Retailing in Vietnam

RETAILING IN VIETNAM
Euromonitor International
January 2019
RETAILING IN VIETNAM Passport I
LIST OF CONTENTS AND TABLES

Retailing in Vietnam - Industry Overview ...................................................................................... 1
Executive Summary ..................................................................................................................... 1
Merger and Acquisition Activities Continue Prominently ........................................................... 1
the Development of Internet Retailing Is Booming .................................................................... 1
Social Media Bring More Retail Opportunities .......................................................................... 1
Vietnamese Retailing Attracts More International Players ........................................................ 1
Healthy Growth Expected Over the Forecast Period for Vietnamese Retailing ........................ 2
Operating Environment................................................................................................................. 2
Informal Retailing ...................................................................................................................... 2
Opening Hours.......................................................................................................................... 3
Summary 1 Standard Opening Hours by Channel Type .................................................. 3
Physical Retail Landscape........................................................................................................ 4
Cash and Carry......................................................................................................................... 5
Seasonality ............................................................................................................................... 5
Payments and Delivery ............................................................................................................. 5
Emerging Business Models ...................................................................................................... 6
Market Data .................................................................................................................................. 6
Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018 ............. 6
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth
2013-2018 .................................................................................................... 7
Table 3 Sales in Store-based Retailing by Channel: Value 2013-2018 ..................... 7
Table 4 Sales in Store-based Retailing by Channel: % Value Growth 2013-
2018 ............................................................................................................. 7
Table 5 Store-based Retailing Outlets by Channel: Units 2013-2018 ....................... 7
Table 6 Store-based Retailing Outlets by Channel: % Unit Growth 2013-2018 ........ 8
Table 7 Sales in Non-Store Retailing by Channel: Value 2013-2018 ........................ 8
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018 ....... 9
Table 9 Grocery Retailers: Value Sales, Outlets and Selling Space 2013-2018 ....... 9
Table 10 Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................... 9
Table 11 Sales in Grocery Retailers by Channel: Value 2013-2018 ........................... 9
Table 12 Sales in Grocery Retailers by Channel: % Value Growth 2013-2018 ......... 10
Table 13 Grocery Retailers Outlets by Channel: Units 2013-2018 ............................ 10
Table 14 Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018 ............. 10
Table 15 Non-Grocery Specialists: Value Sales, Outlets and Selling Space
2013-2018 .................................................................................................. 11
Table 16 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: %
Growth 2013-2018 ..................................................................................... 11
Table 17 Sales in Non-Grocery Specialists by Channel: Value 2013-2018 ............... 11
Table 18 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-
2018 ........................................................................................................... 11
Table 19 Non-Grocery Specialists Outlets by Channel: Units 2013-2018 ................. 12
Table 20 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-
2018 ........................................................................................................... 12
Table 21 Mixed Retailers: Value Sales, Outlets and Selling Space 2013-2018 ........ 12
© Euromonitor International
RETAILING IN VIETNAM Passport II
Table 22 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................. 13
Table 23 Sales in Mixed Retailers by Channel: Value 2013-2018............................. 13
Table 24 Sales in Mixed Retailers by Channel: % Value Growth 2013-2018 ............ 13
Table 25 Mixed Retailers Outlets by Channel: Units 2013-2018 ............................... 13
Table 26 Mixed Retailers Outlets by Channel: % Unit Growth 2013-2018 ................ 14
Table 27 Retailing GBO Company Shares: % Value 2014-2018 .............................. 14
Table 28 Retailing GBN Brand Shares: % Value 2015-2018 .................................... 15
Table 29 Store-based Retailing GBO Company Shares: % Value 2014-2018 .......... 15
Table 30 Store-based Retailing GBN Brand Shares: % Value 2015-2018 ................ 16
Table 31 Store-based Retailing LBN Brand Shares: Outlets 2015-2018................... 17
Table 32 Non-Store Retailing GBO Company Shares: % Value 2014-2018 ............. 17
Table 33 Non-Store Retailing GBN Brand Shares: % Value 2015-2018 ................... 18
Table 34 Grocery Retailers GBO Company Shares: % Value 2014-2018 ................ 19
Table 35 Grocery Retailers GBN Brand Shares: % Value 2015-2018 ...................... 19
Table 36 Grocery Retailers LBN Brand Shares: Outlets 2015-2018 ......................... 20
Table 37 Grocery Retailers LBN Brand Shares: Selling Space 2015-2018 ............... 21
Table 38 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018 ...... 21
Table 39 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018 ............ 22
Table 40 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018 .............. 23
Table 41 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-
2018 ........................................................................................................... 23
Table 42 Mixed Retailers GBO Company Shares: % Value 2014-2018.................... 24
Table 43 Mixed Retailers GBN Brand Shares: % Value 2015-2018.......................... 24
Table 44 Mixed Retailers LBN Brand Shares: Outlets 2015-2018 ............................ 25
Table 45 Mixed Retailers LBN Brand Shares: Selling Space 2015-2018 .................. 26
Table 46 Forecast Sales in Retailing by Store-based vs Non-Store: Value
2018-2023 .................................................................................................. 26
Table 47 Forecast Sales in Retailing by Store-based vs Non-Store: % Value
Growth 2018-2023 ..................................................................................... 27
Table 48 Forecast Sales in Store-based Retailing by Channel: Value 2018-
2023 ........................................................................................................... 27
Table 49 Forecast Sales in Store-based Retailing by Channel: % Value Growth
2018-2023 .................................................................................................. 27
Table 50 Forecast Store-based Retailing Outlets by Channel: Units 2018-2023 ...... 27
Table 51 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth
2018-2023 .................................................................................................. 28
Table 52 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023 ....... 28
Table 53 Forecast Sales in Non-Store Retailing by Channel: % Value Growth
2018-2023 .................................................................................................. 29
Table 54 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................. 29
Table 55 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space:
% Growth 2018-2023 ................................................................................. 29
Table 56 Forecast Sales in Grocery Retailers by Channel: Value 2018-2023 .......... 29
Table 57 Forecast Sales in Grocery Retailers by Channel: % Value Growth
2018-2023 .................................................................................................. 30
Table 58 Forecast Grocery Retailers Outlets by Channel: Units 2018-2023 ............. 30
Table 59 Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2018-
2023 ........................................................................................................... 30
RETAILING IN VIETNAM Passport III
Table 60 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling

Space 2018-2023 ....................................................................................... 31
Table 61 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2018-2023 ..................................................................... 31
Table 62 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-
2023 ........................................................................................................... 31
Table 63 Forecast Sales in Non-Grocery Specialists by Channel: % Value
Growth 2018-2023 ..................................................................................... 32
Table 64 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-
2023 ........................................................................................................... 32
Table 65 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth
2018-2023 .................................................................................................. 32
Table 66 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................. 33
Table 67 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023 ..................................................................................... 33
Table 68 Forecast Sales in Mixed Retailers by Channel: Value 2018-2023 .............. 33
Table 69 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2018-
2023 ........................................................................................................... 33
Table 70 Forecast Mixed Retailers Outlets by Channel: Units 2018-2023 ................ 34
Table 71 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2018-
2023 ........................................................................................................... 34
Definitions................................................................................................................................... 34
Sources ...................................................................................................................................... 34
Summary 2 Research Sources ...................................................................................... 34
Convenience Stores in Vietnam - Category analysis .................................................................. 37
Headlines ................................................................................................................................... 37
Prospects ................................................................................................................................... 37
Convenience Store Fast Food Contributes To Strong Value Growth...................................... 37
Outlet Expansion Is Slowing Down ......................................................................................... 37
Loyalty Programmes Help To Retain Customers .................................................................... 37
Competitive Landscape .............................................................................................................. 38
International Players Dominate Convenience Stores.............................................................. 38
Convenience Stores Faces Competition From Mini-supermarkets ......................................... 38
Channel Data ............................................................................................................................. 38
Table 72 Convenience Stores: Value Sales, Outlets and Selling Space 2013-
2018 ........................................................................................................... 38
Table 73 Convenience Stores: Value Sales, Outlets and Selling Space: %
Growth 2013-2018 ..................................................................................... 39
Table 74 Convenience Stores GBO Company Shares: % Value 2014-2018 ............ 39
Table 75 Convenience Stores GBN Brand Shares: % Value 2015-2018 .................. 39
Table 76 Convenience Stores LBN Brand Shares: Outlets 2015-2018 ..................... 40
Table 77 Convenience Stores LBN Brand Shares: Selling Space 2015-2018 .......... 40
Table 78 Convenience Stores Forecasts: Value Sales, Outlets and Selling
Space 2018-2023 ....................................................................................... 41
Table 79 Convenience Stores Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2018-2023 ..................................................................... 41
Hypermarkets in Vietnam - Category analysis............................................................................ 42
RETAILING IN VIETNAM Passport IV
Headlines ................................................................................................................................... 42
Prospects ................................................................................................................................... 42
the Growth of Supermarkets Affects Hypermarkets ................................................................ 42
the Non-grocery Percentage Is Decreasing ............................................................................ 42
Outlet Expansion Slows Down Significantly............................................................................ 42
Big C Retains Its Dominant Position ....................................................................................... 43
International Brands Dominate Hypermarkets ........................................................................ 43
Channel Data ............................................................................................................................. 43
Table 80 Hypermarkets: Value Sales, Outlets and Selling Space 2013-2018 ........... 43
Table 81 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................. 43
Table 82 Hypermarkets GBO Company Shares: % Value 2014-2018 ...................... 44
Table 83 Hypermarkets GBN Brand Shares: % Value 2015-2018 ............................ 44
Table 84 Hypermarkets LBN Brand Shares: Outlets 2015-2018 ............................... 44
Table 85 Hypermarkets LBN Brand Shares: Selling Space 2015-2018 .................... 45
Table 86 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................. 45
Table 87 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023 ..................................................................................... 45
Supermarkets in Vietnam - Category analysis............................................................................ 47
Headlines ................................................................................................................................... 47
Prospects ................................................................................................................................... 47
Mini-supermarkets Push Growth ............................................................................................ 47
Rising Concern Over Food Safety Brings Opportunity for Health Food Retailing ................... 47
Taste for Private Label Products Grows ................................................................................. 48
Saigon Union of Trading Cooperatives Remains the Dominant Player................................... 48
Mobile World Jsc Records the Fastest Growth ....................................................................... 48
Channel Data ............................................................................................................................. 48
Table 88 Supermarkets: Value Sales, Outlets and Selling Space 2013-2018 ........... 48
Table 89 Supermarkets: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................. 49
Table 90 Supermarkets GBO Company Shares: % Value 2014-2018 ...................... 49
Table 91 Supermarkets GBN Brand Shares: % Value 2015-2018 ............................ 49
Table 92 Supermarkets LBN Brand Shares: Outlets 2015-2018 ............................... 50
Table 93 Supermarkets LBN Brand Shares: Selling Space 2015-2018 .................... 50
Table 94 Supermarkets Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................. 51
Table 95 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023 ..................................................................................... 51
Traditional Grocery Retailers in Vietnam - Category analysis .................................................... 52
Headlines ................................................................................................................................... 52
Prospects ................................................................................................................................... 52
Traditional Grocery Retailers Plays An Important Role in Retailing ........................................ 52
Traditional Grocery Retailers Becomes More Organised ........................................................ 52
Vinamilk Maintains the Leading Position ................................................................................ 52
RETAILING IN VIETNAM Passport V
Mini-supermarkets Gain Share From Traditional Grocers ...................................................... 53

Channel Data ............................................................................................................................. 53
Table 96 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space
2013-2018 .................................................................................................. 53
Table 97 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space:
% Growth 2013-2018 ................................................................................. 53
Table 98 Sales in Traditional Grocery Retailers by Channel: Value 2013-2018 ........ 53
Table 99 Sales in Traditional Grocery Retailers by Channel: % Value Growth
2013-2018 .................................................................................................. 54
Table 100 Traditional Grocery Retailers Outlets by Channel: Units 2013-2018 .......... 54
Table 101 Traditional Grocery Retailers Outlets by Channel: % Unit Growth
2013-2018 .................................................................................................. 54
Table 102 Traditional Grocery Retailers GBO Company Shares: % Value 2014-
2018 ........................................................................................................... 54
Table 103 Traditional Grocery Retailers GBN Brand Shares: % Value 2015-2018 ..... 54
Table 104 Traditional Grocery Retailers LBN Brand Shares: Outlets 2015-2018 ....... 55
Table 105 Traditional Grocery Retailers LBN Brand Shares: Selling Space 2015-
2018 ........................................................................................................... 55
Table 106 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and
Selling Space 2018-2023 ........................................................................... 55
Table 107 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and
Selling Space: % Growth 2018-2023 ......................................................... 55
Table 108 Forecast Sales in Traditional Grocery Retailers by Channel: Value
2018-2023 .................................................................................................. 56
Table 109 Forecast Sales in Traditional Grocery Retailers by Channel: % Value
Growth 2018-2023 ..................................................................................... 56
Table 110 Forecast Traditional Grocery Retailers Outlets by Channel: Units
2018-2023 .................................................................................................. 56
Table 111 Forecast Traditional Grocery Retailers Outlets by Channel: % Unit
Growth 2018-2023 ..................................................................................... 56
Apparel and Footwear Specialist Retailers in Vietnam - Category analysis ............................... 57
Headlines ................................................................................................................................... 57
Prospects ................................................................................................................................... 57
Strong Potential Attracts International Brands ........................................................................ 57
Apparel and Footwear Internet Retailing Is Booming.............................................................. 57
International Players Expand Their Presence ......................................................................... 58
Apparel and Footwear Specialist Retailers Is Highly Fragmented and Unorganised .............. 58
Channel Data ............................................................................................................................. 58
Table 112 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and
Selling Space 2013-2018 ........................................................................... 58
Table 113 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and
Table 114 Apparel And Footwear Specialist Retailers GBO Company Shares: %
Value 2014-2018 ........................................................................................ 59
Table 115 Apparel And Footwear Specialist Retailers GBN Brand Shares: %
Value 2015-2018 ........................................................................................ 59
Table 116 Apparel And Footwear Specialist Retailers LBN Brand Shares:
Outlets 2015-2018...................................................................................... 60
RETAILING IN VIETNAM Passport VI
Table 117 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling
Space 2015-2018 ....................................................................................... 61
Table 118 Apparel And Footwear Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space 2018-2023 ........................................................ 61
Table 119 Apparel And Footwear Specialist Retailers Forecasts: Value Sales,
Outlets and Selling Space: % Growth 2018-2023 ...................................... 61
Electronics and Appliance Specialist Retailers in Vietnam - Category analysis ......................... 63
Headlines ................................................................................................................................... 63
Prospects ................................................................................................................................... 63
Improving Living Standards Bolster Value Growth.................................................................. 63
Online Shopping Increases Strongly....................................................................................... 63
Offering Exclusive Models Is A Differentiation Strategy .......................................................... 64
Mobile World Jsc Remains the Strong Leading Player ........................................................... 64
Vingroup Acquires Vien Thong A ............................................................................................ 64
Channel Data ............................................................................................................................. 64
Table 120 Electronics and Appliance Specialist Retailers: Value Sales, Outlets
and Selling Space 2013-2018 .................................................................... 64
Table 121 Electronics and Appliance Specialist Retailers: Value Sales, Outlets
and Selling Space: % Growth 2013-2018 .................................................. 65
Table 122 Electronics and Appliance Specialist Retailers GBO Company
Shares: % Value 2014-2018 ...................................................................... 65
Table 123 Electronics and Appliance Specialist Retailers GBN Brand Shares: %
Value 2015-2018 ........................................................................................ 65
Table 124 Electronics and Appliance Specialist Retailers LBN Brand Shares:
Outlets 2015-2018...................................................................................... 66
Table 125 Electronics and Appliance Specialist Retailers LBN Brand Shares:
Selling Space 2015-2018 ........................................................................... 66
Table 126 Electronics and Appliance Specialist Retailers Forecasts: Value
Sales, Outlets and Selling Space 2018-2023 ............................................. 67
Table 127 Electronics and Appliance Specialist Retailers Forecasts: Value
Sales, Outlets and Selling Space: % Growth 2018-2023 ........................... 67
Health and Beauty Specialist Retailers in Vietnam - Category analysis ..................................... 68
Headlines ................................................................................................................................... 68
Prospects ................................................................................................................................... 68
Vitamins and Dietary Supplements Sees Rising Demand ...................................................... 68
Optical Goods Stores Records the Fastest Outlet Growth ...................................................... 68
Internet Retailing of Health and Beauty Products Grows ........................................................ 68
Chained Retailers Take Share From Independent Players..................................................... 69
International Players Lead Beauty Specialist Retailers ........................................................... 69
Watson Enters Vietnam .......................................................................................................... 69
Channel Data ............................................................................................................................. 69
Table 128 Health and Beauty Specialist Retailers: Value Sales, Outlets and
Selling Space 2013-2018 ........................................................................... 69
Table 129 Health and Beauty Specialist Retailers: Value Sales, Outlets and
RETAILING IN VIETNAM Passport VII
Table 130 Sales in Health and Beauty Specialist Retailers by Channel: Value
2013-2018 .................................................................................................. 70
Table 131 Sales in Health and Beauty Specialist Retailers by Channel: % Value
Growth 2013-2018 ..................................................................................... 70
Table 132 Health and Beauty Specialist Retailers GBO Company Shares: %
Value 2014-2018 ........................................................................................ 70
Table 133 Health and Beauty Specialist Retailers GBN Brand Shares: % Value
2015-2018 .................................................................................................. 71
Table 134 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets
2015-2018 .................................................................................................. 71
Table 135 Health and Beauty Specialist Retailers LBN Brand Shares: Selling
Space 2015-2018 ....................................................................................... 72
Table 136 Health and Beauty Specialist Retailers Forecasts: Value Sales,
Table 137 Health and Beauty Specialist Retailers Forecasts: Value Sales,
Table 138 Forecast Sales in Health and Beauty Specialist Retailers by Channel:
Value 2018-2023 ........................................................................................ 73
Table 139 Forecast Sales in Health and Beauty Specialist Retailers by Channel:
% Value Growth 2018-2023 ....................................................................... 73
Home and Garden Specialist Retailers in Vietnam - Category analysis ..................................... 75
Headlines ................................................................................................................................... 75
Prospects ................................................................................................................................... 75
the Booming Property Market Bolsters the Growth of Home and Garden Specialist Retailers 75
Improving Living Standards Raise Demand for High-quality Products.................................... 75
Omnichannel Retailing Grows for Home and Garden Products .............................................. 75
Aa Corp Remains the Leading Player..................................................................................... 76
Ikea Announces Its Plan To Enter Vietnam ............................................................................ 76
Home Décor Ideas Are Used As A Way To Push Sales ......................................................... 76
Channel Data ............................................................................................................................. 76
Table 140 Home and Garden Specialist Retailers: Value Sales, Outlets and
Selling Space 2013-2018 ........................................................................... 76
Table 141 Home and Garden Specialist Retailers: Value Sales, Outlets and
Table 142 Sales in Home and Garden Specialist Retailers by Channel: Value
2013-2018 .................................................................................................. 77
Table 143 Sales in Home and Garden Specialist Retailers by Channel: % Value
Growth 2013-2018 ..................................................................................... 77
Table 144 Home and Garden Specialist Retailers GBO Company Shares: %
Value 2014-2018 ........................................................................................ 77
Table 145 Home and Garden Specialist Retailers GBN Brand Shares: % Value
2015-2018 .................................................................................................. 77
Table 146 Home and Garden Specialist Retailers LBN Brand Shares: Outlets
2015-2018 .................................................................................................. 78
Table 147 Home and Garden Specialist Retailers LBN Brand Shares: Selling
Space 2015-2018 ....................................................................................... 78
Table 148 Home and Garden Specialist Retailers Forecasts: Value Sales,
RETAILING IN VIETNAM Passport VIII
Table 149 Home and Garden Specialist Retailers Forecasts: Value Sales,
Table 150 Forecast Sales in Home and Garden Specialist Retailers by Channel:
Value 2018-2023 ........................................................................................ 79
Table 151 Forecast Sales in Home and Garden Specialist Retailers by Channel:
% Value Growth 2018-2023 ....................................................................... 80
Department Stores in Vietnam - Category analysis .................................................................... 81
Headlines ................................................................................................................................... 81
Prospects ................................................................................................................................... 81
Strong Growth Seen in Department Stores Thanks To Improving Living Standards .............. 81
Collaboration With Shopping Centres Is A Strategy for Success ............................................ 81
Aeon Group Remains the Dominant Player in 2018 ............................................................... 81
Parkson Continues To Lose Share ......................................................................................... 82
New Players Or Outlet Expansion Is Unlikely ......................................................................... 82
Channel Data ............................................................................................................................. 82
Table 152 Department Stores: Value Sales, Outlets and Selling Space 2013-
2018 ........................................................................................................... 82
Table 153 Department Stores: Value Sales, Outlets and Selling Space: %
Growth 2013-2018 ..................................................................................... 82
Table 154 Department Stores GBO Company Shares: % Value 2014-2018 .............. 82
Table 155 Department Stores GBN Brand Shares: % Value 2015-2018 .................... 83
Table 156 Department Stores LBN Brand Shares: Outlets 2015-2018 ....................... 83
Table 157 Department Stores LBN Brand Shares: Selling Space 2015-2018 ............ 84
Table 158 Department Stores Forecasts: Value Sales, Outlets and Selling
Space 2018-2023 ....................................................................................... 84
Table 159 Department Stores Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2018-2023 ..................................................................... 84
Variety Stores in Vietnam - Category analysis ........................................................................... 86
Headlines ................................................................................................................................... 86
Prospects ................................................................................................................................... 86
Variety Stores Records An Outstanding Growth Rate ............................................................ 86
Franchise Basis Helps Variety Stores Expand Quickly ........................................................... 86
Korean- and Japanese-style Products Are the Most Popular ................................................. 86
Miniso Has Ambition in Vietnam ............................................................................................. 87
Lack of Differentiation Seen Between Brands ........................................................................ 87
Channel Data ............................................................................................................................. 87
Table 160 Variety Stores: Value Sales, Outlets and Selling Space 2013-2018 .......... 87
Table 161 Variety Stores: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................. 87
Table 162 Variety Stores GBO Company Shares: % Value 2014-2018 ...................... 88
Table 163 Variety Stores GBN Brand Shares: % Value 2015-2018 ............................ 88
Table 164 Variety Stores LBN Brand Shares: Outlets 2015-2018............................... 88
Table 165 Variety Stores LBN Brand Shares: Selling Space 2015-2018 .................... 89
Table 166 Variety Stores Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................. 89
RETAILING IN VIETNAM Passport IX
Table 167 Variety Stores Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023 ..................................................................................... 89
Warehouse Clubs in Vietnam - Category analysis ..................................................................... 90
Prospects ................................................................................................................................... 90
Direct Selling in Vietnam - Category analysis ............................................................................. 91
Headlines ................................................................................................................................... 91
Prospects ................................................................................................................................... 91
Slow Albeit Positive Growth Seen As Direct Selling Still Suffers From A Negative Perception91
Consumer Health Direct Selling Makes the Highest Contribution ........................................... 91
Leading Player Herbalife Vietnam Grows Robustly ................................................................ 92
Oriflame Records the Fastest Growth ..................................................................................... 92
Channel Data ............................................................................................................................. 92
Table 168 Direct Selling by Category: Value 2013-2018............................................. 92
Table 169 Direct Selling by Category: % Value Growth 2013-2018 ............................ 93
Table 170 Direct Selling GBO Company Shares: % Value 2014-2018 ....................... 93
Table 171 Direct Selling GBN Brand Shares: % Value 2015-2018 ............................. 94
Table 172 Direct Selling Forecasts by Category: Value 2018-2023 ............................ 94
Table 173 Direct Selling Forecasts by Category: % Value Growth 2018-2023 ........... 95
Homeshopping in Vietnam - Category analysis .......................................................................... 96
Headlines ................................................................................................................................... 96
Prospects ................................................................................................................................... 96
Growth Slows Down ............................................................................................................... 96
TV Shopping Is the Main Homeshopping Method .................................................................. 96
Homeshopping Is Highly Fragmented..................................................................................... 96
Homeshopping Players Expand To Internet Retailing ............................................................ 96
Channel Data ............................................................................................................................. 97
Table 174 Homeshopping by Category: Value 2013-2018 .......................................... 97
Table 175 Homeshopping by Category: % Value Growth 2013-2018 ......................... 97
Table 176 Homeshopping Forecasts by Category: Value 2018-2023 ......................... 98
Table 177 Homeshopping Forecasts by Category: % Value Growth 2018-2023 ........ 98
Internet Retailing in Vietnam - Category analysis ..................................................................... 100
Headlines ................................................................................................................................. 100
Prospects ................................................................................................................................. 100
Apparel and Footwear and Consumer Electronics Are the Biggest Contributors .................. 100
Payment Method Is Critical for the Success of Online Businesses ....................................... 100
Omnichannel Retailing Remains A Booming Trend .............................................................. 101
Competitive Landscape ............................................................................................................ 101
Mobile World Jsc Is the Strong Leading Player .................................................................... 101
Marketplace Platforms See Healthy Development................................................................ 101
Channel Data ........................................................................................................................... 101
Table 178 Internet Retailing by Category: Value 2013-2018 ..................................... 101
Table 179 Internet Retailing by Category: % Value Growth 2013-2018 .................... 102
Table 180 Internet Retailing GBO Company Shares: % Value 2014-2018 ............... 103
Table 181 Internet Retailing GBN Brand Shares: % Value 2015-2018 ..................... 103
Table 182 Internet Retailing Forecasts by Category: Value 2018-2023 .................... 104
RETAILING IN VIETNAM Passport X
Table 183 Internet Retailing Forecasts by Category: % Value Growth 2018-2023 ... 104
Food and Drink Internet Retailing in Vietnam - Category analysis ........................................... 106
Headlines ................................................................................................................................. 106
Prospects ................................................................................................................................. 106
Outstanding Growth Achieved in Food and Drink Internet Retailing ..................................... 106
Soft Drinks Contributes the Highest Value ............................................................................ 106
Most Key Players Have Existed for Less Than Five Years ................................................... 106
Omnichannel Is A Common Strategy.................................................................................... 107
Niche Players Focus on Clean Label and Organic Products ................................................ 107
Channel Data ........................................................................................................................... 107
Table 184 Food and Drink Internet Retailing: Value 2013-2018................................ 107
Table 185 Food and Drink Internet Retailing: % Value Growth 2013-2018 ............... 107
Table 186 Food and Drink Internet Retailing: % Value Growth 2016-2017 ............... 108
Table 187 Food and Drink Internet Retailing Forecasts: Value 2018-2023 ............... 108
Table 188 Food and Drink Internet Retailing Forecasts: % Value Growth 2018-
2023 ......................................................................................................... 108
Vending in Vietnam - Category analysis ................................................................................... 109
Prospects ................................................................................................................................. 109
Mobile Internet Retailing in Vietnam - Category analysis ......................................................... 110
Headlines ................................................................................................................................. 110
Prospects ................................................................................................................................. 110
Increased 4g and Wi-fi Coverage Encourages Mobile Internet Retailing .............................. 110
Rising Smartphone Ownership Leads To Growth in Online Sales ........................................ 110
the Development of Mobile Wallets and Other Mobile Applications Boosts Mobile Internet
Retailing ................................................................................................................................ 110
Mobile World Remains the Leading Internet Retailing Player ............................................... 111
Extra Services Are A Way To Attract Customers .................................................................. 111
Channel Data ........................................................................................................................... 111
Table 189 Mobile Internet Retailing: Value 2013-2018 ............................................. 111
Table 190 Mobile Internet Retailing: % Value Growth 2013-2018 ............................. 111
Table 191 Mobile Internet Retailing Forecasts: Value 2018-2023 ............................. 112
Table 192 Mobile Internet Retailing Forecasts: % Value Growth 2018-2023 ............ 112
RETAILING IN VIETNAM Passport 1
RETAILING IN VIETNAM - INDUSTRY

