1. Overview
Hirotake Yano (矢野 博丈Yano HirotakeJapanese; April 19, 1943 - February 12, 2024), born Koro Kurihara, was a Japanese businessman renowned as the founder of the global discount retail chain Daiso. His life was marked by significant hardship and numerous business failures before he found extraordinary success. Yano's unique business philosophy, characterized by a focus on social contribution, humility, and an intuitive, "live-for-the-moment" approach, transformed the retail landscape. He pioneered the 100 JPY uniform pricing model, making a wide array of goods accessible to a broad consumer base and profoundly impacting consumer culture both in Japan and internationally. His journey from poverty and debt to leading a multinational retail empire exemplifies resilience and an unconventional, yet highly effective, entrepreneurial spirit.
2. Biography
Hirotake Yano's early life was shaped by family background, post-war relocation, and a series of personal and professional challenges that ultimately forged his distinctive approach to business.
2.1. Birth and Childhood
Hirotake Yano was born Koro Kurihara in Beijing, China, on April 19, 1943. His father was a physician who worked at a hospital in Tianjin during the war. His mother was the daughter of the Yamaoka Bank, a predecessor of the Hiroshima Bank. Yano was the fifth son among eight siblings, growing up in a family of doctors. After World War II, when Yano was six months old, his family repatriated to his father's hometown of Kubara Village in Kamo District, Hiroshima Prefecture (now Higashihiroshima). Despite his father opening a clinic in the center of Hiroshima City on Shinkawaba Street (now Namiki-dori), the family experienced poverty. Yano later moved to Shinkawaba Street in Hiroshima City after graduating from Higashihiroshima Municipal Kubara Elementary School.
2.2. Education and Early Activities
Yano attended Hiroshima Municipal Kokutaiji Junior High School before enrolling in Hiroshima Prefectural Hiroshima Kokutaiji High School, which inherited the traditions of the old Hiroshima First Junior High. During his high school years, he was teased by classmates for his rural accent and subjected to subtle bullying. In response, he began attending a local boxing dojo, developing the physical prowess to fend off bullies. He became deeply involved in boxing, representing Hiroshima Prefecture and being selected for an Olympic athlete preparation camp for the 1964 Summer Olympics in Tokyo. There, he faced formidable opponents, including Tetsuro Kawai, an amateur featherweight champion, and Takao Sakurai, who would go on to win a gold medal in the bantamweight division at the 1964 Tokyo Olympics. Yano's father insisted he study science or engineering for a stable job, preventing him from pursuing a sports scholarship. After failing entrance exams for 16 different universities, he was eventually accepted into Chuo University's night school civil engineering department, graduating in March 1967 with a Bachelor of Engineering degree. While at Chuo University, he founded the Wander Vogel Club for the night school division and worked part-time at Yodobashi Market in Shinjuku, transporting bananas to the Nerima Seika Local Wholesale Market in Takano-dai, Nerima.
2.3. Business Failures and Comeback
During his student years, Yano married Katsuyo Yano, a distant relative. He adopted his wife's surname, believing "Yano" sounded simpler and more approachable for business transactions than "Kurihara." After graduation, he faced difficulties finding stable employment. He took over his father-in-law's yellowtail aquaculture business in Onomichi, but lacking knowledge in the field, the venture failed within three years, leaving him with a debt of 7.00 M JPY (equivalent to approximately 100.00 M JPY in 2024). In late 1970, Yano, his wife, and young son fled to Tokyo, an event he later described as "night escape."
In Tokyo, Yano pursued various menial jobs. For three months, he worked as a salesman for an encyclopedia company, but his shyness prevented him from selling a single book. He then transitioned to collecting waste paper, a highly lucrative business at the time, which allowed him to repay some of his debts. However, the import of foreign waste paper eventually led to the decline of this business. He returned to Hiroshima, working as his brother's chauffeur, at his brother-in-law's bowling alley, installing road signs, and performing various day labor jobs, accumulating a total of nine different occupations. These experiences, including one instance where his home and warehouse burned down due to arson, deeply shaped his resilient and humble business philosophy.
3. Founding and Growth of Daiso
Hirotake Yano's entrepreneurial journey with Daiso began with mobile sales, evolving into a groundbreaking retail model that made affordable goods widely accessible and led to the company's global dominance.
