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Shopping centres aiming to expand networks
Big retailers serving Vietnamese consumers look set for growth.
Big retailers are pursuing a business strategy of expanding networks before foreign retailers arrive as a result of Vietnam joining the World Trade Organisation (WTO).
In the past few years, Vietnam has witnessed strong development of large scale home appliance centres which have replaced smaller electronic shops. Pico Plaza, Nguyen Kim, HC and Best Carings have become well known names.
Topcare has opened another retail branch in Cau Giay area which has a total area of 3,000 square metres. Viet Long has relocated its headquarters to the 1,000 square metre premises in the centre of Ha Dong district. Pico Plaza has revealed the plan to expand Pico Electronics chain with retail branches covering a total area of 30,000 square metres.
Tran Thi Huong, branding expert of Pico, said that Pico Electronics can provide electronics and home appliances to meet the demand which has been increasing sharply in recent years.
Huong stressed that it is a wise move for Vietnamese distributors to expand business premises right now.
Analysts said that retailers tend to expand networks in familiar localities rather than ‘conquering’ new markets. They said that the retailers in HCM City seem to have more experience than colleagues in Hanoi. However, this does not mean that they will succeed in the capital city. Meanwhile, if Hanoi’s retailers try to sell products in HCM City, they will face big barriers from the experienced retailers in the city.
The huge profit from retailing has prompted investors to pour money into expanding networks. Meanwhile, the high demand for expanding retail has also prompted real estate investors to make investments in developing retail premises. It is expected that 400,000 square metres of retail premises will be available by 2011 by the ongoing 15 projects.
vietnamnet, antd
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