Tourists boost sales at Japan's Don Quijote stores
BUSINESS is booming at Japanese discount chain Don Quijote, which sells everything from nostril-hair wax to compact gadgets and colourful party costumes, thanks to its cult status among tourists but also inflation at home.
At a large Don Quijote store in Tokyo's bustling Shibuya district, hundreds of tourists rush to fill their baskets with snacks and souvenirs from its heaving narrow aisles.
'I was pretty overwhelmed at first, just because there's so many options, everything's in a different language,' 27-year-old Garett Bryan from the US told AFP.
But 'I feel like I bought a lot and it was only like US$70 (RM302)' including 'a coffee cup for my mom, a fan, some Godzilla chopsticks, just a couple toys'.
The chaotic cut-price shops nicknamed 'Donki' were founded in the 1980s by Takao Yasuda, who named them after his business inspiration: The idealistic protagonist of the classic Spanish novel, Don Quixote.
He wanted to shake up Japan's staid retail industry with new tactics including late-night opening hours as well as more varied prices and product lines. Now a record influx of visitors to Japan, fuelled by a weak yen, is boosting sales nationwide.
Revenues at Don Quijote in Japan are 'around 1.7 higher than before the pandemic', said Motoki Hata, a manager at the retailer.
Last year, its parent firm Pan Pacific International Holdings (PPIH) saw revenue rise around 12% year-on-year (YoY) for its discount chains including Donki, while tax-free sales beat internal forecasts.
Shopping at Don Quijote is like a 'treasure hunt' — a fun experience that foreign visitors love, Hata told AFP.
'Customers end up buying something different than what they came in for,' he said beside rows of cherry-blossom flavour KitKats, a popular exclusive product.
'Jungle'-like
Don Quijote and its sister brands have 501 stores in Japan, where 24 new ones opened during the past financial year.
PPIH Group also runs 110 stores abroad, in the US and across Asia from Taiwan to Thailand.
California is one place being targeted by the company for expansion, according to analyst Paul Kraft, founder of Tokyo-based consultancy firm JapanIQ.
But that plan could be complicated by US President Donald Trump's trade tariffs — including levies of 24% on Japan, which have been paused until July.
Even so, 'I wouldn't bet against them, even in this entire high-tariff environment', Kraft said.
'Nobody adjusts as fast as Don Quijote in retail in Japan — even faster than convenience stores, because they give so much autonomy to their stores.'
They are also 'some of the smartest and most aggressive buyers that I've seen', with consistently 'the best selection of almost anything'.
However, in Japan at least, the shopping experience is 'cramped, dark, you know, the buildings might be old' with products seemingly 'hanging from everywhere'.
Don Quijote's omnipresent Santa-hat wearing penguin mascot Donpen and its 'Don Don Donki' jingle on repeat just adds to the 'jungle'-like experience.
'It is just almost an assault on the senses,' Kraft said.
Inflation Hits
Still, Don Quijote 'has grown to be an extremely important retailer in Japan', Kraft said — especially as rising inflation ramps up demand for cheaper products.
The country's core inflation rate accelerated to 3.2% in March, with consumers feeling the pinch on electricity bills as well as kitchen staples like cabbage and rice.
Household consumption fell 1.1% in 2024, with some people making the trip to Don Quijote to save.
'It's less expensive than other shops, and they also have famous brands,' said a Tokyo resident who shops at the store twice a week and gave her surname as Kuroki.
Shoji Raku, 20, told AFP she shops at Donki for 'shampoo, electronics and everything that you don't find elsewhere'.
Tourist sales remain a key focus for the chain, which plans to open two new stores targeted at visitors in Japan next year, centred on duty-free products.
But one Donki customer, Bruno Bosi from Brazil, said shoppers should tread with caution.
'It is a store for you to buy as much as you want — but I think you need to ask yourself if you need it,' he said. — AFP
This article first appeared in The Malaysian Reserve weekly print edition
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
China hopes for 'reciprocity' at trade talks with US in Stockholm
STOCKHOLM (AFP): Chinese and US economic officials met for talks in Stockholm on Monday, with Beijing saying it wanted to see "reciprocity" in its trade with the United States. The Swedish prime minister's office confirmed the talks, which are expected to last two days, were under way. The talks came a day after US President Donald Trump reached a deal that will see imports from the European Union taxed at 15 percent and the clock ticking down for many countries to reach deals or face high US tariffs. Beijing said on Monday it hoped the two sides could hold talks in the spirit of "mutual respect and reciprocity". Foreign ministry spokesman Guo Jiakun said Beijing sought to "enhance consensus through dialogue and communication, reduce misunderstandings, strengthen cooperation and promote the stable, healthy and sustainable development of China-US relations". For dozens of trading partners, failing to strike an agreement in the coming days means they could face significant tariff hikes on exports to the United States come Friday, August 1. The steeper rates, threatened against partners like Brazil and India, would raise the duties their products face from a "baseline" of 10 percent now to levels up to 50 percent. Tariffs imposed by the Trump administration have already effectively raised duties on US imports to levels not seen since the 1930s, according to data from The Budget Lab research centre at Yale University. For now, all eyes are on discussions between Washington and Beijing as a delegation including US Treasury Secretary Scott Bessent meets a Chinese team led by Vice Premier He Lifeng in Sweden. In Stockholm, Chinese and US flags were raised in front of Rosenbad, the seat of the Swedish government. While both countries in April imposed tariffs on each other's products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 percent and China's countermeasures slashed to 10 percent. But the 90-day truce, instituted after talks in Geneva in May, is set to expire on August 12. Since the Geneva meeting, the two sides have convened in London to iron out disagreements. - China progress? - "There seems to have been a fairly significant shift in (US) administration thinking