Which way for luxury brands in Vietnam retail market
Situation of retail industry in Vietnam in recent years can be described by some words, fast, strong, developed and fierce.
Foreign businesses with Retail industry in Vietnam
According to market research, the retail industry Vietnam ranked 6th in the global market for development index. It’s a reason Vietnam is being called the “golden land” to attract investment specially foreign businesses.
Growth rate in the past 7 years showcasing retail industry is a big opportunity for domestic company and foreign businesses. With the participation of foreign businesses, this market in Vietnam will explode further.
The activities of Vietnamese businesses?
In a trend of strong competition from foreign businesses, domestic businesses have also made strategy to gain investment opportunities and dominate the market. They used retail channels: convenience store, trade center, supermarkets and hypermarkets. Especially they cooperating with HTV to open online sales channel Coophomeshopping.vn.
With approximately 3000 convenience stores Vinmart + and thousand of shopping mall Vincom, VinGroup become a biggest businesses in the retail industry in Vietnam.
Opportunity for luxury brands in retail market Vietnam
A report of Nielsen about the level of wealth of Vietnamese consumer show: 69% of Vietnamese consumers are choosing traditional stores. There are 48% using e-commerce chanel to buy the luxury products. 27% buy online from the abroad retailers. 23% choose buy in foreign tourism. More than half of them willing to pay for organic products.
Opportunities are opening up for luxury brands in Vietnam, both foreign and domestic businesses. Especially a number of free trade agreements in force such as EVFTA.