Posts Tagged ‘fashion’

Annals of cheap: Don Don Down on Wednesday

Wednesday, February 27th, 2013

We all know Japanese people prefer new stuff — new homes, new rice, new prime ministers every 12 months — which may explain why the used clothing business isn’t as big here as it is in other countries. According to the Asahi Shimbun, 50 percent of discarded used clothing in America is recycled, either commercially or as contributions, and the portion in South Korea is 80 percent. In Japan, it’s only 20 percent, meaning that the rest is simply trashed. But that may change with the advent of a new model for used clothing stores.

Don Don's website

Don Don’s website

Don Don Up Co. Ltd., headquarted in Morioka, Iwate Prefecture, opened its first used clothing store, called Don Don Down on Wednesday, in Hachinohe, Aomori Prefecture, eight years ago. The company now commands a chain of 60 outlets nationwide, with more to come. Don Don, an onomatopoeic word expressing a process of steady progression, came up with an ingenious pricing system that not only saves the company overhead and personnel costs, but draws customers on a weekly basis by turning shopping into a “game,” as its promotional literature puts it.

All the merchandise is affixed with price tags, but the tags don’t display yen amounts. Instead they have pictures of fruits and vegetables, 10 in all. The pictures represent prices, which range from a high of ¥5,250 (i.e., ¥5,000 for the item plus 5 percent consumption tax) to a low of ¥105. These prices are listed on charts alongside their corresponding symbols and posted throughout the store. The price tag on a particular item never changes as long as it remains in the store.

The charts are changed weekly. For instance, this week, perhaps, all the strawberry items cost ¥5,250, but next week, all the remaining strawberry items will be priced at ¥4,200. Each week, the line of a particular fruit or vegetable goes down one pricing rank until it reaches ¥105. The following week all the items previously priced at ¥105 are removed from stock and exported to Southeast Asia in bulk, which means no item stays in the store for more than ten weeks. The weekly price changes take effect on Wednesdays, thus explaining the name of the store. Not surprisingly, that’s the day they do their biggest business.

This system adds a touch of drama to the shopping experience. If a customer likes a particular item she can buy it right away or take a chance and wait til the following week when it’s cheaper, but then she risks the possibility that someone else will buy it. The president of the company told Asahi, “I want our customers to enjoy shopping as if playing a game. I wanted to change the image of the used clothing store, which tends to be dark.”

At first, the scheme was to try to replace the inventory as often as possible to keep people coming, but that meant changing price tags on a continuing basis to weed out unpopular items. It wasn’t until management hit on the fixed price tag system that they figured a way to not only streamline operations but make the process interesting for consumers.

As for procuring merchandise, Don Don’s method is similar to Book Off’s, Japan’s pioneer in used merchandise, which boasts 900 outlets. It bases the price it pays for a book on its condition and then places a seal on each volume that indicates how long is has been in the store. Every book that remains on the shelf for three months automatically gets reduced to ¥105.

When those don’t sell, they’re pulped. With the exception of some brand items, Don Don buys clothing from anyone by the kilogram: ¥500 for “very popular” items, ¥50 for “popular” items, and ¥10 for “useful” items. And they pay 50 percent more on Mondays and Thursdays. More significantly, they refuse very little that is wearable, since they can always sell it, again by the kilogram, to wholesalers in Southeast Asia. Just like produce.

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