OVERVIEW
EXECUTIVE SUMMARY
Merger and Acquisition Activities Continue Prominently

In 2017 and 2018, Vietnamese retailing continued to become more consolidated as key
players acquired smaller companies to expand their network and increase their share: Mobile
World JSC completed its acquisition of pharmacy chain Phuc An Khang, and conglomerate
VinGroup JSC acquired electronics and appliance specialist retailer chain Vien Thong A and
supermarket chain Fivimart. These activities have quickly affirmed the leading status of the key
players, while eliminating smaller companies from the competition.
Although there has been no official announcement, merger and acquisition activities are
expected to continue to take place over the forecast period. Besides achieving outlet expansion,
key players also look at these activities as a quick way to enter a new category, similar to the
way Mobile World JSC entered the pharmacy arena with the acquisition of the Phuc An Khang
chain.
the Development of Internet Retailing Is Booming

In 2018, internet retailing continued to record the fastest retail value growth rate among all
channels in Vietnam’s retailing industry. Internet retailing has widened to include more products
such as fresh grocery, besides those that are successfully present online such as electronics,
apparel and footwear. A number of key players place a strong focus on internet retailing. For
example, Saigon Union of Trading Cooperatives has launched its online shop, which includes
fresh grocery items. Mobile World JSC and FPT Corp run online-exclusive discounts to attract
more customers to their online stores.
Internet retailing is also seeing a rising number of individual sellers or small businesses, which
sell through third party sites such as Lazada or Shopee or via social media, including Facebook
and Instagram. This informal section of retailing is highly unorganised. In 2018, the government
enforced measures to crack down on illegal practices and will continue doing so over the
forecast period.
Social Media Bring More Retail Opportunities

Social media such as Facebook and Instagram play a big role in creating demand as well as
connecting retailers with customers. From the customers’ side, social media create peer
pressure that leads to rising demand for products that show a person’s fashion sense and social
status, such as apparel and footwear, jewellery and watches, and personal electronics. Retailers
are benefiting from the rising demand resulting from this trend.
On the other hand, retailers also use social media to create ideas and inspiration. Due to the
increasingly stressful lifestyle, many customers look for ways to enhance their quality of life.
Home décor products are usually promoted on social media to attract young urban consumers
who regularly want to beautify their living and working spaces.
Vietnamese Retailing Attracts More International Players

With its high growth rate and potential, Vietnamese retailing continues to attract more and
more international players. In 2017 and 2018, many well-known global retailers entered the
country, such as Zara, H&M, Massimo Dutti, Pull & Bear, 7-Eleven, and GS25. Other global
brands that have announced their plan to enter Vietnam include Uniqlo and Ikea.
The rising availability of retail space in shopping centres is one of the criteria for these
entrances. Consumers’ higher disposable income, improving quality of life and increasing
awareness of international brands also contribute to this trend.
Healthy Growth Expected Over the Forecast Period for Vietnamese

Retailing
Vietnam is expected to record strong real GDP growth over the forecast period. Together with
rising disposable income, consumers’ demand for a better quality of life is the key contributing
factor to the expected strong growth of the retailing industry. At the same time, rapid
urbanisation is bringing exposure to modern retailing to more people.
Internet retailing is expected to remain the key buzzword in the forecast period. More and
more players will jump into the robustly growing e-commerce sector. Furthermore, omnichannel
retailing will be the key trend that is led by the top players to fully utilise the potential from all
walks of life.
OPERATING ENVIRONMENT
Informal Retailing
 Informal retailing is diverse, including traditional methods such as street vendors and street
hawkers to modern consumer-to-consumer (C2C) internet retailing via social media such as
Facebook or third party sites such as Shopee or Sendo. Due to the diversity and unorganised
nature of informal retailing, there are no official statistics. Informal retailing covers both
grocery and non-grocery products and exists in both urban and rural areas. Informal retailing
plays an important role in Vietnamese retailing, as there are many products that are only
offered in this channel and it is still more convenient than many formal retailing channels.
 Although informal retailing covers a wide range of products, apparel and footwear and leisure
and personal goods are the most common. C2C retailers offer a much wider range of
products, and usually at a cheaper price than formal retailers can as they avoid taxes and
unnecessary operational costs. The rising availability of flights connecting Vietnam with
neighbouring countries provides opportunity to informal retailers as many of their products are
hand-carried from nearby countries.
 Apparel and footwear specialist retailers is most affected by informal retailing due to the
competition between them as regards designs and prices. The existence of informal grocery
retailers also affects players in traditional grocery, convenience stores, and mini-
supermarkets. Online retailers are also affected by C2C sellers operating on social media
such as Facebook and Instagram.
 Informal retailers target a wide range of customers. For instance, online sellers mainly target
young consumers who are internet-savvy and spend a lot of time on social media. Street
vendors and hawkers, on the other hand, target housewives or people in the area as they
pass by.
 The government has carried out various activities to control informal retailing. For instance, in
2018, there was a campaign to crack down on online retailers which avoid paying taxes. In
some central areas, the government has also enforced strict control over where street
vendors and hawkers can operate, in order to keep the pavements clear and clean.
Opening Hours
 It is common for retailers in urban areas to open for longer than those in rural areas, due to
the different lifestyles. It is also common to see 24/7 convenience stores in urban areas, while
there is virtually none in rural areas.
 There is no restriction on the number of opening days per year. In fact, many retailers are
trying to open on more days in order to attract customers. For example, key hypermarkets
and supermarkets still open during the Vietnamese Lunar New Year, the key festival in
Vietnam.
 There is no known restriction on 24-hour operation. However, retailers must adhere to various
laws, such as maintaining a low noise level during night-time.
Summary 1 Standard Opening Hours by Channel Type

Channel 24-hour Monday- Friday Saturday Sunday
opening? Thursday
Supermarket No 07.30- 07.30- 07.30- Open
s 22.00hrs 22.00hrs 22.00hrs
Hypermarket No 08.00- 08.00- 08.00- Open
s 22.00hrs 22.30hrs 22.30hrs
Convenience Yes 24 hours 24 hours 24 hours Open
stores
Food/drink/to No 08.00- 08.00- 08.00- Open
bacco 22.00hrs 22.00hrs 22.00hrs
specialists
Independent No 07.00- 09.00- 09.00- Open
small grocers 21.00hrs 22.00hrs 22.00hrs
Other No 07.00- 07.00- 07.00- Closed
grocery 21.00hrs 21.00hrs 21.00hrs
retailers
Apparel and No 10.00- 10.00- 10.00- Open
footwear 22.00hrs 22.00hrs 22.00hrs
specialist
retailers
Electronics No 10.00- 10.00- 10.00- Open
and 22.00hrs 22.00hrs 22.00hrs
appliance
specialist
retailers
Beauty No 10.00- 10.00- 10.00- Open
specialist 22.00hrs 22.00hrs 22.00hrs
retailers
Chemists/ph No 08.00- 08.00- 08.00- Open
armacies 21.00hrs 21.00hrs 21.00hrs
Optical No 08.00- 08.00- 08.00- Open
goods stores 21.00hrs 21.00hrs 21.00hrs
Drugstores/p No 08.00- 08.00- 08.00- Open
arapharmaci 21.00hrs 21.00hrs 21.00hrs
es
Vitamins and No 08.00- 08.00- 08.00- Open

dietary 21.00hrs 21.00hrs 21.00hrs
supplements
specialist
retailers
Home No 08.00- 08.00- 08.00- Open
improvement 21.00hrs 21.00hrs 21.00hrs
and
gardening
stores
Furniture and No 10.00- 10.00- 10.00- Open
homewares 22.00hrs 22.00hrs 22.00hrs
stores
Bags and No 10.00- 10.00- 10.00- Open
luggage 22.00hrs 22.00hrs 22.00hrs
specialist
retailers
Jewellery No 10.00- 10.00- 10.00- Open
and watch 22.00hrs 22.00hrs 22.00hrs
specialist
retailers
Media No 10.00- 10.00- 10.00- Open
products 22.00hrs 22.00hrs 22.00hrs
stores
Pet shops No 10.00- 10.00- 10.00- Open
and 22.00hrs 22.00hrs 22.00hrs
superstores
Sports goods No 10.00- 10.00- 10.00- Open
stores 22.00hrs 22.00hrs 22.00hrs
Stationers/off No 08.00- 08.00- 08.00- Closed
ice supply 21.00hrs 21.00hrs 21.00hrs
stores
Traditional No 08.00- 08.00- 08.00- Open
toys and 21.00hrs 21.00hrs 21.00hrs
games stores
Other leisure No 10.00- 10.00- 10.00- Open
and personal 22.00hrs 22.00hrs 22.00hrs
goods
specialist
retailers
Department No 10.00- 10.00- 10.00- Open
Variety No 10.00- 10.00- 10.00- Open
Source: Euromonitor International
Physical Retail Landscape
 In many urban areas of Vietnam, traffic is bad and traffic jams usually happen. Motorcycles
are the main mode of transport throughout the country. Therefore, most people prefer to go to
retailers that are nearby and easy to access from the street. As a result, shops in stand-alone
locations tend to perform better than those in shopping centres. For the same reason, people
seldom travel to the suburbs to shop, as it could take them a very long time to travel there and
back.
 Rentals in key cities such as Hanoi and Ho Chi Minh City are increasingly expensive,
especially for stand-alone locations on main streets. Therefore, a rising number of retailers
are moving to smaller lanes or to online shops in order to reduce their rental costs.
 The number of shopping centres is increasing rapidly in major cities like Hanoi and Ho Chi
Minh City. Although most customers still prefer stand-alone locations as they are easier to
access, shopping centres are also gaining popularity as a one-stop shopping and
entertainment destination for the family. In shopping centres, it is common to see
hypermarkets, supermarkets, variety stores, department stores, and apparel specialist
retailers.
Cash and Carry
 Cash and carry in Vietnam is a consolidated channel with a single player, Mega Market,
formerly Metro Cash and Carry. This retailer mainly targets small businesses and horeca
players. Although there are some individual customers, these people have gradually shifted
towards hypermarkets as these modern grocery retailers increased in number.
Seasonality
Vietnamese Lunar New Year (Tet)

 Date: 1st day of lunar calendar each year.
 Shopping season: Approximately two weeks before the exact date.
 Primary products bought: Lunar New Year-themed decorations, apparel and footwear,
groceries, electronics, appliances, etc.
 Retailer strategy: As this is the biggest festival in Vietnam, all retailers benefit from the surge
in shopping demand from all consumer segments. Promotions, discounts and free gifts to
attract customers are very common.
Black Friday
 Date: 23 November (2018).
 Shopping season: One week before and after the exact date.
 Primary products bought: Apparel and footwear, electronics, appliances, etc.
 Retailer strategy: Adapted from the US, Black Friday became a very popular sale event in
Vietnam during the second half of the review period. Initially started by online retailers such as
Lazada, the trend has quickly spread to all kinds of retailers throughout the country. During
the event, most retailers run heavy discounts, making it one of the most popular sales events
in the year.
Payments and Delivery
 Cash remains the main mode of payment throughout the country. Usage of financial cards
has increased rapidly in urban areas as banks run various promotional programmes to
encourage card payment. There is also a niche for wireless mobile payment, such as Apple
Pay, Google Pay or Samsung Pay, which is mainly used by savvy young customers.
 The lack of payment infrastructure is one of the reasons behind the widespread use of cash.
Many retailers, especially in suburban and rural areas, still do not accept other modes of
payment, and two thirds of the Vietnamese population still live in rural areas. The main reason
is habit, as most people are still used to using cash.
 Mobile payment is growing strongly but remains limited to urban areas and is only used by
certain groups of customers. The rising popularity of mobile wallets such as Momo and Zalo
Pay, which collaborate with many key retailers to give discounts to customers who pay by this
means, is also helping to increase the value of mobile payment.
 Most retailers use private shipping service providers rather than the government service.
These private players attract retailers by offering better prices and services. Private
companies are also usually more flexible and adaptable to retailers’ needs.
 The shipping and payment method is a key factor when a customer purchases online. Cash
on delivery (COD) is the most preferred method, especially for small and medium-sized
internet retailers. Many customers prefer to see and feel the items before making payment;
therefore, COD suits their needs. The prevalence of card fraud also makes consumers
concerned about using financial cards for online payment, unless it is to an established and
trustworthy retailer or third party payment site such as PayPal.
 Over the forecast period, financial cards and mobile payments are expected to see strong
growth in both online and bricks-and-mortar channels. Stricter control from the government to
reduce card fraud, and promotional campaigns from mobile wallet players will contribute to
this growth. However, in the short term, cash will remain the key mode of payment, as will the
COD shipment method, as this is still preferred by the mass market throughout Vietnam.
Emerging Business Models
 As urban consumers become increasingly busy with their hectic work life, delivery services
become more and more popular as they help customers save time. In mid-2018, Foody JSC
became the pioneer to launch a third party delivery service for grocery shopping, named
Market Now. Customers can choose the hypermarkets or supermarkets that they want to
purchase from, and the items that they want to purchase, and the delivery service will
purchase the items on their behalf and deliver to them. This gives hypermarkets and
supermarkets another opportunity to reach customers.
 Instalment payment via credit cards also became more popular in 2018, as banks
collaborated with retailers to offer interest-free instalment schemes to push card spending.
This helps retailers sell more big-ticket items, as customers are more willing to pay the
premium if they can opt for interest-free instalment payment.
MARKET DATA
Table 1 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
VND tn
2013 2014 2015 2016 2017 2018
Store-based Retailing 1,514.0 1,728.0 1,868.7 2,014.6 2,196.6 2,384.5

Non-Store Retailing 18.7 23.2 30.5 40.1 50.3 60.6
Retailing 1,532.7 1,751.2 1,899.2 2,054.7 2,246.9 2,445.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources
Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
% current value growth, retail value rsp excl sales tax
2017/18 2013-18 CAGR 2013/18 Total
Store-based Retailing 8.6 9.5 57.5

Non-Store Retailing 20.4 26.5 223.8
Retailing 8.8 9.8 59.5
Table 3 Sales in Store-based Retailing by Channel: Value 2013-2018
VND tn
2013 2014 2015 2016 2017 2018
Grocery Retailers 771.7 875.4 916.4 958.4 1,010.4 1,068.1

Non-Grocery Specialists 740.3 848.3 946.4 1,048.9 1,177.5 1,306.5
Mixed Retailers 2.0 4.2 5.9 7.3 8.7 9.9
Luxury Retailing 1.6 1.3 1.9 2.2 2.3 2.4
Off-price Retailing - - - - - -
Note 1: Luxury retailing not included in store-based retailing total to avoid double counting as luxury retailing is a
duplicate category already accounted for within non-grocery specialists and mixed retailers.
Note 2: Off-price retailing not included in store-based retailing total to avoid double counting as off-price retailing
is a duplicate category already accounted for within apparel and footwear specialists and department
stores.
Table 4 Sales in Store-based Retailing by Channel: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Grocery Retailers 5.7 6.7 38.4

Non-Grocery Specialists 11.0 12.0 76.5
Mixed Retailers 14.3 37.7 395.2
Luxury Retailing 3.2 8.4 49.8
Off-price Retailing - - -
stores.
Table 5 Store-based Retailing Outlets by Channel: Units 2013-2018
outlet
2013 2014 2015 2016 2017 2018
Grocery Retailers 636,230.0 642,753.0 649,345.0 655,661.0 661,445.0 666,573.0

Non-Grocery Specialists 144,262.0 146,318.0 148,028.0 150,108.0 152,566.0 154,468.0
Mixed Retailers 118.0 126.0 134.0 142.0 187.0 219.0
Luxury Retailing 19.0 17.0 20.0 22.0 22.0 18.0
stores.
Table 6 Store-based Retailing Outlets by Channel: % Unit Growth 2013-2018
% unit growth
2017/18 2013-18 CAGR 2013/18 Total

Luxury Retailing -18.2 -1.1 -5.3
stores.
Table 7 Sales in Non-Store Retailing by Channel: Value 2013-2018
VND tn
2013 2014 2015 2016 2017 2018
Direct Selling 8.6 8.9 9.7 9.4 9.8 10.1

Homeshopping 0.6 0.7 0.8 0.9 0.9 1.0
Internet Retailing 9.6 13.6 20.1 29.8 39.6 49.5
Vending - - - - - -
Foreign Internet 2.2 3.1 4.4 6.2 8.0 9.6
Retailing
Domestic Internet 7.3 10.6 15.7 23.6 31.6 39.8
Retailing
Mobile Internet Retailing 0.2 1.8 4.6 9.2 17.0 22.3
Note 1: Vending data captures vending systems installed in public and semi-captive environments only. For
further details refer to definitions.
Note 2: Mobile internet retailing not included in non-store retailing total to avoid double counting as this category
is already accounted for within internet retailing.
Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Direct Selling 3.2 3.3 17.4

Homeshopping 8.3 12.2 77.5
Internet Retailing 24.9 38.9 417.8
Vending - - -
Foreign Internet Retailing 20.6 33.9 329.7
Domestic Internet Retailing 26.0 40.4 444.9
Mobile Internet Retailing 30.7 154.1 10,492.4
Table 9 Grocery Retailers: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Value sales VND tn 771.7 875.4 916.4 958.4 1,010.4 1,068.1

Outlets '000 636.2 642.8 649.3 655.7 661.4 666.6
Selling Space mn sq m 22.2 22.5 22.9 23.1 23.3 23.5
Table 10 Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-
2018
% growth
2017/18 2013-18 CAGR 2013/18 Total
Value sales VND billion 5.7 6.7 38.4

Outlets 0.8 0.9 4.8
Selling Space '000 sq m 0.8 1.2 6.0
Table 11 Sales in Grocery Retailers by Channel: Value 2013-2018
VND tn
2013 2014 2015 2016 2017 2018
Convenience Stores 1.1 1.5 2.0 2.5 3.1 3.7

Discounters - - - - - -
Forecourt Retailers - - - - - -
Hypermarkets 14.7 23.2 20.6 25.0 26.2 27.3
Supermarkets 31.1 35.6 39.7 43.0 46.3 50.9
Modern Grocery Retailers 46.9 60.2 62.3 70.6 75.6 81.9
Traditional Grocery 724.8 815.2 854.1 887.9 934.8 986.2
Retailers
Grocery Retailers 771.7 875.4 916.4 958.4 1,010.4 1,068.1

Table 12 Sales in Grocery Retailers by Channel: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Convenience Stores 19.0 27.6 238.6

Discounters - - -
Forecourt Retailers - - -
Hypermarkets 4.2 13.2 85.8
Supermarkets 9.8 10.3 63.4
Modern Grocery Retailers 8.3 11.8 74.5
Traditional Grocery Retailers 5.5 6.4 36.1
Table 13 Grocery Retailers Outlets by Channel: Units 2013-2018
outlet
2013 2014 2015 2016 2017 2018
Convenience Stores 463.0 565.0 708.0 947.0 1,099.0 1,188.0

Hypermarkets 32.0 41.0 49.0 54.0 56.0 59.0
Supermarkets 559.0 605.0 1,032.0 1,672.0 2,285.0 2,734.0
Modern Grocery Retailers 1,054.0 1,211.0 1,789.0 2,673.0 3,440.0 3,981.0
Traditional Grocery 635,176.0 641,542.0 647,556.0 652,988.0 658,005.0 662,592.0
Retailers
Table 14 Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018
% unit growth
2017/18 2013-18 CAGR 2013/18 Total

Discounters - - -
Table 15 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Value sales VND tn 740.3 848.3 946.4 1,048.9 1,177.5 1,306.5

Outlets '000 144.3 146.3 148.0 150.1 152.6 154.5
Table 16 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth
2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 1.2 1.4 7.1
Table 17 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
VND tn
2013 2014 2015 2016 2017 2018
Apparel and Footwear 68.8 81.1 92.9 103.9 114.9 125.8

Specialist Retailers
Electronics and 220.0 248.3 282.5 331.3 379.9 421.6
Appliance Specialist
Retailers
Health and Beauty 121.4 140.4 160.1 175.3 196.6 218.7
Home and Garden 171.2 195.3 210.1 223.8 248.8 278.1
Leisure and Personal 59.6 74.1 88.1 102.1 119.7 139.4
Goods Specialist
Retailers
Other Non-Grocery 99.3 109.1 112.8 112.4 117.5 122.8
Specialists
Non-Grocery Specialists 740.3 848.3 946.4 1,048.9 1,177.5 1,306.5
Table 18 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Apparel and Footwear Specialist 9.5 12.8 82.9

Retailers
Electronics and Appliance Specialist 11.0 13.9 91.6
Retailers
Health and Beauty Specialist Retailers 11.3 12.5 80.2
Home and Garden Specialist Retailers 11.8 10.2 62.5
Leisure and Personal Goods Specialist 16.5 18.5 133.8
Retailers
Other Non-Grocery Specialists 4.5 4.3 23.7
Table 19 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
outlet
2013 2014 2015 2016 2017 2018
Apparel and Footwear 10,078.0 10,339.0 10,582.0 10,927.0 11,222.0 11,469.0

Electronics and 6,554.0 7,096.0 7,328.0 8,098.0 8,556.0 8,692.0
Retailers
Health and Beauty 38,347.0 38,714.0 39,016.0 39,234.0 39,704.0 40,139.0
Home and Garden 11,479.0 11,646.0 11,837.0 12,071.0 12,344.0 12,650.0
Leisure and Personal 12,607.0 12,999.0 13,484.0 13,879.0 14,553.0 15,220.0
Goods Specialist
Retailers
Other Non-Grocery 65,197.0 65,524.0 65,781.0 65,899.0 66,187.0 66,298.0
Specialists
Table 20 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
% unit growth
2017/18 2013-18 CAGR 2013/18 Total

Retailers
Retailers
Retailers
Table 21 Mixed Retailers: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Value sales VND tn 2.0 4.2 5.9 7.3 8.7 9.9

Outlets '000 0.1 0.1 0.1 0.1 0.2 0.2
Table 22 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-
2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 17.1 13.2 85.6
Selling Space '000 sq m -6.9 5.5 30.4
Table 23 Sales in Mixed Retailers by Channel: Value 2013-2018
VND tn
2013 2014 2015 2016 2017 2018
Department Stores 1.8 4.0 5.7 7.1 8.2 9.2

