The Japanese discount store "Don Quijote" will open a pop-up store in The Hyundai Seoul, located in Yeouido, Seoul, on the 8th. This is expected to be an opportunity to introduce Don Quijote's private brand (PB) products to Korea. This pop-up store is being pursued in collaboration with GS Retail.
According to the retail industry on the 2nd, Don Quijote plans to open a pop-up store to introduce PB products to Korea. This is the first time Don Quijote is entering the domestic market, made possible through GS Retail.
This is not the first collaboration between the two companies. GS Retail has partnered with Don Quijote's operator Pan Pacific International Holdings (PPIH) to showcase the PB product "Yours" at its GS25 convenience stores in Japan since May. More than 10 types of PB products, including large popcorn in collaboration with Netflix, are sold at over 400 Don Quijote stores. It is reported to have received a positive response to the extent that dedicated displays have been created in some stores.
Founded in Japan in 1980, Don Quijote is a comprehensive discount store that operates over 630 locations worldwide. It has established itself as a must-visit shopping destination during Japanese travels for Koreans by selling daily necessities, food, cosmetics, alcohol, and pharmaceuticals at affordable prices. The PB product "Jonetz" is notably recognized for items like furikake, eggs with soy sauce sprinkles, and konjac jelly.
Don Quijote is praised for increasing customers' stay time and purchase likelihood through its so-called "compressed display" method, which exhibits a wide variety of products tightly in a small space. In 2018, Shinsegae Group benchmarked Don Quijote to open "Pierrot Shopping" at COEX Mall, but withdrew within two years.
Don Quijote continues to show steady growth as the number of tourists visiting Japan increases alongside rising domestic demand for affordable products. In the 2024 fiscal year (July 2023 - June 2024), PPIH's revenue is reported to be 2.1 trillion yen (19.8 trillion won), an approximately 8% increase from the previous year. During this period, sales at discount stores including Don Quijote increased by about 12%, and duty-free sales are said to have exceeded internal forecasts.
In the retail industry, there is a prevailing view that Don Quijote's entry into Korea is influenced by the rising awareness of local brands due to the depreciation of the yen in recent years, which has led to an increase in the MZ generation's (born in the early 1980s to early 2000s) travel to Japan. As K-content gains popularity in Japan, Japanese culture and consumer goods are also resonating with younger generations domestically.
The Japanese retail shop "BEAMS," which opened a pop-up store in Lotte World Mall in Jamsil, Songpa-gu, Seoul, in March, attracted over 300 customers from 7 a.m. on the first day. The Japanese lifestyle bookstore "Tsutaya" is also currently operating a pop-up store in Hannam-dong, Seoul.
Some interpret that Don Quijote is testing its market entry in Korea through PB products that are well recognized by Korean travelers. Don Quijote operates over 100 stores in locations including Hong Kong, Taiwan, Macau, Thailand, Hawaii, and Malaysia, in addition to Japan.
A representative from GS Retail said, "We are increasing collaboration opportunities by selling GS25's PB products at Don Quijote."