Research report e-commerce industry in vietnam - UK-ASEAN..

Vietnam Trade Promotion Agency Vietrade. main channels traditional, modern and online. that E-commerce is a time and cost efficient channel.One of Southeast Asia's fastest growing consumer markets, Vietnam has all the. Modern retail channels are predicted to account for almost half of the. Average monthly living expenditure per capita in Thousand VND 2016 at current.Despite the recent global economic slowdown, Vietnam's retail market grew at a. Most modern trade players focus initially on setting up in urban areas, such as in and. total consumer expenditures of US$111 billion in 2013 see Figure 5. Currently, the modern retail channel accounts for around 20% of sales in.Vietnam and the Philippines lead Southeast Asia within FMCG last year. to a USD 50Bn in annual spending 38% of total spending, and were expected to. This overall growth in economy have also led to channel. This resulted in strong growth within e-commerce, specialty stores and Modern Trade. 2018 has been a year of unprecedented change in modern trade channels.Though traditional trade, including wet markets, still dominates in Vietnam, modern trade has gained impressive momentum, according to Nielsen’s latest “Global Shopper Trend” report.The number of convenience stores has nearly quadrupled since 2012 and minimarts comprised the most store openings in first nine months of this year.Health/beauty and modern drug stores have also expanded quickly, doubling in the past two years.

Retail in Vietnam Emerging market, emerging. - Iberglobal

Because modern trade retailers continue to expand and invest in improving their stores to attract more shoppers, the future outlook of this channel is set to further accelerate.According to Nielsen Retail Audit data, sales revenue of fast-moving consumer goods (FMCG) in modern trade channels in urban areas enjoyed double-digit growth of 11.3 per cent in the second quarter, outperforming traditional trade, which grew 1.6 per cent.From the shopper’s perspective, the shifts in modern trade structure should bring a positive change because they now have more options. How to always profit in forex. The report revealed that while Vietnamese shoppers reduced their visits to wet markets, they go to convenience stores, minimarts, personal care/drug stores, and traditional grocery stores more often.The number of shopping trips to these stores in 2018 was higher than in 2010. Ease, economy and concern about health and wellness could be the key influencers of shoppers’ behavior,” said Mr.Gaurang Kotak, Head of Consumer Insights at Nielsen Vietnam.

“First of all, when urban shoppers have less time, work in crowded cities, face traffic congestion, and live further away from their workplace, they need convenient solutions and products that could help make their life easier.Secondly, with a major concern about the economy and high priority for saving, consumers have focused more on minimizing waste.By buying fewer items more frequently, they reduce the amount of perishables that are thrown away. In addition, rather than incur the cost of bulk buying, they manage cash flows by spending smaller amounts more often.” “Thirdly, it comes as no surprise that health and wellness is a top-of-mind priority for consumers in Vietnam, given that it has been mentioned as important for a few years now.Vietnam is considered one of the region’s most attractive markets for foreign investors with a steadily increasing GDP and booming foreign direct investment, a pattern that is forecasted to remain stable in the upcoming years.Nominal GDP in 2018 is estimated to reach €208.1 billion, recording a nominal y-o-y growth rate of 6.7%.The country’s nominal GDP is forecasted to attain €248.8 billion in 2020.

Vietnam and the Philippines lead FMCG sales growth in.

Of Modern Trade channels in Vietnam, including commercial centres, convenience. expansion of Vietnam's e-commerce market, as they spend more time.Vietnam, November 07, 2018 – 2018 is a year of unprecedented change in the. trade channel in urban area enjoyed double-digit growth of 11.3% in quarter 2 of this year. manage cash flow by spending smaller amounts more often. Thirdly.Fast-moving consumer goods FMCG spending is recording fastest. About 82 percent of spending growth in cosmetics come from online channel alone, while 45. Vietnam has seen increasing expansion of e-commerce players in. to billion last year, according to the Ministry of Industry and Trade. Nghệ thuật môi giới bất động sản. However, in the larger grocery segment, Vietnam's modern trade penetration, at 8 percent in 2018. strong GDP growth, rising consumer spending, and potential for rapid future urbanization. fastest-growing retail channels, with many.The actual retail situation in Vietnam, the competition between Big C and other. 10 Consumer Expenditure 18 Figure 11 Vietnam GDP Growth World Bank 2012 19. Instead of using traditional channel like retailing, companies can sell the. and the modern structure of operating methods, international retail groups.Q2 2018 Type of concern After living expenses, how is spare money spent % % IN = India. Source Nielsen Retail Index TOTAL VIETNAM URBAN. as the growth of the Modern Trade channel is set to further accelerate.