Mass Merchandisers - - - - - -
Variety Stores 0.2 0.2 0.3 0.3 0.5 0.7
Warehouse Clubs - - - - - -
Mixed Retailers 2.0 4.2 5.9 7.3 8.7 9.9
Table 24 Sales in Mixed Retailers by Channel: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Department Stores 12.6 39.0 419.7

Mass Merchandisers - - -
Variety Stores 45.0 24.7 201.1
Warehouse Clubs - - -
Table 25 Mixed Retailers Outlets by Channel: Units 2013-2018
outlet
2013 2014 2015 2016 2017 2018

Variety Stores 108.0 112.0 117.0 125.0 168.0 201.0
Mixed Retailers 118.0 126.0 134.0 142.0 187.0 219.0
Table 26 Mixed Retailers Outlets by Channel: % Unit Growth 2013-2018
% unit growth
2017/18 2013-18 CAGR 2013/18 Total
Department Stores -5.3 12.5 80.0

Table 27 Retailing GBO Company Shares: % Value 2014-2018
% retail value rsp excl sales tax

Company 2014 2015 2016 2017 2018
Mobile World JSC 0.9 1.2 2.2 3.0 3.6

Saigon Union of Trading 1.4 1.3 1.4 1.3 1.3
Cooperatives
Central Group 0.0 0.0 0.8 0.7 0.7
VinGroup JSC - 0.1 0.3 0.3 0.7
FPT Corp 0.3 0.4 0.5 0.6 0.7
Nguyen Kim Trading JSC 0.5 0.5 0.5 0.5 0.5
Pico JSC 0.2 0.2 0.2 0.4 0.4
Cao Phong Co Ltd 0.2 0.2 0.2 0.3 0.4
Phu Nhuan Jewelry JSC 0.1 0.2 0.2 0.3 0.3
AEON Group 0.1 0.2 0.3 0.3 0.3
VHC Trading Co Ltd 0.2 0.3 0.3 0.3 0.3
Lotte Group 0.1 0.2 0.3 0.3 0.2
Alibaba Group Holding Ltd - - 0.1 0.2 0.1
Tiki JSC 0.0 0.0 0.0 0.0 0.1
Herbalife Nutrition Ltd - - - - 0.1
Ho Chi Minh City Book 0.1 0.1 0.1 0.1 0.1
Distribution Co
Sea Ltd - - 0.0 0.0 0.1
Amway Corp 0.1 0.1 0.1 0.1 0.0
Saigon Jewelry Co Ltd 0.1 0.1 0.1 0.0 0.0
Parkson Holdings Bhd 0.0 0.0 0.0 0.0 0.0
Vien Thong A Import 0.2 0.3 0.4 0.4 -
Export Trading
Production Corp
Tran Anh Digital World 0.1 0.2 0.2 0.2 -
JSC
Herbalife Ltd 0.1 0.1 0.1 0.1 -
Thien Ngoc Minh Uy Co Ltd 0.1 0.1 0.1 - -
Rocket Internet GmbH 0.0 0.1 0.0 - -
Casino Guichard- 1.1 0.8 - - -
Perrachon SA
Others 93.9 93.3 91.7 90.8 90.0
Total 100.0 100.0 100.0 100.0 100.0
Table 28 Retailing GBN Brand Shares: % Value 2015-2018

Brand Company (GBO) 2015 2016 2017 2018
Dien May Xanh Mobile World JSC 0.2 0.6 1.2 1.8
The Gioi Di Dong Mobile World JSC 0.9 1.4 1.4 1.3
Co.opMart Saigon Union of Trading 1.2 1.2 1.1 1.1
Cooperatives
Big C Central Group - 0.8 0.7 0.7
FPT Shop FPT Corp 0.4 0.5 0.6 0.7
Nguyenkim - Saigon Nguyen Kim Trading JSC 0.5 0.5 0.5 0.5
Shopping Center
Mobile world Mobile World JSC 0.1 0.2 0.3 0.4
Pico Pico JSC 0.2 0.2 0.4 0.4
Dien May Cho Lon Cao Phong Co Ltd 0.2 0.2 0.3 0.4
PNJ Phu Nhuan Jewelry JSC 0.2 0.2 0.3 0.3
Vien Thong A VinGroup JSC - - - 0.3
AEON AEON Group 0.2 0.3 0.3 0.3
Home Center VHC Trading Co Ltd 0.3 0.3 0.3 0.3
Lotte Mart Lotte Group 0.2 0.3 0.2 0.2
VinMart+ VinGroup JSC 0.0 0.1 0.1 0.2
VinMart VinGroup JSC 0.0 0.1 0.1 0.2
Bach Hoa Xanh Mobile World JSC - 0.0 0.1 0.1
3rd Party Merchants Alibaba Group Holding Ltd - 0.1 0.1 0.1
Tiki.vn Tiki JSC 0.0 0.0 0.0 0.1
Co.op Food Saigon Union of Trading 0.1 0.1 0.1 0.1
Cooperatives
Vien Thong A Vien Thong A Import 0.3 0.4 0.4 -
Export Trading
Production Corp
Tran Anh Tran Anh Digital World JSC 0.2 0.2 0.2 -
Big C Casino Guichard- 0.8 - - -
Perrachon SA
Others 94.1 92.4 91.3 90.7
Total 100.0 100.0 100.0 100.0
Table 29 Store-based Retailing GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Mobile World JSC 0.9 1.1 2.0 2.8 3.2

Cooperatives
Central Group 0.0 0.0 0.8 0.7 0.7
VinGroup JSC - 0.1 0.3 0.3 0.6
FPT Corp 0.3 0.4 0.5 0.5 0.6
Pico JSC 0.2 0.2 0.2 0.4 0.4
Cao Phong Co Ltd 0.2 0.2 0.3 0.3 0.4
AEON Group 0.1 0.2 0.3 0.3 0.3

Lotte Group 0.1 0.2 0.3 0.3 0.2
Distribution Co
Con Cung JSC 0.0 0.0 0.0 0.0 0.1
Dong Hung Trading - - - 0.1 0.1
Service Co Ltd
Vietnam National 0.1 0.1 0.0 0.0 0.0
Textile & Garment Corp
(VINATEX)
TCT Group 0.1 0.1 0.1 0.1 0.0
Perrachon SA
Others 94.5 94.1 92.6 91.7 90.8
Total 100.0 100.0 100.0 100.0 100.0
Table 30 Store-based Retailing GBN Brand Shares: % Value 2015-2018

Cooperatives
Shopping Center
Pico Pico JSC 0.2 0.2 0.4 0.4
Cooperatives
Fahasa Ho Chi Minh City Book 0.1 0.1 0.1 0.1
Distribution Co
Con Cung Con Cung JSC 0.0 0.0 0.0 0.1
Aeon Citimart Dong Hung Trading - - 0.1 0.1
Service Co Ltd
Export Trading
Production Corp
Fivimart TCT Group 0.1 0.1 0.1 -
Perrachon SA
Others 93.9 92.4 91.5 91.1
Total 100.0 100.0 100.0 100.0

Table 31 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
sites/outlets
Brand (GBO) Company (NBO) 2015 2016 2017 2018
VinMart+ VinGroup JSC 300 843 1,055 1,185

The Gioi Di Dong Mobile World JSC 473 950 1,072 1,150
Dien May Xanh Mobile World JSC 33 250 642 755
FPT Shop FPT Corp 305 385 473 560
Viet Tien (Vietnam Viet Tien Garment JSC 496 492 486 481
National Textile &
Garment Corp
(VINATEX))
Bach Hoa Xanh Mobile World JSC - 40 283 415
PNJ Phu Nhuan Jewelry JSC 200 219 269 324
Co.op Food Saigon Union of Trading 96 119 201 321
Cooperatives
Con Cung Con Cung JSC 69 81 150 321
Vien Thong A VinGroup JSC - - - 190
Co.opMart Saigon Union of Trading 80 85 95 110
Cooperatives
Fahasa Ho Chi Minh City Book 78 88 98 105
Distribution Co
VinMart VinGroup JSC 50 55 67 95
Nguyenkim - Saigon Nguyen Kim Trading JSC 24 23 50 62
Shopping Center
Dien May Cho Lon Cao Phong Co Ltd 30 38 51 61
SJC Saigon Jewelry Co Ltd 113 84 74 48
Big C (Central Group) Central Retail Corp - 33 35 36
Aeon Citimart Dong Hung Trading - - 28 28
Service Co Ltd
Pico Pico JSC 6 12 22 22
Home Center VHC Trading Co Ltd 14 14 14 14
Vien Thong A Vien Thong A Import 153 230 240 -
Export Trading
Production Corp
Tran Anh Tran Anh Digital World JSC 19 33 39 -
Fivimart TCT Group 22 25 23 -
Citimart (Dong Hung Dong Hung Trading 28 28 - -
Co Ltd) Service Co Ltd
Big C Casino Guichard- 32 - - -
Perrachon SA
Others Others 794,886 801,784 808,731 814,977
Total Total 797,507 805,911 814,198 821,260
Table 32 Non-Store Retailing GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Mobile World JSC 4.1 5.6 8.4 11.3 17.4

Tiki JSC 0.4 0.5 1.4 1.5 4.9
Sea Ltd - - 0.3 1.8 4.7
FPT Corp 1.4 1.8 3.6 4.0 4.2
Oriflame Cosmetics SA 1.5 1.8 1.6 2.3 2.3
New Image Group Ltd 0.6 0.6 1.2 2.3 2.2
Amway Corp 9.4 6.6 3.8 2.9 2.0
Morinda Holdings Inc 2.8 1.8 1.7 1.7 1.4
VinGroup JSC - - - - 1.3
Tiens Group Co Ltd 1.7 1.6 1.6 1.5 1.1
Forever Living Products 3.6 2.3 1.5 1.2 0.9
International LLC
Pico JSC 0.9 0.8 0.7 0.7 0.6
Nu Skin Enterprises Inc 0.7 0.6 0.5 0.5 0.4
bHIP Global 0.9 0.6 0.4 0.4 0.3
Central Retail Corp - - - 0.2 0.2
Sophie Martin Indonesia 0.4 0.3 0.3 0.2 0.1
PT
Others 64.8 65.6 58.9 58.8 43.5
Total 100.0 100.0 100.0 100.0 100.0
Note: Vending data captures vending systems installed in public and semi-captive environments only. For
Table 33 Non-Store Retailing GBN Brand Shares: % Value 2015-2018


Herbalife Nutrition Herbalife Nutrition Ltd - - - 4.8
Shopee Sea Ltd - 0.3 1.8 4.7
Oriflame Oriflame Cosmetics SA 1.8 1.6 2.3 2.3
New Image New Image Group Ltd 0.6 1.2 2.3 2.2
Amway Amway Corp 6.6 3.8 2.9 2.0
Shopping Center
Tahitian Noni Morinda Holdings Inc 1.8 1.7 1.7 1.4
Tiens Tiens Group Co Ltd 1.6 1.6 1.5 1.1
Forever Living Forever Living Products 2.3 1.5 1.2 0.9
International LLC
Lazada Alibaba Group Holding Ltd - 1.2 0.9 0.8
Pico Pico JSC 0.8 0.7 0.7 0.6
Nu Skin Nu Skin Enterprises Inc 0.6 0.5 0.5 0.4
bHIP bHIP Global 0.6 0.4 0.4 0.3
Robins Central Retail Corp - - 0.2 0.2
Sophie Paris Sophie Martin Indonesia PT 0.3 0.3 0.2 0.1
Herbalife Nutrition Herbalife Ltd 4.0 3.9 5.0 -
Export Trading
Production Corp
Thien Ngoc Minh Uy Thien Ngoc Minh Uy Co Ltd 7.0 5.2 - -

3rd Party Merchants Rocket Internet GmbH 6.4 - - -
lazada Rocket Internet GmbH 1.5 - - -
Others 52.2 53.6 52.4 43.5
Total 100.0 100.0 100.0 100.0
Note: Vending data captures vending systems installed in public and semi-captive environments only. For
Table 34 Grocery Retailers GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018

Cooperatives
Central Group - - 1.7 1.6 1.5
VinGroup JSC - 0.2 0.5 0.6 0.8
Lotte Group 0.3 0.4 0.5 0.5 0.5
Mobile World JSC - - 0.0 0.1 0.3
AEON Group 0.0 0.1 0.2 0.2 0.2
Service Co Ltd
Shinsegae Co Ltd - - 0.1 0.1 0.1
Vietnam Dairy Products 0.0 0.0 0.0 0.1 0.1
JSC (Vinamilk)
Alimentation Couche- 0.0 0.0 0.0 0.0 0.1
Tard Inc
TCT Group 0.2 0.2 0.2 0.2 -
Dong Hung Co Ltd 0.1 0.1 0.1 - -
Perrachon SA
G7 Trading & Service Co - - - - -
Ltd
Others 94.5 94.6 93.8 93.6 93.3
Total 100.0 100.0 100.0 100.0 100.0
Table 35 Grocery Retailers GBN Brand Shares: % Value 2015-2018


Cooperatives
Cooperatives
Coop Xtra Saigon Union of Trading 0.1 0.1 0.1 0.2
Cooperatives

Service Co Ltd
E-Mart Shinsegae Co Ltd - 0.1 0.1 0.1
Giac Mo Sua Viet Vietnam Dairy Products 0.0 0.0 0.1 0.1
JSC (Vinamilk)
Circle K Alimentation Couche- 0.0 0.0 0.0 0.1
Tard Inc
Citimart Dong Hung Co Ltd 0.1 0.1 - -
Perrachon SA
G7mart G7 Trading & Service Co - - - -
Ltd
Others 94.6 93.8 93.6 93.3
Total 100.0 100.0 100.0 100.0
Table 36 Grocery Retailers LBN Brand Shares: Outlets 2015-2018
sites/outlets

Giac Mo Sua Viet Vietnam Dairy Products 100 150 288 420
JSC (Vinamilk)
Cooperatives
Circle K Red Circle Co Ltd 130 200 246 293
(Alimentation
Couche-Tard Inc)
Cooperatives
Service Co Ltd
Lotte Mart (Lotte Lotte Shopping Co Ltd 11 13 13 13
Group)
AEON (AEON Group) Aeon Vietnam Co Ltd 3 4 4 4
Coop Xtra Saigon Union of Trading 2 2 2 4
Cooperatives
E-Mart (Shinsegae E-mart Vietnam - 1 1 1
Co Ltd)
Perrachon SA
G7mart (G7 Trading Various franchisees - - - -
& Service Co Ltd)
Others Others 648,491 654,063 659,104 663,648
Total Total 649,345 655,661 661,445 666,573
Table 37 Grocery Retailers LBN Brand Shares: Selling Space 2015-2018
selling space '000 sq m


Cooperatives
Big C (Central Group) Central Retail Corp - 159.6 169.2 172.6
Lotte Mart (Lotte Lotte Shopping Co Ltd 103.3 124.9 124.9 124.9
Group)
Cooperatives
Service Co Ltd
JSC (Vinamilk)
Circle K Red Circle Co Ltd 14.3 16.6 20.5 25.6
(Alimentation
Couche-Tard Inc)
Cooperatives
AEON (AEON Group) Aeon Vietnam Co Ltd 12.6 16.5 16.5 16.5
E-Mart (Shinsegae E-mart Vietnam - 3.0 3.0 3.0
Co Ltd)
Citimart (Dong Hung Dong Hung Trading 40.8 40.8 - -
Perrachon SA
& Service Co Ltd)
Others Others 22,138.6 22,255.6 22,309.5 22,363.2
Total Total 22,868.1 23,140.4 23,339.3 23,535.0
Table 38 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Mobile World JSC 1.8 2.2 3.9 5.0 5.7

FPT Corp 0.6 0.8 0.9 0.9 1.0
Pico JSC 0.3 0.3 0.4 0.7 0.7
Cao Phong Co Ltd 0.4 0.4 0.5 0.6 0.7
VinGroup JSC - 0.1 0.2 0.0 0.5
Distribution Co
Con Cung JSC 0.0 0.0 0.0 0.1 0.1
Blue Exchange Co Ltd 0.1 0.1 0.1 0.1 0.1
adidas Group 0.0 0.0 0.1 0.1 0.1
(VINATEX)
AA Corp 0.1 0.1 0.1 0.1 0.1
Binh Tien Dong Nai Imex 0.0 0.0 0.0 0.0 0.0
Corp Pte Ltd
Bibo Mart JSC 0.0 0.0 0.0 0.0 0.0
Viet Fashion Co Ltd 0.1 0.0 0.0 0.0 0.0
Nha Be Corp 0.1 0.0 0.0 0.0 0.0
Kids Plaza Trade & 0.0 0.0 0.0 0.0 0.0
Export - Import Co Ltd
Export Trading
Production Corp
JSC
Others 93.7 92.6 90.3 89.0 88.6
Total 100.0 100.0 100.0 100.0 100.0
Table 39 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018

Shopping Center
Pico Pico JSC 0.3 0.4 0.7 0.7
Distribution Co
Blue Exchange Blue Exchange Co Ltd 0.1 0.1 0.1 0.1
adidas adidas Group 0.0 0.1 0.1 0.1
Viet Tien Vietnam National 0.1 0.1 0.1 0.1
(VINATEX)
SJC Saigon Jewelry Co Ltd 0.1 0.1 0.1 0.1
VinPro VinGroup JSC 0.1 0.2 0.0 0.1
Nha Xinh AA Corp 0.1 0.1 0.0 0.1
Biti's Binh Tien Dong Nai Imex 0.0 0.0 0.0 0.0
Corp Pte Ltd
Bibo Mart Bibo Mart JSC 0.0 0.0 0.0 0.0
Ninomaxx Viet Fashion Co Ltd 0.0 0.0 0.0 0.0
Export Trading
Production Corp
Others 92.7 90.4 89.1 88.7
Total 100.0 100.0 100.0 100.0
Table 40 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
sites/outlets
National Textile &
Garment Corp
(VINATEX))
Blue Exchange Blue Exchange Co Ltd 176 241 287 333
PNJ Phu Nhuan Jewelry JSC 200 219 269 324
Con Cung Con Cung JSC 69 81 150 321
Biti's Binh Tien Dong Nai Imex 80 150 152 154
Corp Pte Ltd
Bibo Mart Bibo Mart JSC 51 63 131 140
Fahasa Ho Chi Minh City Book 78 88 98 105
Distribution Co
Nha Be Nha Be Corp 138 138 162 104
Kids Plaza Kids Plaza Trade & 45 52 71 90
adidas (adidas Group) adidas Vietnam Co Ltd 38 50 64 78
Ninomaxx Viet Fashion Co Ltd 64 57 59 72
Shopping Center
SJC Saigon Jewelry Co Ltd 113 84 74 48
VinPro VinGroup JSC 40 145 29 45
Export Trading
Production Corp
Others Others 145,416 146,360 147,984 149,373
Total Total 148,028 150,108 152,566 154,468
Table 41 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018

Shopping Center
Pico Pico JSC 24.7 44.6 81.7 81.7
Viet Tien (Vietnam Viet Tien Garment JSC 69.7 69.0 68.3 67.6
National Textile &
Garment Corp
(VINATEX))
FPT Shop FPT Corp 25.4 32.1 35.5 40.8
Distribution Co
Bibo Mart Bibo Mart JSC 10.0 12.4 25.4 27.4
Nha Be Nha Be Corp 24.5 24.5 28.7 18.7
Kids Plaza Kids Plaza Trade & 9.1 10.5 14.1 18.4
Corp Pte Ltd
Nha Xinh AA Corp 10.6 12.5 12.5 16.2
adidas (adidas Group) adidas Vietnam Co Ltd 7.2 9.1 11.6 14.2
Export Trading
Production Corp
Others Others 11,514.6 11,591.9 11,816.6 12,023.3
Total Total 12,140.4 12,650.5 13,584.4 14,020.6
Table 42 Mixed Retailers GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
AEON Group 46.4 44.6 50.4 48.3 48.5

Takashimaya Co Ltd - - 4.4 8.7 10.3
Central Retail Corp 8.4 13.2 11.5 10.8 10.0
Imex Pan Pacific Group 11.8 9.6 8.7 8.1 7.6
Inc
Mapletree Investments - 9.1 8.1 7.9 7.6
Pte Ltd
Cooperatives
Lotte Group - 5.3 3.9 2.9 2.6
Miniso Industries Co Ltd - - 0.7 0.8 1.6
Yiwu Youlian Investment - - 0.3 1.2 1.2
Management Co Ltd
Daiso Sangyo Co Ltd 1.0 0.7 0.8 1.1 1.0
Viet HaChi Co Ltd 0.3 0.3 0.2 0.2 0.2
International Business 8.1 - - - -
Center Corp
Others 4.4 3.0 1.4 1.7 2.4
Total 100.0 100.0 100.0 100.0 100.0
Table 43 Mixed Retailers GBN Brand Shares: % Value 2015-2018

AEON AEON Group 44.6 50.4 48.3 48.5

Takashimaya Takashimaya Co Ltd - 4.4 8.7 10.3
Robins Central Retail Corp 12.9 11.0 10.3 9.7
Trang Tien Plaza Imex Pan Pacific Group Inc 9.6 8.7 8.1 7.6
SC Vivo City Mapletree Investments 9.1 8.1 7.9 7.6
Pte Ltd
Parkson Parkson Holdings Bhd 12.4 7.8 6.0 4.0
Sense City Saigon Union of Trading 1.7 1.6 2.4 2.9
Cooperatives
Diamond Plaza Lotte Group 5.3 3.9 2.9 2.6
Miniso Miniso Industries Co Ltd - 0.7 0.8 1.6
Ilahui Yiwu Youlian Investment - 0.3 1.2 1.2
Management Co Ltd
Daiso Daiso Sangyo Co Ltd 0.7 0.8 1.1 1.0
Komonoya Central Retail Corp 0.3 0.4 0.5 0.3
Hachi Hachi Japan Viet HaChi Co Ltd 0.3 0.2 0.2 0.2
Shop
Diamond Plaza International Business - - - -
Center Corp
Others 3.0 1.4 1.7 2.4
Total 100.0 100.0 100.0 100.0
Table 44 Mixed Retailers LBN Brand Shares: Outlets 2015-2018
sites/outlets
Miniso (Miniso Le Bao Minh Group - 13 20 41

Industries Co Ltd)
Ilahui (Yiwu Vic Retail JSC - 6 31 34
Youlian Investment
Management Co Ltd)
Komonoya Central Retail Corp 4 11 16 11
Daiso (Daiso Sangyo Dai Son Investment 2 3 6 6
Co Ltd) Trading JSC
Hachi Hachi Japan Viet HaChi Co Ltd 4 4 4 5
Shop
Parkson (Parkson Lion Group, The 7 5 5 4
Holdings Bhd)
Sense City Saigon Union of Trading 2 2 4 4
Cooperatives
Robins Central Retail Corp 2 2 2 2
Trang Tien Plaza Imex Pan Pacific Group Inc 1 1 1 1
Diamond Plaza Lotte Shopping Co Ltd 1 1 1 1
(Lotte Group)
SC Vivo City Vietsin Commercial 1 1 1 1
(Mapletree Complex Development JSC
Investments Pte Ltd) (VCCD)
Takashimaya Takashimaya Vietnam Ltd - 1 1 1
(Takashimaya Co Ltd)
Center Corp
Daiso (Daiso Sangyo Tri Phuc Co Ltd - - - -
Co Ltd)
Others Others 107 88 91 104
Total Total 134 142 187 219

Table 45 Mixed Retailers LBN Brand Shares: Selling Space 2015-2018

Parkson (Parkson Lion Group, The 132.0 91.0 91.0 65.0

Holdings Bhd)
Cooperatives
Takashimaya Takashimaya Vietnam Ltd - 15.0 15.0 15.0
SC Vivo City Vietsin Commercial 10.8 10.8 10.8 10.8
Diamond Plaza Lotte Shopping Co Ltd 8.0 8.0 8.0 8.0
(Lotte Group)
Miniso (Miniso Le Bao Minh Group - 2.4 3.7 7.7
Industries Co Ltd)
Ilahui (Yiwu Vic Retail JSC - 0.8 4.1 5.0
Youlian Investment
Management Co Ltd)
Daiso (Daiso Sangyo Dai Son Investment 1.2 1.8 3.2 3.2
Co Ltd) Trading JSC
Shop
Center Corp
Co Ltd)
Others Others 29.6 28.4 12.3 14.9
Total Total 257.1 249.9 278.5 259.4
Table 46 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
VND tn
2018 2019 2020 2021 2022 2023

Retailing 2,445.0 2,575.3 2,713.7 2,859.8 3,015.8 3,179.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.
Table 47 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth

2018-2023
% constant value growth, retail value rsp excl sales tax
2018/2019 2018-23 CAGR 2018/23 Total

Retailing 5.3 5.4 30.0
trade sources
Table 48 Forecast Sales in Store-based Retailing by Channel: Value 2018-2023
VND tn
2018 2019 2020 2021 2022 2023

Mixed Retailers 9.9 10.8 11.7 12.6 13.5 14.5
Luxury Retailing 2.4 - - - - -
trade sources
Note 1: Forecast value data in constant terms.
stores.
Note 4: No forecast data available for luxury and off-price retailing.
Table 49 Forecast Sales in Store-based Retailing by Channel: % Value Growth 2018-

