Executive Summary

South Korea’s Daiso is experiencing a remarkable transformation from discount household goods retailer to legitimate beauty destination, challenging the traditional hierarchy that positioned Olive Young and department stores as the gatekeepers of premium K-beauty. This shift, marked by collaborations with prestigious brands like Jung Saem Mool and the entry of pharmaceutical-grade skincare lines, signals a broader democratization of beauty retail that could significantly reshape Singapore’s competitive landscape.

The key development is that high-end beauty brands are now deliberately choosing to sell at Daiso. The most significant example is Jung Saem Mool, a prestigious makeup artist brand whose products typically cost 40,000-50,000 won. On January 5, they launched “Zoom by Jung Saem Mool” exclusively at Daiso, with 13 items priced between just 1,000-5,000 won.

This marks a major shift from Daiso’s former “cheap-only” image. Their beauty section now includes derma and pharmaceutical brands like CNP and Dongkook Pharmaceutical, alongside established names like VT and Medipeel. Many brands are creating Daiso-exclusive secondary lines with separate pricing and formulations to avoid diluting their main brand while fitting Daiso’s price structure.

The customer base is surprisingly diverse. According to November 2025 data, cosmetic sales were evenly spread across all age groups from their 20s to 60+, with shoppers in their 40s forming the largest segment.

Industry experts note that for this trend to continue, premium brands will need to maintain clear quality standards and help consumers understand how these Daiso lines differ from their regular products.

The Strategic Pivot: From Bargain Bin to Beauty Hall

For decades, Daiso operated within clearly defined boundaries. Consumers understood its value proposition: functional household items, novelty goods, and entry-level cosmetics at fixed low prices. The beauty products available were predominantly road-shop brands—accessible, youth-oriented labels like Tonymoly and Nature Republic that already competed on affordability.

That ecosystem is now undergoing fundamental restructuring. The January 2025 launch of Zoom by Jung Saem Mool represents more than a product line—it’s a statement about the evolving perception of value in beauty retail.

The Jung Saem Mool Collaboration: A Case Study in Strategic Brand Extension

Brand Background: Jung Saem Mool is not merely a cosmetics company; it’s the personal brand of one of South Korea’s most respected makeup artists. Known for her work with celebrities and her philosophy of “face redesigning,” Jung has built a reputation for technical excellence and premium formulations. Her mainline products command prices of 40,000-50,000 won (S$45-56), positioning her firmly in the prestige segment.

The Daiso Strategy: The Zoom line launches with 13 products priced between 1,000-5,000 won (S$0.90-4.50)—representing a 90% price reduction from mainline offerings. This isn’t simple discounting; it’s architectural brand planning.

The product selection is deliberate:

• Skin pads: Entry-level skincare that introduces the brand philosophy
• Spatula foundations: Signature application tools that embody Jung’s professional methodology
• Foundation cushions: Korea’s most democratic beauty format, now accessible at unprecedented price points

Risk Mitigation Through Differentiation: By creating a distinct sub-brand (Zoom) rather than simply discounting existing products, Jung Saem Mool maintains brand integrity. The Daiso line likely features simplified formulations, alternative packaging, and positioning focused on everyday accessibility rather than professional-grade performance. This allows the parent brand to retain its premium cachet while capturing price-sensitive consumers who might eventually trade up to mainline products.

Brand Profiles: The New Daiso Beauty Coalition

CNP Laboratory: Pharmaceutical Credibility Meets Mass Accessibility

Brand DNA: CNP (Chaga Nature Pharm) emerged from dermatological research, building credibility through hospital and clinic distribution before entering retail. The brand’s focus on sensitive skin and minimal ingredient lists appeals to the post-K-beauty boom consumer—more ingredient-conscious, less swayed by packaging aesthetics.

Daiso Positioning: CNP’s presence at Daiso represents calculated channel diversification. The brand maintains its premium derma-cosmetic reputation through department store and specialty retail presence while using Daiso to capture trial purchases and younger consumers who’ve heard of the brand through social media but find regular pricing prohibitive.

Singapore Relevance: CNP already has strong recognition in Singapore through Sephora and online channels. A Daiso distribution strategy could significantly expand market penetration, particularly among price-conscious consumers in suburban neighborhoods where Daiso maintains strong foot traffic.

Dongkook Pharmaceutical: Medical Heritage as Marketing

Corporate Profile: Dongkook Pharmaceutical is a 75-year-old Korean pharmaceutical company that entered cosmetics through its understanding of skin biology. Their beauty lines leverage pharmaceutical manufacturing standards and ingredient research capabilities—a powerful differentiator in an increasingly skeptical market.

The Daiso Value Proposition: For pharmaceutical brands, discount retail carries particular risk. Medical credibility depends on perception of quality control and research investment—associations that can erode in bargain-bin contexts. Dongkook’s willingness to enter Daiso suggests confidence in maintaining quality at lower price points, likely through high-volume production efficiency rather than formula compromise.

