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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