Retail market growth poised to boom
Retail market growth poised to boom
Future trends of the Vietnamese retail market, including the use of digital and AI, were discussed by more than 400 retail experts at a seminar organised in HCM City on Thursday by Vincom Retail Joint Stock Company.
Representatives from retail companies and other experts at the seminar spoke about the retail market’s expected 12 per cent growth by 2020, thanks to stable economic development in Viet Nam.
The retail growth is nearly three times that of the next ranked country in Southeast Asia, according to speakers.
Dinh Thi My Loan, president of the Association of Viet Nam Retailers, told the seminar there was “big room for the modern retail sector to develop” since retail channels such as supermarkets, shopping centres and online shopping platforms accounted for less than 30 per cent of the retail market.
The expansion of retail chains is also a strongly growing trend in the country, she noted.
Companies want to develop chains in all sectors like cosmetics, fashion, and food and beverages.
“Retail chain growth of 20-30 per cent is expected this year,” Loan said.
The development of chains will help companies promote their brands, enhance their competitiveness, increase their revenue, and reduce risks, she said.
Economist Ngo Tri Long noted that Vietnamese corporations were taking the lead in reinventing consumption trends and improving the standard of living in Viet Nam.
The successful retailer, he said, is one with strong capacity who understands what consumers need.
The main trends in the retail industry, experts said, include improving customer’s experiences; combining retail and cultural activities; applying technologies in the retail system; integrating physical and digital; and the rise of APAC brands.
Dymfke Kuijpers, senior partner for consumer strategy and global retail for McKinsey, said that digital and AI were being used in shopping malls and that the lines between traditional retail and e-retail were blurring.
New technologies and AI are enabling stores to tighten links, and new types of partnership between operators and tenants are evolving, she said.
Companies at the seminar also shared their experiences in developing retail chains.