Singapore Market Dynamics: Singapore consumers demonstrate strong preference for products with medical or pharmaceutical backing, evidenced by the success of brands like CeraVe and La Roche-Posay. Dongkook’s Daiso presence could capture consumers currently trading down from Western pharmaceutical brands due to cost concerns.

VT Cosmetics: The Social Media Success Story

Brand Evolution: VT (formerly VT Cosmenics) built its reputation on the Cica Cream phenomenon—riding the centella asiatica trend to become one of Korea’s fastest-growing mid-tier brands. The brand exemplifies modern K-beauty: ingredient-focused, social media-savvy, and agile in product development.

Multi-Channel Strategy: VT already employs sophisticated channel segmentation, with different product lines for different retail contexts. Their Daiso presence likely features simplified product formats—essence-type products, sheet masks, spot treatments—that introduce brand signatures without cannibalizing core line sales.

Singapore Opportunity: VT has established presence through Guardian, Watsons, and online platforms, but Daiso distribution could capture impulse purchases and expand geographic reach to areas underserved by traditional beauty retail.

Medipeel: Professional-Grade Formulations at Consumer Prices

Positioning: Medipeel occupies interesting middle ground—professional-inspired products marketed for home use. The brand emphasizes clinical testing and dermatologist consultation, appealing to consumers who want professional-quality results without professional-service pricing.

Daiso Fit: Medipeel’s entry suggests Daiso is not merely adding products but curating a portfolio that addresses different consumer needs. Where CNP offers sensitivity-focused solutions and VT provides trend-driven options, Medipeel targets result-oriented consumers willing to follow multi-step routines.

The Singapore Context: Market Dynamics and Competitive Implications

Current Beauty Retail Landscape

Singapore’s beauty retail ecosystem is mature and competitive:

Mass Market: Guardian, Watsons, and supermarket chains dominate accessibility-focused retail Specialty: Sephora and LOOKFANTASTIC serve prestige and curated discovery Discount: Shopee, Lazada, and parallel importers compete on price Department Stores: Takashimaya, Robinsons (now online), and ION galleries maintain luxury positioning

Daiso’s Current Position: With 27 stores across Singapore, Daiso already enjoys strong brand recognition and foot traffic. However, its beauty offerings remain limited compared to Korean operations—primarily basic makeup tools, sheet masks, and entry-level local brands.

Potential Impact Scenarios

Scenario 1: Direct Replication—Daiso Singapore Adopts Korean Beauty Strategy

If Daiso Singapore implements the Korean beauty model directly, several dynamics emerge:

Winners:

• Consumers: Access to pharmaceutical-grade and premium-inspired products at 30-70% below typical retail prices
• Suburban shoppers: Daiso’s presence in heartland malls (Compass One, White Sands, Junction 8) could reduce need for CBD shopping trips
• Older consumers: Daiso’s existing customer base skews older than typical K-beauty retail; making premium brands accessible in familiar contexts reduces purchase barriers

Challenged Players:

• Guardian/Watsons: Their K-beauty sections face direct competition, particularly for brands already present in both channels
• Online discount retailers: Daiso offers immediate gratification and product verification that online channels cannot match
• Independent K-beauty shops: Small retailers in Bugis, Chinatown, and neighborhood malls may lose price-competitive advantage

Scenario 2: Localized Adaptation—Daiso Singapore Develops Unique Brand Partnerships

Singapore’s market differs from Korea’s in critical ways:

• Smaller geographic scale reduces need for extensive distribution
• Higher income levels may limit appeal of extreme budget positioning
• Multi-ethnic consumer base requires different product formulation approaches
• Stronger presence of Western beauty brands creates different competitive dynamics

A localized strategy might involve:

• Partnerships with regional brands (e.g., Safi, Pond’s, Olay) for Daiso-exclusive budget lines
• Focus on specific categories where price sensitivity is highest (sheet masks, cleansers, tools)
• Emphasis on travel sizes and trial kits rather than full-size products
• Integration with online platforms for broader product education

Scenario 3: Conservative Approach—Limited Enhancement of Existing Offerings

Daiso Singapore may choose gradual expansion rather than revolutionary change:

• Adding 2-3 Korean brands annually
• Expanding beauty floor space incrementally
• Testing consumer response before major investment
• Focusing on high-turnover items (masks, pads, cleansers) rather than full skincare lines

Competitive Response Scenarios

Guardian/Watsons Strategy:

• Price matching: Selective discounting on overlapping products
• Exclusive partnerships: Securing rights to brands unavailable at Daiso
• Service differentiation: Beauty advisors, sampling programs, loyalty benefits
• Online integration: BOPIS (buy online, pick up in store) and subscription models

Sephora/Premium Retailers:

• Experience emphasis: In-store makeovers, skincare consultations, exclusive events
• Prestige line protection: Ensuring high-end brands maintain selective distribution
• Innovation focus: First-to-market with new launches and limited editions
• Community building: Beauty classes, brand partnerships, influencer collaborations

Online Platforms:

• Convenience amplification: Same-day delivery, subscription boxes, virtual try-on
• Price aggregation: Positioning as the ultimate comparison shopping destination
• Authenticity guarantees: Addressing gray market concerns that benefit physical retail
• Personalization: AI-driven recommendations and customized product bundles

Consumer Behavior Implications

The Daiso beauty evolution reflects and accelerates several consumer trends:

Democratization of Prestige: Consumers increasingly reject the notion that quality requires high prices. Pharmaceutical-grade ingredients are now commodity inputs; formulation expertise is widely distributed; packaging innovation has been democratized. Daiso validates consumer intuition that many premium products offer minimal functional advantage over well-formulated budget alternatives.