2023
2018/2019 2018-23 CAGR 2018/23 Total

Luxury Retailing - - -
trade sources
stores.
Table 50 Forecast Store-based Retailing Outlets by Channel: Units 2018-2023
outlet
2018 2019 2020 2021 2022 2023

Mixed Retailers 219.0 247.0 267.0 282.0 297.0 310.0
Luxury Retailing 18.0 - - - - -
trade sources
stores.
Table 51 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-

2023
% unit growth
2018/19 2018-23 CAGR 2018/23 Total

Luxury Retailing - - -
trade sources
stores.
Table 52 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
VND tn
2018 2019 2020 2021 2022 2023
Direct Selling 10.1 10.2 10.5 11.0 11.7 12.5

Homeshopping 1.0 1.1 1.1 1.1 1.1 1.1
Internet Retailing 49.5 56.8 64.5 73.4 84.6 94.0
Vending - - - - - -
Foreign Internet 9.6 10.8 12.0 13.5 15.4 16.9
Retailing
Domestic Internet 39.8 46.0 52.5 59.9 69.2 77.0
Retailing
Mobile Internet Retailing 22.3 26.7 31.0 36.7 43.2 48.9
trade sources
Note 1: Forecast value data in constant terms.
Table 53 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-

2023
2018/2019 2018-23 CAGR 2018/23 Total

Vending - - -
Foreign Internet Retailing 11.9 11.9 75.3
Domestic Internet Retailing 15.6 14.1 93.4
Mobile Internet Retailing 20.0 17.0 119.4
trade sources
Table 54 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-
2023
2018 2019 2020 2021 2022 2023
Value sales VND tn 1,068.1 1,091.3 1,113.9 1,135.8 1,157.4 1,178.2

Outlets '000 666.6 671.2 675.3 678.9 682.3 685.4
trade sources
Table 55 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 0.7 0.6 2.8
trade sources
Table 56 Forecast Sales in Grocery Retailers by Channel: Value 2018-2023
VND tn
2018 2019 2020 2021 2022 2023
Convenience Stores 3.7 4.2 4.6 5.0 5.4 5.9

Hypermarkets 27.3 27.6 27.8 28.0 28.2 28.4
Supermarkets 50.9 53.7 56.5 59.3 62.5 65.7
Modern Grocery Retailers 81.9 85.4 88.9 92.3 96.1 100.0
Traditional Grocery 986.2 1,005.9 1,025.1 1,043.5 1,061.2 1,078.2
Retailers
trade sources
Table 57 Forecast Sales in Grocery Retailers by Channel: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total

Discounters - - -
trade sources
Table 58 Forecast Grocery Retailers Outlets by Channel: Units 2018-2023
outlet
2018 2019 2020 2021 2022 2023
Convenience Stores 1,188.0 1,259.0 1,330.0 1,400.0 1,473.0 1,548.0

Hypermarkets 59.0 61.0 63.0 65.0 67.0 69.0
Supermarkets 2,734.0 3,117.0 3,460.0 3,771.0 4,073.0 4,358.0
Modern Grocery Retailers 3,981.0 4,437.0 4,853.0 5,236.0 5,613.0 5,975.0
Retailers
trade sources
Table 59 Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2018-2023
% unit growth
2018/19 2018-23 CAGR 2018/23 Total

Discounters - - -
trade sources
Table 60 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space
2018-2023
2018 2019 2020 2021 2022 2023
Value sales VND tn 1,306.5 1,405.1 1,512.0 1,625.8 1,747.5 1,879.0

Outlets '000 154.5 156.4 158.3 160.2 162.1 164.0
Table 61 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space:
% Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 1.3 1.2 6.2
Table 62 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
VND tn
2018 2019 2020 2021 2022 2023
Apparel and Footwear 125.8 132.8 139.8 146.9 154.3 161.8

Electronics and 421.6 455.3 490.3 526.6 564.6 604.1
Retailers
Health and Beauty 218.7 234.6 251.3 268.9 287.4 307.0
Home and Garden 278.1 303.0 333.4 367.8 406.4 451.1
Leisure and Personal 139.4 155.8 172.9 190.8 209.7 229.5
Goods Specialist
Retailers
Other Non-Grocery 122.8 123.7 124.3 124.8 125.2 125.4
Specialists

trade sources
Table 63 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth

2018-2023
2018/2019 2018-23 CAGR 2018/23 Total

Retailers
Retailers
Retailers
trade sources
Table 64 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
outlet
2018 2019 2020 2021 2022 2023

Electronics and 8,692.0 8,866.0 9,034.0 9,197.0 9,353.0 9,503.0
Retailers
Home and Garden 12,650.0 12,990.0 13,367.0 13,782.0 14,237.0 14,736.0
Leisure and Personal 15,220.0 15,876.0 16,523.0 17,158.0 17,800.0 18,431.0
Goods Specialist
Retailers
Other Non-Grocery 66,298.0 66,364.0 66,430.0 66,496.0 66,562.0 66,629.0
Specialists
trade sources
Table 65 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-

2023
% unit growth
2018/19 2018-23 CAGR 2018/23 Total
Retailers
Retailers
Retailers
trade sources
Table 66 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
2018 2019 2020 2021 2022 2023
Value sales VND tn 9.9 10.8 11.7 12.6 13.5 14.5

Outlets '000 0.2 0.2 0.3 0.3 0.3 0.3
trade sources
Note: Forecast value data in constant terms
Table 67 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth
2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 12.8 7.2 41.6
trade sources
Table 68 Forecast Sales in Mixed Retailers by Channel: Value 2018-2023
VND tn
2018 2019 2020 2021 2022 2023

Variety Stores 0.7 0.9 1.0 1.1 1.2 1.3
Mixed Retailers 9.9 10.8 11.7 12.6 13.5 14.5
trade sources
Table 69 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total

trade sources
Table 70 Forecast Mixed Retailers Outlets by Channel: Units 2018-2023
outlet
2018 2019 2020 2021 2022 2023

Variety Stores 201.0 229.0 248.0 263.0 277.0 290.0
Mixed Retailers 219.0 247.0 267.0 282.0 297.0 310.0
Table 71 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2018-2023
% unit growth
2018/19 2018-23 CAGR 2018/23 Total

DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
 Other terminology:
 GBO refers to global brand owner, which is the ultimate owner of a brand.
 NBO refers to national brand owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely
separate company. Share tables at both GBO and at NBO level are provided in the report.
Reference to shares in the report analysis is at NBO level.
SOURCES
Sources used during the research included the following:
Summary 2 Research Sources
Official Sources Agro Info

American Chamber of Commerce in Vietnam
Department of Animal Health of Vietnam
General Department of Vietnam Custom
General Statistics Office of Vietnam
Hanoi Department of Trade
Ho Chi Minh Department of Trade
Investment & Trade Promotion Centre (ITPC)
Ministry of Health of Vietnam (MOH)
Ministry of Industry & Trade
Ministry of Trade (MOT)
Trade Associations Association of Vietnam Retailers
Association of Vietnam Retailing
Hanoi Supermarket Association
ICT News
Multi-level Marketing Association
Retailing Association of Vietnam
Vietnam Agriculture Portal
Vietnam Association of Retailing
Vietnam E-Commerce & Information
Technology Agency
Vietnam E-Commerce Association
Vietnam Multi-Level Marketing Association
Trade Press Bao Cong Thuong
Binh Duong Newspaper
Brands Vietnam
Dai Ky Nguyen
Dan Tri Newspaper
Direct Selling News
Doanh Nghiep
Economics & Development
Elle Vietnam
Embassy of Denmark, Vietnam
Enterprise Forum newspaper
Ho Chi Minh City Law News
Ho Chi Minh City People's Committee
Hue City
Industry & Commerce Newspapaer
International Herald Tribune
Kinh Te Doi Song

Landtoday
New Hanoi
People Newspapaer
People's Police
Portal of Vietnam High Quality Goods
Saigon Marketing
Saigon Times Daily
Saigon Times Online
Saigoneer
SGTT
TBIC - Trade & Business Information Centre
Thanh Nien News
The Saigon Times
Thehetre.vn
Trading Market
Tuoi Tre Online
Vietnam Branding
Vietnam Express
Vietnam Investment Review
Vietnam Net
Vietnam News
Vietnam Newspaper
Vietnamnet
VN Business News
VN Media
VnEconomy
Vnexpress.net
VTC news
Women Online
Source: Euromonitor International
CONVENIENCE STORES IN VIETNAM

- CATEGORY ANALYSIS
HEADLINES
 Convenience stores grows by 19% in current value terms to reach sales of VND3.7 trillion in
2018
 Outlet expansion slows down as retailing becomes more crowded
 International players dominate convenience stores
 Convenience stores is expected to grow at a 14% current value CAGR (10% 2018 constant
value CAGR) over the forecast period to reach sales of VND7.3 trillion in 2023
PROSPECTS
Convenience Store Fast Food Contributes To Strong Value Growth

In 2018, convenience stores continued to record strong growth in value terms, largely due to
the rising trend towards eating out in convenience stores. This is mainly enjoyed by teenagers
and young customers, who appreciate the air-conditioned environment and not having to spend
as much as in a café or restaurant. Convenience stores also have a more relaxing atmosphere,
and the staff are usually more easy-going than in other types of consumer foodservice outlets.
Tapping into this trend, most leading players have created large areas for food consumption.
Some large outlets in strategic locations are even set up like a café, with half the store space for
retailing and the other half for eating in. Some players, such as 7-Eleven, also provide popular
Vietnamese street snacks such as sticky rice, duck embryo eggs, spiced rice paper, and cut fruit
to attract more dine-in customers. Hot food is also commonly offered at many outlets.
Outlet Expansion Is Slowing Down

During the review period, convenience stores recorded booming expansion in terms of the
number of outlets, as the format was still relatively new to Vietnam. However, in 2018, outlet
growth slowed down significantly. This is mainly because many urban areas have become
overcrowded with convenience stores, while rural areas do not generate enough demand for
industry players to invest there. In suburban and rural areas, convenience stores compete with
many traditional grocery retailers, street stalls and cafés that sell almost the same items at a
cheaper price.
Despite continual growth in the urban population, the rate of urbanisation is not fast enough to
keep up with the growth of convenience stores. Some players even found it challenging to open
new outlets, and several had to close non-performing outlets in 2018. Over the forecast period,
it is expected that this trend will continue, resulting in a much slower outlet growth rate
compared to the review period.
Loyalty Programmes Help To Retain Customers

Loyalty to convenience store brands is usually low, as customers simply choose whichever
store is convenient to their location. However, as many of the customers are young people who
enjoy spending time and eating in the stores, many players have launched loyalty programmes
to retain these customers. In mid-2017, Family Mart launched a membership card, which allows
customers to accumulate points to exchange for free gifts and take part in member-exclusive
promotions. In the same year, Ministop joined the Vpoint community of Vinaphone, which allows
customers to accumulate points from various merchants and retailers.
It is observed that these loyalty programmes have gathered moderate success. For many
customers who simply choose the outlet that is most accessible to them, regardless of the
brand, loyalty programmes are unnecessary. Besides, the amount of money spent at
convenience stores is usually low, making point accumulation progress very slow and
unattractive.
COMPETITIVE LANDSCAPE
International Players Dominate Convenience Stores

Four out of the top five players in 2018 were international brands: namely, Circle K, Family
Mart, B’s Mart, and Ministop. The only notable local player in 2018 was Shop & Go, which
recorded a declining value share. The dominance of international players can be attributed to
their advantages in this format, as the convenience store is still relatively new to many local
players. With greater financial capability, international players also find it easier to adapt to
market trends. For example, realising the strong growth of convenience store fast food, players
such as Family Mart, Circle K, and Ministop have collaborated with local manufacturers to have
local snacks delivered daily to their stores and have set up separate areas in their stores for
dining in. There is no sign that there will be a significant change in the split between
international and local players over the forecast period.
Convenience Stores Faces Competition From Mini-supermarkets

In 2018, the number of mini-supermarkets continued to thrive. VinMart+ is the most notable
player in this format. Mini-supermarkets have similar selling spaces to those of convenience
stores, and therefore they can be located near to each other. With their small selling space,
mini-supermarkets can also penetrate small lanes and crowded residential areas. Even though
mini-supermarkets do not focus on fast food, they usually carry a wider range of grocery and
household products. Therefore, customers are more inclined to shop at mini-supermarkets for
grocery items instead of at convenience stores if they are equally near. Over the forecast period,
this trend is expected to persist, as players such as VinGroup JSC continue to invest in their
mini-supermarket chains. Convenience stores, on the other hand, will find other competitive
edges in order to maintain growth, such as improving the fast food selection and offering more
products that target the younger population.
CHANNEL DATA
Table 72 Convenience Stores: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Value sales VND billion 1,100.0 1,478.2 1,966.7 2,544.4 3,129.6 3,724.2
Outlets 463.0 565.0 708.0 947.0 1,099.0 1,188.0
Selling Space '000 sq m 29.3 40.0 54.2 67.7 79.9 87.9
Table 73 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth
2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 8.1 20.7 156.6
Table 74 Convenience Stores GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
FamilyMart Uny Holdings - - 29.1 32.3 26.6

Co Ltd
Alimentation Couche- 9.6 15.3 15.3 15.6 19.1
Tard Inc
Beri Jucker Plc 16.1 15.1 13.9 12.6 10.8
AEON Group 1.3 1.3 2.6 4.6 6.9
Shop & Go JSC 12.7 11.5 10.0 9.1 6.9
FamilyMart Co Ltd 24.1 27.9 - - -
G7 Trading & Service Co - - - - -
Ltd
An Thuan Phat Co Ltd - - - - -
Others 36.1 29.0 29.2 25.8 29.8
Total 100.0 100.0 100.0 100.0 100.0
Table 75 Convenience Stores GBN Brand Shares: % Value 2015-2018

Family Mart FamilyMart Uny Holdings - 29.1 32.3 26.6

Co Ltd
Circle K Alimentation Couche- 15.3 15.3 15.6 19.1
Tard Inc
B's Mart Beri Jucker Plc 15.1 13.9 12.6 10.8
Ministop AEON Group 1.3 2.6 4.6 6.9
Shop & Go Shop & Go JSC 11.5 10.0 9.1 6.9
Family Mart FamilyMart Co Ltd 27.9 - - -
Vmart An Thuan Phat Co Ltd - - - -
G7mart G7 Trading & Service Co - - - -
Ltd
Others 29.0 29.2 25.8 29.8
Total 100.0 100.0 100.0 100.0
Table 76 Convenience Stores LBN Brand Shares: Outlets 2015-2018
sites/outlets
Circle K Red Circle Co Ltd 130 200 246 293

(Alimentation
Couche-Tard Inc)
Family Mart Family Co Ltd - 126 168 160
(FamilyMart Uny
Holdings Co Ltd)
B's Mart (Beri Phu Thai Group 120 146 159 143
Jucker Plc)
Ministop (AEON Group) Ministop Vietnam Co Ltd 30 64 84 112
Shop & Go Shop & Go JSC 100 110 121 95
Family Mart Family Co Ltd 80 - - -
(FamilyMart Co Ltd)
G7- Ministop (AEON G7 Trading & Service JSC - - - -
Group)
G7mart (G7 Trading G7 Trading & Service JSC - - - -
& Service Co Ltd)
& Service Co Ltd)
Total Total 708 947 1,099 1,188
Table 77 Convenience Stores LBN Brand Shares: Selling Space 2015-2018

Circle K Red Circle Co Ltd 14.3 16.6 20.5 25.6

(Alimentation
Couche-Tard Inc)
Family Mart Family Co Ltd - 13.3 17.8 16.9
(FamilyMart Uny
Holdings Co Ltd)
B's Mart (Beri Phu Thai Group 12.4 13.1 14.3 12.9
Jucker Plc)
Ministop (AEON Group) Ministop Vietnam Co Ltd 1.2 3.2 4.2 5.6
Shop & Go Shop & Go JSC 4.9 5.6 6.2 5.0
Family Mart Family Co Ltd 10.6 - - -
(FamilyMart Co Ltd)
G7- Ministop (AEON G7 Trading & Service JSC - - - -
Group)
G7mart (G7 Trading G7 Trading & Service JSC - - - -
& Service Co Ltd)
& Service Co Ltd)
Others Others 10.8 15.8 16.9 21.9
Total Total 54.2 67.7 79.9 87.9
Table 78 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2018-
2023
2018 2019 2020 2021 2022 2023
Outlets 1,188.0 1,259.0 1,330.0 1,400.0 1,473.0 1,548.0
trade sources
Table 79 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 6.0 5.4 30.3
trade sources
HYPERMARKETS IN VIETNAM -
CATEGORY ANALYSIS
HEADLINES
 Hypermarkets grows by 12% in current value terms to reach sales of VND27.3 trillion in 2018
 The growth of supermarkets affects hypermarkets
 Big C retains its dominant position in 2018
 Hypermarkets is expected to grow at a 5% current value CAGR (1% 2018 constant value
CAGR) over the forecast period to reach sales of VND35.1 trillion in 2023
PROSPECTS
the Growth of Supermarkets Affects Hypermarkets

There has been a big shift away from traditional grocery retailers towards modern grocery
retailers, including hypermarkets, as consumers prefer the pleasant shopping environment, wide
product portfolio, and good service. Since 2016, the boom of the mini-supermarket format,
pioneered by VinGroup JSC with the VinMart+ brand, has further divided the modern grocery
retail industry into various segments. With small selling spaces, mini-supermarkets can be
located in the heart of residential areas, unlike hypermarkets which are located in shopping
centres or on town outskirts. Therefore, young urban customers prefer to visit mini-
supermarkets for the convenience and proximity and visit hypermarkets only when necessary.
With investment in the mini-supermarket format by major players such as VinGroup JSC and
Saigon Union of Trading Cooperatives, hypermarkets will see its growth continue to be affected.
As a result, hypermarkets is expected to record the slowest current value growth rate among all
modern grocery retailing formats in the forecast period.
the Non-grocery Percentage Is Decreasing

Vietnamese customers prefer to shop for non-grocery products from specialist retailers. Many
people still perceive hypermarkets as the place mainly for grocery products, like supermarkets.
Industry players have tested various strategies to increase the percentage of non-grocery
products. For example, Central Retail Corp has added Nguyen Kim electronics and appliance
specialist retailer to its Big C hypermarket under the shop-in-shop concept. Saigon Union of
Trading Cooperatives has also allocated a large part of its Coop Xtra hypermarket stores to non-
grocery products. However, these strategies have yet to make a major impact on customer
behaviour when shopping at hypermarkets.
Over the forecast period, the trend is expected to see little change. Despite industry players’
various efforts, customers will still prefer to shop for non-grocery items at specialist retailers,
which are usually easier to access and have more product variety.
Outlet Expansion Slows Down Significantly

Hypermarkets recorded double-digit outlet growth over the review period as a whole. This
dropped to single-digit growth in 2017 and 2018 as it became more challenging for industry
players to find the appropriate space for hypermarkets, which must have a large selling space
while still being easily accessible by customers. AEON, Lotte Mart, Giant and E-Mart opened no
new outlets during 2016-2018. Big C and Coop Xtra have also been very cautious with their
outlet expansion activities.
Over the forecast period, the number of hypermarkets is expected to continue recording a
mere single-digit CAGR growth rate, much lower than the growth seen in the review period.
Instead of trying to launch new outlets, industry players are expected to try other ways to gain
value share, such as investing in private label products and launching promotional programmes.
Big C Retains Its Dominant Position

With the most outlets, Big C easily maintained its dominant position in hypermarkets in 2018.
The player launched a new outlet in 2018 in My Tho, one of the biggest cities in the Mekong
Delta area. The company’s success is attributed to its strategy of affordable pricing and a wide-
ranging product portfolio, especially of low-end products that target the mass market. Big C’s
private label products, spanning various categories such as fresh food, bakery and household
items, are popular thanks to their very low prices.
However, the company also faces challenges from rising competition. With an outdated brand
image and lacking a strong competitive advantage, Big C’s value share decreased during the
review period, taken by competitors such as Coop Xtra and AEON.
International Brands Dominate Hypermarkets

With the exception of local player Saigon Union of Trading Cooperatives, all other companies
in hypermarkets are international. Driven by international brands, the competition is expected to
become stronger, leading to improvement in customer services and product portfolios. For
example, AEON and Lotte Mart have counters for Japanese and Korean products, which are
also their competitive advantage. Compared to supermarkets, hypermarket store layouts and
customer services also generally receive more positive feedback. It is expected that industry
players will continue to invest in these competitive edges over the forecast period, as they
position hypermarkets as more of a leisure shopping experience that customers can enjoy at the
weekend or during their free time.
CHANNEL DATA
Table 80 Hypermarkets: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 32.0 41.0 49.0 54.0 56.0 59.0
Table 81 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 5.4 13.0 84.4
Table 82 Hypermarkets GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Central Group - - 63.5 61.9 60.0

Lotte Group 9.5 17.0 20.5 20.6 20.4
AEON Group 1.7 5.7 6.8 7.4 7.9
Cooperatives
Shinsegae Co Ltd - - 3.0 3.8 4.0
Dairy Farm 1.6 2.0 1.7 1.7 1.5
International Holdings
Ltd
Perrachon SA
Total 100.0 100.0 100.0 100.0 100.0
Table 83 Hypermarkets GBN Brand Shares: % Value 2015-2018


Cooperatives
E-Mart Shinsegae Co Ltd - 3.0 3.8 4.0
Giant Dairy Farm 2.0 1.7 1.7 1.5
International Holdings Ltd
Perrachon SA
Total 100.0 100.0 100.0 100.0
Table 84 Hypermarkets LBN Brand Shares: Outlets 2015-2018
sites/outlets

Lotte Mart (Lotte Lotte Shopping Co Ltd 11 13 13 13
Group)
Coop Xtra Saigon Union of Trading 2 2 2 4

Cooperatives
Giant (Dairy Farm ACB Hanoi Investment JSC 1 1 1 1
International
Holdings Ltd)
E-Mart (Shinsegae E-mart Vietnam - 1 1 1
Co Ltd)
Perrachon SA
Total Total 49 54 56 59
Table 85 Hypermarkets LBN Brand Shares: Selling Space 2015-2018

Big C (Central Group) Central Retail Corp - 159.6 169.2 172.6

Lotte Mart (Lotte Lotte Shopping Co Ltd 103.3 124.9 124.9 124.9
Group)
Cooperatives
Giant (Dairy Farm ACB Hanoi Investment JSC 3.5 3.5 3.5 3.5
International
Holdings Ltd)
E-Mart (Shinsegae E-mart Vietnam - 3.0 3.0 3.0
Co Ltd)
Perrachon SA
Total Total 285.4 321.4 331.1 343.5
Table 86 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2018-2023
2018 2019 2020 2021 2022 2023
Outlets 59.0 61.0 63.0 65.0 67.0 69.0
trade sources
Table 87 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth
2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 3.4 3.2 16.9
trade sources
SUPERMARKETS IN VIETNAM -
CATEGORY ANALYSIS
HEADLINES
 Supermarkets grows by 10% in current value terms to reach sales of VND50.9 trillion in 2018
 Mini-supermarkets push overall growth
 Saigon Union of Trading Cooperatives remains the dominant player in 2018
 Supermarkets is expected to grow at a 10% current value CAGR (5% 2018 constant value
PROSPECTS
Mini-supermarkets Push Growth

In 2018, mini-supermarkets – supermarkets with selling space of less than 500 sq m –
became increasingly popular. VinMart+ by VinGroup JSC is the most popular brand with this
format. Having a small retail selling space, which can be slightly bigger than a convenience
store, allows this format to penetrate crowded residential areas easily. At the same time, the
wide range of fresh grocery items, such as meat and vegetables, and household items
differentiates mini-supermarkets from convenience stores, which usually focus on ready-to-eat
items.
Mini-supermarkets suit the lifestyle of busy urban consumers, who have little free time and
prefer to go to a shop near their homes. The small selling space also makes it easier for these
customers to find the items that they want. For these reasons, it is expected that mini-
supermarkets will become more popular over the forecast period, resulting in a strongly rising
number of outlets, but decreasing average selling spaces.
Rising Concern Over Food Safety Brings Opportunity for Health Food
Retailing
Pollution and food safety in Vietnam are rising problems. With increasing education and
greater publicity in newspapers and social media, awareness of and demand for health food is
on the rise. This specifically applies to organic fresh grocery and products that are certified
VietGAP (Vietnamese Good Agricultural Practices). Many consumers, especially in urban areas,
are willing to switch to these products despite their higher prices in order to reduce the amount
of pesticides and chemicals that they consume.
To cater to this trend, most supermarkets have dedicated areas for these products, with clear
labelling and decoration to attract customer attention. Key players also have their own organic
or clean produce private label lines to attract customers to their stores. For example, Saigon
Union of Trading Cooperatives launched Co.op Organic private label in May 2017. VinGroup
JSC runs its VinEco brand. Over the forecast period, this trend is expected to grow in tandem
with consumers’ rising awareness, resulting in major retailers placing greater focus on this
strategy.
Taste for Private Label Products Grows

