Retailers rush to expand market share

The race for domestic retail market share was heating up as local and foreign firms looked to expand their networks, experts said.

Retailers rush to expand market share hinh anh 1

Local retailers want to expand their market share in the face of fierce competition from foreign investors 

At a recent meeting in HCM City, Truong Cong Thang, general director of VinCommerce Company, told partners that the retailer wanted to open nearly 10,000 stores and more than 300 Vinmart supermarkets in the next five years.

In addition, the company also plans to attract 100 strategic partners with an ambition to lead the Vietnamese retail market. The company’s financial report showed that in the first nine months of the year, revenue reached 23.6 trillion VND, posting a 56.5 percent year-on-year increase.

Meanwhile, Saigon Co.op is looking at expanding its network to at least 2,000 stores and annual average revenue growth of 8-10 percent in the next five years.

It has already opened 849 stores in 43 provinces and cities that attract 350,000 customers a day, up 26 percent compared to five years ago.

Another leading retailer in HCM City, Satra, said that they targeted to have five Satramart supermarkets and four malls by 2025, and depending on the market situation, 150-250 Satra branded stores.

Local retail giants are looking to expand their market share in the face of fierce competition from big foreign investors such as Aeon, Lotte, Big C and Mega Market.

The latest example is in October 2020, Japan's largest retailer cosmetics chain Matsumoto Kiyoshi opened its first store in HCM City.

In July 2020, leading Japanese retailer Muji also opened a store in HCM City. Japanese fashion retailer Uniqlo, launched its first store last year.

Japanese retailer Aeon is also surveying a third shopping mall in HCM City in 2021, and plans to have 25 shopping malls in Vietnam by 2025 with a capital source of 2 billion USD for the investment.

 

Hirai Shinji, chief representative of JETRO HCM City (Japan External Trade Organisation) was quoted as saying by Thoi bao Kinh Doanh that after the COVID-19 pandemic and the market was gradually recovering, it was a favourable time for Japanese retail groups to open in Vietnam.

This would lead to fiercer competition, the experts said.

It was also important to note the efforts of domestic retailers to expand their systems into neighbouring areas of big cities, as urbanisation and incomes in these areas had been increasing.

Experts said that although retail sales were concentrated in major cities and key economic regions, with the high speed of urbanisation, these areas would become the driving force for growth instead of existing big cities.

As a result, many domestic retailers had been gradually expanding to areas surrounding the big cities. The evidence is quite clear from data showing that suburban stores brought in more revenue with higher growth than inner cities.

According to retail expert Nguyen Van Thinh, the number of supermarkets in 2020 had been decreased by 20 percent compared to 2019 - from 336 to 330. This decrease mainly came from Vinmart.

Meanwhile, the number of convenience stores has marked a growth of 60 percent - from 2,495 in 2019 to 5,228 stores in 2020. This came from Vinmart and Bach Hoa Xanh.

Small stores recorded a slight increase in 2020, while shopping centres posted a growth rate of about 11 percent from 96 centres in 2019 to 107 in 2020.

Thinh said that although there were many changes in 2020, Vietnam was still one of the most attractive retail markets in the world, and competition in the market was becoming more and more intense.

For some brands, it was an increase in the number of stores, others had to face restructuring, he said./.VNS

 
 

Other News

.
Vietnam retail market records $172 billion in 2020
Vietnam retail market records $172 billion in 2020
BUSINESSicon  05/01/2021 

Such growth rate, while remaining lower compared to the 12.7% recorded the previous year, was an encouraging sign for the business community amid global retail market suffering plunge in revenue during the pandemic.

Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021
Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021
BUSINESSicon  05/01/2021 

The fact that interest rates are still very low, will help the local stock markets continue to be an attractive and profitable channel, thereby attracting domestic investor.

Covid-19 costs Vietnam US$19 billion in export revenue
Covid-19 costs Vietnam US$19 billion in export revenue
BUSINESSicon  05/01/2021 

Vietnam could have earned US$300 billion from exports this year but the export revenue stood at just US$281 billion due to Covid-19, said Minister of Industry and Trade Tran Tuan Anh.

Banks report satisfactory business results for 2020
Banks report satisfactory business results for 2020
BUSINESSicon  05/01/2021 

Improving corporate governance and listing shares on the bourse were the major activities of banks in 2020. Digital transformation was also accelerated.

Aviation sector: trying to survive the storm of 2020
Aviation sector: trying to survive the storm of 2020
FEATUREicon  05/01/2021 

2020 was a disastrous year for the aviation and tourism industries, which were hit hard by the Covid-19 pandemic.