3.1. Transition to Mobile Sales and Founding of Yano Shoten
In the early 1970s, Yano was inspired by a mobile sales operation in Kawajiri Town, Hiroshima Prefecture (now Kure). This "circuit business" involved selling daily necessities from a truck in various locations, catering to a time when logistics were less developed. Yano learned the trade by observing these mobile vendors. In March 1972, at the age of 28, he and his wife founded "Yano Shoten" (Yano Store) in Hiroshima City, selling general merchandise from the back of a truck. His wife later became Daiso's procurement manager, described by Yano as even more capable than himself.
Yano Shoten operated as a "battaya" or discount store, acquiring discounted inventory from bankrupt or financially struggling companies on a cash basis. These were often B-grade items with minor imperfections or surplus goods from company promotions. Yano would purchase truckloads of merchandise from wholesale markets, such as those in Tsuruhashi, Ikuno-ku, Osaka, and sell them in Hiroshima. He displayed goods in baskets on plywood boards laid across beer cases or on blue sheets in front of shrines, agricultural cooperatives, individual shops, or in empty lots near community centers. A bucket or a toolbox served as the cash register. Before setting up shop, Yano would distribute flyers door-to-door in the target area, then open for one to seven days, selling daily necessities like scrub brushes, brooms, sieves, and pots. Unlike competitors who often rotated through western Japan on a two-year cycle, Yano, with his family, primarily operated within Hiroshima Prefecture, visiting the same locations up to four times a year.
3.2. The Innovation of the ¥100 Price Point
The innovative 100 JPY price point, which became the hallmark of Daiso, was not a meticulously planned strategy but an accidental breakthrough. In 1972, while setting up his mobile store, Yano was rushed by eager customers after a sudden change in weather. With too many products and no time to find individual price tags, he impulsively declared, "It's all 100 JPY!" Customers' eyes lit up, and products sold rapidly. This moment revealed the immense appeal of a single, low price point.
Despite warnings from banks and consultants that such a business would not last, Yano persisted, grateful simply to make a living. He deliberately defied conventional retail wisdom by stocking a wide variety of items rather than focusing solely on bestsellers, believing that "products should speak for themselves." The 1973 oil crisis and subsequent inflation caused raw material costs, particularly for plastics and stainless steel, to rise by 10%. Committed to the 100 JPY price, Yano sometimes sold items for less than their cost, even buying at 98 JPY to sell at 100 JPY. He endured customer complaints of "buying cheap, losing money," but their astonishment at the quality for 100 JPY motivated him. This commitment to value, even at the expense of immediate profit, distinguished Daiso.
3.3. Corporate Establishment and Early Expansion
In December 1977, driven by a desire for a more respectable company name, Yano formalized his business as Daiso Industries. He hired employees and expanded his fleet of trucks, though the work remained challenging, often categorized as "3K" (きついKitsuiJapanese - difficult, 汚いKitanaiJapanese - dirty, 危険KikenJapanese - dangerous). Due to the low social perception of "cheap goods" retailers, Daiso struggled to attract university graduates.
Competition for mobile sales locations intensified. Yano sought to sell in front of supermarkets, which offered high sales volumes despite taking a 20% to 25% margin. He successfully negotiated with Izumi, a major Hiroshima-based supermarket chain, achieving sales of 1.00 M JPY in a single day. This success surprised Izumi, leading them to offer Daiso an exclusive partnership. Just as the business gained momentum, Yano's home and product warehouse in Itsukaichi Town (now Saeki-ku, Hiroshima City) were destroyed by arson. Contemplating quitting, he was supported by his brothers, allowing him to resume operations. In 1980, Daiso began establishing sales offices across Japan, starting with Tokyo, to facilitate nationwide expansion.
3.4. Nationwide Expansion and Market Dominance
Daiso's expansion into supermarkets was initially met with skepticism. At an Ito-Yokado store in Kita-Senju, Tokyo, the manager initially dismissed Yano, but the store eventually achieved 1.30 M JPY in daily sales, catching the attention of Ito-Yokado's headquarters. Yano attributed this success to his strategy of overwhelming customers with a vast array of products, allowing the goods to "speak for themselves" rather than relying on sales pitches. His trucks always carried two to three times more merchandise than competitors.
