A '5,000-Won' Windbreaker Even SPA Brands Couldn't Achieve...How Did Daiso Do It?

5,000-Won Windbreaker Breaks the Fashion Formula
Sales Up 160%: The 'Daiso Formula' Works for Apparel Too
Competing with 'Distribution Efficiency' Instead of Design or Brand

"Is it really 5,000 won?"

On the afternoon of April 8, at a Daiso store in Seoul, a customer stood in front of a rack displaying windbreaker jackets. She carefully examined the fabric by touching it and repeatedly zipping and unzipping the jacket, then asked this question. When a Daiso employee confirmed the price, the woman, estimated to be in her 40s, immediately put the item in her shopping basket without hesitation. She commented, "It's thin, lightweight, and offers wind protection just like other brands. I can't really tell much of a difference." By that afternoon, some sizes were already sold out.

The 5,000-won windbreaker jacket launched by Daiso is shaking up clothing market prices. Analysts say this goes beyond ultra-low prices and signals a change in the very way prices are structured.

According to Daiso on April 9, sales of windbreakers from March 14 to March 28 increased by 160% compared to the previous month. The entire clothing category is also seeing strong growth. In January 2026, sales of clothing items grew by about 180% year-on-year, and in February by about 140%, achieving triple-digit growth rates for two consecutive months. The windbreaker, introduced by Daiso in February 2026, is priced at 5,000 won—about the price of a cup of coffee at Starbucks.

Asung Daiso 'Women's Nylon Crop Windbreaker'. Asung Daiso

‘Price First,’ Not Design: The Reversed Product Planning Method

The secret to this success lies in Daiso’s ultra-low pricing strategy. In the traditional fashion industry, SPA (Specialty retailer of Private label Apparel) brands plan products with a focus on design and trends, then set the price. Daiso, on the other hand, determines the price first and then designs the product to fit that price. This is a "reverse planning" system where the price is the starting point for product development.

The cost structure is also different. SPA brands incorporate expenses for design development, marketing, large store operations, and inventory risk into their pricing. As a result, it's not uncommon for windbreakers to be priced over 100,000 won. Daiso, however, focuses on basic products with minimal design elements. It spends almost nothing on marketing and uses its own distribution network to reduce intermediary costs. This allows for structurally competitive pricing.

The way products are managed also differs. SPA brands offer a wide variety of designs, colors, and sizes, while Daiso limits the number of stock-keeping units (SKUs) and mass-produces the same product. While the profit margin per item is low, this is offset by high turnover—a classic "high volume, low margin" model. Another characteristic is that profitability is managed at the product category level rather than for each individual product, allowing lower margins on some items to be balanced out by higher margins in other categories.

The biggest difference is in how the product is viewed. While fashion companies see clothing as brand- and design-driven items, Daiso treats them more like functional household goods. A fashion industry insider commented, "Even for the same windbreaker, the criteria for cost planning are completely different. Daiso sees clothing as just another consumable product."

The Ultra-Low Price Model Expands from Beauty to Apparel

This model has already been proven in the beauty business. Daiso used ultra-low-priced cosmetics to expand its beauty lineup from about 60 brands and 500 products at the end of 2024 to about 150 brands and 1,400 products by the end of last year. Beauty sales rose by 144% in 2024 and 70% in 2025. The apparel business is also expanding. The number of apparel items grew from around 100 in 2022 to about 700 by the end of last year, and more than 600 types are currently on sale. The sales growth rate was about 160% in 2023, 34% in 2024, and 70% last year.

There are also changes on the supply side. As apparel consumption slows, some manufacturers are considering collaborating with Daiso to supply basic clothing items such as short-sleeved T-shirts and underwear. The goal is to increase production efficiency and secure stable order volumes through large-scale supply deals.

Industry observers see Daiso’s model as more than just a low-price competition; it is fundamentally changing how prices are set. In the basic apparel market, where brand and design have less influence, price is inevitably the key competitive factor.

Another industry insider said, "If the ultra-low price model becomes established, it could become even harder for basic apparel to compete on brand. Mid- to low-priced brands will be hit first, and companies will face pressure to restructure their portfolios towards functional and premium segments."

This content was produced with the assistance of AI translation services.