www.reuters.com/article/us-japan-don-quijote/japans-...


It's called Don Quixote in the article but I love that the name on the marquee is "mega donki." Mega Donkey seems more apropos to me.

They are branded Don Don Donki in Singapore.

Never been inside a Donki store despite living in Japan, but I’ve owned the stock for a while and it has been a solid investment.

It just looks like a regular Chinese bazaar store except Japanese. Do they sell pens that dries out after a few weeks? USB cables that starts glitching after two weeks? Shoes that fall apart after a few days?

Pretty much, but Donki's main selling point is the incredible array of completely off-the-wall shit in no discernible order. For example, this pic has rubber chickens, an exploding hat, a helium dispenser for making your voice squeaky, gorilla plushies, retro gaming consoles, sexy maid costumes, a giant robot toy, a RC helicopter and a waffle iron:

https://photos.app.goo.gl/n3Cri8BKUDWyfiAG6

I think they intentionally put these in nightlife districts, so they can be a sort of drunk man's IKEA where you always end up buying more than you planned to.


>I think they intentionally put these in nightlife districts, so they can be a sort of drunk man's IKEA where you always end up buying more than you planned to.

Complete with food.


My favourite example if that kind of store is Miniso. It's a Chinese chain that pretends to be Japanese.

The chain is based in China, but one of Miniso's founders is actually Japanese.

I recently ran into a "Yubiso" in KL, meaning there's now a Malaysian clone of a Chinese clone of Japanese stores (Miniso is basically Uniqlo and Muji mashed together).




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