Daiso continued to achieve success with other major retail chains like Mycal (now Aeon), Daiei, and Unny. However, a significant turning point came when Daiei's owner, Isao Nakauchi, decided to discontinue 100 JPY events, deeming them unsuitable for a "new era." In response, Yano strategically opened permanent 100 JPY stores in locations where Daiei's customers would naturally migrate. This marked the beginning of Daiso's modern, permanent store format. The low-profit nature of the 100 JPY business deterred larger competitors, allowing Daiso to expand without significant opposition. Even Daiei's later attempt at an 88 JPY shop failed.
In July 1987, Daiso moved its headquarters from Yano's home in Hiroshima City to its current location in Higashihiroshima. The first directly managed Daiso store opened in April 1991 in Marugamemachi Shopping Street in Takamatsu, Kagawa Prefecture, marking the full-scale launch of its chain operations. Daiso rapidly expanded by leasing inexpensive, pre-existing properties, adapting its vast product range to various store sizes. Yano, having witnessed many companies fail, maintained a constant awareness that "companies can collapse," fostering a cautious and diligent management style.
Daiso's growth accelerated dramatically after the economic bubble burst and Japan entered a prolonged period of economic stagnation in the late 1990s. The 100 JPY shop concept became a phenomenon. From 300 stores in 1994, Daiso expanded to over 1,000 stores by 1998, at one point opening 68 new stores per month. In 1999, annual sales surpassed 100.00 B JPY, reaching over 200.00 B JPY by 2000. Daiso received the "1999 Venture of the Year (Unlisted Company Division)" award. The uniform pricing and wide selection of daily necessities resonated with consumers, establishing "Hyakkin" (百均HyakkinJapanese, literally "hundred yen") as a new retail format symbolizing Japan's deflationary economy. Watami founder Miki Watanabe praised Yano for creating a culture where people could shop without worrying about prices, noting that the company name "Daiso" (大創DaisōJapanese, meaning "great creation") reflected Yano's vision. In March 2001, NHK-BS1 featured Yano in a special program titled "The Man of 100 JPY - Hirotake Yano, the Revolutionary in Distribution." Nikkei Business recognized him as the "innovator of the 100 JPY shop."
3.5. Global Reach and Industry Leadership
Daiso's international expansion began in 2001 with its first overseas store in Taoyuan City, Taiwan. This move was partly influenced by the Taiwanese-Japanese economist Qiu Yonghan, who saw the potential for 100 JPY shops in his homeland. By 2017, Daiso had 3,150 domestic stores and 1,800 overseas. As of 2023, Daiso boasted 4,360 domestic stores and 990 stores in 25 countries and regions overseas, establishing itself as the industry leader. For the fiscal year ending February 2023, its sales reached 589.10 B JPY. The company handles approximately 76,000 different items. Yano's initial dream of reaching 100.00 M JPY in annual sales during his lifetime is now achieved by Daiso's total sales in just one hour. His global success earned him the title of "pioneer of the one-dollar shop."
4. Management Philosophy and Quotes
Hirotake Yano was known for his distinctive and often self-deprecating management philosophy, which stood in stark contrast to conventional business wisdom. His insights, shaped by a lifetime of struggles and successes, emphasized humility, resilience, and a focus on contribution.
4.1. Distinctive Management Style
Yano's public statements often reflected a negative self-perception, which he paradoxically used as a driving force. He frequently used phrases like "unblessed happiness," "can't be helped," "fitting one's station," and his favorite, "self-negation." He even wrote "I'm useless" on his palm. Journalists dubbed him "the millionaire with misfortune clinging to him."
He believed he had "no talent or luck" and that "God gave him no choice but to work hard." He often stated he was "not a smart person," had "no talent," and that he "didn't want to be reborn as himself." This humility extended to his views on modern business, admitting he didn't understand the internet and was "outdated."
Yano's management style was highly unconventional. He claimed to have "no clear vision or strategy," making decisions based on "gut instinct" rather than formal planning. He stated that Daiso had "no meetings, no goals, no budgets, no quotas," and even "no morning assemblies." He believed that "humans have no power to foresee the future" and that success, like the 100 JPY shop, was "just a coincidence" that wouldn't happen repeatedly. He famously said, "I have failed many times, and I thought that whatever I tried, nothing was going to succeed. But I kept going because I thought there was nothing else I could do."
