Impressive display areas made entirely of bamboo at the first Uniqlo store in Hanoi have "snatched the hearts" of young people at beautiful check-in counters. The Japanese brand has shown its understanding of the history and culture of Hanoi.

At an Uniqlo store in Vietnam.

And at Muji stores, in addition to fashion and furniture, they offer customers special services such as a coffee shop with a fine selection of tea and coffee, rice flour cakes and Japanese confectionery. The stores also sell a variety of fresh, quality and healthy fruit and vegetable products.

At Muji in Hanoi, consumers can choose their favorite embroidery pattern from more than 300 available designs and letters and order embroidery on products they choose.

Another example that shows how Japanese businesses please their customers is a story from Aeon Long Bien in Hanoi.

A short video that showed hundreds of people flocking to the store to lie on the floor to avoid the scorching heat outside went viral. The very next day, this store added tables and chairs at the location where people had previously rested.

The Vietnamese retail market used to have many famous foreign brands such as Metro Cash & Carry, Auchan, Bourbon, Lotte Mart, Familymart, Emart... Some have left while others have maintained moderate operations, while many Japanese retail brands have been successful in the market, perhaps from the ways they please Vietnamese consumers.

Hello – Thank you

In Japanese language, "Omotenashi" means welcoming and taking care of customers, with utmost dedication and sophistication. Entering any Uniqlo store, Vietnamese customers will be greeted with a warm "Welcome to Uniqlo!". And then there are caring and considerate sentences such as: "Have you found everything you need?" or "Thanks for waiting".

The brand also uses the concept of "kaizen" which means constant search for perfection, and applies this to the in-store experience. When shopping, customers can easily find their favorite clothes through stacks of shirts and pants arranged by color and size in each area.

Muji follows the principle of "cheaper is better for a reason". Mr. Tetsuya Nagaiwa, General Director of Muji Vietnam, says this brand steadfastly pursues three core principles, including: selecting the most suitable raw materials, optimizing production processes, and simplifying packaging. In particular, some items have very affordable prices thanks to supplies from local partners.

The "one destination" model of Aeon Mall has brought new experiences to Vietnamese customers. Serving the masses, Aeon Mall has ordinary goods, with stalls of fashion goods. As they focus on the lower-end segment, they don't emphasize the brand-name factor. In addition, they integrate entertainment elements such as weekend events to draw crowds and create an environment for family members.

The Japanese have succeeded in the Vietnamese market, and despite Covid-19, their stores are always packed with customers.

Mr. Hirai Shinji, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, said Japanese corporations have expanded their business in Vietnam in recent years.

After only two years, the famous casual retail chain Uniqlo now has 10 stores in the country and is a purchasing partner of 45 garment factories in Vietnam. At the end of October 2021, Uniqlo launched a new store in a shopping center in Ha Dong district, Hanoi. In early November, Uniqlo opened an online store in Vietnam with more than 15,000 products.

Despite the pandemic and the gloomy situation of the retail market, Muji, a famous Japanese brand for household and life products, has opened new stores in Vietnam. Muji recently opened its first store in Hanoi and its second store in Vietnam after opening its first store in HCM City.

The first store of Japan's largest cosmetic chain, Matsumoto Kiyoshi, also opened its doors to customers at Vincom Dong Khoi in HCM City. Matsumoto Kiyoshi plans to open about 10 standard stores with an area of 500-2,000 m2 within the next 3-5 years in major cities in Vietnam, besides hundreds of other stores in the country.

Aeon Vietnam, since opening its first shopping center in Aeon Tan Phu Celadon in 2014, has expanded its system to six provinces and cities across the country. Aeon Vietnam is currently operating three shopping malls, three department stores and supermarkets, and 29 specialized stores.

Takashimaya Group has invested about 5 billion yen ($47 million) in Vietnam since 2012, including Saigon Center Shopping Mall and other real estate. Takashimaya in Vietnam has a chain of flagship stores with 58 product brands appearing for the first time in Vietnam, including 31 Japanese brands.

Many other Japanese retailers have started to expand their business in Vietnam as many localities have eased social distancing measures and the vaccination pace has increased rapidly. The joint venture between BRG Group and Sumitomo is expanding the FujiMart supermarket system. Takashimaya, Family Mart, MiniStop, 7-Eleven are also expanding.

Mr. Hiroyuki Ono, representative of ACA Investment Fund, said the fund is looking to invest in good companies in the field of fashion retail and consumer services in Vietnam.

With Japanese investors already earning market share in Vietnam, they are confident about the future. Mr. Tetsuya Nagaiwa, General Director of Muji Vietnam, said the Vietnam retail market potential is one of the best in the world. Vietnam has attracted many investors as the economy continues to grow and the population of young people with middle incomes is constantly increasing.

Founder and CEO of Fast Retailing Tadashi Yanai emphasized that Vietnam is the company's leading important production base in Southeast Asia.

The continuous expansion in the Vietnamese market of old and new names from Japan shows that the Vietnamese retail market is a "magnet" for Japanese retail giants.

The increase in market share of Japanese retailers is a warning for domestic players. If Vietnamese businesses do not develop a methodical and long-term investment strategy, they will lose their position at home.

Duy Anh