It sounds like an oxymoron. The king of cheap, discount shopping launching its own brand? Fear not, Don Quijote is sticking to its usual weapon: bargains.
Under the brand name 情熱価格 (”passion price”), 140 products will be sold at all stores nationwide. The biggest fanfare surrounds their ultra-cheap jeans, priced at 690 yen ($7.60), sold in ten types for men and women. Other products include 398 yen ($4.38) wine. The chain is undercutting major supermarkets by between 10-30% and also cheap brands like gu, which sells jeans for the comparatively exorbitant price of 990 yen ($10.90).
(Image courtesy of milfled.seesaa.net.)
Don Quijote has big hopes for this private brand. They announced a sales target for their jeans of 200k within a year and plans to increase the number products to 300 in December, including digital TVs. In total, within two years the chains expects the brand to reach 5% (250 billion yen) of total sales.
How can Don Quijote be so cheap? Well, China is the source of a lot of their raw materials and manufacturing. Will this put Japanese consumers off the brand?
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