The preference for private label products increased over the review period and is expected to
continue growing over the forecast period. Private label products span many different
categories, including fresh vegetables, home care, and apparel. Saigon Union of Trading
Cooperatives is the local pioneer, followed by many other local and international supermarkets
such as Big C, Lotte Mart and VinMart. Besides the cheap prices, which are usually 15-20%
lower than average prices, consistently good quality is the factor that continues to draw
customers to private label products. Many players also closely follow the market trends to
update their private label ranges accordingly. For example, Saigon Union of Trading
Cooperatives and VinGroup JSC have their own private label for organic, clean and safe fresh
vegetables to cater to the rising concern over food safety. The popularity of their private label
also helps to maintain customer loyalty, which results in their high shares.
Saigon Union of Trading Cooperatives Remains the Dominant Player

Despite not having the most outlets, Saigon Union of Trading Cooperatives continued to
dominate supermarket value sales in 2018. Its supermarket, Saigon Co.op, was one of the first
modern grocery retailers in Vietnam. Throughout its long history of good business, it has built
trust and brand awareness among many customers. The player has also continuously evolved
to keep itself relevant to market trends and demand. For instance, it was one of the first players
to launch private label in Vietnam and has worked with the government to launch stable price
campaigns to assist customers during financially difficult times. With its dominant share, it is
expected that Saigon Union of Trading Cooperatives will maintain its top position in the forecast
period.
Mobile World Jsc Records the Fastest Growth

Mobile World JSC recorded the fastest value growth in 2018 with its chain, Bach Hoa Xanh.
Its strong performance in 2018 was achieved due to the brand still being new in Vietnam and
the company investing heavily in outlet expansion. Despite its strong growth, Bach Hoa Xanh
faces many challenges, including a lack of customer loyalty due to strong competition from other
key players. To cope with rising competition, the company is building a reputation for good
customer service, which is its strength in other retailing formats such as electronics and
appliance specialist retailers, The Gioi Di Dong and Dien May Xanh.
CHANNEL DATA
Table 88 Supermarkets: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 559.0 605.0 1,032.0 1,672.0 2,285.0 2,734.0
Selling Space '000 sq m 1,169.7 1,220.1 1,342.8 1,403.2 1,436.4 1,486.6
Table 89 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 19.6 37.4 389.1
Table 90 Supermarkets GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018

Cooperatives
VinGroup JSC - 3.5 10.1 12.5 16.1
Mobile World JSC - - 0.1 2.7 6.2
Service Co Ltd
Saigon Trading Group 0.3 0.4 0.6 1.0 1.4
(SATRA)
TCT Group 4.1 5.2 5.5 3.9 -
Dong Hung Co Ltd 1.5 2.2 2.3 - -
An Phong Trading & 0.8 1.1 - - -
Services Co Ltd
Dairy Farm - - - - -
Ltd
Others 29.1 27.1 20.2 17.5 14.8
Total 100.0 100.0 100.0 100.0 100.0
Table 91 Supermarkets GBN Brand Shares: % Value 2015-2018


Cooperatives
Cooperatives
Service Co Ltd
Satrafood Saigon Trading Group 0.4 0.6 1.0 1.4
(SATRA)
Citimart Dong Hung Co Ltd 2.2 2.3 - -
Maximark An Phong Trading & 1.1 - - -
Services Co Ltd
Wellcome Dairy Farm - - - -

Others 27.1 20.2 17.5 14.8
Total 100.0 100.0 100.0 100.0
Table 92 Supermarkets LBN Brand Shares: Outlets 2015-2018
sites/outlets

Cooperatives
Satrafood Saigon Trading Group 74 100 157 205
(SATRA)
Cooperatives
Service Co Ltd
Maximark (An Phong An Phong Investment JSC 9 - - -
Trading & Services
Co Ltd)
Wellcome (Dairy Giant South Asia - - - -
Farm International (Vietnam) Ltd
Holdings Ltd)
Total Total 1,032 1,672 2,285 2,734
Table 93 Supermarkets LBN Brand Shares: Selling Space 2015-2018


Cooperatives
Cooperatives
Service Co Ltd
Satrafood Saigon Trading Group 7.2 8.9 15.0 20.0
(SATRA)
Citimart (Dong Hung Dong Hung Trading 40.8 40.8 - -
Maximark (An Phong An Phong Investment JSC 9.5 - - -
Trading & Services
Co Ltd)
Wellcome (Dairy Giant South Asia - - - -
Holdings Ltd)
Others Others 902.4 859.8 766.6 695.4
Total Total 1,342.8 1,403.2 1,436.4 1,486.6
Table 94 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2018-2023
2018 2019 2020 2021 2022 2023
Outlets 2,734.0 3,117.0 3,460.0 3,771.0 4,073.0 4,358.0
trade sources
Table 95 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth
2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 14.0 9.8 59.4
trade sources
TRADITIONAL GROCERY RETAILERS

IN VIETNAM - CATEGORY ANALYSIS
HEADLINES
 Traditional grocery retailers grows by 8% in current value terms to reach sales of VND540.4
trillion in 2018
 Traditional grocery retailers plays an important role in the retail industry
 Mini-supermarkets gain share from traditional grocers
 Traditional grocery retailers is expected to grow at a 7% current value CAGR (2% 2018
constant value CAGR) over the forecast period to reach sales of VND747.5 trillion in 2023
PROSPECTS
Traditional Grocery Retailers Plays An Important Role in Retailing

Despite the robust development of modern grocery retailing, traditional grocery retailers still
plays an important role in Vietnam’s retail industry. In most rural areas, traditional grocery
retailers is the only major option as there are still limited modern retailing options. Even in many
urban areas, customers still prefer to go to traditional grocery retailers. The main reason is the
proximity, due to the nature of Vietnamese roads – many small lanes make it difficult for modern
retailers to penetrate. Familiarity is also a contributing factor, as buyers and sellers in traditional
grocery retailers tend to know each other very well on a personal level. These reasons helped to
maintain positive growth for traditional grocery retailers in 2018 and will continue to do so over
the forecast period.
Traditional Grocery Retailers Becomes More Organised

To compete with modern grocery retailers, many traditional grocery retailers are changing
their format to become more organised. Many food specialists, including dairy specialists,
greengrocers, bakers, and alcoholic drinks stores are investing in having brightly lit and air-
conditioned stores to give customers a pleasant shopping experience. This is most notable
among dairy retail chains, Giac Mo Sua Viet by Vietnam Dairy Products JSC (Vinamilk) and TH
truemart by TH Group. Due to increasing food safety concern and health awareness, there are
also a rising number of health food stores which specialise in health foods and organic products.
As these stores mainly target modern urban consumers who have middle or high incomes, they
focus on modernising the shopping environment and enhancing the customer experience to
differentiate themselves from other traditional grocery retailers.
Vinamilk Maintains the Leading Position

Vietnam Dairy Products JSC (Vinamilk) maintained the leading position in terms of both the
number of outlets and retail value sales in 2018. The leading dairy company in Vietnam has
continued to invest in outlet expansion and promotions in its strategy to make its products more
accessible to the mass market in all areas of the country. Although its stores only sell its own
products, the company has still managed to achieve positive retail revenue growth thanks to the
reputation of its Vinamilk brand. The company also runs various promotional programmes
exclusively for customers who buy its products from its Giac Mo Sua Viet stores, which further
contributes to its positive growth. Over the forecast period, the company plans to continue to
expand its outlet network to cover more smaller cities throughout the country, as part of its
strategy to remain the leading dairy manufacturer.
Mini-supermarkets Gain Share From Traditional Grocers

The mini-supermarket format has been made popular by VinGroup JSC with its VinMart+
chain of stores which are scattered in the heart of residential areas and can be just as big as
standard convenience stores. The small selling space makes it easier to penetrate areas with
smaller roads, which is usually the strength of traditional grocery stores and independent small
grocers. Because of the similar proximity, customers tend to switch to mini-supermarkets for the
more pleasant shopping experience and the loyalty programmes. Mini-supermarkets focus on
bringing greater convenience to the busy young urban population, for example by selling
prepared ready-to-cook meals. Mini-supermarkets also overcome the hygiene issues which can
deter many customers away from the traditional grocery stores.
CHANNEL DATA
Table 96 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space 2013-
2018
2013 2014 2015 2016 2017 2018
Outlets 635,176.0 641,542.0 647,556.0 652,988.0 658,005.0 662,592.0
Table 97 Traditional Grocery Retailers: Value Sales, Outlets and Selling Space: %
Growth 2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 0.7 0.8 4.3
Table 98 Sales in Traditional Grocery Retailers by Channel: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018

Retailers
Table 99 Sales in Traditional Grocery Retailers by Channel: % Value Growth 2013-

2018
2017/18 2013-18 CAGR 2013/18 Total

Table 100 Traditional Grocery Retailers Outlets by Channel: Units 2013-2018
outlet
2013 2014 2015 2016 2017 2018

Retailers
Table 101 Traditional Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018
% unit growth
2017/18 2013-18 CAGR 2013/18 Total

Table 102 Traditional Grocery Retailers GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Vietnam Dairy Products 0.0 0.0 0.0 0.1 0.1

JSC (Vinamilk)
Others 100.0 100.0 100.0 99.9 99.9
Total 100.0 100.0 100.0 100.0 100.0
Table 103 Traditional Grocery Retailers GBN Brand Shares: % Value 2015-2018

JSC (Vinamilk)
Others 100.0 100.0 99.9 99.9

Total 100.0 100.0 100.0 100.0
Table 104 Traditional Grocery Retailers LBN Brand Shares: Outlets 2015-2018
sites/outlets
Giac Mo Sua Viet Vietnam Dairy Products 100 150 288 420
JSC (Vinamilk)
Others Others 647,456 652,838 657,717 662,172
Total Total 647,556 652,988 658,005 662,592
Table 105 Traditional Grocery Retailers LBN Brand Shares: Selling Space 2015-2018

JSC (Vinamilk)
Others Others 21,176.1 21,332.4 21,464.9 21,582.0
Total Total 21,185.7 21,348.0 21,491.9 21,617.0
Table 106 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space 2018-2023
2018 2019 2020 2021 2022 2023
Value sales VND billion 986,218.1 1,005,94 1,025,05 1,043,50 1,061,24 1,078,22
2.5 5.4 6.4 6.0 5.9
Outlets 662,592.0 666,736.0 670,424.0 673,646.0 676,725.0 679,439.0
trade sources
Table 107 Traditional Grocery Retailers Forecasts: Value Sales, Outlets and Selling
Space: % Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 0.6 0.5 2.5
trade sources
Table 108 Forecast Sales in Traditional Grocery Retailers by Channel: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Traditional Grocery 986,218.1 1,005,94 1,025,05 1,043,50 1,061,24 1,078,22

Retailers 2.5 5.4 6.4 6.0 5.9
trade sources
Table 109 Forecast Sales in Traditional Grocery Retailers by Channel: % Value Growth
2018-2023
2018/2019 2018-23 CAGR 2018/23 Total

trade sources
Table 110 Forecast Traditional Grocery Retailers Outlets by Channel: Units 2018-2023
outlet
2018 2019 2020 2021 2022 2023

Retailers
trade sources
Table 111 Forecast Traditional Grocery Retailers Outlets by Channel: % Unit Growth
2018-2023
% unit growth
2018/19 2018-23 CAGR 2018/23 Total

trade sources
APPAREL AND FOOTWEAR

SPECIALIST RETAILERS IN VIETNAM -
CATEGORY ANALYSIS
HEADLINES
 Apparel and footwear specialist retailers grows by 7% in current value terms to reach sales of
VND62.8 trillion in 2018
 Strong potential attracts international brands
 Apparel and footwear specialist retailers is highly fragmented with many small and medium-
sized players
 Apparel and footwear specialist retailers is expected to grow at a 7% current value CAGR (3%
2018 constant value CAGR) over the forecast period to reach sales of VND88.6 trillion in
2023
PROSPECTS
Strong Potential Attracts International Brands

Following the successful entrance of Zara in 2016, which showed strong potential, many
leading international apparel and footwear specialist retailers entered Vietnam in 2017: namely,
H&M, Old Navy, Stradivarius, Massimo Dutti, and Pull & Bear. Other brands that have also
announced their plan to enter Vietnam include Uniqlo and Forever 21. Rising disposable income
and an optimistic view of life are key reasons for the growing consumer spending on apparel
and footwear products. Together with personal electronic items, fashion is considered a way of
self-expression for young people. Therefore, they are willing to spend a big portion of their
income on apparel, especially from well-known brands. Peer pressure, due to the popularity of
social media, also contributes to this trend, as young people are afraid of losing out on the latest
fashion trends.
Apparel and Footwear Internet Retailing Is Booming

Internet retailing is contributing a growing percentage within apparel and footwear retailing.
This has been pioneered by small and medium-sized local players, many of which started with
online shops before bricks-and-mortar shops to save costs and reach a wider audience
throughout the country. International names, such as Zara, have also joined this booming retail
market. However, this segment is still largely unorganised, with many small and medium-sized
businesses selling on Facebook or other third party websites such as Shopee. Thanks to the
rising need for self-expression and peer pressure among the young population, these shops
attract many online shoppers by offering affordable product prices. Over the forecast period, this
trend is expected to continue rising, attributed to the growing popularity of social media. Small
and medium-sized businesses with affordable products will still contribute a major part of
fashion internet retailing. For more expensive items, customers will still prefer to shop in stores
to be able to try on the products before purchasing.
International Players Expand Their Presence

Recognising the potential of Vietnam’s fashion retailing industry, many international players
have entered the competition. As most of these global brands target the mid-priced segment,
they pose little threat to apparel and footwear specialist retailers as a whole as many local
brands target the low-end segment. The success of these global brands could be attributed to
the rising number of middle-class consumers in urban areas and the increasing peer pressure
among young people to wear branded products. Over the forecast period, the presence of
international brands will grow in terms of both the number of brands and the number of outlets.
However, they will remain a small portion of overall apparel and footwear specialist retailers as
their target segment is limited to central urban areas.
Apparel and Footwear Specialist Retailers Is Highly Fragmented and

Unorganised
There are very many individuals and unregistered small businesses, in both urban and rural
areas, selling either their own products or items that are imported from China or Thailand.
Despite their high brand awareness, especially of global brands, consumers generally show little
loyalty, giving many small new brands the opportunity to become established. In addition, young
customers prefer to shop for affordable but fashionable items so that they can quickly replace
them when fashions change, enabling small businesses with cheap products to thrive. However,
this also creates a highly competitive market, and it is common to see new businesses closing
shortly after establishment. Over the forecast period, it is predicted that apparel and footwear
specialist retailers will remain highly fragmented and unorganised. Despite the rising number of
big brands, there is still great demand for affordable products from the young population with
low income and from suburban and rural customers.
CHANNEL DATA
Table 112 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling
Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 10,078.0 10,339.0 10,582.0 10,927.0 11,222.0 11,469.0
Table 113 Apparel And Footwear Specialist Retailers: Value Sales, Outlets and Selling
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 2.2 2.6 13.8
Table 114 Apparel And Footwear Specialist Retailers GBO Company Shares: % Value
2014-2018

Company 2014 2015 2016 2017 2018
Blue Exchange Co Ltd 0.8 0.8 1.0 1.0 1.1

(VINATEX)
Binh Tien Dong Nai Imex 0.3 0.4 0.4 0.4 0.5
Corp Pte Ltd
Pierre Cardin SA 0.4 0.4 0.5 0.4 0.4
Viet Fashion Co Ltd 0.7 0.5 0.3 0.3 0.3
Nha Be Corp 0.6 0.5 0.5 0.5 0.3
Salvatore Ferragamo SpA 0.2 0.2 0.3 0.3 0.3
Punto Fa SL (Mango) 0.1 0.2 0.2 0.2 0.2
Gap Inc, The 0.2 0.2 0.2 0.2 0.2
Inc
Giordano International 0.1 0.1 0.1 0.1 0.1
Ltd
PVH Corp 0.1 0.1 0.1 0.1 0.1
Charles & Keith (S) Pte 0.0 0.1 0.1 0.1 0.1
Ltd
Burberry Group Plc 0.1 0.1 0.1 0.1 0.0
Bossini International 0.0 0.0 0.0 0.0 0.0
Holdings Ltd
Khai Silk Co 0.0 0.0 0.0 0.0 -
Others 95.0 95.2 95.1 95.1 95.4
Total 100.0 100.0 100.0 100.0 100.0
Table 115 Apparel And Footwear Specialist Retailers GBN Brand Shares: % Value
2015-2018


Viet Tien Vietnam National 1.1 0.9 0.8 0.7
(VINATEX)
Corp Pte Ltd
Pierre Cardin Pierre Cardin SA 0.4 0.5 0.4 0.4
Nha Be Nha Be Corp 0.5 0.5 0.5 0.3
Salvatore Ferragamo Salvatore Ferragamo SpA 0.2 0.3 0.3 0.3
Mango Punto Fa SL (Mango) 0.2 0.2 0.2 0.2
Gap Gap Inc, The 0.2 0.2 0.2 0.2
Levis Imex Pan Pacific Group Inc 0.2 0.1 0.1 0.2
Giordano Giordano International Ltd 0.1 0.1 0.1 0.1
Calvin Klein PVH Corp 0.1 0.1 0.1 0.1

Charles & Keith Charles & Keith (S) Pte 0.1 0.1 0.1 0.1
Ltd
Burberry Burberry Group Plc 0.1 0.1 0.1 0.0
Bossini / Sparkle Bossini International 0.0 0.0 0.0 0.0
Holdings Ltd
N&M Viet Fashion Co Ltd 0.0 0.0 0.0 0.0
Khai Silk Khai Silk Co 0.0 0.0 0.0 -
Others 95.2 95.1 95.1 95.4
Total 100.0 100.0 100.0 100.0
Table 116 Apparel And Footwear Specialist Retailers LBN Brand Shares: Outlets 2015-
2018
sites/outlets
National Textile &
Garment Corp
(VINATEX))
Blue Exchange Blue Exchange Co Ltd 176 241 287 333
Biti's Binh Tien Dong Nai Imex 80 150 152 154
Corp Pte Ltd
Pierre Cardin An Phuoc Garment Co Ltd 101 120 126 131
(Pierre Cardin SA)
Nha Be Nha Be Corp 138 138 162 104
Ninomaxx Viet Fashion Co Ltd 64 57 59 72
Giordano (Giordano Gio Reo Co Ltd 22 28 28 33
International Ltd)
Calvin Klein (PVH Au Chau Fashion & 15 22 24 25
Corp) Cosmetic Co Ltd (ACFC)
Levis (Imex Pan Au Chau Fashion & 5 12 15 18
Pacific Group Inc) Cosmetic Co Ltd (ACFC)
Mango (Punto Fa SL Mai Son JSC 11 13 13 14
(Mango))
Charles & Keith Mai Son JSC 9 11 11 11
(Charles & Keith
(S) Pte Ltd)
Gap (Gap Inc, The) Au Chau Fashion & 6 7 9 9
Cosmetic Co Ltd (ACFC)
Bossini (Bossini Trung Tin Co Ltd 10 10 9 5
International
Holdings Ltd)
N&M Viet Fashion Co Ltd 5 5 5 4
Salvatore Ferragamo Salvatore Ferragamo SpA 2 3 3 3
Burberry (Burberry Duy Anh Fashion & 4 4 4 2
Group Plc) Cosmetics Co Ltd (DAFC)
Khai Silk Khai Silk Co 5 5 4 -
Others Others 9,433 9,609 9,825 10,070
Total Total 10,582 10,927 11,222 11,469
Table 117 Apparel And Footwear Specialist Retailers LBN Brand Shares: Selling Space
2015-2018

Viet Tien (Vietnam Viet Tien Garment JSC 69.7 69.0 68.3 67.6
National Textile &
Garment Corp
(VINATEX))
Nha Be Nha Be Corp 24.5 24.5 28.7 18.7
Corp Pte Ltd
Pierre Cardin An Phuoc Garment Co Ltd 6.8 8.2 8.6 9.0
(Pierre Cardin SA)
Giordano (Giordano Gio Reo Co Ltd 4.3 5.2 5.2 6.3
International Ltd)
Mango (Punto Fa SL Mai Son JSC 2.3 4.8 4.8 5.5
(Mango))
Calvin Klein (PVH Au Chau Fashion & 1.4 2.1 2.2 2.5
Corp) Cosmetic Co Ltd (ACFC)
Levis (Imex Pan Au Chau Fashion & 0.4 1.0 1.3 1.6
Pacific Group Inc) Cosmetic Co Ltd (ACFC)
Charles & Keith Mai Son JSC 1.0 1.3 1.3 1.3
(Charles & Keith
(S) Pte Ltd)
Salvatore Ferragamo Salvatore Ferragamo SpA 0.4 0.9 0.9 0.9
Bossini (Bossini Trung Tin Co Ltd 1.5 1.5 1.4 0.7
International
Holdings Ltd)
N&M Viet Fashion Co Ltd 0.4 0.4 0.4 0.3
Gap (Gap Inc, The) Au Chau Fashion & 0.5 0.2 0.3 0.3
Cosmetic Co Ltd (ACFC)
Burberry (Burberry Duy Anh Fashion & 0.5 0.5 0.5 0.3
Group Plc) Cosmetics Co Ltd (DAFC)
Khai Silk Khai Silk Co 0.7 0.7 0.5 -
Others Others 888.6 913.1 936.7 965.9
Total Total 1,045.1 1,082.7 1,115.2 1,143.0
Table 118 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets
and Selling Space 2018-2023
2018 2019 2020 2021 2022 2023
Outlets 11,469.0 11,710.0 11,944.0 12,171.0 12,390.0 12,601.0
trade sources
Table 119 Apparel And Footwear Specialist Retailers Forecasts: Value Sales, Outlets
and Selling Space: % Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 2.1 1.9 9.9
trade sources
ELECTRONICS AND APPLIANCE

SPECIALIST RETAILERS IN VIETNAM -
CATEGORY ANALYSIS
HEADLINES
 Electronics and appliance specialist retailers grows by 6% in current value terms to reach
sales of VND205.5 trillion in 2018
 Improving living standards bolster value growth
 Mobile World JSC remains the strong leading player in 2018
 Electronics and appliance specialist retailers is expected to grow at a 7% current value CAGR
(3% 2018 constant value CAGR) over the forecast period to reach sales of VND287.1 trillion
by 2023
PROSPECTS
Improving Living Standards Bolster Value Growth

With improving living standards and higher disposable income, many Vietnamese are willing
to invest in consumer electronics and appliances. Basic household appliances, such as
refrigerators and washing machines, are renewed and upgraded more frequently than before to
newer and more modern models in order to give their owners an easier and more convenient
life. Personal electronic devices, such as mobile phones, are also frequently traded up to show
their owners’ social status.
Over the forecast period, this trend is expected to continue. The Vietnamese are considered
to be among the most optimistic in the world, which leads to their tendency to spend on items
that help to improve their quality of life. Electronics and appliances, together with food and
beverages and personal transportation vehicles, are among the purchases on which consumers
spend the most, in urban and rural areas alike. This trend will contribute to strong value growth
for electronics and appliance specialist retailers in the forecast period.
Online Shopping Increases Strongly

Due to the high value of consumer electronics and appliances, and the large number of
brands and models available, it is consumer habit to search for information online before making
final purchases. Besides looking for product specifications, customers also compare prices and
promotions between retailers. Therefore, most major electronics and appliance specialist
retailers invest in developing their own online shopping website, enabling customers to browse
for information extensively and purchase items. Customers can also choose to have the
products shipped to their home or to collect them from a store.
To cater to the rising portion of customers who shop online, retailers often run online-
exclusive promotions by giving bigger discounts or more free gifts. Customers who do not have
financial cards may still enjoy the online promotions by using bank transfer or in-store collection.
Thus, there is much price competition, as there is little differentiation between retailers’ product
portfolios.
Offering Exclusive Models Is A Differentiation Strategy

As price competition is high and margins on electronics and appliances are low, retailers
collaborate with manufacturers to carry exclusive items, as a way to attract customers to their
stores. The deals mean that certain models can only be sold in a specific retail chain and not in
others. For example, in 2018, FPT Shop was the exclusive distributor for the Xiaomi Redmi Note
5, while The Gioi Di Dong had the exclusivity deal for the Oppo F5 in purple. This strategy
usually applies to low-end and mid-range models, as manufacturers do not want to limit the
distribution of their high-end products. On the other hand, cheaper items help retailers reach
mass-market consumers in most areas throughout the country.
The tactic has proved successful for many retailers. It does not necessarily help to increase
the revenue of the exclusive items, but can bring more customers to the stores, which then
creates opportunities for sales staff to upsell to higher-value products. Thus, the strategy is likely
to continue to be used by leading retailers over the forecast period.
Mobile World Jsc Remains the Strong Leading Player

With two retail chains, The Gioi Di Dong and Dien May Xanh, which are the top two
electronics and appliance specialist retailers, Mobile World JSC maintains a firm grasp on its
leadership, leaving the second-placed player at a far distance. The company’s success strategy
is to develop the technology infrastructure and human resources to achieve the best customer
service level. The company ranked first in the 2018 Retail Reputation Survey by Vietnam Report
in the durables and jewellery segment. The company also has the largest number of outlets,
covering all major cities and provinces. Over the forecast period, the company is expected to
retain its leading position, thanks to the competitive strengths it has built.
Vingroup Acquires Vien Thong A

