Shifting behavior
The corner store operators would not have been so eager to dominate the market if it had not been for a shift in the shopping behavior of Vietnamese consumers, especially women who have to cook after a busy, tiring day at work, according to industry insiders.
“Everything I need is available at the corner shop,” Hai Yen, who teaches at a high school in District 1, told Tuoi Tre after her shopping at a Big C Express store in Tan Binh District.
Yen said she would stop by a convenience store, instead of a supermarket, whenever she left work late as it helps save her time. “Just do a quick shopping and I’ll be at home on time,” she said.
The teacher bought a wide variety of goods from the corner store, from ingredients to cook her dinner to essentials for her kid to go on a sightseeing tour the following day, without losing time parking her motorbike and queuing at the busy checkouts in supermarkets.
A common strategy for the corner shop chain operators is to increase their presence and familiarize consumers with shopping at convenience stores.
The companies may suffer losses during this period, but they will begin to rake in profits after five to ten years, according to Yamashita Junichi, general director of Family Mart Vietnam.
Once the shopping behavior has changed, the operators will be able to reap profits, he said.
A Vietnamese retailer expert also said the priority of the foreign corner store operators is to expand their network.
“With deep pockets, the foreign companies constantly add new outlets at the prime locations throughout the southern city,” the expert told Tuoi Tre, wishing to remain anonymous.
“When this target is reached, they will begin to dominate this ripe market.”
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