Experimental Purchasing: At S$5-10 per product, Daiso pricing removes purchase risk. Consumers can experiment with new brands, ingredients, and routines without financial commitment. This benefits:

• Trend exploration: Trying viral ingredients (cica, niacinamide, peptides) without investment
• Routine building: Testing multi-step approaches before committing to full-priced systems
• Gift giving: Low-risk options for friends, colleagues, and family

Multi-Channel Shopping: Rather than replacing existing retailers, Daiso likely becomes part of a hybrid shopping strategy:

• Discovery at Daiso: Trial products at low prices
• Research online: Ingredient analysis, reviews, comparisons
• Commitment purchases: Full-size, premium versions from specialty retailers
• Maintenance repurchase: Return to Daiso for proven products

Age Democratization: The Korean data showing even distribution across age groups (20s-60s) is particularly significant for Singapore. Beauty retail has traditionally skewed young, but aging demographics and growing male participation create opportunities for retailers who avoid youth-centric positioning. Daiso’s functional, no-frills environment may actually advantage it with older consumers intimidated by Instagram-aesthetic beauty halls.

Strategic Recommendations for Singapore Market Participants

For Daiso Singapore:

1. Pilot Testing: Launch enhanced beauty offerings in 3-5 stores representing different demographics (CBD, suburban, mature estate) before full rollout
2. Local Brand Partnerships: Engage with Southeast Asian brands seeking Singapore market entry; offer Daiso as low-risk test platform
3. Education Investment: Beauty purchasing requires more guidance than household goods; consider QR codes linking to ingredient explainers, routine suggestions, and application tutorials
4. Authenticity Communication: Address potential consumer skepticism about product quality through transparent sourcing information and brand partnership announcements

For Traditional Beauty Retailers:

1. Service Intensification: Double down on aspects Daiso cannot replicate—personalized consultation, sampling programs, experiential retail
2. Exclusive Access: Negotiate exclusive distribution rights for high-potential emerging brands
3. Subscription Models: Create recurring revenue streams that reward loyalty and reduce price shopping
4. Private Label Innovation: Develop high-quality store brands that compete directly with budget options on value

For Premium Brands:

1. Strategic Channel Management: Carefully evaluate whether Daiso partnership enhances or undermines brand equity
2. Clear Sub-Brand Architecture: If entering discount channels, ensure visual and conceptual separation from mainline products
3. Quality Maintenance: Resist temptation to reduce formulation quality; reputation damage outweighs short-term volume gains
4. Trade-Up Pathways: Design Daiso lines as introductions to brand philosophy, with clear upgrade paths to premium offerings

The Broader Implications: Beauty Retail’s Future

The Daiso phenomenon reflects global retail evolution:

The Collapse of the Middle: Retail increasingly bifurcates between value and experience. Mid-tier retailers offering neither extreme pricing nor exceptional service face existential pressure. Success requires choosing a lane—compete on price efficiency or experiential richness, but attempting both yields mediocrity.

Ingredient Transparency: Informed consumers recognize that expensive and cheap products often share core ingredients. INCI list literacy undermines traditional pricing justifications. Brands must justify premiums through proven efficacy, sustainability practices, or genuine innovation rather than marketing mystique.

Channel Fluidity: The distinction between discount and prestige retail is eroding. Premium brands increasingly appear in unexpected contexts; budget retailers curate elevated assortments. Consumer loyalty lies with products and values, not retail formats.

Conclusion: Watching the Wave

Whether Daiso Singapore fully embraces the Korean beauty model remains to be seen. Regulatory requirements, supply chain logistics, and local market dynamics may slow or modify implementation. However, the underlying forces driving the trend—consumer sophistication, price transparency, brand confidence in multi-channel strategies—exist in Singapore as strongly as in Korea.

For consumers, the implications are unambiguously positive: greater access, lower prices, increased experimentation. For retailers and brands, the challenge is clear: differentiate meaningfully or compete on price. The comfortable middle ground is disappearing.

The beauty industry has always reflected broader cultural values about self-care, aspiration, and identity. Daiso’s transformation suggests a maturation—beauty as accessible routine rather than aspirational luxury, as informed experimentation rather than brand faith. In democratizing access to quality products, Daiso isn’t diminishing beauty culture; it’s expanding who gets to participate.

The revolution will be well-formulated. And it will cost less than you think.