At the end of 2018, VinGroup JSC completed its acquisition of Vien Thong A retail chain.
Despite VinGroup’s lack of success with its own chain, VinPro, the acquisition has shown that
the company is still very much interested in fast-growing electronics and appliance retailing.
Changes have not yet been made to Vien Thong A’s chain, but industry experts believe that
Vien Thong A and VinPro outlets will be rebranded as the company makes efforts to rebuild its
foothold in the electronics and appliance retailing scene. The acquisition is also believed to have
been part of the company’s strategy to grow its smartphone manufacturing business, as the
company’s new VinSmart smartphones are shortly to be launched.
CHANNEL DATA
Table 120 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and
Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 6,554.0 7,096.0 7,328.0 8,098.0 8,556.0 8,692.0
Table 121 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and
Selling Space: % Growth 2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 1.6 5.8 32.6
Table 122 Electronics and Appliance Specialist Retailers GBO Company Shares: %
Value 2014-2018

Company 2014 2015 2016 2017 2018
Mobile World JSC 6.2 7.5 12.4 15.6 17.6

FPT Corp 2.0 2.8 2.8 2.9 3.2
Pico JSC 1.1 1.1 1.2 2.1 2.1
Cao Phong Co Ltd 1.3 1.5 1.6 1.9 2.0
VinGroup JSC - 0.2 0.6 0.1 1.7
Export Trading
Production Corp
JSC
Best Denki Co Ltd - - - - -
Others 82.3 79.2 73.4 70.2 69.4
Total 100.0 100.0 100.0 100.0 100.0
Table 123 Electronics and Appliance Specialist Retailers GBN Brand Shares: % Value
2015-2018

Shopping Center
Pico Pico JSC 1.1 1.2 2.1 2.1
Export Trading
Production Corp
Best Carings Best Denki Co Ltd - - - -
Electronic World Mobile World JSC - - - -
Others 79.2 73.4 70.2 69.4
Total 100.0 100.0 100.0 100.0
Table 124 Electronics and Appliance Specialist Retailers LBN Brand Shares: Outlets
2015-2018
sites/outlets
Shopping Center
VinPro VinGroup JSC 40 145 29 45
Home Center VHC Trading Co Ltd 14 14 14 14
Export Trading
Production Corp
Tran Anh Tran Anh Digital World JSC 19 33 39 -
Best Carings (Best Ben Thanh Marketing Co - - - -
Denki Co Ltd)
Best Carings (Best Misustar Vietnam - - - -
Denki Co Ltd) Investment JSC
Others Others 6,231 6,018 5,924 5,833
Total Total 7,328 8,098 8,556 8,692
Table 125 Electronics and Appliance Specialist Retailers LBN Brand Shares: Selling
Space 2015-2018

Shopping Center
Pico Pico JSC 24.7 44.6 81.7 81.7
FPT Shop FPT Corp 25.4 32.1 35.5 40.8
Export Trading
Production Corp
Best Carings (Best Ben Thanh Marketing Co - - - -
Denki Co Ltd)
Best Carings (Best Misustar Vietnam - - - -
Denki Co Ltd) Investment JSC
Others Others 895.8 705.6 692.5 678.7
Total Total 1,290.0 1,530.8 2,145.5 2,300.5
Table 126 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets
and Selling Space 2018-2023
2018 2019 2020 2021 2022 2023
Outlets 8,692.0 8,866.0 9,034.0 9,197.0 9,353.0 9,503.0
trade sources
Table 127 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets
and Selling Space: % Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 2.0 1.8 9.3
trade sources
HEALTH AND BEAUTY SPECIALIST

RETAILERS IN VIETNAM - CATEGORY
ANALYSIS
HEADLINES
 Health and beauty specialist retailers grows by 9% in current value terms to reach sales of
 Vitamins and dietary supplements sees rising demand
 Chained retailers take share from independent players
 Health and beauty specialist retailers is expected to grow at a 9% current value CAGR (5%
2018 constant value CAGR) over the forecast period to reach sales of VND168.5 trillion by
2023
PROSPECTS
Vitamins and Dietary Supplements Sees Rising Demand

With rising disposable income and increasing health awareness, consumption of vitamins and
dietary supplements is on the rise. Consumers are more willing to spend on vitamins and dietary
supplements to enhance their health and prevent illnesses. Pharmacies/drugstores and
parapharmacies are the most common channels in which to obtain vitamins and dietary
supplements. Thanks to the rising popularity of these products, pharmacies and
parapharmacies are expected to record good positive growth over the forecast period.
Optical Goods Stores Records the Fastest Outlet Growth

In 2018, optical goods stores recorded the fastest outlet growth among all health and beauty
specialist retailers. This can be attributed to the increasing influence of Korean culture, resulting
in higher usage of contact lenses and sunglasses besides normal corrective spectacles. Rising
awareness of optical health has also helped organised players such as Doll Eyes and Eyewear
Hut to grow more strongly as customers seek more trusted brands with better quality. Over the
forecast period, this trend is expected to continue, with the younger generation being the
increasingly important target.
Internet Retailing of Health and Beauty Products Grows

Due to the rising demand for personal care and the enhancement of health and beauty, there
are an increasing number of health and beauty products in Vietnam. Within internet retailing,
there are an increasing number of small and medium-sized retailers, which focus on this
channel for its low maintenance costs and the absence of rental fees. These retailers
differentiate themselves from the bigger retailers by having a wider range of products which are
imported from Thailand or Korea, which usually have lower prices to target the young
generation.
Chained Retailers Take Share From Independent Players

Despite the dominance of independent pharmacies, chained players are gradually increasing
their share. Chained retailers usually have a wider range of products including OTC, prescription
medicines, vitamins and dietary supplements. Chained retailers also employ more certified
pharmacists in order to give customers better advice. Customers therefore switch to these
players for their greater trustworthiness. However, the trend is still largely confined to urban
areas, as most chained retailers do not focus on rural areas.
International Players Lead Beauty Specialist Retailers

With stronger financial strength for outlet expansion and marketing, international players lead
beauty specialist retailers. Many of them are Japanese and Korean players such as Shiseido,
The Face Shop and Nature Republic. These brands have an Asian image which is relevant to
local consumers. Their high quality which has been built over years of research and
development also plays a key role in their success.
Watson Enters Vietnam

Watson has entered Vietnam with its first store in Bitexco Tower, Ho Chi Minh City. The new
outlet, which spans two storeys, is expected to open in early 2019. Its direct international
competitor, Guardian, has achieved success in Vietnam by changing the customer shopping
habit for vitamins and dietary supplements and beauty and personal care products. Following in
Guardian’s footsteps, Watson is expected to differentiate itself by offering a wide range of
beauty and healthcare products in its stores, some of which could be the first in Vietnam. Private
label products will also be a focus in order to create a loyal base of customers to its stores.
CHANNEL DATA
Table 128 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling
Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 38,347.0 38,714.0 39,016.0 39,234.0 39,704.0 40,139.0
Table 129 Health and Beauty Specialist Retailers: Value Sales, Outlets and Selling
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 1.1 0.9 4.7
Table 130 Sales in Health and Beauty Specialist Retailers by Channel: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Beauty Specialist 17,600.9 21,413.8 25,173.5 27,386.9 30,000.6 32,700.6

Retailers
Chemists/Pharmacies 88,697.9 101,461.7 113,953.6 124,203.3 138,599.8 153,152.8
Optical Goods Stores 2,151.4 2,701.4 3,179.6 3,624.3 4,282.6 5,008.6
Drugstores/Parapharmacies 12,050.8 13,815.0 16,701.8 18,972.2 22,418.0 26,441.3
Vitamins and Dietary 871.7 988.6 1,085.4 1,160.7 1,288.2 1,429.1
Supplements Specialist
Retailers
Table 131 Sales in Health and Beauty Specialist Retailers by Channel: % Value Growth
2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Beauty Specialist Retailers 9.0 13.2 85.8

Chemists/Pharmacies 10.5 11.5 72.7
Optical Goods Stores 17.0 18.4 132.8
Drugstores/Parapharmacies 17.9 17.0 119.4
Vitamins and Dietary Supplements 10.9 10.4 63.9
Table 132 Health and Beauty Specialist Retailers GBO Company Shares: % Value
2014-2018

Company 2014 2015 2016 2017 2018
AR Group 0.3 0.3 0.3 0.3 0.3

LG Household & Health 0.2 0.2 0.2 0.2 0.2
Care Ltd
Medicare Co Ltd 0.0 0.1 0.1 0.1 0.1
Dairy Farm 0.1 0.1 0.1 0.1 0.1
Ltd
Pharmacity Corp 0.0 0.0 0.0 0.1 0.1
Phano Pharmaceutical JSC 0.1 0.1 0.2 0.2 0.1
Doll Eyes JSC 0.0 0.0 0.1 0.1 0.1
Natura&Co - - - 0.1 0.1
Shiseido Co Ltd 0.1 0.1 0.1 0.1 0.1
Viscc Co Ltd 0.0 0.0 0.0 0.0 0.1
My Chau Pharma JSC 0.1 0.0 0.0 0.0 0.0

General Nutrition 0.0 0.0 0.0 0.0 0.0
Centers Inc
L'Oréal Groupe 0.1 0.1 0.1 - -
Others 99.0 98.8 98.7 98.6 98.6
Total 100.0 100.0 100.0 100.0 100.0
Table 133 Health and Beauty Specialist Retailers GBN Brand Shares: % Value 2015-
2018

Eyewear Hut AR Group 0.3 0.3 0.3 0.3

The Face Shop LG Household & Health 0.2 0.2 0.2 0.2
Care Ltd
Medicare Medicare Co Ltd 0.1 0.1 0.1 0.1
Guardian Dairy Farm 0.1 0.1 0.1 0.1
Pharmacity Pharmacity Corp 0.0 0.0 0.1 0.1
Phano Pharmacy Phano Pharmaceutical JSC 0.1 0.2 0.2 0.1
Doll Eyes Doll Eyes JSC 0.0 0.1 0.1 0.1
The Body Shop Natura&Co - - 0.1 0.1
Shiseido Shiseido Co Ltd 0.1 0.1 0.1 0.1
Vistar Pharmacy Viscc Co Ltd 0.0 0.0 0.0 0.1
My Chau My Chau Pharma JSC 0.0 0.0 0.0 0.0
GNC General Nutrition 0.0 0.0 0.0 0.0
Centers Inc
The Body Shop L'Oréal Groupe 0.1 0.1 - -
Debon LG Household & Health - - - -
Care Ltd
Others 98.8 98.7 98.6 98.6
Total 100.0 100.0 100.0 100.0
Table 134 Health and Beauty Specialist Retailers LBN Brand Shares: Outlets 2015-2018
sites/outlets
Pharmacity Pharmacity Corp 34 42 80 141

Medicare Medicare Co Ltd 34 46 62 75
Guardian (Dairy Giant South Asia 31 41 56 70
Holdings Ltd)
The Face Shop (LG Hoa Sen Viet Co Ltd 42 52 57 59
Household & Health
Care Ltd)
Phano Pharmacy Phano Pharmaceutical JSC 45 60 67 51
Eyewear Hut (AR Anh Rang Eyewear JSC 32 33 33 34
Group)
Vistar Pharmacy Viscc Co Ltd 5 14 21 28
Doll Eyes Doll Eyes JSC 5 10 15 21
The Body Shop TBS (Vietnam) Co Ltd - - 14 14
(Natura&Co)
My Chau My Chau Pharma JSC 9 7 8 10
GNC (General Kim Linh Nutrition Food 11 11 11 9
Nutrition Centers JSC
Inc)
Shiseido (Shiseido Shiseido Cosmetics 8 8 9 9
Co Ltd) Vietnam Co Ltd
The Body Shop TBS (Vietnam) Co Ltd 13 13 - -
(L'Oréal Groupe)
Debon (LG Household LG Vina Cosmetics Co Ltd - - - -
& Health Care Ltd)
Others Others 38,747 38,897 39,271 39,618
Total Total 39,016 39,234 39,704 40,139
Table 135 Health and Beauty Specialist Retailers LBN Brand Shares: Selling Space
2015-2018

Medicare Medicare Co Ltd 3.3 4.5 6.0 7.0

Guardian (Dairy Giant South Asia 3.1 4.1 5.5 6.3
Holdings Ltd)
Vistar Pharmacy Viscc Co Ltd 0.9 2.5 3.7 4.8
Pharmacity Pharmacity Corp 0.7 0.9 1.7 3.0
Phano Pharmacy Phano Pharmaceutical JSC 2.1 2.8 3.2 2.5
Eyewear Hut (AR Anh Rang Eyewear JSC 2.3 2.4 2.4 2.4
Group)
Doll Eyes Doll Eyes JSC 0.7 1.3 2.0 2.1
My Chau My Chau Pharma JSC 1.5 1.2 1.3 1.5
The Face Shop (LG Hoa Sen Viet Co Ltd 1.0 1.2 1.3 1.3
Household & Health
Care Ltd)
GNC (General Kim Linh Nutrition Food 1.3 1.4 1.4 1.1
Nutrition Centers JSC
Inc)
The Body Shop TBS (Vietnam) Co Ltd - - 0.7 0.7
(Natura&Co)
Shiseido (Shiseido Shiseido Cosmetics 0.3 0.3 0.3 0.3
Co Ltd) Vietnam Co Ltd
The Body Shop TBS (Vietnam) Co Ltd 0.7 0.7 - -
(L'Oréal Groupe)
Debon (LG Household LG Vina Cosmetics Co Ltd - - - -
& Health Care Ltd)
Others Others 1,104.6 1,125.2 1,147.3 1,170.9
Total Total 1,122.5 1,148.2 1,176.7 1,203.9
Table 136 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and
2018 2019 2020 2021 2022 2023
Outlets 40,139.0 40,605.0 41,036.0 41,432.0 41,803.0 42,143.0
trade sources
Table 137 Health and Beauty Specialist Retailers Forecasts: Value Sales, Outlets and
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 1.2 1.0 5.0
trade sources
Table 138 Forecast Sales in Health and Beauty Specialist Retailers by Channel: Value
2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Beauty Specialist 32,700.6 34,172.2 35,641.6 37,138.5 38,661.2 40,207.6

Retailers
Chemists/Pharmacies 153,152.8 163,107.7 173,383.5 183,959.9 194,813.5 205,917.9
Optical Goods Stores 5,008.6 5,684.8 6,537.5 7,576.9 8,827.1 10,371.9
Drugstores/Parapharmacies 26,441.3 30,063.8 34,062.2 38,456.3 43,263.3 48,498.2
Vitamins and Dietary 1,429.1 1,529.2 1,634.7 1,745.9 1,862.8 1,985.8
Supplements Specialist
Retailers
trade sources
Table 139 Forecast Sales in Health and Beauty Specialist Retailers by Channel: %
Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total
Beauty Specialist Retailers 4.5 4.2 23.0

Chemists/Pharmacies 6.5 6.1 34.5
Optical Goods Stores 13.5 15.7 107.1
Drugstores/Parapharmacies 13.7 12.9 83.4
Vitamins and Dietary Supplements 7.0 6.8 38.9
trade sources
HOME AND GARDEN SPECIALIST

RETAILERS IN VIETNAM - CATEGORY
ANALYSIS
HEADLINES
 Home and garden specialist retailers grows by 9% in current value terms to reach sales of
 The booming property market bolsters the growth of home and garden specialist retailers
 AA Corp remains the leading player in 2018
 Home and garden specialist retailers is expected to grow at a 12% current value CAGR (8%
2018 constant value CAGR) over the forecast period to reach sales of VND248.4 trillion in
2023
PROSPECTS
the Booming Property Market Bolsters the Growth of Home and Garden
Vietnam’s property market continued to flourish in 2018, especially in key cities such as
Hanoi, Ho Chi Minh City and Da Nang. This is the key factor bolstering the growth of home and
garden specialist retailers. The trend in Vietnam is towards smaller households, as young
people prefer to move out from their parents’ homes at an earlier age than has historically been
the case. Demand for home furniture, especially items that suit smaller apartments, is on the
rise due to this trend. As Vietnam’s property market is expected to continue growing strongly
over the forecast period, home and garden specialist retailers will continue to benefit from this.
Improving Living Standards Raise Demand for High-quality Products

With rising disposable income, people also want to have a better standard of living.
Consumers replace their home furniture and furnishings more frequently in order to keep up with
décor trends or to have new items with better quality. They also purchase home décor items to
create a better liveable space at home. These factors contributed to the positive growth of home
and garden specialist retailers in 2018 and will do so also in the forecast period.
Omnichannel Retailing Grows for Home and Garden Products

Home and garden products are present in both online and bricks-and-mortar channels. In the
online shops, retailers focus more on home décor items, which are low in value and usually
purchased on impulse. Social media such as Facebook and Instagram are heavily used for both
marketing and selling purposes, as retailers can show samples of how the decorative items can
be used in real life. Online channels are also used to raise interest in furniture and furnishing
products, which can increase visits to stores and lead to more offline sales.
Aa Corp Remains the Leading Player

As one of the pioneers in Vietnamese home and garden specialist retailing, AA Corp has built
its reputation over years with its good service, high-quality products, and extensive portfolio of
various local and imported brands. The company has both premium brands such as Nha Xinh
and BoConcept, and low-end brands. The player is also very popular in the interior design
industry, with many well-known projects in major cities throughout Vietnam. This brings more
customers to its retail shops, as customers can choose to have a complete package of home
décor design and furnishing.
Ikea Announces Its Plan To Enter Vietnam

Although it has not had an official presence in Vietnam, Ikea is a home furnishing brand which
is well known for its modern designs that are especially suitable for small apartments, which are
increasing in number in major cities. Customers have purchased Ikea products imported
unofficially from Thailand or Singapore, or products from local brands that imitate Ikea’s styles.
Realising the potential in Vietnam, Ikea has announced its plan to enter the country officially in
2019. Its entrance is expected to have a strong impact on home and garden retailing, as its
products are to the young population’s taste. Its affordable prices may also be a competitive
advantage.
Home Décor Ideas Are Used As A Way To Push Sales

To push sales of home and garden products, retailers actively show home décor ideas via
many channels in order to spark consumer interest. Social media such as Facebook and
Instagram are heavily used for this purpose. Retailers such as Uma Furniture & Decoration
launch an annual catalogue to update customers with new décor trends and the latest product
launches. Uma also creates areas in its stores which are set up like real rooms or apartments in
order to show customers how the products might look in their homes.
CHANNEL DATA
Table 140 Home and Garden Specialist Retailers: Value Sales, Outlets and Selling
Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 11,479.0 11,646.0 11,837.0 12,071.0 12,344.0 12,650.0
Table 141 Home and Garden Specialist Retailers: Value Sales, Outlets and Selling
% growth
2017/18 2013-18 CAGR 2013/18 Total
Outlets 2.5 2.0 10.2

Table 142 Sales in Home and Garden Specialist Retailers by Channel: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Home Improvement and 145,523.8 166,499.4 178,299.8 188,605.1 209,409.2 234,186.9

Gardening Stores
Homewares and Home 25,653.5 28,845.1 31,768.3 35,157.6 39,430.2 43,899.5
Furnishing Stores
Home and Garden 171,177.4 195,344.5 210,068.2 223,762.7 248,839.4 278,086.4
Table 143 Sales in Home and Garden Specialist Retailers by Channel: % Value Growth
2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Home Improvement and Gardening Stores 11.8 10.0 60.9

Homewares and Home Furnishing Stores 11.3 11.3 71.1
Table 144 Home and Garden Specialist Retailers GBO Company Shares: % Value
2014-2018

Company 2014 2015 2016 2017 2018
AA Corp 0.3 0.3 0.3 0.2 0.3

Uma Co Ltd 0.1 0.1 0.1 0.1 0.2
BoConcept Holding A/S 0.1 0.1 0.2 0.2 0.2
Jysk Holding A/S - 0.0 0.0 0.0 0.1
Hoang Nam Co 0.1 0.1 0.1 0.1 0.1
TCT Group 0.1 0.1 0.1 0.1 0.0
SB Furniture Industry 0.0 0.0 0.1 0.1 0.0
Co Ltd
Others 99.3 99.3 99.2 99.2 99.2
Total 100.0 100.0 100.0 100.0 100.0
Table 145 Home and Garden Specialist Retailers GBN Brand Shares: % Value 2015-
2018

Nha Xinh AA Corp 0.2 0.3 0.2 0.2

Uma Furniture & Uma Co Ltd 0.1 0.1 0.1 0.2
Decoration
BoConcept BoConcept Holding A/S 0.1 0.2 0.2 0.2
Jysk Jysk Holding A/S 0.0 0.0 0.0 0.1
Pho Xinh Hoang Nam Co 0.1 0.1 0.1 0.1
Nha Dep Furniture TCT Group 0.1 0.1 0.1 0.0
Supermarkets
Bella Vita AA Corp 0.0 0.0 0.0 0.0
SB Furniture SB Furniture Industry 0.0 0.1 0.1 0.0
Co Ltd
Others 99.3 99.2 99.2 99.2
Total 100.0 100.0 100.0 100.0
Table 146 Home and Garden Specialist Retailers LBN Brand Shares: Outlets 2015-2018
sites/outlets
Uma Furniture & Thanh Nguyen Co Ltd 13 15 16 18

Decoration (Uma Co
Ltd)
Jysk (Jysk Holding NeatClean JSC 2 4 7 13
A/S)
Nha Xinh AA Corp 6 7 7 9
BoConcept AA Corp 3 4 4 4
(BoConcept Holding
A/S)
Pho Xinh (Hoang Nam Hoang Nam Co Ltd 5 4 4 3
Co)
Nha Dep Furniture TCT Group 2 3 4 2
Supermarkets
SB Furniture SB Furniture Industry 2 3 3 1
Co Ltd
Bella Vita AA Corp 1 1 1 1
Others Others 11,803 12,030 12,298 12,599
Total Total 11,837 12,071 12,344 12,650
Table 147 Home and Garden Specialist Retailers LBN Brand Shares: Selling Space
2015-2018

Nha Xinh AA Corp 10.6 12.5 12.5 16.2

Pho Xinh (Hoang Nam Hoang Nam Co Ltd 5.3 4.2 4.2 3.1
Co)
Nha Dep Furniture TCT Group 3.0 4.5 6.0 3.0
Supermarkets
Uma Furniture & Thanh Nguyen Co Ltd 1.4 1.7 1.8 2.1
Decoration (Uma Co
Ltd)
BoConcept AA Corp 1.1 1.5 1.5 1.5
(BoConcept Holding
A/S)
Jysk (Jysk Holding NeatClean JSC 0.2 0.3 0.6 1.3
A/S)
SB Furniture SB Furniture Industry 1.5 2.2 2.2 0.7
Co Ltd
Bella Vita AA Corp 0.1 0.1 0.1 0.1
Others Others 6,075.3 6,199.5 6,339.3 6,498.2
Total Total 6,098.4 6,226.5 6,368.1 6,526.3
Table 148 Home and Garden Specialist Retailers Forecasts: Value Sales, Outlets and
2018 2019 2020 2021 2022 2023
Outlets 12,650.0 12,990.0 13,367.0 13,782.0 14,237.0 14,736.0
trade sources
Table 149 Home and Garden Specialist Retailers Forecasts: Value Sales, Outlets and
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 2.7 3.1 16.5
trade sources
Table 150 Forecast Sales in Home and Garden Specialist Retailers by Channel: Value
2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Home Improvement and 234,186.9 255,732.1 282,328.3 312,537.4 346,447.7 385,942.7

Gardening Stores
Homewares and Home 43,899.5 47,279.8 51,062.1 55,300.3 60,000.8 65,160.9
Furnishing Stores
Home and Garden 278,086.4 303,011.9 333,390.4 367,837.7 406,448.5 451,103.6
Table 151 Forecast Sales in Home and Garden Specialist Retailers by Channel: %
Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total
Home Improvement and Gardening Stores 9.2 10.5 64.8

Homewares and Home Furnishing Stores 7.7 8.2 48.4
DEPARTMENT STORES IN VIETNAM -

CATEGORY ANALYSIS
HEADLINES
 Department stores grows by 13% in current value terms to reach sales of VND9.2 trillion in
2018
 Department stores sees strong growth thanks to improving living standards
 AEON Group remains the dominant player in 2018
 Department stores is expected to grow at a 12% current value CAGR (7% 2018 constant
value CAGR) over the forecast period to reach sales of VND16.3 trillion in 2023
PROSPECTS
Strong Growth Seen in Department Stores Thanks To Improving Living

Standards
In 2018, department stores continued to record strong value growth, attributed to consumers’
increasing disposable income and improving living standards. Most department stores focus on
mid-range to high-end products. The entrance of Japanese department store Takashimaya in
2016 brought many luxury brands to Vietnam for the first time, and the department store
continues to grow in popularity. As it has become possible for customers to purchase well-
known luxury brands that previously they could only acquire overseas, some department stores
have become the shopping place of choice for middle-income and wealthy consumers.
Collaboration With Shopping Centres Is A Strategy for Success

