The considerable potential of Vietnam's domestic retail market is beingactively promoted by large retailers looking to expand their businessesat a faster pace.
The Ministry of Industry and Trade said themodern retail model in Vietnam accounted for a quarter of the nationalretail value. Vietnam has 724 supermarkets, 132 shopping centres andhundreds of convenience stores. Most of these supermarkets and shoppingcentres are concentrated in large cities. Meanwhile, sale agents aremainly located in rural areas.
Given their great potential,foreign and local retailers had stepped up the development of theirretail network nationwide, reported vnexpress.net, a local onlinenewspaper.
VinMart, a retail brand of VinGroup, entered the localmarket in 2014. VinGroup plans to restructure 13 of the existingsupermarkets of Ocean Mart this year after buying Ocean Mart from theOcean Group last year and develop under the VinMart brand.
Duringthe next three years, VinMart also expects to add 100 supermarkets and1,000 convenient stores nationwide to its retail system via newinvestment projects or mergers and acquisitions (M&As) projects.
Duringthe review quarter, movements were observed from both local and foreignretailers, according to the first quarter report on the Hanoi propertymarket of CBRE Vietnam, one of the foreign property service providers inVietnam.
Vincom Retail aggressively expanded the Vinmart+ chain,including mini-supermarkets and convenient stores, while opening twonew brands for the VinPro (electronics outlet) and VinDS (departmentstore) in 2015, the CBRE report said.
Strong expansion was alsoreported from the Aeon Group (Japan) and two other retailers fromThailand (BJC and Central Group) via their partnership with localretailers, it said.
Emart, a Republic of Korea retail group,plans to open its first trading centre, with a total investment of 60million USD in Ho Chi Minh City going forward.
Meanwhile,vnexpress.net quoted Hong Won Sik, General Director of the Lotte VietnamTrading Centre Ltd Company, as saying that the company has promotedinvestment in its retail system in Vietnam because the local retailmarket held great potential, especially in the rural areas.
Thisyear, Lotte Vietnam was scheduled to open three more supermarkets in CanTho, Nha Trang and HCM City, he said. By 2020, the company would have60 trading centres in Vietnam and would have become one of the leadingretailers in the nation.
In HCM City, the retail market is alsoexpected to expand to the secondary and suburban areas faster than thecentral business districts (CBDs) due to growing demand for goods from alarge and expanding population, the Savills Vietnam's first quarterreport on the HCM City property market said.
From 2015 onwards,the total future supply in the secondary area would account for 57percent, followed by the suburban areas, with 27 percent and the CBDs at16 percent, the report said.
A retail manager from a foreigncompany in Vietnam said the retail market would see more intensecompetition in the future. Therefore, new businesses in the market wouldfind it hard to compete with existing retailers if they did not havegreat potential.
If the existing large retailers did notrestructure themselves to boost market share, the new retailers wouldcapture their market share, the retail manager said. In the future, thetrend of M&As in the retail sector would continue and e-commerce inthe sector would also develop further.
In a recent consumersurvey conducted by CBRE, where 1,000 consumers aged 18 to 64 years old,were interviewed in Hanoi and HCM City, a quarter of the respondentssaid they expected to shop less often at a store.
Around 45 to 50percent of the respondents said they would shop online via a desktop orlaptop or smartphone or tablet more often than they did now.
Itwas surprising that a greater proportion of consumers (69 percent) agedfrom 55 to 64 years actually thought they would use their smartphones ortablets more frequently to buy non-food items.
Although theoutlook for the brick-and-mortar retailer format still remains upbeat,shopping centre operators should be aware of the challenges posed byonline retailers, CBRE said. This would be crucial for shopping centremanagement and related areas, such as marketing.
It was suggestedthat retailers and landlords should also take advantage of this trendand do more online selling and advertising via social media and theirwell customised "Business to Customer (B2C)" websites.
