Thursday , March 30 2023

Vietnam Retail Industry Overview


International market lecturers from some of the world's leading market research firms have explained this in the Vietnamese Retail Trends Workshop 2018-2020 and the Union's Saigon Co.op Development Orientation. The Ho Chi Minh City-Saigon cooperative was organized on 7-11 days.

Vietnam Retail Map Relocation

In the top five most competitive markets, Vietnam was an attractive destination for major retailers around the world. Nguyen Huy Hoang, a commercial director at Kantar Worldpaner Vietnam, said that many foreign retailers have penetrated Vietnam as they pioneered markets primarily in supermarkets and malls. Currently, Big C has 35 supermarkets, Aeon has 4, Mega Mall has 19 supermarkets, and the other has 13 Lotte supermarkets. Over the past few years, many foreign retailers have penetrated the market and developed a mini-supermarket, a convenience store model.

Vietnam Retail Business Overview - Picture 1.

This workshop has gathered the international speaker of a prestigious market research firm Photo: Mai Huy

Hoang added that foreigners are now more focused on convenience stores and mini-supermarkets. However, they still focus on system development and customer service, especially in urban areas. As a result, local retailers are still relatively high on overseas markets. In recent years, regional retailers, particularly Saigon Co.op, have maintained rapid growth in the rapidly moving consumer goods industry. In particular, supermarket models and mini-supermarket retailers were still dominant.

According to Jason Moy, executive director of BCG Singapore, the traditional electronic retail market has been connected more in the last five to ten years. According to this trend, retailers tend not to develop virtual stores to search for information, and to find more of their products on the Internet.

According to Jason Moy, Vietnam's retail and retail business is changing rapidly. Retailers need to focus on digital marketing and online sales applications. This is a general trend that allows customers to quickly market what they want, making the experience easier and more convenient. International distributors now tend to use artificial intelligence (AI) robots in the supply chain, but this cost is very high. For example, Amazon invested $ 16 billion and Alibaba invested more than $ 5 billion in AI, "added Jason Moy.

Vietnam Retail Business Overview - Picture 2.

Diep Dung, chairman of Saigon Co.op, said the division is focused on maintaining the position of Vietnam's retail consumer goods. Photo: Mai Huy

Technology will lead the market

According to Nielsen's retail partner Le Thi Thuy Trang, Vietnamese consumers are spending more money on non-consumer goods such as electronics, pharmaceuticals, tourism and real estate. … shows a trend to bring life. However, the fast-growing consumer market is slowly recovering.

Trang said Vietnam is an excellent retail market dominated by traditional retail (76%), but said retail channel growth is only 1%. Meanwhile, modern retailers account for 26% of the market, but are growing by 11.8% in double digits. "Future retail trends will form key functions such as convenience, lifestyle upgrades, consumer connectivity and home consumer appeal," he said.

Bod Hayward, president of KPMG, has recently come to Vietnam with many large retailers. Low retail / population density still shows opportunities for newcomers.

According to experts, many customer services in the future will be virtualized with technology, so business people can know who their customers are and what they want. By analyzing large data, traders know that they need to serve their customers better. Because of the internet connection, you can easily get multi-channel shopping because of lack of cash flow. Vietnam is in a good stage of retailing and will grow and prosper. Retailers want to compete with competitors faster and want to go faster, so they need to acquire skills, master network purchase channels, and make a difference.

How will it affect Saipong cooperation as well as domestic retailers in the future? Nguyen Anh Duc, Saigon Co-op senior deputy director, said Saigon Co-op came out of a collaborative model. The cooperation model has developed strongly around the world depending on the characteristics of each country. Currently, Saigon Co.op has 100 supermarkets in more than 600 retail outlets, with approximately 1 million customers visiting each day. In addition to the current model, Saigon Co-op will continue to develop a new retail model that will reach 2 million customers in more than 2,000 stores in Vietnam and surrounding areas by 2020.

Saigon Co.op is gradually applying the latest technology for each retail model. In particular, the market will focus on the application of technology, at the same time the food sector, organic product strategy …

High concentration to maintain leading position

According to market researchers, the domestic retail chain accounts for 73% of the market share (68% for large cities and 84% for rural markets). In terms of brands, Saigon Co.op has market share and network coverage. Diep Dung, chairman of Saigon Co.op, said he is focused on investing in the company although it is not subjective, despite its leadership in the consumer goods distribution industry in Vietnam. Information technology, capital, and management help you stay ahead of the competition.

According to Kanta's survey, which runs from 2016 to 2018, the & # 39; Coupon Market Check & # 39; is still a supermarket where consumers love and trust.

Existing retailers have their own locations.

Experts analyze shop times more effectively when retailers adopt technology to create supermarkets, product selection … shopping activities that are no longer available but are replaced by technical tools. Supports long-term subscription orders, virtual tides, robots that request purchases based on schedule …

But traditional retailers still have a unique position, so you need to focus on improving interoperability with your loyal customers. At the same time, ongoing cost savings, product portfolio reorganization, key services, localization … create special and special things that customers can not find elsewhere. At the same time, you need to create a supply chain that automates some of the "speed" trends.

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