Most department stores are located in shopping centres. Therefore, some players collaborate
with the shopping centres that they are located in as a win-win strategy that helps to increase
consumer traffic flow. For example, Takashimaya-Saigon Centre cobranded credit cards allow
customers to receive benefits from both the department store and the shopping centre.
Shopping centre owners also situate department stores strategically around other key tenants,
such as supermarkets and cinemas, in order to give customers a convenient shopping
experience. Players such as AEON Mall and AEON department stores are seen to utilise this
strategy.
Aeon Group Remains the Dominant Player in 2018

AEON Group’s success strategy is to locate its stores in very crowded residential areas and
focus on mid-range products in order to reach the mass market. AEON differs from many other
department stores, such as Takashimaya, Trang Tien Plaza or Diamond Plaza, as it chooses
locations that are not prime in order to avoid high rental costs. This allows it to offer more
affordable prices. All AEON department stores are directly connected to AEON hypermarkets,
which are also highly popular thanks to the wide range of affordable high-quality products. Over
the forecast period, AEON is expected to retain its top position thanks to these strategies.
Parkson Continues To Lose Share

In 2018, Parkson closed one more of its outlets, as the player continued to lose value sales.
Despite having the most outlets, its value sales have been much lower than those of many of its
competitors which have fewer outlets. Parkson’s failure in Vietnam could be attributed to its
outdated brand image, low-quality customer service and lack of collaboration with the shopping
centres in which it is located. In addition, Parkson does not have any special key brands which
could help it stand out from the competition, but most brands in its stores can easily be found
elsewhere. Parkson has not announced any plan to exit department stores in Vietnam.
However, with its lacklustre performance, it is hard to predict how long the player can continue
to withstand its financial losses in Vietnam.
New Players Or Outlet Expansion Is Unlikely

There is little interest from new players regarding entering department stores in Vietnam in the
forecast period. This is because value growth is expected to slow down for department stores
over the forecast period. The increasing number of non-grocery specialists, with many new
retailers entering Vietnam, has made it unnecessary for customers to go to department stores to
get what they want. The preference for specialist retailers also comes from the fact that they
usually carry a more extensive product range than department store counters do. It is also
challenging for existing players in Vietnamese department stores to find the right location, space
and neighbourhood to open new outlets.
CHANNEL DATA
Table 152 Department Stores: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Outlets 10.0 14.0 17.0 17.0 19.0 18.0
Table 153 Department Stores: Value Sales, Outlets and Selling Space: % Growth 2013-
2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets -5.3 12.5 80.0
Selling Space '000 sq m -10.3 4.4 23.9
Table 154 Department Stores GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
AEON Group 49.3 46.6 52.5 51.0 52.1

Takashimaya Co Ltd - - 4.6 9.2 11.1
Central Retail Corp 8.9 13.5 11.5 10.9 10.4
Inc
Mapletree Investments - 9.5 8.5 8.4 8.1
Pte Ltd
Cooperatives
Lotte Group - 5.6 4.1 3.0 2.7
International Business 8.6 - - - -
Center Corp
Total 100.0 100.0 100.0 100.0 100.0
Table 155 Department Stores GBN Brand Shares: % Value 2015-2018

AEON AEON Group 46.6 52.5 51.0 52.1

Takashimaya Takashimaya Co Ltd - 4.6 9.2 11.1
SC Vivo City Mapletree Investments 9.5 8.5 8.4 8.1
Pte Ltd
Parkson Parkson Holdings Bhd 13.0 8.2 6.4 4.2
Cooperatives
Diamond Plaza Lotte Group 5.6 4.1 3.0 2.7
Center Corp
Total 100.0 100.0 100.0 100.0
Table 156 Department Stores LBN Brand Shares: Outlets 2015-2018
sites/outlets
Parkson (Parkson Lion Group, The 7 5 5 4

Holdings Bhd)
Sense City Saigon Union of Trading 2 2 4 4
Cooperatives
Robins Central Retail Corp 2 2 2 2
Trang Tien Plaza Imex Pan Pacific Group Inc 1 1 1 1
Diamond Plaza Lotte Shopping Co Ltd 1 1 1 1
(Lotte Group)
SC Vivo City Vietsin Commercial 1 1 1 1

Takashimaya Takashimaya Vietnam Ltd - 1 1 1
Department Store
Center Corp
Total Total 17 17 19 18
Table 157 Department Stores LBN Brand Shares: Selling Space 2015-2018

Parkson (Parkson Lion Group, The 132.0 91.0 91.0 65.0

Holdings Bhd)
Cooperatives
Takashimaya Takashimaya Vietnam Ltd - 15.0 15.0 15.0
Department Store
SC Vivo City Vietsin Commercial 10.8 10.8 10.8 10.8
Diamond Plaza Lotte Shopping Co Ltd 8.0 8.0 8.0 8.0
(Lotte Group)
Center Corp
Others Others 15.0 18.0 0.0 0.0
Total Total 240.0 232.0 252.0 226.0
Table 158 Department Stores Forecasts: Value Sales, Outlets and Selling Space 2018-
2023
2018 2019 2020 2021 2022 2023
Outlets 18.0 18.0 19.0 19.0 20.0 20.0
trade sources
Table 159 Department Stores Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 0.0 2.1 11.1
trade sources
VARIETY STORES IN VIETNAM -

CATEGORY ANALYSIS
HEADLINES
 Variety stores grows by 45% in current value terms to reach sales of VND675.4 billion in 2018
 Outstanding growth is thanks to franchised expansion by leading players
 Miniso takes the leading position in 2018
 Variety stores is expected to grow at a 19% current value CAGR (14% 2018 constant value
PROSPECTS
Variety Stores Records An Outstanding Growth Rate

In 2018, variety stores achieved the most robust value growth among all store-based retailing
channels in Vietnam. The appearance of international brands such as Miniso and Ilahui since
2016 has changed the Vietnamese variety store retail landscape by bringing a wide range of
products. In 2017 and 2018, many players faced the scandal of misleading origin, as most of
their products are made in China yet the brand image is very Korean. However, variety stores’
main target consumers are the young population, who are attracted by the affordable prices,
attractive packaging, nice designs and acceptable quality. Thus, variety stores has managed to
survive the scandals and has continued to expand strongly in terms of outlets.
Over the forecast period, variety stores’ growth rate is expected to slow down quickly as the
market becomes more saturated and competition arises from other channels. Despite this,
variety stores is still expected to be one of the fastest growing channels in Vietnam.
Franchise Basis Helps Variety Stores Expand Quickly

Most leading variety store players operate with a franchise business model, which helps them
to expand quickly throughout the country. Key players such as Miniso and Ilahui are known to
apply this model. While key outlets in major cities such as Hanoi and Ho Chi Minh City are
directly managed by the company or the main franchisee, other outlets in smaller cities are
managed by other franchisees. Competition in variety stores is rising rapidly as most players’
products and prices are very similar to each other. Therefore, outlet expansion is one of the
growth strategies. A good franchise policy helps players quickly expand their outlet network,
which then retains its value share.
Korean- and Japanese-style Products Are the Most Popular

Japanese variety store retailers such as Daiso and Komonoya were the pioneer international
players in Vietnam. With the subsequent appearance of players such as Ilahui, Miniso and
Minigo, customers have shifted towards Korean-style products. Although most products in these
stores are made in China, the players carry a Korean image by using Korean words on product
packaging and store signage and using Korean celebrities as brand ambassadors. Therefore,
customers believe that they are obtaining a similar quality to popular Korean brands, but at
cheaper prices. The popularity of the Korean Wave in Vietnam has become a key factor in
driving growth for variety stores. As the variety stores’ main consumers are young people, the
trend is expected to continue over the forecast period as Korean culture will still be very
influential among this consumer group.
Miniso Has Ambition in Vietnam

Miniso was one of the first players among the influx of Korean- and Japanese-style variety
stores, followed by other players with similar concepts, such as Minigood and Mumuso. As a
pioneer, Miniso has invested heavily in marketing and PR activities to raise awareness of its
brands. The company maintains its strategy of affordable pricing, reasonable quality and
attractive packaging in order to achieve success. In 2018, Miniso doubled its number of outlets
in Vietnam and regained its leading position. In June 2018, Miniso Vietnam was officially taken
over by the parent company, Miniso Industries Co Ltd, instead of the key franchised Le Bao
Minh Group. This will help the retail chain to receive much more investment in order to grow.
Lack of Differentiation Seen Between Brands

There are many similar variety stores in Vietnam, including Miniso, Mumuso, Minigood,
Yoyoso, etc. They are similar in terms of their white and red logos, white-washed store décor,
product ranges, packaging designs, and price ranges. This creates some confusion among
customers, as even the names sound similar to each other. Players have tried various ways to
differentiate themselves from each other. For example, Minigood has launched its own café,
named Minicoffee, in its outlets. Minicoffee stores are decorated in a fun and cheerful way to
attract young customers. The pleasant store décor encourages customers to take photos and
share them on social media, which raises brand awareness of both the café and the retailer.
CHANNEL DATA
Table 160 Variety Stores: Value Sales, Outlets and Selling Space 2013-2018
2013 2014 2015 2016 2017 2018
Value sales VND billion 224.3 239.1 254.2 282.3 465.8 675.4
Outlets 108.0 112.0 117.0 125.0 168.0 201.0
Table 161 Variety Stores: Value Sales, Outlets and Selling Space: % Growth 2013-2018
% growth
2017/18 2013-18 CAGR 2013/18 Total

Outlets 19.6 13.2 86.1
Table 162 Variety Stores GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Miniso Industries Co Ltd - - 17.3 14.0 24.2

Yiwu Youlian Investment - - 8.3 22.1 18.3
Management Co Ltd
Daiso Sangyo Co Ltd 16.8 16.6 20.2 20.9 15.1
Central Retail Corp - 6.1 11.4 8.7 4.5
Viet HaChi Co Ltd 5.3 6.6 5.5 3.2 2.5
Others 77.9 70.7 37.3 31.1 35.5
Total 100.0 100.0 100.0 100.0 100.0
Table 163 Variety Stores GBN Brand Shares: % Value 2015-2018

Miniso Miniso Industries Co Ltd - 17.3 14.0 24.2

Ilahui Yiwu Youlian Investment - 8.3 22.1 18.3
Management Co Ltd
Daiso Daiso Sangyo Co Ltd 16.6 20.2 20.9 15.1
Shop
Others 70.7 37.3 31.1 35.5
Total 100.0 100.0 100.0 100.0
Table 164 Variety Stores LBN Brand Shares: Outlets 2015-2018
sites/outlets
Miniso (Miniso Le Bao Minh Group - 13 20 41

Industries Co Ltd)
Ilahui (Yiwu Vic Retail JSC - 6 31 34
Youlian Investment
Management Co Ltd)
Komonoya Central Retail Corp 4 11 16 11
Daiso (Daiso Sangyo Dai Son Investment 2 3 6 6
Co Ltd) Trading JSC
Hachi Hachi Japan Viet HaChi Co Ltd 4 4 4 5
Shop
Co Ltd)
Total Total 117 125 168 201
Table 165 Variety Stores LBN Brand Shares: Selling Space 2015-2018

Miniso (Miniso Le Bao Minh Group - 2.4 3.7 7.7

Industries Co Ltd)
Ilahui (Yiwu Vic Retail JSC - 0.8 4.1 5.0
Youlian Investment
Management Co Ltd)
Daiso (Daiso Sangyo Dai Son Investment 1.2 1.8 3.2 3.2
Co Ltd) Trading JSC
Shop
Co Ltd)
Others Others 14.6 10.4 12.3 14.9
Total Total 17.1 17.9 26.5 33.4
Table 166 Variety Stores Forecasts: Value Sales, Outlets and Selling Space 2018-2023
2018 2019 2020 2021 2022 2023
Value sales VND billion 675.4 851.0 987.2 1,105.6 1,205.1 1,301.5
Outlets 201.0 229.0 248.0 263.0 277.0 290.0
trade sources
Table 167 Variety Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth
2018-2023
% growth
2018/19 2018-23 CAGR 2018/23 Total

Outlets 13.9 7.6 44.3
trade sources
WAREHOUSE CLUBS IN VIETNAM -

CATEGORY ANALYSIS
PROSPECTS
 Warehouse clubs is not present in Vietnam. There are no prospects for this channel to
emerge in the country in the forecast period.
DIRECT SELLING IN VIETNAM -

CATEGORY ANALYSIS
HEADLINES
 Direct selling grows by 3% in current value terms to reach sales of VND10.1 trillion in 2018
 Direct selling still suffers from a negative perception
 Leading player Herbalife Vietnam Ltd grows strongly in 2018
 Direct selling is expected to grow at a 9% current value CAGR (4% 2018 constant value
PROSPECTS
Slow Albeit Positive Growth Seen As Direct Selling Still Suffers From A
Negative Perception
Although direct selling continued to recover from a negative performance in 2016, its growth
rate was still low in 2018. The government has stepped in to tighten its control on direct selling
and clear away illegal operations, but many consumers still have a negative perception of direct
sellers. In 2017, the Vietnam Competition Authority, a department of the Ministry of Industry and
Trade, fined 10 direct selling companies and withdrew the business licence from two companies
for illegal operations, with the total penalty set at VND2 trillion.
Despite the decline of many players, direct selling still achieved positive growth in 2018
thanks to the good performance of the leading players: Herbalife Vietnam Ltd, Oriflame Vietnam
Ltd, New Image Vietnam Co Ltd and Amway Vietnam Ltd. These companies have existed in
Vietnam for a long time and have built a strong base of loyal customers thanks to their high-
quality products and trustworthiness. Over the forecast period, as the negative perception of
direct selling slowly fades thanks to the government’s tighter control, it is expected that direct
selling will regain higher growth.
Consumer Health Direct Selling Makes the Highest Contribution

Consumer health contributes the highest value out of all direct selling products. Vitamins,
dietary supplements and weight management products are the biggest contributors. With
increasing disposable income, yet busier lifestyles and less time to take care of their personal
wellbeing, many customers rely on these products to maintain good health and prevent
illnesses. Seizing on this trend, leading companies allocate big budgets to marketing activities to
grab customer attention. Most notable is Herbalife, which runs various outdoor billboard
advertisements for its collagen powder drinks, protein powder and weight management
products.
As consumer health awareness is rising, it is expected that spending on consumer health
generally will also be benefited. As a result, consumer health direct selling players will have
many opportunities to grow. Consumer health is expected to see significant value growth over
the forecast period and will continue to be the biggest contributor to the whole direct selling retail
industry.
Leading Player Herbalife Vietnam Grows Robustly

In 2018, Herbalife Vietnam Ltd recorded outstanding value growth and maintained its leading
position in direct selling, with a value share that far exceeded the second-placed player. Unlike
some other players, Herbalife imports its products instead of manufacturing locally. Despite its
expensive prices, Herbalife still gathers a loyal customer group thanks to its high product quality.
The company is also one the biggest spenders in terms of marketing activities among all direct
selling companies in Vietnam, as its outdoor billboard advertisements can regularly be seen in
major areas in key cities. In June 2018, the company was fined for misleading advertisements.
However, the fine has not had a major impact on its performance.
Over the forecast period, Herbalife will continue to benefit from rising health awareness, as its
product portfolio focuses on consumer health products such as protein powder, collagen drinks
and weight management products. As a result, the company is expected to maintain its leading
position.
Oriflame Records the Fastest Growth

Oriflame saw the fastest value growth among all direct selling players in 2018. With a portfolio
focusing on beauty and personal care products, the company has been the least affected by the
direct selling crisis which involved more consumer health players. Over years, Oriflame has built
a loyal customer base thanks to its high-quality products that are manufactured with natural
ingredients. The company also has an online shopping website to provide customers
convenience when looking for information and purchasing its products.
Oriflame faces little competition within direct selling. The other major player selling beauty and
personal care products is Amway, which has not performed well. However, Oriflame still faces
much competition from the increasing number of beauty specialist retailers. Therefore, the
company must continue to evolve and follow market trends in order to maintain its growth rate
over the forecast period.
CHANNEL DATA
Table 168 Direct Selling by Category: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Apparel and Footwear - - - - - -

Direct Selling
Beauty and Personal 1,233.9 1,123.1 1,278.6 1,494.0 1,414.1 2,027.7
Care Direct Selling
Consumer Electronics - - - - - -
Direct Selling
Consumer Health Direct 4,018.6 4,615.7 5,306.1 4,883.6 4,811.0 4,279.5
Selling
Consumer Appliances - - - - - -
Direct Selling
Food and Drink Direct - - - - - -
Selling
Home Care Direct Selling 235.5 291.1 336.0 382.0 431.8 428.5
Home Improvement and - - - - - -
Gardening Direct Selling
Homewares and Home - - - - - -
Furnishings Direct
Selling
Media Products Direct - - - - - -
Selling
Personal Accessories - - - - - -
and Eyewear Direct
Selling
Pet Care Direct Selling - - - - - -
Traditional Toys and - - - - - -
Games Direct Selling
Video Games Hardware - - - - - -
Direct Selling
Other Direct Selling 3,083.1 2,832.1 2,747.3 2,662.3 3,094.9 3,328.2
Direct Selling 8,571.0 8,862.0 9,668.0 9,422.0 9,751.8 10,063.8
Table 169 Direct Selling by Category: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Apparel and Footwear Direct Selling - - -

Beauty and Personal Care Direct Selling 43.4 10.4 64.3
Consumer Electronics Direct Selling - - -
Consumer Health Direct Selling -11.0 1.3 6.5
Consumer Appliances Direct Selling - - -
Food and Drink Direct Selling - - -
Home Care Direct Selling -0.8 12.7 82.0
Home Improvement and Gardening Direct - - -
Selling
Homewares and Home Furnishings Direct - - -
Selling
Media Products Direct Selling - - -
Personal Accessories and Eyewear - - -
Direct Selling
Pet Care Direct Selling - - -
Traditional Toys and Games Direct - - -
Selling
Video Games Hardware Direct Selling - - -
Other Direct Selling 7.5 1.5 8.0
Table 170 Direct Selling GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018

Oriflame Cosmetics SA 3.8 5.8 7.0 12.0 14.0
New Image Group Ltd 1.5 2.0 5.0 12.0 13.0
Amway Corp 24.7 21.0 16.0 15.0 12.0
Morinda Holdings Inc 7.2 5.8 7.1 8.8 8.3
Tiens Group Co Ltd 4.5 5.2 6.8 7.6 6.8
Forever Living Products 9.3 7.4 6.4 6.0 5.5

International LLC
Nu Skin Enterprises Inc 2.0 1.9 2.1 2.8 2.2
bHIP Global 2.2 1.8 1.8 2.1 1.9
Sophie Martin Indonesia 1.0 1.0 1.1 1.1 0.9
PT
Herbalife Ltd 12.5 12.5 16.5 25.6 -
Avon Products Inc - - - - -
Others 18.8 13.4 8.2 7.0 6.4
Total 100.0 100.0 100.0 100.0 100.0
Table 171 Direct Selling GBN Brand Shares: % Value 2015-2018

Herbalife Nutrition Herbalife Nutrition Ltd - - - 29.0

Oriflame Oriflame Cosmetics SA 5.8 7.0 12.0 14.0
New Image New Image Group Ltd 2.0 5.0 12.0 13.0
Amway Amway Corp 21.0 16.0 15.0 12.0
Tahitian Noni Morinda Holdings Inc 5.8 7.1 8.8 8.3
Tiens Tiens Group Co Ltd 5.2 6.8 7.6 6.8
Forever Living Forever Living Products 7.4 6.4 6.0 5.5
International LLC
Nu Skin Nu Skin Enterprises Inc 1.9 2.1 2.8 2.2
bHIP bHIP Global 1.8 1.8 2.1 1.9
Sophie Paris Sophie Martin Indonesia PT 1.0 1.1 1.1 0.9
Herbalife Nutrition Herbalife Ltd 12.5 16.5 25.6 -
Thien Ngoc Minh Uy Thien Ngoc Minh Uy Co Ltd 22.2 22.0 - -
Avon Avon Products Inc - - - -
Others 13.4 8.2 7.0 6.4
Total 100.0 100.0 100.0 100.0
Table 172 Direct Selling Forecasts by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023

Direct Selling
Beauty and Personal 2,027.7 2,380.7 2,468.4 2,707.3 3,002.6 3,330.1
Care Direct Selling
Consumer Electronics - - - - - -
Direct Selling
Consumer Health Direct 4,279.5 4,860.8 5,511.7 6,208.2 7,012.2 7,688.0
Selling
Consumer Appliances - - - - - -
Direct Selling
Food and Drink Direct - - - - - -
Selling
Home Care Direct Selling 428.5 423.0 430.9 452.4 478.1 517.5
Gardening Direct Selling

Furnishings Direct
Selling
Media Products Direct - - - - - -
Selling
and Eyewear Direct
Selling
Pet Care Direct Selling - - - - - -
Games Direct Selling
Direct Selling
Other Direct Selling 3,328.2 2,499.9 2,058.4 1,625.0 1,159.5 932.5
Direct Selling 10,063.8 10,164.5 10,469.4 10,992.9 11,652.4 12,468.1
trade sources
Table 173 Direct Selling Forecasts by Category: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total
Apparel and Footwear Direct Selling - - -

Beauty and Personal Care Direct Selling 17.4 10.4 64.2
Consumer Electronics Direct Selling - - -
Consumer Health Direct Selling 13.6 12.4 79.6
Consumer Appliances Direct Selling - - -
Food and Drink Direct Selling - - -
Home Care Direct Selling -1.3 3.8 20.8
Home Improvement and Gardening Direct - - -
Selling
Homewares and Home Furnishings Direct - - -
Selling
Media Products Direct Selling - - -
Direct Selling
Pet Care Direct Selling - - -
Traditional Toys and Games Direct - - -
Selling
Video Games Hardware Direct Selling - - -
Other Direct Selling -24.9 -22.5 -72.0
trade sources
HOMESHOPPING IN VIETNAM -
CATEGORY ANALYSIS
HEADLINES
 Homeshopping grows by 8% in current value terms to reach sales of VND1.0 trillion in 2018
 Homeshopping’s growth rate slows down due to competition from other channels
 Homeshopping remains fragmented with no clear leading player
 Homeshopping is expected to grow at a 6% current value CAGR (1% 2018 constant value
CAGR) over the forecast period to reach VND1.3 trillion in 2023
PROSPECTS
Growth Slows Down

Homeshopping’s value growth rate slowed down significantly in 2018 and will continue to do
so over the forecast period. This is because homeshopping faces rising competition from other
channels such as internet retailing. The target consumers, mainly housewives, are becoming
more and more internet-savvy and know how to shop on online websites or via social media.
Internet retailing also provides other benefits that homeshopping does not, such as customer
reviews that can help other people to decide whether the products suit their needs.
TV Shopping Is the Main Homeshopping Method

Catalogue mail order homeshopping remains negligible in Vietnam. TV homeshopping
remains the main homeshopping method. There are many homeshopping channels that
retailers can run infomercials on. It is also the preferred method thanks to the higher amount of
information that can be conveyed. Housewives and older customers also prefer to watch TV
rather than reading catalogues as it is more interactive and attractive.
Homeshopping Is Highly Fragmented

Homeshopping remained fragmented in 2018 with no clear leading player. There are many
small and medium-sized businesses selling products that are imported from China, with no clear
information about the manufacturer or brand. Despite the presence of big players, such as SC
Media by Saigon Union of Trading Cooperatives, they have no major competitive advantage
compared to other players due to the lack of brand awareness and loyalty in homeshopping. As
such, it is challenging to gain a major share.
Homeshopping Players Expand To Internet Retailing

Many homeshopping players have expanded to internet retailing as a way to maintain growth
amid the slowdown of homeshopping. This also helps customers who prefer to take time to
make a purchasing decision after watching an infomercial, as they can go online and place the
order later. They can also rewatch the infomercials on the websites at their leisure. Key players
that follow this strategy include SCJ TV Shopping, Coop Home Shopping and Lotte Dat Viet
Home.
CHANNEL DATA
Table 174 Homeshopping by Category: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018

Homeshopping
Beauty and Personal - - - - - -
Care Homeshopping
Consumer Appliances 196.6 274.4 275.3 253.2 262.4 291.8
Homeshopping
Consumer Electronics 13.5 21.8 24.0 35.8 46.6 50.3
Homeshopping
Consumer Health 272.1 290.2 303.7 311.5 330.6 334.1
Homeshopping
Food and Drink - - - - - -
Homeshopping
Home Care Homeshopping - - - - - -
Gardening Homeshopping
Furnishings Homeshopping
Media Products - - - - - -
Homeshopping
and Eyewear Homeshopping
Pet Care Homeshopping - - - - - -
Games Homeshopping
Homeshopping
Other Homeshopping 94.0 119.6 182.8 256.5 304.9 346.8
Homeshopping 576.3 705.9 785.7 857.0 944.6 1,022.9
Table 175 Homeshopping by Category: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Apparel and Footwear Homeshopping - - -

Beauty and Personal Care Homeshopping - - -
Consumer Appliances Homeshopping 11.2 8.2 48.4
Consumer Electronics Homeshopping 7.9 30.1 272.2
Consumer Health Homeshopping 1.0 4.2 22.8
Food and Drink Homeshopping - - -
Home Care Homeshopping - - -
Home Improvement and Gardening - - -
Homeshopping
Homewares and Home Furnishings - - -

