In 2020, Don Quijote (Group Name: Pan-Pacific International Holdings), with 800 stores and a revenue of 1.6819 trillion yen (approximately 100 billion RMB), became the fourth-largest retail enterprise in Japan.
In “GenBridge View: The Optimal Solution of Japan’s Discount Business Format – Analysis of Don Quixote (Part 1),” we discussed how the success of Don Quixote’s discount business format was attributed to the substantial supply of residual goods resulting from the competitive environment in Japan in the 1980s. On the operational front, Don Quixote’s ultimate operational strategy is the key to seizing the opportunities of the times, with a prominent aspect being the “Treasure Hunt Experience” highlighted in the repeatedly played theme song in the store.
“First come, first served, a dreamy world,
It’s easy to get addicted to Don Quixote,
Impulsively buying but feeling like it’s a bargain,
It feels like a treasure hunt,
What will I discover tonight?”
— Don Quixote Theme Song
The so-called “Treasure Hunt Experience” is essentially a finely tuned design based on a precise understanding of consumer psychology, including detailed displays, pathways, and interactions. Based on an in-depth observation of Don Quixote’s Tokyo Fuchu store, this article summarizes five things the store did right in terms of in-store operations:
- Dense Display: Bombarding consumers with a massive selection of products and information to weaken their rational thinking during shopping.
- Path Planning: Extending the stay time, interspersing high and low-margin displays to strengthen the impression of low prices.
- Audience Segmentation: Segregating crowds through category displays, guiding them towards a “customized” path, enhancing the density of products that arouse interest in different consumer groups.
- Emotional Interaction: Using vivid copywriting tags to awaken consumers’ awareness of the value of products, actively communicating with consumers similar to live streaming.
- Hit Product Thinking: Visually presenting price and quantity comparisons between products to guide consumer choices and create best-sellers.