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  • 8 months ago
Despite Japan's battle with inflation and the dropping yen, business is booming at discount chain store Don Quijote, also known as Donki. With narrow aisles, flashing lights and nonstop music, locals and tourists keep coming back for an adventurous shopping experience.

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00:00As inflation rises and the yen drops, Japanese retailers are fighting back.
00:07With flashing lights and non-stop music, one shiny discount chain store is bringing in tourists from all around the world.
00:18What sets us apart from most other retailers is the amusement aspect.
00:22We stock a wide variety of products and customers often end up buying things they didn't intend to.
00:27It's like a treasure hunt, a shopping experience that's fun and full of surprises.
00:32That sense of enjoyment is probably what makes Don Quixote different.
00:40Named after the idealistic but impractical hero of the 17th century novel, Don Quixote brings as much adventure and chaos as its muse.
00:50It's pramped, dark, you know, the buildings might be old, seemingly products hanging from everywhere.
01:02Lights, sounds, music, etc.
01:07It is just almost an assault on the senses.
01:13But Don Quixote has grown to be an extremely important retailer in Japan.
01:19Depending on how you measure it, it might be the fourth largest seller of food with over 400 locations.
01:27The discount chain, nicknamed Don Quixote, opened in the 80s to shake up Japan's retail sector.
01:33Now, with the yen at its weakest in decades, business is booming.
01:39Tourists are getting more for less.
01:42With more than 500 stores in Japan, Don Quixote is a major player, opening 24 new branches just last year.
01:51And thanks to international demand, it's expanded overseas, with 110 stores now in places like the U.S. and Taiwan.
02:01Offline, offline, Don Quixote consistently has the best selection of almost anything in Japan.
02:10And so, you know, from a Japanese standpoint, I think it's the availability and it's the promise of value, which in this time of, you know, weak yen and higher inflation is very valuable.
02:28Numbers have grown to about 1.7 times what they were before COVID.
02:33There's been a significant increase since then, and customers are coming from all over the world.
02:37Before the pandemic, our customer base came from East Asia.
02:41Now, there's a noticeable increase in customers from Europe and the U.S.
02:45This rise in global visitors has boosted our sales.
02:50Don Quixote's success lies in smart tactics.
02:53By giving autonomy to local branches, they adapt fast and jump on trends quicker than rivals.
03:00While inflation rose, Don Quixote saw growth,
03:03making a 12% year-on-year revenue increase last year.
03:07And judging by what ends up in many suitcases, its approach is paying off.
03:13I bought a coffee cup for my mom, a fan, some Godzilla chopsticks, just a couple toys, stuff like that, for home, just to kind of remember the place.
03:25With Don Quixote's parent company now planning to open duty-free stores targeting tourists,
03:32they're preparing to expand while continuing to offer the chaotic shopping experience many return for.
03:39Justin Wu and Zalang Shata for Taiwan Plus.
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