Rooftop solar power saw tremendous growth in 2020
Rooftop solar power saw tremendous growth in 2020
FEATUREicon  04/01/2021 

Over 100,000 rooftop solar power works with total capacity of 9,300 MW were connected to the national grid by December 31, 2020.

Overcoming pandemic shocks, maintaining high growth rate, Vietnam is the ‘next Asian miracle’
Overcoming pandemic shocks, maintaining high growth rate, Vietnam is the ‘next Asian miracle’
FEATUREicon  05/01/2021 

Vietnam was among the countries gaining the highest GDP growth rates in 2020, which could serve as a launching pad for further growth.

First trading session of Vietnamese stock market in 2021 opens
First trading session of Vietnamese stock market in 2021 opens
BUSINESSicon  04/01/2021 

The first trading session of Vietnam’s stock market in 2021 opened on January 4, with a gong-beating ceremony held by the State Securities Commission and the Hanoi Stock Exchange (HNX).

Evaluating and estimating state budget to reduce deficit and increase efficiency
Evaluating and estimating state budget to reduce deficit and increase efficiency
BUSINESSicon  05/01/2021 

According to Minister of Finance Dinh Tien Dung’s latest report delivered recently at the National Assembly (NA), Vietnam achieved most of its financial goals in the last four years, including for 2020.

Restoring confidence after a challenging year
Restoring confidence after a challenging year
BUSINESSicon  05/01/2021 

The confidence of European business leaders in Vietnam is returning thanks to the government’s response to COVID-19 during 2020, with the focus on embracing the opportunities in a new normal. 

Building on economic resilience for the future
Building on economic resilience for the future
BUSINESSicon  04/01/2021 

Since the beginning of its reform in the late 1980s, Vietnam has achieved extraordinary results in its economic development.

Impressive growth seen across real estate
Impressive growth seen across real estate
BUSINESSicon  05/01/2021 

While the pandemic has affected nearly every business, Vietnam’s real estate sector has seen significant movements throughout the year. 

Power firms seek foreign funding as loans become expensive, hard to get
Power firms seek foreign funding as loans become expensive, hard to get
BUSINESSicon  04/01/2021 

The quickest and most effective way to raise funding for power projects is to enter into an alliance with foreign investors, Nguyen Anh Tuan, general director of Phu Yen TTP Joint Stock Company, said.

Aviation industry forecast to face a hard year in 2021
Aviation industry forecast to face a hard year in 2021
BUSINESSicon  04/01/2021 

Despite a recovery in the final months of this year, the aviation industry is forecast to face further difficulties in 2021.

Vietnam’s 2020 retail sales see the lowest growth in nine years
Vietnam’s 2020 retail sales see the lowest growth in nine years
BUSINESSicon  04/01/2021 

Vietnam’s total revenue from retail trade and services reached over VND5 quadrillion (US$219.5 billion) in 2020, representing a modest yearly rise of 2.6 per cent, according to the General Statistics Office (GSO).

2020 not a good year for bank stock debuts
2020 not a good year for bank stock debuts
BUSINESSicon  04/01/2021 

Debuting on a new bourse may give a boost to the stock price, but the market reactions were not quite positive for the banks doing so in 2020.

Experts hope for brighter market outlook after remarkable year
Experts hope for brighter market outlook after remarkable year
BUSINESSicon  04/01/2021 

Analysts from securities companies are optimistic about stock market movement during the first trading week of this year and betting the positive trend will continue.

VIETNAM BUSINESS NEWS JANUARY 5
VIETNAM BUSINESS NEWS JANUARY 5
BUSINESSicon  05/01/2021 

Business closure hits record high amid pandemic

HCM City’s EPZs, IPs attract over $747.6 million in 2020
HCM City’s EPZs, IPs attract over $747.6 million in 2020
BUSINESSicon  04/01/2021 

Over $747.6 million were poured into export processing zones (EPZs) and industrial parks (IPs) in Ho Chi Minh City in 2020, representing a year-on-year increase of 15.79 percent.

Vietnam exports over 1.7 million tonnes of coffee in 2020
Vietnam exports over 1.7 million tonnes of coffee in 2020
BUSINESSicon  04/01/2021 

Vietnam gained $2.7 billion from shipping an estimated 1.7 million tonnes of coffee abroad in 2020, accounting for over 10 percent of the world’s coffee value and 18 percent of the market share.

 
 
 
Leave your comment on an article

OR QUICK LOGIN