01/09/2016 17:26 GMT+7 Email Print Like 0

Vinmart – the Prospect of a Retail Sector in Vietnam

Operating in the market for just two years, with a growth rate of a historical record in the retail sector, Vinmart, under Vingroup, is now on the list of Vietnam’s top retail trademarks. Economic experts are expecting that Vingroup will re-draw the domestic retail market and create a balance for Vietnamese enterprises while facing a “storm” of  occupying the market by foreign retail groups.
The Vinmart  brand  officially appeared in the market on November 20, 2014 with a massive launch of nine supermarkets in Hanoi. After nearly two years (up to  June 2016), Vinmart has 50 supermarkets with 830 Vinmart+ nationwide. The figure shows that on average nearly 3 Vinmart supermarkets and 46 Vinmart+ (more than 1 shop established each day) are launched each month.

To have such a miraculous growth, Vinmart has a powerful financial source from Vingroup. However, the reality proves the fact that to operate well in the retail market with high competitiveness, financial potential is not enough and it requires skills in management, experience and a long-term vision .

First of all, it should be mentioned about the strategy for mass coverage of Vinmart+ . It is a chain of shops with a total area of less than 500m2 which are scattered in small streets and lanes in residential areas in cities, creating convenience for customers.

Not only meeting the customers’ demand for necessary daily goods like other useful shops, Vinmart+ also supplies fresh vegetables, fruit and meat of a high quality at reasonable prices. These products have clear origin sources and are strictly controlled under the general process of the entire system.

Vingroup takes the initiative in safe food supply sources with its VinEco brand.

New Zealand Prime Minister (second from right) visit the system
of Vinmart supermarkets during his visit to Vietnam. Photo: Vingroup’s file

Fresh seafood is preprocessed at a stall in a supermarket of Vingroup. Photo: Tran Thanh Giang

 Vinmart supermarkets are  established  in large urban centers, such as Time City, Royal city,
Vincom Center Nguyen Tri Thanh and Vincom Ba Trieu. Photo: Tran Thanh Giang

A corner of Vinmart supermarket at Vincom Center Nguyen Chi Thanh. Photo: Tran Thanh Giang

 Safe vegetables branded VinEco are only distributed in the system
of Vinmart supermarket and Vinmart+. Photo: Tran Thanh Giang

Stalls and shelves in Vinmart supermarkets are arranged scientifically
and conveniently for customers. Photo: Tran Thanh Giang

An area of promotional goods in the program of “Honouring Customers of Vinmart”. Photo: Hoang Quang Ha

Clean and safe fruit sold at Vinmart supermarkets have a clear stamp
of origin and are strictly supervised. Photo: Hoang Quang Ha

Customers select promotional goods in the program of “Honouring Customers of Vinmart”
of the Vinmart system. Photo: Hoang Quang Ha  

Vinmart+ creates a new style and conception of intelligent purchasing at a time when  people are worried about the food safety issue in traditional markets. Its strategy is highly appreciated because of creating an outstanding difference when compared with other large retail brands in Vietnam.

It is impossible not to mention the supply chain of clean and safe agricultural products branded Vineco in Vinmart supermarkets and Vinmart+. The agricultural products branded VinEco are produced using modern technology, techniques, seeds and agricultural equipment from Israel, Japan and the Netherlands which are famous for agriculture. All the products provided to the market meet the standards of VietGap and GlobalGap. Then, it will take the initiative in supply sources.

Recently, Vingroup launched a program “Accompanying, Supporting and Promoting Domestic Production” with the aim of helping domestic enterprises produce consumer goods, making a contribution to creating a source of clean and safe consumer goods for the market; building trademarks of both national and international level. With a mission of “For a Better Life for the Vietnamese”, the program prioritises the group of safe food which helps protect the health of the community and future generations.

Under the program, enterprises’ products are sold at the market system of Vingroup with preferential conditions. For fresh food, Vingroup is implementing the policy on selling without interest for one year. All discounts will be repaid to the suppliers so as to invest in improving the quality of products and strictly implement standards and regulations on food safety and hygiene.
Besides the preferential treatment in distribution, small and medium sized enterprises are supported in terms of technology, administration, quality control systems, marketing and sales.  Vingroup is also ready to cooperate with enterprises to invest in production to improve the quality of products.

The program showed the responsibility for society and “a national spirit in trading and production” of Vingroup which not only helps people give importance to the quality of products and long-term development of the Vietnamese business community, but also enhances the competitiveness of domestic production.

Story: Thao Vy - Photos: Tran Thanh Giang, Hoang Quang Ha and Files