Daiso-nization': Market adopts ultra-low-price strategies as inflation ails grow

In South Korea, many consumers are now focusing more on saving money than on choosing premium products. As inflation continues to affect daily life, people are looking for cheaper goods that still offer acceptable quality. This trend has led to what some experts call the “Daiso-ization” of the market, named after the popular discount store Daiso, where most items cost between 1,000 and 5,000 won.

Large companies are responding to this change in consumer behavior. The Lotte Group, one of South Korea’s biggest retail companies, has started working on new low-cost private brand products. Different divisions of the company are collaborating to create items that are both affordable and high in quality. One example is a loaf of bread sold for 2,500 won, developed after months of research and testing.

Other retailers are also competing in the low-price market. Emart, another major supermarket chain, has launched more than 130 low-cost private brand products. These include not only food items but also household goods such as steam irons, hair dryers, and small kitchen appliances, many of which are priced under 5,000 won.

The strategy behind these low prices is to reduce costs by improving logistics and buying products directly from manufacturers. By removing middlemen and using efficient distribution systems, companies can offer lower prices to customers while still making a profit. Some products have sold in large quantities, showing strong demand for cheaper alternatives.

Experts say this trend is likely to continue as consumers face financial pressure and reduced purchasing power. While companies compete to offer the lowest prices, success will depend on whether they can maintain both affordability and quality. The future of the retail market may be shaped by how well businesses balance these two factors.

Edited using generative AI tools.
Source ;https://koreajoongangdaily.joins.com/news/2026-04-17/business/industry/Daisonization-Market-adopts-ultralowprice-strategies-as-inflation-ails-grow/2570972

Comprehension

What is “Daiso-ization” in the context of this article?
Why are Korean consumers focusing more on low-priced products?
What is Lotte doing to respond to this trend?
Give two examples of low-cost products sold by Emart.
How are companies able to reduce the prices of their products?
What role does inflation play in consumer behavior?
What is one challenge companies face in this trend?
Do experts think this trend will continue? Why or why not?

Discussion

Do you prefer low-price products or higher-quality, expensive products? Why?
Have you noticed similar “low-price trends” in your country?
What are the advantages and disadvantages of buying very cheap products?
Do you think companies can maintain quality while lowering prices? Why or why not?
How does inflation affect your own spending habits?
Should governments do more to control prices, or should the market decide?
Why do you think consumers are becoming more sensitive to prices today?
Would you trust a very cheap product like a 1,000-won appliance? Why or why not?

Vocabulary

inflation - increase in prices over time
consumer - a person who buys goods or services
prioritize - to treat something as more important
affordable - not too expensive
logistics - systems for moving and distributing goods
intermediary - a middle person or company between producer and seller
purchasing power - the ability to buy goods with available money
sluggish = slow or not active (economy/market)
benchmarking- comparing performance with competitors