Many changes in the retail market

Vietnam retail market is one of the fastest growing markets in the world.

According to the experts at the seminar, the retail market had a strong breakthrough in the past 10 years. After a relatively modest development period, convenience stores and mini supermarkets in Vietnam are experiencing significant changes with the participation of many domestic and international brands. In Ho Chi Minh City, mini supermarkets and convenience stores are appearing massively with more than 1,000 locations of domestic and foreign brands such as Family Mart, B's mart, Circle K, Ministop, Shop & Go, Vinmart, Co.op Food. ...

According to the statistics of Kantar Worldpanel Vietnam, convenience stores of foreign brands also thrive with 297 Circle stores, 160 AfamilyMart, 168 B's mart, 119 Shop & Go and 116 Mini Stop. Next, the participation of 7Eleven and GS 25 in the Vietnam market also promises to create more excitement for this playground.

According to the Family Mart's plan to expand its business in Vietnam, it is expected that there will be 1,000 stores in Vietnam in 2020; and 7-Eleven (Japan) will expand its business with 1,000 stores in Vietnam after 10 years (2027). Meanwhile, Vietnamese brands are also actively expanding their market shares; For example, the largest convenience store chain in Vietnam - Vinmart+ - is expected to have 4,000 stores by 2020.

In addition, the supermarket model is also changing

Big C has 35 business points, Aeon has 4 points, MM Mega has 19 points, LotteMart has 13, Chan has 20. More and more supermarkets follow the big business model, in which hypermarkets are stepping up. For example, Aeon follows this direction, even Emart also chooses the large supermarket model to exploit. Foreign brands want to integrate services to serve consumers in order to compete with existing, traditional retail brands.

Following the vibrant development of the retail market is the competition between domestic and foreign companies. Currently, domestic retail chains account for 73% of the market, with 68% in the big cities and 84% in the rural areas. In terms of brand name, Saigon Co.op is gaining market share and wide network. Up to now, Saigon Co.op has reached 100 supermarkets nationwide, bringing the total number of retail points to over 600 with about 1 million customers visiting and shopping every day. The rest of the market is divided by foreign retail brands. Private label is the key element that makes up the difference of foreign retail brands. In the past three years, the domestic retail chains have maintained their consistent rate of domestic sales with annual growth rates.

According to the survey and evaluation of Nelsen Vietnam, young consumers are leading the market. Fast delivery is also the need for retailers to respond. In particular, retailers should not discriminate online or offline retail, but must integrate the multi-channel retail model to meet consumers’ needs.

Mr. Bob Hayward, the KPMG's strategic consultant, said that the global retail industry was changing a lot. Vietnam is not out of the trend. Currently, some European technology companies are looking to penetrate the Vietnam market. This is the opportunity for the retail industry to continue to "change its look" in the future. According to this trend, a retail enterprise will become a technology company working in the retail industry. Similarly, this trend will also occur in the manufacturing, finance industry.

According to experts, the development opportunities in the Vietnam market are available. In the large urban market, consumers will increase purchasing due to their improved incomes. The Vietnam retail market is in a good stage. However, companies need to move faster than the trend if they want to keep their market share and grow faster.

According to the consultant of the Nelsen Retail Sales Director, retailers need to promote their brands. In addition, the personalization factor should be noted by Vietnamese retailers. Meanwhile, Big data is a trend. Accordingly, customer’s data exploiting is also an effective channel for business activities. In addition, businesses also need to design unique and attractive sales programs and develop them in many channels to increase their competitiveness.