Foreign-invested convenience stores seek to find firm niche in Vietnam
With huge investment, commodities suiting all tastes, ages and income levels, and round-the-clock services, convenience stores could make a splash in the Vietnamese food and beverage market.
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Convenience store is the “youngest” retail channel as it is meant for young customers in Vietnam – one of the nations with the largest young population in the world.
In 2017, Japan’s 7-Eleven convenience store chain swayed Vietnam’s retail market in the southern metropolis of Ho Chi Minh City.
This year, the Republic of Korea (RoK)’s GS Retail (GS Group) is planning to launch the first convenience store GS25 in HCM City on January 19. It moves to expand the market to the capital city of Hanoi after two years and open more than 2,500 stores across Vietnam in the next 10 years.
GS25 is confident to become one of the leading convenience stores in Vietnam after three years of operation.
According to Yun Ju Young, managing director of GS25 Vietnam, with its 28-year experience, the company has invested in a fresh food processing plant in the Mekong Delta province of Long An to supply goods for GS25 convenience stores, and invited Korean cuisine experts to Vietnam to develop Korean products in the Southeast Asian market.
The RoK’s Ilahui fashion accessories convenience stores have set the target of launching at least 200 stores across localities of Vietnam in the next five years.
Early major brands such as Family Mart (Japan), Ministop (a subsidiary company of Japan’s AEON Group), Circle K (the US), and Shop & Go (Singapore) have continuously expanded their systems. Currently, Circle K has 250 stores and Shop & Go has over 108 stores in Vietnam.
According to the HCM City-based market research firm Decision Lab, convenience stores grossed VND4.5 trillion (US$225 billion) in revenue in the third quarter of 2017, up 66% against the same period last year.
By 2020, one convenience store will be able to serve 17,815 people.
