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Our top five trends shaping the Asian retail market and influencing retailer strategy over the next year and beyond.
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Vietnamese merchants to get on board Amazon’s Global Selling network.
Health and beauty retailer, A.S. Watson, will open its first store in Vietnam on 17 January 2019.
The store will be located in Bitexco Financial Tower in District 1, Ho Chi Minh City. It is the tallest building in the city. The area is well visited by tourists due to its magnificent views on the Sky Deck. It is also known for its luxurious offices.
A.S. Watson, part of Hong Kong conglomerate Hutchison Whampoa, is one of the world’s largest health, beauty and lifestyle retailers, with over 14,000 stores covering 24 markets. It has a diverse portfolio ranging from ports, infrastructure, energy, telecommunications and retail. Its retail segment includes the largest international Health & Beauty retailer in Asia and Europe, plus food, wine and electrical appliances.
Keep up-to-date with the latest retail developments from Asia.
We look at how Auchan is expanding its channel presence in Vietnam.
Auchan and Alibaba have extended their partnership to Vietnam and announced plans to develop the “phygital food business” in the country. The retailer stated, "The partnership between these two companies aims to offer Vietnamese consumers a customer experience that combines the best of physical food trade and the best of digital".
Auchan products will be available to purchase on Alibaba’s online shopping platform, LazMall. The platform will offer a range of private labels and branded products, available from store delivery. Shoppers can choose from same-day, next-day or low-cost delivery options.
The partnership between Auchan and Alibaba in China has yet to lead to a strong recovery in sales growth, but has seen the retailers launch several initiatives. The agreement has accelerated the integration of offline and online channels, enabling shoppers to move between them more easily.
AEON has sold its 30% stake in small grocery chain Fivimart to Vinmart in Vietnam.
After four years of being a part owner and mounting losses, AEON has sold its share in Fivimart (23 stores). It has been reported that the decision to exit was due to poor performance and strategic differences between stakeholders.
All Fivimart stores will be rebranded to Vinmart supermarkets. In addition to fresh and general groceries, these stores will sell the Group’s private label brands, VinEco, VinMart Cook, and Vinmart Home.
AEON is still planning to expand its footprint in Vietnam, aiming to reach 500 stores by 2025. The retailer operates around 120 Ministop convenience outlets in the country. For the foreseeable future, it will maintain its 49% stake in Citimart, which it invested at the same time as Fivimart and previously announced ambitious expansion plans. AEON also operates four shopping malls in Hanoi, Binh Duong and Ho Chi Minh City, and two more are under construction in Hanoi and Haiphong.
Join our webinar on 2 October and discover which markets hold the most potential for online grocery retailing.
Auchan announces 100% acquisition of Giant supermarket at Crescent Mall in February 2018 in its half-yearly annual report.
Auchan has acquired Giant which was previously owned by Dairy Farm International (DFI). The store is located in an affluent residential area in district 7. The store is 3,500 sq m and has been opened since 2011. It was the only Giant hypermarket owned by DFI in Vietnam.
Auchan started in Vietnam with supermarkets in 2015. The retailer opened three My Auchan convenience stores last year. Besides the acquisition of Giant, it has also launched an online service this year. We believe that the retailer is still experimenting with different formats in this market which presents many growth opportunities.
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This in-depth guide to Vietnam explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.
Five year growth forecasts for the grocery market, the leading retailers and modern trade grocery channels in Vietnam.