Vietnamese retail market: early bird will catch the worm
Gone is the time when big fish swallow smaller fish. It is now the time when faster fish will eat slower ones, according to Nielsen.
Experts attending the 2015 Vietnam Retail Forum all noted that e-commerce will develop strongly in the time to come.
Chau Ngoc Hanh from Nielsen Vietnam, the retail consultancy service provider, said more than 1 billion consumers worldwide are willing to buy goods online, while 73% of global consumers have confidence in online comments.
It also found a big contribution to online shopping from millennials, i.e., the consumers aged 21-34.
A report said 50 billion smart devices will be used all over the world by 2020. In Vietnam, 80 percent of the population uses mobile phones before they go to bed.
An analyst said he agrees that big shopping malls would have bigger advantages than smaller ones.
“You may see that a lot of big shopping malls with very high investment capital and located in advantageous positions in central business districts, such as Hang Da Galleria, Grand Plaza and Trang Tien Plaza, have been operating ineffectively,” he said.
Meanwhile, Richard Leech, managing director of CBRE Vietnam, believes that convenience store chains would increase in the time to come.
He said 22% of Vietnamese consumers would buy goods from convenience stores the next year.
In order to exist in the retail market, where the competition is getting stiffer, Hanh said businesses should better understand customer demand and create exciting shopping experience for consumers.
According to Hanh, the strong rise of middle-class income earners would lead to the strong development of personalized high-end products.
Meanwhile, the household scale will fall to 3.4 people in every family in Hanoi and 3.1 in HCM City. This would lead to customers buying fewer goods for families, while products and packages should be designed to have smaller sizes.
She went on to say that in the future, consumers would buy goods based on their sudden liking, while they will not make purchasing plans. Therefore, the advice for retailers is that they should design solutions allowing consumers to shop and have meals, relax and have healthcare services at the same time so as to satisfy the diverse demands from different groups of customers.
Nielsen’s representative also suggested retailers pay higher attention to utilizing technology as an instrument to attract more customers. User-friendly interface, quick access and diversified features will help lure modern customers.
Chau Ngoc Hanh from Nielsen Vietnam, the retail consultancy service provider, said more than 1 billion consumers worldwide are willing to buy goods online, while 73% of global consumers have confidence in online comments.
It also found a big contribution to online shopping from millennials, i.e., the consumers aged 21-34.
A report said 50 billion smart devices will be used all over the world by 2020. In Vietnam, 80 percent of the population uses mobile phones before they go to bed.
An analyst said he agrees that big shopping malls would have bigger advantages than smaller ones.
“You may see that a lot of big shopping malls with very high investment capital and located in advantageous positions in central business districts, such as Hang Da Galleria, Grand Plaza and Trang Tien Plaza, have been operating ineffectively,” he said.
Meanwhile, Richard Leech, managing director of CBRE Vietnam, believes that convenience store chains would increase in the time to come.
He said 22% of Vietnamese consumers would buy goods from convenience stores the next year.
In order to exist in the retail market, where the competition is getting stiffer, Hanh said businesses should better understand customer demand and create exciting shopping experience for consumers.
According to Hanh, the strong rise of middle-class income earners would lead to the strong development of personalized high-end products.
Meanwhile, the household scale will fall to 3.4 people in every family in Hanoi and 3.1 in HCM City. This would lead to customers buying fewer goods for families, while products and packages should be designed to have smaller sizes.
She went on to say that in the future, consumers would buy goods based on their sudden liking, while they will not make purchasing plans. Therefore, the advice for retailers is that they should design solutions allowing consumers to shop and have meals, relax and have healthcare services at the same time so as to satisfy the diverse demands from different groups of customers.
Nielsen’s representative also suggested retailers pay higher attention to utilizing technology as an instrument to attract more customers. User-friendly interface, quick access and diversified features will help lure modern customers.