Report Highlights Vietnam's food retail sector is still dominated by small traditional traders, but modern retail channels are expanding in.Traditional retail will remain Vietnam's dominant retail channel in the near. a shift from traditional retail to modern retailers such as convenience stores. Vietnamese people spend more on the F&B goods and services.The rise of e-commerce and digital retail channels in Vietnam is one of the top trends to. young population demographics and robust consumer spending behaviours. In particular, we examine the rise of Modern Trade channels in Vietnam. [[It will also provide an overview on Vietnam’s current franchising landscape, and assess what impact the EU-Vietnam Free Trade Agreement (EVFTA) has had on the industry.Despite already witnessing some huge investments within the modern trade arena, Vietnam remains a traditional trade retailing country.Today, $81 out of every $100 spent for in-home, fast moving consumer goods (FMCG) items are through general trade stores (Provision Stores, Ma & Pa, Wet Markets, Specialty Stores) while the modern trade represents the remaining $19.

CAPTURING THE VIETNAMESE CONSUMER MARKET - Swedish Trade Council

That said, their 19% value share is an increase of more than two points of share compared to a couple of years ago, but Modern Trade has certainly grown slower than was expected, and traditional trade remains a refuge and key in Vietnam with shoppers still preferring proximity and ease.In fact, compared to other South-East Asian countries, Vietnam is the country having the most traditional retail landscape with Modern Trade still two to three times smaller than other countries like Philippines and Thailand, but this represents a huge opportunity for future growth...Given the size of prize, we have seen many new international chains either set up shop or looking to set up shop in the country, especially now that Vietnam, in line with World Trade Organization obligations gives greater ease to wholly foreign-invested business to open. International commercial trade. The opportunities in the retail sector whets key international players’ appetite and will increase the competition.Vietnam is growing in global competitiveness ranking up 5 places in 2017 from 2016 and now number 6 for top developing countries for retail investment.Some key elements are natural barriers of the Modern Trade development in Vietnam.

Firstly, property price to implement hypermarkets or supermarkets is high, pushing these stores in the peripheral area of the cities.Secondly, Vietnamese drive motorbikes to these stores, and do not have the capacity to carry so many items in one go.Lastly, Vietnamese shopping habits are still very traditional, with most not affording the outlay of a big European style shop, preferring to buy smaller baskets more often, and using the hypermarkets/supermarkets in a similar way, which means buying very little when going there. Làm môi giới bất động sản có tương lai không. Still today, almost a third of H&S shopping occasions contain just one or two FMCG items!Outside of these facts, we have to take into account some contextual elements which also had a negative impact on the growth of this channel: If Vietnam’s economy seems today to be showing some signs of recovery and growth, it has to be noted that in the last few years Vietnam experienced some slow-downs due to both domestic factors and external factors such as the global economic downturn.When people feel the stretch they naturally need to be more careful in what and how they buy, thus going back to a more traditional way of shopping, visiting the shops in their street that they trust, and where they will probably be less tempted to buy things not on their shopping list - buying only what they need, when they need it.

Expenditure for modern trade channel in viet nam

With such behavior it is easy to understand why traditional trade resisted so much to the development of Modern Trade in the last few years, and why hypermarket and supermarket formats have really struggled to develop.Today though, all of the foreign investments on the Vietnamese retail network are justified by more positive signs of growth.The Vietnamese economy is on a positive trend as the GDP keeps growing by an average of 6.5% since 2016. Atr trading vangsaigon. The population is growing every year and we continue to witness urbanization trend which will affect the retail landscape moving forward.Estimates show that by 2040, half of the population will be living in urban areas (33,1% in 2014).More and more into the future, shoppers in Rural areas will also gain easier access to Modern Trade retail.

Expenditure for modern trade channel in viet nam

Available data shows that currently, nearly a third of Rural households have shopped at least once in a Modern Trade outlet, and they tend to spend around 2-3 times what they usually spend when shopping in Traditional Trade.With all that in mind, it is fair to assume that the share of Modern Trade in Vietnam will increase and become more important, probably to around 25% by 2020 with convenience, value for money and digital the key shopper trends moving forwards.In line with global trends towards convenience, there is an increasing demand for smaller formats, and E-commerce is booming & these will be the key developments to watch out for in the coming years with the rise of the Mini-Store format which will be complimentary to the Hypermarket and Supermarket growth, as well as Online FMCG retail which continues to evolve. Macd trong trade coin là gì. Mini-Stores (a combination of Mini-Markets and Convenience Stores) are showing impressive growth in recent years.Key retailers have ambitious expansion plans in Vietnam for this format and together with a more open policy from the government for small stores Vietnam has witnessed a rapid and steady increase in the number of Mini-Store and Convenience stores and this has been the main reason for the growth of this channel in Vietnam.Some key reasons for the boom in terms of the number of stores has been foreign investment: smaller format stores can locate the right land and have an easier route to set up in Vietnam in terms of legal logistics, documents and permission than big format. For sure these stores do have attractive benefits to consumers: they represent modernity in every way, are opened 24/7, offer cool air, and are a perfect place for millennials to hang out with friends, to study or work.