Inaddition, CBRE recommended that landlords adapt their strategy to boostboth e-commerce and offline business activities by leveraging "bigdata", which can track levels of consumer engagement, implement Onlineto Offline (O2O) strategies, and create simple and useful applicationsfor those who wanted to shop via their smartphone or tablet.-VNA
The Ministry of Industry and Trade said themodern retail model in Vietnam accounted for a quarter of the nationalretail value. Vietnam has 724 supermarkets, 132 shopping centres andhundreds of convenience stores. Most of these supermarkets and shoppingcentres are concentrated in large cities. Meanwhile, sale agents aremainly located in rural areas.
Given their great potential,foreign and local retailers had stepped up the development of theirretail network nationwide, reported vnexpress.net, a local onlinenewspaper.
VinMart, a retail brand of VinGroup, entered the localmarket in 2014. VinGroup plans to restructure 13 of the existingsupermarkets of Ocean Mart this year after buying Ocean Mart from theOcean Group last year and develop under the VinMart brand.
Duringthe next three years, VinMart also expects to add 100 supermarkets and1,000 convenient stores nationwide to its retail system via newinvestment projects or mergers and acquisitions (M&As) projects.
Duringthe review quarter, movements were observed from both local and foreignretailers, according to the first quarter report on the Hanoi propertymarket of CBRE Vietnam, one of the foreign property service providers inVietnam.
Vincom Retail aggressively expanded the Vinmart+ chain,including mini-supermarkets and convenient stores, while opening twonew brands for the VinPro (electronics outlet) and VinDS (departmentstore) in 2015, the CBRE report said.
Strong expansion was alsoreported from the Aeon Group (Japan) and two other retailers fromThailand (BJC and Central Group) via their partnership with localretailers, it said.
Emart, a Republic of Korea retail group,plans to open its first trading centre, with a total investment of 60million USD in Ho Chi Minh City going forward.
Meanwhile,vnexpress.net quoted Hong Won Sik, General Director of the Lotte VietnamTrading Centre Ltd Company, as saying that the company has promotedinvestment in its retail system in Vietnam because the local retailmarket held great potential, especially in the rural areas.
Thisyear, Lotte Vietnam was scheduled to open three more supermarkets in CanTho, Nha Trang and HCM City, he said. By 2020, the company would have60 trading centres in Vietnam and would have become one of the leadingretailers in the nation.
In HCM City, the retail market is alsoexpected to expand to the secondary and suburban areas faster than thecentral business districts (CBDs) due to growing demand for goods from alarge and expanding population, the Savills Vietnam's first quarterreport on the HCM City property market said.
From 2015 onwards,the total future supply in the secondary area would account for 57percent, followed by the suburban areas, with 27 percent and the CBDs at16 percent, the report said.
A retail manager from a foreigncompany in Vietnam said the retail market would see more intensecompetition in the future. Therefore, new businesses in the market wouldfind it hard to compete with existing retailers if they did not havegreat potential.
If the existing large retailers did notrestructure themselves to boost market share, the new retailers wouldcapture their market share, the retail manager said. In the future, thetrend of M&As in the retail sector would continue and e-commerce inthe sector would also develop further.
In a recent consumersurvey conducted by CBRE, where 1,000 consumers aged 18 to 64 years old,were interviewed in Hanoi and HCM City, a quarter of the respondentssaid they expected to shop less often at a store.
Around 45 to 50percent of the respondents said they would shop online via a desktop orlaptop or smartphone or tablet more often than they did now.
Itwas surprising that a greater proportion of consumers (69 percent) agedfrom 55 to 64 years actually thought they would use their smartphones ortablets more frequently to buy non-food items.
Although theoutlook for the brick-and-mortar retailer format still remains upbeat,shopping centre operators should be aware of the challenges posed byonline retailers, CBRE said. This would be crucial for shopping centremanagement and related areas, such as marketing.
It was suggestedthat retailers and landlords should also take advantage of this trendand do more online selling and advertising via social media and theirwell customised "Business to Customer (B2C)" websites.
Inaddition, CBRE recommended that landlords adapt their strategy to boostboth e-commerce and offline business activities by leveraging "bigdata", which can track levels of consumer engagement, implement Onlineto Offline (O2O) strategies, and create simple and useful applicationsfor those who wanted to shop via their smartphone or tablet.-VNA
