Hirotake Yano: World Domination 100 Yen at a time

When it comes to dollar stores, Americans know about Dollar Tree and Dollar General, they’re everywhere. But in Japan, a giant called Daiso stands above the others. It’s Japanese billionaire founder, Hirotake Yano, a man famous for bringing affordable products to millions of low income Japanese families. But it’s not like he grew up dreaming of owning a 100 yen knickknack empire.

Hirotake Yano, Founder of Japan's 100 yen shop mega-chain ダイソー 'Daiso' passed away today at the age of 80.

Thank you for all the cheap snacks and appliances. Your legacy will not be forgotten. 🙏 pic.twitter.com/XLwiNp4JVT

— Sendico (@SendicoOfficial) February 19, 2024

With his recent passing of a heart failure at 80 (Feb 12th 2024), I figured it’s important to delve into the story of a man who revolutionized the discount retail shops in Japan. So, grab a cup of coffee or tea and get comfy because I’m about to introduce you to Hirotake Yano, the humble hero supporting every Japanese family on a budget.

The humble beginnings

Hirotake Yano was born Koro Kurihara in 1943 in Beijing, China (Beiping at the time). His family moved back to his father’s hometown of Higashihiroshima City in Hiroshima Prefecture after the war. Growing up in post-war Japan wasn’t easy. Like many others of his generation, he learned the value of hard work and frugality from an early age. There was no other choice, let’s be honest here.

During his time at Hiroshima Kokutaiji high, he took up boxing and got all the way to being chosen as a candidate for the 1964 OIympic conditioning camp but never made an appearance as a reserve fighter¹.

After finishing high school, he chose to pursue civil engineering over following his father’s footsteps in medicine. Unfortunately for him, he failed the entrance exams for 16 universities. On his 17th attempt, he managed to enroll in Chuo University’s evening class program where he would meet his wife².

He would later adopt his wife’s last name (Katsuyo Yano) citing that it was easier to remember and sounded friendlier.

After graduation, Yano had difficulty finding employment so he dipped his toes into 9 separate career changes such as working as an encyclopedia salesman, and even operating his in-laws’ aquaculture business which went bankrupt 3 years later. Things got so bad at one point that he owed 7 million Yen (100 million Yen in 2024 or $622k USD) and had to leave for Tokyo to start over.

It wasn’t until 1972 that he’d finally evolve into his lifelong calling.

The birth of Daiso

You might think that such a successful business started off with grand ambitions and detailed plans. In reality, it began rather humbly. Yano started off Daiso in 1972 as a street vendor called Yano Shoten (Yano Shop) where he sold goods from shop bankruptcy sales at fixed prices out the back of his truck. He realized that people loved knowing exactly what they were paying upfront. None of the hassle of haggling.

The model was so successful that some retailers such as Daiei Inc. were buying goods from him to resell in their own shops. Keep in mind, Yano was seeing success during the 1970’s Arab Oil Embargo in which many retailers were closing left and right.

By 1977, five years after its inception, “Yano Shoten” was rebranded to “Daiso Industries” (Daisōsangyō) What made Daiso different was its simple yet revolutionary (at the time) concept: everything cost 100 yen ($1) no haggling, no hassling. This fixed pricing model eliminated confusion and made shopping quick and straightforward.

Building an empire

So how did Yano go from selling goods out of a truck to creating one of Japan’s largest retail chains? We can pretend he was some super genius that was ahead of his time or we can appreciate how well-timed his business style was positioned thanks to his understanding of his customer base. Yano’s insistence on cutting the middleman by working directly with manufacturers (or bankruptcy wholesalers) while selling at a fixed price meant that he was able to keep his prices low and not having to haggle over every sale meant he was selling multiples more items per day allowing his business to grow faster than his competitors.

In the late ’90s and early 2000s, Daiso saw explosive growth. By negotiating directly with manufacturers both in Japan and overseas (especially China), Daiso could maintain their low pricing without sacrificing quality. As more people discovered the range of quality products they could buy for 100 yen, the brand’s popularity soared.

Crossing borders

But why stop at Japan? In 2001, Daiso opened its first international store in Taiwan. People around the world started hearing about Daiso’s unique proposition: reliable products at unbeatable prices. Soon after Taiwan’s success came expansions into South Korea (2002), Canada (2003), Singapore (2004), Australia (2010), and eventually many more countries including several locations across the United States (2005).

Today there are over 5,500 Daiso stores globally serving roughly 2 billion customers a year. 2,300 of those being overseas and growing. The business model may no longer be novel, but its value proposition remains attractive to everyone.

The man himself

Notice we talked about Daiso almost more than Hirotake Yano himself? That’s because information on him isn’t abundant as unlike your typical businessman, he wasn’t one to tell tall tales on tv or do interviews after his success. Most accounts of him are interpretations of his character based on his actions as a business owner.

Accounts of him as a CEO was that he had a tiny dark office in which he rarely spent any time because he would run around working in meeting rooms and other offices anyway.

That being said, it’s clear that he’s got an eye for what people want. Whether it’s practical household goods or whimsical toys for kids (for adults too, let’s be real), he has created an enterprise whose quality/price proposition is so impressive that most competitors struggle to even copy Daiso’s offering.

Despite being somewhat elusive when it comes to public appearances or interviews, Yano is celebrated within industry circles as both an innovator and savvy businessman who genuinely seems passionate about making everyday life better by offering people good products at a low cost.

Fun facts

• One quirky aspect about some Japanese branches is their music playlist. A repetitive loop much like the Book Off theme, that’s either loved or loathed by shoppers and surely cursed by the employees.
• Unlike other dollar stores which might have limited stock rotation leading things feeling stale after the novelty factor wears off, Daisos regularly update their inventory and move them around to keep things fresh (kinda like Costco).

Closing thoughts

Hirotake didn’t build shiny cars or invent new planes, he took the mundane and saw it for what it was, an irreplaceable part of everybody’s life regardless of your economic status. He took those ordinary objects and brought them to a price you and I can afford no matter how hard life gets.

So if you come across a Daiso near you, go inside and browse with the appreciation of how much work went into making everything affordable for you. Maybe buy something in commemoration of his life’s work.

Thanks for taking time to read about Hirotake Yano, a man whose unyielding spirit kept going from failure to failure until he transformed a small business into an international juggernaut. A man whose life was a lesson to us all.

FAQ

1. https://yab.yomiuri.co.jp/adv/chuo/dy/people/20100311.html ↩︎
2. https://ja.wikipedia.org/wiki/%E7%9F%A2%E9%87%8E%E5%8D%9A%E4%B8%88 ↩︎