He expressed a deep-seated fear of failure, stating that he had a "conviction that Daiso would collapse" for about six years. He even contemplated suicide if the company failed, imagining hanging himself from a pine tree on a golf course. This fear, he explained, was common in his era when bankruptcy often meant ruin. His ultimate dream was simply "to die on a tatami mat," though he joked it would probably be by suicide.
4.2. Core Principles and Life Philosophy
Despite his self-deprecating remarks, Yano's actions were guided by core principles. His commitment to selling "good products for 100 JPY" stemmed from his desire to overcome the "cheap goods, money loss" criticism. He believed that the true measure of his work would only be known "when Daiso collapses."
He saw the company's growth as a result of continuous effort and adaptation. He acknowledged that competition from rival 100 JPY shops like Seria (which he admitted "beat us in stores and products") and Can-Do created a "sense of crisis" that ultimately helped Daiso recover and improve. Yano emphasized the importance of social contribution, stating that in the "shrinking 21st century," companies must accumulate "goodness and virtue" through social contribution to survive. He also believed that "buying is combat" when it came to procurement and that "customers don't understand" what they truly want, necessitating a wide product range.
5. Later Life and Legacy
Hirotake Yano's later years saw a shift in his public presence and the eventual transition of leadership, leaving behind a profound and lasting impact on the retail industry.
5.1. Later Years and Health Issues
In his earlier years, Yano largely avoided the media and economic organizations. However, around 2000, as Daiso's success grew, he became more frequently featured as a "man of the times." From the 2010s onward, he began accepting more interviews, giving lectures, and appearing in newspapers and magazines. He consistently maintained Daiso's headquarters in Hiroshima, despite suggestions from Tokyo-based executives to relocate. In 2018, Yano suffered a stroke, which led him to step back from daily operations.
5.2. Succession and Leadership Transition
In 2018, Yano named his younger son, Seiji Yano, as the new president of Daiso. He explained his decision by stating that he had become too old and that "the times and myself do not match." He acknowledged that the retail industry increasingly relied on technology and computing, skills he felt he lacked.
5.3. Awards, Recognition, and Media Portrayal
In 2019, Yano received the EY Entrepreneur of the Year national award for Japan, a significant recognition of his entrepreneurial achievements. His life and business were also the subject of various media portrayals, including the 2001 NHK-BS1 special "The Man of 100 JPY - Hirotake Yano, the Revolutionary in Distribution" and his recognition by Nikkei Business as the "innovator of the 100 JPY shop." He also appeared on the TV Tokyo program Cambria Palace in January 2018.
5.4. Death and Posthumous Honors
Hirotake Yano died on February 12, 2024, at the age of 80, due to heart failure. His passing was announced on February 19. Posthumously, he was conferred the Junior Fifth Rank and awarded the Order of the Rising Sun, Gold Rays with Neck Ribbon. His death was widely reported by international media outlets, including CNN in the United States, the BBC in the United Kingdom, and the Chosun Ilbo in South Korea, recognizing him as the "pioneer of the one-dollar shop."
5.5. Enduring Impact on Retail and Consumer Culture
Yano's enduring legacy lies in Daiso's transformative impact on the global retail landscape. By pioneering the uniform low-price model, he created a new retail category that made a vast array of goods accessible to a broad consumer base, regardless of their economic status. Miki Watanabe, founder of the Watami group, noted that Yano "created a culture where one can shop without worrying about price," emphasizing the profound social impact of Daiso's affordability. The company's name, Daiso (大創DaisōJapanese), meaning "great creation," is seen as embodying Yano's vision of creating something significant. His business model not only thrived during economic downturns but also influenced consumer habits, demonstrating that quality and variety could be offered at exceptionally low prices.
6. Personal Life
Hirotake Yano was married to Katsuyo Yano. He had two sons: Hisakazu Yano, who is a professor of Microbiology and Infectious Diseases at Nara Medical University, and Seiji Yano, who succeeded his father as the president of Daiso Industries in March 2018.