Modern distribution channels in Vietnam will be diversified by small stores in 2021, especially minimarts, market researchers Nielsen have said.
This diversification will create significant competition between different types of retailers, so they must capitalise on their own strengths.
Supermarket customers are generally older, aged 50-65, while Vietnamese aged 18-24 prefer convenience stores and most shoppers at minimarts are 25-34 years of age.
Nielsen suggested that supermarkets accommodate changing customer shopping habits, improve the customer experience in shopping and payments, and enhance digital application and online and offline cooperation.
Other market researchers have said that retailers with abundant resources, strong market understanding, and updated business strategies will gain a competitive edge.
Saigon Co.op has moved to diversify its retail format, to lead the market in product quality and food safety, promote the development of its own brands, and complete a modern supply chain.
It targets adding 136 stores in 44 cities and provinces to its network this year, serving 2 million shoppers every day. It is also focusing on completing logistics facilities, upgrading services, and expanding new cashless payment methods.
The BRG Group, meanwhile, has decided to shake hands with Japan’s Sumitomo Corporation in a bid to secure the lion’s share of Vietnam’s retail market.