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Modern retail systems dominating over traditional markets
While supermarkets have been unceasingly expanding, traditional markets have been narrowed, while many small merchants have given up business.
Supermarkets expanding
The Vietnamese retail market is considered a fertile land for investors. It is expected that from now to 2015, the growth rate in the retail market would maintain at 23-25 percent per annum, while this would still be one of the five most lucrative markets.
However, analysts say they can see two opposite trends in the market: while the modern retail systems have been increasing rapidly, traditional markets have become gloomier.
After three years of opening the retail market to foreign distributors, retail chains have been mushrooming. The retail market witnessed a boom in late 2011 when retailers continuously opened more retail points in big provinces and cities.
Nguyen Kim, the electronics and home appliance retailers, for example, has spent 100 billion dong to open five retail points in four big provinces and cities, namely HCM City, Da Nang, Vung Tau and Bien Hoa. A representative of the retail chain has revealed that Nguyen Kim would open 12 new retail points in 2012 and raise the total number of retail points to 50 by 2015.
Vinatex Mart, the distribution chain belonging to the Vietnam Textile and Garment Group (Vinatex) also opened five supermarkets within the last month in HCM City, Hoa Binh, An Giang, Tay Ninh and Gia Lai with the total investment capital of 100 billion dong. The chain plans to obtain 200 supermarkets and shops by 2015.
General retail chains, both domestic and foreign invested, like Big C, Co-op Mart, Metro, Crescent Mall and convenience store chains such as 24h, Shop and Go, Parkson and Vincom shopping malls have also been expanding their networks.
Supermarkets have become the choice of many housewives instead of traditional markets. Supermarkets can bring more convenient services, while they provide more diversified products. At some moments, especially on Tet days, the food prices at supermarkets are even cheaper that at traditional markets. Besides, modern retain chains also can satisfy the amusement demand of families. This explains why parents usually bring their children to supermarkets on weekends to do shopping and relax.
Small merchants give up traditional markets
The convenience of the modern retail chains has lured a lot of consumers and made traditional markets gloomy. A lot of small merchants have given up traditional markets and set up kiosks right on the pavement of streets.
According to the HCM City Trade Department, at the four biggest wholesale markets of An Dong, Soai Kinh Lam, Binh Tay and Nhat Tao alone, more than 1500 small merchants have stopped business. The same situation has been reported for other long lasting traditional markets such as Ba Chieu, Pham Van Hai, Go Vap, Hoang Hoa Tham and Tan Dinh.
Tran Thi Nhieu, Head of the Ba Chieu Market Management Board in Binh Thanh Street, admitted that more than 50 small merchants have left their kiosks, especially gold, fabric and food kiosk owners.
Nhieu said that merchants have given up traditional markets because they find unable to compete with modern retail networks. At least three modern chains are located near the Ba Chieu Market. It is estimated that the number of people going to the market dropped by 30-40 percent last Tet in comparison with the 2011 Tet.
She also said that only clothes, footwear and spice kiosks still can attract buyers, because the sellers can give consultancy to buyers, while supermarkets cannot do that.
vietnamnet
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