on China since particularly the London talks," said Emily Benson, head of strategy at Minerva Technology Futures. "The mood now is much more focused on what's possible to achieve, on warming relations where possible and restraining any factors that could increase tensions," she told AFP. Talks with China have not produced a deal but Benson said both countries have made progress, with certain rare earth and semiconductor flows restarting. "Secretary Bessent has also signalled that he thinks a concrete outcome will be to delay the 90-day tariff pause," she said. "That's also promising, because it indicates that something potentially more substantive is on the horizon." The South China Morning Post, citing sources on both sides, reported Sunday that Washington and Beijing are expected to extend their tariff pause by another 90 days. Trump has announced pacts so far with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines, although details have been sparse. An extension of the US-China deal to keep tariffs at reduced levels "would show that both sides see value in continuing talks", said Thibault Denamiel, a fellow at the Centre for Strategic and International Studies. US-China Business Council president Sean Stein said the market was not anticipating a detailed readout from Stockholm: "What's more important is the atmosphere coming out." "The business community is optimistic that the two presidents will meet later this year, hopefully in Beijing," he told AFP. "It's clear that on both sides, the final decision-maker is going to be the president." For others, the prospect of higher US tariffs and few details from fresh trade deals mark "a far cry from the ideal scenario", said Denamiel. But they show some progress, particularly with partners Washington has signalled are on its priority list like the EU, Japan, the Philippines and South Korea. The EU unveiled a pact with Washington on Sunday while Seoul is rushing to strike an agreement, after Japan and the Philippines already reached the outlines of deals. Breakthroughs have been patchy since Washington promised a flurry of agreements after unveiling, and then swiftly postponing, tariff hikes targeting dozens of economies in April. - AFP
The Star
6 hours ago
- The Star
Japan grants RM12mil to support Lao human resource development
VIENTIANE (Laotian Times): The Japanese government has provided US$2.85 million (RM12 million) to support Lao government officials advance their skills under the project for Human Resource Development Scholarship (JDS), which will offer 20 scholarships per year from June 2025 until 31 December 2032. This year, 20 scholarships will be awarded to qualified officials to pursue master's and doctoral degrees at leading universities in Japan. The programme aims to build the capacity of future Lao leaders who will contribute to national development after completing their studies. Since its launch in Laos in 2000, this program has provided scholarships to over 530 Lao officials. Many graduates have later taken on leadership roles in key ministries and state agencies. The project will be jointly implemented by JICA and the Ministry of Education and Sports. This year's contribution holds added significance as it marks the 70th anniversary of Laos-Japan diplomatic relations. Japan's continued support highlights its commitment to Laos' socio-economic development, with ongoing cooperation in education, infrastructure, agriculture, and governance, all aligned with the country's development goals and graduation from Least Developed Country status by 2026. - Laotian Times
New Straits Times
8 hours ago
- New Straits Times
Dollar strengthens after US and EU agree to tariff deal
TOKYO/LONDON: The dollar rose against major peers on Monday after the United States and the European Union struck a framework trade pact, the latest in a flurry of deals to avert a global trade war, with investors also looking to this week's US and Japanese central bank meetings. Meeting in Scotland on Sunday, US President Donald Trump and European Commission President Ursula von der Leyen said the deal provided for an import tariff of 15 per cent on EU goods, half the rate Trump had threatened from Aug 1. That follows last week's US agreement with Japan, while top US and Chinese economic officials will resume talks in Stockholm on Monday aiming to extend a truce by three months and keep sharply higher tariffs at bay. The euro was last at US$1.1693, down 0.4 per cent on the day, reversing an initial knee-jerk rise in Asia trade as investors' focus shifted to what an easing in global trade tensions meant for the dollar overall. "The mood music on US trade negotiations has been a little brighter following agreements with Japan and the EU," said Paul Mackel, global head of FX research at HSBC. "If more 'trade deals' are reached, this could help to reduce this source of policy uncertainty that has weighed against the dollar, at least for now. It could also see other factors such as relative yields becoming more influential." The dollar tumbled sharply earlier this year, particularly against the euro, as fears that dramatically higher tariffs on trade with most of its major partners would hurt the US economy caused investors to consider shifting out of US assets. Normally, the gap between yields on government bonds is a major factor for currency moves, but at present the euro is meaningfully higher than the gap between US and euro zone yields would imply. The euro was also last down slightly on the yen and sterling, having hit a one-year high on the Japanese currency, and a two-year high on sterling at the start of trade. The dollar was stronger elsewhere, up 0.15 per cent on the yen at 147.83, while the pound was down 0.13 per cent at US$1.3428. As concerns subside about the economic fallout from punishing tariffs, investor attention is shifting to corporate earnings and central bank meetings in the United States and Japan in the next few days. Both the Fed and the Bank of Japan are expected to hold rates steady at policy meetings this week, but traders will watch subsequent comments to gauge the timing of the next moves. Investors will also be watching to see Trump's reaction to the Fed's decision. The US President has been putting the Fed under heavy pressure to make significant rate cuts, and Trump appeared close to trying to fire Powell last week, but backed off with a nod to the market disruption that would likely follow. In cryptocurrencies, ethereum jumped 1.7 per cent and reached as high as US$3,940.25, the most since Dec 2024.