Homeshopping
Media Products Homeshopping - - -
Homeshopping
Pet Care Homeshopping - - -
Traditional Toys and Games Homeshopping - - -
Video Games Hardware Homeshopping - - -
Other Homeshopping 13.7 29.8 268.9
Table 176 Homeshopping Forecasts by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023

Homeshopping
Beauty and Personal - - - - - -
Care Homeshopping
Consumer Appliances 291.8 247.3 199.6 136.6 102.1 68.9
Homeshopping
Consumer Electronics 50.3 65.0 85.8 158.5 156.1 155.1
Homeshopping
Consumer Health 334.1 334.1 330.2 322.8 157.0 78.3
Homeshopping
Food and Drink - - - - - -
Homeshopping
Home Care Homeshopping - - - - - -
Gardening Homeshopping
Furnishings Homeshopping
Media Products - - - - - -
Homeshopping
and Eyewear Homeshopping
Pet Care Homeshopping - - - - - -
Games Homeshopping
Homeshopping
Other Homeshopping 346.8 407.2 453.9 456.9 661.8 775.7
Homeshopping 1,022.9 1,053.6 1,069.4 1,074.7 1,076.9 1,078.0
trade sources
Table 177 Homeshopping Forecasts by Category: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total
Apparel and Footwear Homeshopping - - -
Beauty and Personal Care Homeshopping - - -

Consumer Appliances Homeshopping -15.2 -25.1 -76.4
Consumer Electronics Homeshopping 29.1 25.2 208.1
Consumer Health Homeshopping 0.0 -25.2 -76.6
Food and Drink Homeshopping - - -
Home Care Homeshopping - - -
Homeshopping
Homeshopping
Media Products Homeshopping - - -
Homeshopping
Pet Care Homeshopping - - -
Traditional Toys and Games Homeshopping - - -
Video Games Hardware Homeshopping - - -
Other Homeshopping 17.4 17.5 123.7
trade sources
INTERNET RETAILING IN VIETNAM -

CATEGORY ANALYSIS
HEADLINES
 Internet retailing grows by 32% in current value terms to reach sales of VND38.6 trillion in
2018
 Apparel and footwear and consumer electronics are the biggest value contributors
 Mobile World JSC is the strong leading player in 2018
 Internet retailing is expected to grow at a 23% current value CAGR (18% 2018 constant value
PROSPECTS
Apparel and Footwear and Consumer Electronics Are the Biggest

Contributors
Apparel and footwear recorded the highest value sales among all internet retailing categories
in 2018. Young people are willing to purchase apparel and footwear items online due to the peer
pressure to stay fashionable. The high number of small and medium-sized businesses that sell
affordable clothing and footwear online also makes customers less concerned about buying the
wrong products.
Similarly, personal electronics such as smartphones and smartwatches are seen as a way to
show a person’s social status. Therefore, many urban customers like to replace their electronics
regularly to have the latest products. This leads to high value sales for consumer electronics as
a whole. Many retailers such as Mobile world and FPT Shop launch online-exclusive promotions
to bring more customers to their online stores, which helps to reduce their operation costs and
expand their distribution network. As a result, consumer electronics is quickly rising to become
one of the biggest value contributors to internet retailing.
Payment Method Is Critical for the Success of Online Businesses

Cash on delivery (COD) is one of the most common payment methods for online businesses
in Vietnam. As customers do not have the opportunity to examine the product before
purchasing, COD allows them to do so before deciding to buy. Many consumers feel safer using
this method, as online fraud is still high in Vietnam and many consumers are cautious of using
financial cards on online shopping websites. Furthermore, COD also allows small businesses to
set up their shops quickly, as they do not have to invest in an online payment system.
The rise of third party electronic wallet services, such as Momo and Zalo Pay, also gives
online retailers and customers another choice of payment method. As these companies focus
on financial services, they are perceived to have better security and trustworthiness. Therefore,
many customers are more willing to use their bank accounts or financial cards through these
third party services, rather than directly on the online shopping website. To raise awareness of
these services, many retailers collaborate with the service providers to launch promotions. For
example, Tiki and Zalo Pay give customers discounts and shopping vouchers.
Omnichannel Retailing Remains A Booming Trend

With the popularity of social media such as Facebook and Instagram, it is easier and cheaper
for small or new businesses to set up online shops. The majority of shops allow customers to
place orders via direct messaging without the need for a proper online shopping system. Many
shops maintain both bricks-and-mortar stores and online shops to give customers the flexibility
of the omnichannel experience. Customers can browse through the real products in the various
stores, and then place their order on the website after choosing the right product. Vice versa,
customers can search for and compare product information on the website, and then go to the
store to touch and feel the real products before making their final purchasing decision.
Many players have succeeded with this strategy. Most notable are electronics and appliance
specialist retailers such as Mobile world and FPT Shop. Their products are more expensive, so
consumers make price comparisons between retailers and stud product specifications carefully
before buying. Over the forecast period, it is expected that this trend will continue to grow.
Mobile World Jsc Is the Strong Leading Player

Mobile World JSC successfully doubled its internet retailing value sales and maintained its
leading position in 2018, increasing the share gap with the second-placed player. Mobile
World’s success is attributed to several factors, including an excellent customer database
management system and many online-exclusive promotions. With an omnichannel strategy, the
company maintains outstanding customer service in both its stores and the online shopping
experience, which also contributes to its online success. Mobile World’s online business is
supported by its extensive network of outlets that are located in all provinces and cities of
Vietnam, resulting in a localised customer service experience and efficient delivery. The
company also spends heavily on social media marketing to reach customers and bring them
directly to its online shopping website.
Marketplace Platforms See Healthy Development

Internet retailing is very crowded with many small individual sellers. Marketplace platforms
such as Shopee, Lazada and Sendo are very popular as individual players can easily set up
their online stores without significant financial investment or technical knowledge. The popularity
of these websites also draws big retailers which open their official stores on these platforms in
order to reach more customers. In 2018, the most notable player was Shopee which recorded
outstanding growth thanks to the extensive marketing campaign that ran in many Asian
countries including Vietnam. Lazada, despite its popularity and high value sales, achieved much
slower growth in 2018 due to scandals surrounding fake and counterfeit products from some
third party sellers, which shook consumer trust in the platform as a whole.
CHANNEL DATA
Table 178 Internet Retailing by Category: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018

Internet Retailing
Beauty and Personal 99.6 108.4 126.7 156.7 186.3 254.1

Care Internet Retailing
Consumer Appliances 838.5 1,193.3 2,378.0 3,791.4 5,682.2 6,588.4
Internet Retailing
Consumer Electronics 1,658.9 2,280.1 3,200.8 5,828.5 8,088.7 10,166.4
Internet Retailing
Consumer Health 766.5 1,027.1 1,290.6 1,681.3 2,205.0 2,688.9
Internet Retailing
Food and Drink Internet 40.3 46.5 64.3 497.7 858.0 1,491.1
Retailing
Home Care Internet 79.7 112.2 170.0 262.1 369.4 403.3
Retailing
Gardening Internet
Retailing
Furnishings Internet
Retailing
Media Products Internet 203.3 267.4 333.1 407.2 503.9 613.5
Retailing
and Eyewear Internet
Retailing
Pet Care Internet 3.5 4.7 6.6 8.8 10.4 12.3
Retailing
Games Internet Retailing
Internet Retailing
Other Internet Retailing 777.5 1,330.8 1,846.2 2,174.2 2,583.6 3,056.0
Internet Retailing 9,553.8 13,632.0 20,078.7 29,804.5 39,600.2 49,474.3
Table 179 Internet Retailing by Category: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Apparel and Footwear Internet Retailing 26.6 36.6 375.8

Beauty and Personal Care Internet 36.4 20.6 155.0
Retailing
Consumer Appliances Internet Retailing 15.9 51.0 685.7
Consumer Electronics Internet Retailing 25.7 43.7 512.8
Consumer Health Internet Retailing 21.9 28.5 250.8
Food and Drink Internet Retailing 73.8 105.9 3,603.6
Home Care Internet Retailing 9.2 38.3 406.0
Internet Retailing
Internet Retailing
Media Products Internet Retailing 21.8 24.7 201.7
Internet Retailing
Pet Care Internet Retailing 18.2 28.6 252.3
Traditional Toys and Games Internet - - -
Retailing
Video Games Hardware Internet Retailing - - -
Other Internet Retailing 18.3 31.5 293.1

Table 180 Internet Retailing GBO Company Shares: % Value 2014-2018

Company 2014 2015 2016 2017 2018
Mobile World JSC 7.0 8.6 11.3 14.4 21.3

Tiki JSC 0.7 0.8 1.9 1.9 6.0
Sea Ltd - - 0.4 2.3 5.7
FPT Corp 2.3 2.8 4.8 5.1 5.2
VinGroup JSC - - - - 1.6
Pico JSC 1.6 1.3 1.0 0.8 0.7
Central Retail Corp - - - 0.2 0.3
Export Trading
Production Corp
Rocket Internet GmbH 4.6 12.2 0.2 - -
Others 77.3 68.9 66.4 62.4 49.9
Total 100.0 100.0 100.0 100.0 100.0
Table 181 Internet Retailing GBN Brand Shares: % Value 2015-2018


Shopee Sea Ltd - 0.4 2.3 5.7
Shopping Center
Lazada Alibaba Group Holding Ltd - 1.6 1.2 1.0
Pico Pico JSC 1.3 1.0 0.8 0.7
Robins Central Retail Corp - - 0.2 0.3
Export Trading
Production Corp
Zalora Rocket Internet GmbH 0.2 0.2 - -
3rd Party Merchants Rocket Internet GmbH 9.7 - - -
lazada Rocket Internet GmbH 2.2 - - -
Others 68.9 66.4 62.4 49.9
Total 100.0 100.0 100.0 100.0
Table 182 Internet Retailing Forecasts by Category: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023

Internet Retailing
Beauty and Personal 254.1 281.7 353.0 421.2 502.1 598.6
Care Internet Retailing
Consumer Appliances 6,588.4 6,866.6 7,151.5 7,411.4 7,688.6 7,963.7
Internet Retailing
Consumer Electronics 10,166.4 12,702.0 16,088.2 20,664.1 27,159.3 31,991.9
Internet Retailing
Consumer Health 2,688.9 3,067.3 3,501.9 3,904.3 4,365.5 4,854.9
Internet Retailing
Food and Drink Internet 1,491.1 1,913.3 2,320.9 2,808.6 3,380.6 4,041.7
Retailing
Home Care Internet 403.3 440.2 486.8 550.3 627.2 721.1
Retailing
Gardening Internet
Retailing
Furnishings Internet
Retailing
Media Products Internet 613.5 711.7 815.0 920.9 1,031.4 1,144.9
Retailing
and Eyewear Internet
Retailing
Pet Care Internet 12.3 13.8 15.3 17.0 19.5 22.0
Retailing
Games Internet Retailing
Internet Retailing
Other Internet Retailing 3,056.0 3,498.9 3,938.2 4,557.1 5,398.6 5,751.0
Internet Retailing 49,474.3 56,819.5 64,501.2 73,426.2 84,637.2 93,955.2
trade sources
Table 183 Internet Retailing Forecasts by Category: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total
Apparel and Footwear Internet Retailing 12.9 8.8 52.3

Beauty and Personal Care Internet 10.9 18.7 135.5
Retailing
Consumer Appliances Internet Retailing 4.2 3.9 20.9
Consumer Electronics Internet Retailing 24.9 25.8 214.7
Consumer Health Internet Retailing 14.1 12.5 80.6
Food and Drink Internet Retailing 28.3 22.1 171.1
Home Care Internet Retailing 9.1 12.3 78.8
Internet Retailing
Internet Retailing
Media Products Internet Retailing 16.0 13.3 86.6
Internet Retailing
Pet Care Internet Retailing 12.2 12.3 78.6
Traditional Toys and Games Internet - - -
Retailing
Video Games Hardware Internet Retailing - - -
Other Internet Retailing 14.5 13.5 88.2
trade sources
FOOD AND DRINK INTERNET

RETAILING IN VIETNAM - CATEGORY
ANALYSIS
HEADLINES
 Food and drink internet retailing grows by 74% in current value terms to reach sales of
 Food and drink remains relatively new compared to other categories within internet retailing
 Most players focus on an omnichannel strategy
 Food and drink internet retailing is expected to grow at a 27% current value CAGR (22% 2018
constant value CAGR) over the forecast period to reach sales of VND5.0 trillion in 2023
PROSPECTS
Outstanding Growth Achieved in Food and Drink Internet Retailing

In 2018, food and drink recorded the fastest retail value growth among all internet retailing
categories. Food and drink is one of the newest categories. Value sales of food and drink
internet retailing are still low compared to many other internet retailing categories as consumers
have no yet acquired the habit of purchasing food and drink online. Consumers still prefer to go
to physical shops to touch and feel the items before purchasing, which especially applies to
fresh grocery. Therefore, most items within food and drink internet retailing are packaged. Some
players also offer fresh products, such as Coopmart by Saigon Union of Trading Cooperatives,
to cater to very busy customers who still want to cook at home but have little time for grocery
shopping.
Soft Drinks Contributes the Highest Value

Among all types of food and drink internet retailing, soft drinks contributed the highest value
sales in 2018. It is also the category with the most dynamic growth. Many customers tend to buy
soft drinks in bulk to drink on a regular basis or use during events. Buying bulk soft drinks online
saves the customer the effort of carrying the heavy items home from the grocery store. In
addition, customers usually know the product or brand of soft drink they want to buy, which
makes the online buying process easy and convenient. It is different for fresh food or packaged
food, as people prefer to browse through the real products before purchasing. Over the forecast
period, even though all types of food and drink internet retailing are expected to grow strongly,
soft drinks will remain the biggest contributor.
Most Key Players Have Existed for Less Than Five Years
As food and drink internet retailing is relatively new in Vietnam, most key players have been
present for less than five years. VinGroup JSC launched its online shopping arm, Adayroi, in
August 2015, offering products from its VinMart and VinMart+ supermarkets and other third
party retailers. Vietnam Dairy Products JSC (Vinamilk) launched its website, Giacmosuaviet, in
2016 to distribute all products under its portfolio. The leading modern grocery retailer, Saigon
Union of Trading Cooperatives, launched its internet retailing website Coopmart in September
2017. Mobile World JSC has changed its Vuivui e-shop to Bachhoaxanh in its strategy to build
Bach Hoa Xanh to be a stronger brand and penetrate deeper into grocery internet retailing. As
most players are still new, there are still challenges that they face with food and drink internet
retailing. For example, the range of food and drink products on their websites is usually not as
extensive as in their shops.
Omnichannel Is A Common Strategy

Key industry players, such as VinGroup JSC, Vietnam Dairy Products JSC (Vinamilk), Saigon
Union of Trading Cooperatives and Mobile World JSC, have the common strategy of operating
in both offline and online channels. These retailers have an extensive network of grocery stores,
which are also in charge of stocking and delivering goods when customers place an order via
their online websites. Local delivery helps to reduce the time and cost, and also provides a
better customer service experience. As a result, they achieve a much higher value share than
pure food and drink internet retailing players who do not have a widespread network of stores.
Niche Players Focus on Clean Label and Organic Products

There is a growing number of small and medium-sized players which focus on the niche of
clean label and organic food and drink. Due to their small scale, these players tend to sell
through social media channels such as Facebook. The social media platform also allows these
retailers to show their agriculture process, in order to prove that their products are clean and
organic, due to the lack of a local government body which can certify organic meat or
vegetables. As these players are mainly small and medium-sized, many do not have physical
shops and only operate online.
CHANNEL DATA
Table 184 Food and Drink Internet Retailing: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Food and Drink Internet 40.3 46.5 64.3 497.7 858.0 1,491.1
Retailing
Table 185 Food and Drink Internet Retailing: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Food and Drink Internet Retailing 73.8 105.9 3,603.6

Table 186 Food and Drink Internet Retailing: % Value Growth 2016-2017
2016/17 2016-17 CAGR 2016/17 Total

Table 187 Food and Drink Internet Retailing Forecasts: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Food and Drink Internet 1,491.1 1,913.3 2,320.9 2,808.6 3,380.6 4,041.7
Retailing
trade sources
Table 188 Food and Drink Internet Retailing Forecasts: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total

trade sources
VENDING IN VIETNAM - CATEGORY

ANALYSIS
PROSPECTS
 In 2018, vending remained negligible in Vietnam although vending machines exist. It is not a
habit for consumers to purchase from vending machines, due to the widespread availability of
street vendors which also sell drinks and food at cheap prices. The rapid growth of
convenience stores has also reduced the need to buy from vending machines, as
convenience stores are easily found in urban areas and carry a wider range of products.
MOBILE INTERNET RETAILING IN

VIETNAM - CATEGORY ANALYSIS
HEADLINES
 Mobile internet retailing grows by 38% in current value terms to reach sales VND17.4 trillion in
2018
 Strong growth of mobile internet retailing is attributed to rising smartphone ownership and
increasing 4G coverage
 Mobile World JSC remains the leading player
 Mobile internet retailing is expected to grow at a 27% current value CAGR (21% 2018
constant value CAGR) over the forecast period to reach VND56.3 trillion in 2023
PROSPECTS
Increased 4g and Wi-fi Coverage Encourages Mobile Internet Retailing

In 2018, telecommunication service providers continued to expand and improve their 4G
coverage. It is affordable to use 4G services in Vietnam. Broadband internet penetration has
also increased. It is common for restaurants, cafés and convenience stores to offer free Wi-Fi to
customers. Thus, it is affordable to surf the internet using mobile phones at home or on the go.
The higher usage of 4G and broadband internet are bolstering the growth of mobile internet
retailing, as customers can easily make the decision to purchase goods wherever they are.
Over the forecast period, key telecommunication providers such as Viettel will continue to
expand their 4G and broadband internet coverage to smaller towns throughout the country,
allowing more and more customers to access the internet affordably. Together with rising
consumer savviness, this will be the key contributing factor to mobile internet retailing’s growth
over the forecast period.
Rising Smartphone Ownership Leads To Growth in Online Sales

Vietnam recorded one of the fastest growth rates in smartphone users in 2018 among
Southeast Asian countries. The expansion of electronics and appliance specialist retailers such
as The Gioi Di Dong and the growing number of cheap smartphone models are allowing more
and more customers from different social classes and geographical areas to use smartphones.
With the rise of smartphone ownership, more customers can access online shops from their
mobile phones. At the same time, retailers are developing mobile-friendly websites or
smartphone apps to make it easier for customers to gain access from their mobile devices. Over
the forecast period, thanks to rising disposable income and improving standards of living,
smartphone ownership will continue to rise. It will become a habit for many customers to shop
on their mobile devices rather than their home computers thanks to the greater convenience.
the Development of Mobile Wallets and Other Mobile Applications

Boosts Mobile Internet Retailing
In 2018, mobile wallets continued to rise in popularity. Players like Momo, Zalo Pay, and Air
Pay use various tactics to enlarge their consumer base, such as linking with more banks and
collaborating with more retailers. Mobile wallets and retailers’ collaborations can give customers
online-exclusive discounts and promotions, which attract them to shop via their mobile device
and pay by mobile wallets more often. For example, internet retailer Tiki and mobile wallet Zalo
Pay give customers up to 50% discounts and cash vouchers for subsequent purchases.
Besides mobile wallets, retailers are also creating their own mobile applications to give
customers a better shopping experience on their mobile devices. These include key internet
retailers such as Tiki, The Gioi Di Dong, Lazada and Shopee. The mobile apps also incorporate
reminders and sale alerts to encourage customers to spend more during special events.
Mobile World Remains the Leading Internet Retailing Player

In 2018, Mobile World JSC recorded outstanding growth and maintained its leading position
within internet retailing, which included sales from both mobile and other devices. The company
employs an omnichannel strategy, which emphasises its renowned customer service level
throughout all platforms, including bricks-and-mortar shops, online shops and mobile apps. With
a widespread network of outlets spanning all provinces and cities of Vietnam, Mobile World is
able to provide smooth and efficient customer service and delivery to its customers in all places.
For example, it can deliver products within one hour after the customer places the order on its
website or mobile app.
Extra Services Are A Way To Attract Customers

It is common for retailers to add extra services on their mobile app or mobile shopping
website to attract more customers. For example, The Gioi Di Dong website by Mobile World
JSC allows customers to pay for their electricity, water and mobile phone bills. The website also
has a section on electronics and appliance news, to keep customers updated on the latest
product models and promotions. The CoopMart website by Saigon Union of Trading
Cooperatives and the Adayroi website by VinGroup JSC allow customers to check their
membership points balance, which can be redeemed directly on the online shop or in the stores.
CHANNEL DATA
Table 189 Mobile Internet Retailing: Value 2013-2018
VND billion
2013 2014 2015 2016 2017 2018
Mobile Internet Retailing 210.2 1,772.2 4,618.1 9,239.4 17,028.1 22,263.5

Table 190 Mobile Internet Retailing: % Value Growth 2013-2018
2017/18 2013-18 CAGR 2013/18 Total
Mobile Internet Retailing 30.7 154.1 10,492.4
Table 191 Mobile Internet Retailing Forecasts: Value 2018-2023
VND billion
2018 2019 2020 2021 2022 2023
Mobile Internet Retailing 22,263.5 26,705.2 30,960.6 36,713.1 43,165.0 48,856.7

trade sources
Table 192 Mobile Internet Retailing Forecasts: % Value Growth 2018-2023
2018/2019 2018-23 CAGR 2018/23 Total
Mobile Internet Retailing 20.0 17.0 119.4

trade sources

Retailing in Vietnam

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RETAILING IN VIETNAM

LIST OF CONTENTS AND TABLES

Table 60 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling

Mini-supermarkets Gain Share From Traditional Grocers ...................................................... 53

RETAILING IN VIETNAM - INDUSTRY

Merger and Acquisition Activities Continue Prominently

the Development of Internet Retailing Is Booming

Social Media Bring More Retail Opportunities

Vietnamese Retailing Attracts More International Players

Healthy Growth Expected Over the Forecast Period for Vietnamese

Summary 1 Standard Opening Hours by Channel Type

Vitamins and No 08.00- 08.00- 08.00- Open

Physical Retail Landscape

Cash and Carry

Vietnamese Lunar New Year (Tet)

Payments and Delivery

Emerging Business Models

Store-based Retailing 1,514.0 1,728.0 1,868.7 2,014.6 2,196.6 2,384.5

Table 2 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018

% current value growth, retail value rsp excl sales tax

2017/18 2013-18 CAGR 2013/18 Total

Store-based Retailing 8.6 9.5 57.5

Table 3 Sales in Store-based Retailing by Channel: Value 2013-2018

Grocery Retailers 771.7 875.4 916.4 958.4 1,010.4 1,068.1

Table 4 Sales in Store-based Retailing by Channel: % Value Growth 2013-2018

% current value growth, retail value rsp excl sales tax

2017/18 2013-18 CAGR 2013/18 Total

Grocery Retailers 5.7 6.7 38.4

Table 5 Store-based Retailing Outlets by Channel: Units 2013-2018

Grocery Retailers 636,230.0 642,753.0 649,345.0 655,661.0 661,445.0 666,573.0

Table 6 Store-based Retailing Outlets by Channel: % Unit Growth 2013-2018

Grocery Retailers 0.8 0.9 4.8

Table 7 Sales in Non-Store Retailing by Channel: Value 2013-2018

Direct Selling 8.6 8.9 9.7 9.4 9.8 10.1

Table 8 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018

% current value growth, retail value rsp excl sales tax

2017/18 2013-18 CAGR 2013/18 Total

Direct Selling 3.2 3.3 17.4

2013 2014 2015 2016 2017 2018

Value sales VND tn 771.7 875.4 916.4 958.4 1,010.4 1,068.1

Value sales VND billion 5.7 6.7 38.4

Table 11 Sales in Grocery Retailers by Channel: Value 2013-2018

Convenience Stores 1.1 1.5 2.0 2.5 3.1 3.7

Grocery Retailers 771.7 875.4 916.4 958.4 1,010.4 1,068.1

Table 12 Sales in Grocery Retailers by Channel: % Value Growth 2013-2018

% current value growth, retail value rsp excl sales tax

2017/18 2013-18 CAGR 2013/18 Total

Convenience Stores 19.0 27.6 238.6

Table 13 Grocery Retailers Outlets by Channel: Units 2013-2018

Convenience Stores 463.0 565.0 708.0 947.0 1,099.0 1,188.0

Table 14 Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018

Convenience Stores 8.1 20.7 156.6

2013 2014 2015 2016 2017 2018

Value sales VND tn 740.3 848.3 946.4 1,048.9 1,177.5 1,306.5

Value sales VND billion 11.0 12.0 76.5

Table 17 Sales in Non-Grocery Specialists by Channel: Value 2013-2018

Apparel and Footwear 68.8 81.1 92.9 103.9 114.9 125.8

Table 18 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018

% current value growth, retail value rsp excl sales tax

2017/18 2013-18 CAGR 2013/18 Total

Apparel and Footwear Specialist 9.5 12.8 82.9

Table 19 Non-Grocery Specialists Outlets by Channel: Units 2013-2018

Apparel and Footwear 10,078.0 10,339.0 10,582.0 10,927.0 11,222.0 11,469.0

Table 20 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018