Vietnam Retail Local Conditions and Shopping Mall Growth
Vietnam's traditional retail market situation
Small stores in Vietnam through social mediaShopping mall I will challenge. In recent years, Western-style supermarkets and convenience stores have expanded rapidly. The traditional retail market is exploring new ways to retain repeaters as the retail industry as a whole undergoes major changes.
Even today, traditional retail markets and stores are important suppliers. As Vietnam shifts to a middle-income country, small businesses are looking for restaurants and other sales destinations through social media and websites.
Currently, Vietnam has a per capita gross domestic product of about $ 2,600, approaching $ 3,000. While GDP is booming, the number of traditional markets is about 8,500, almost unchanged from five years ago, according to data from the Statistics Bureau of Vietnam.
The lively Giang Vo market in central Hanoi is popular for its freshness as it processes and provides live fish and chicken on the spot. This is in contrast to supermarkets that serve chilled meat and fish.
Nguyen Hoai Thu, a 35-year-old bank employee and mother of two, said she would shop almost every day in a traditional market that is 20-30% cheaper than supermarkets.
On average, Vietnamese visit traditional markets about 19 times a month, according to a survey conducted by research firm Nielsen in 2018. On the other hand, shopping at supermarkets and convenience stores is about 10 times a month.
Growth of shopping malls (Vingroup AEON MALL)
Shopping malls have grown rapidly in recent years.
According to the Vietnam Statistics Bureau, the number of supermarkets in Vietnam was about 1,000 in 2017, but demand is expanding due to the rise of the middle class. Vingroup, Vietnam's largest retailer, plans to double the number of supermarkets to 200 and double the number of convenience stores to more than 4,000 by 2020.
In contrast to traditional markets where fresh meat and fish are processed and sold on the spot, supermarkets package and sell products. The retail industry, which is shifting to a sales style close to that of Europe and the United States, is attracting interest from foreign companies. Last year, Sumitomo Corporation, a Japanese trading company, entered the supermarket business in Vietnam, and AEON MALL plans to increase the number of shopping malls.
Rent is a problem in the retail market (Seven-Eleven Fujimart)
Despite a strong economic growth rate of around 7%, the retail market is a fiercely competitive segment. According to local media, Ho Chi Minh City has the highest rents in Southeast Asia, putting pressure on corporate profits.
Seven-Eleven announced plans to operate 100 stores within three years when it opened its first store in Ho Chi Minh City in 2017, but currently there are only about 30 stores.
Fujimart Vietnam said, "For the time being, we will be competing with traditional markets rather than other supermarkets."
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