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Retailers work to take on foreign rivals
With the retail sector thrown open to foreign investment, domestic players are trying to improve the quality of their service and goods and draft long-term strategies to take on foreign rivals.
Sai Gon Coop chairman Nguyen Ngoc Hoa says 3 million USD has been spent on modernising CoopMart’s management and training staff.
The cooperative also plans to upgrade its logistical capabilities, including storage, refrigeration and transport using specialised trucks, and join hands with producers to improve product quality.
Local retailers can compete with foreign rivals if they understand and use their advantages, Hoa says.
It will also earmark millions of US dollar to expand. “Our target is to have 50 outlets by 2010 and 100 by 2015,” he added.
Director of Maximark Nguyen Anh Hong says her supermarket will increase focus on non-food items.
Maximark’s strengths include professional management, trained human resources, deep pockets, a wide range of products, and long-term development strategies, she explains.
But they also have certain limitations, she says, pointing out that shoppers at Metro have complained about the standoffish attitude of some employees.
Local businesses have certain advantages like understanding the domestic market, customers’ habits, and laws and policies better than foreign investors, she says.
A recent survey by Maximark found customers also attaching importance to service and employees’ attitudes, she says, adding they want to be served in a friendly manner.
Several consumers agree that the attitudes of supermarket employees have recently become friendlier.
Hoang Tuyet Nga of District 3 says at CoopMart checkout counters, seeing customers with lots of goods, staff ask. “Would you like free delivery?” making them happy.
The survey also found that many affluent consumers want to buy exclusive products and do not bother much about prices, a niche local retailers would do well to exploit.
Though several foreign retailers entered the scene late last year, worrying local retailers, analysts says the latter do not need to be concerned since certain segments will remain their preserve.
Under Vietnam ’s WTO agreements, international retailers can not distribute sensitive or dangerous products like petroleum, books and newspapers, cigarettes, rice, sugar and precious metals.
They can enter some other sectors like steel, fertiliser, cement, paper, and alcoholic beverages after November 2010.
They also have restrictions on expanding after opening their first outlet: Any expansion plans will be subject to the Economic Needs Test, an instrument the WTO allows to limit foreign access to a market.
vna
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