The “Retail Market In Vietnam by Distribution Channel (Offline and Online) and Type (Grocery, Electronics and appliances, Home and garden, Health and beauty, and Others) – Forecast and Analysis 2022-2026″ report has been added to Technavio’s offering. With ISO 9001:2015 certification, Technavio has been proudly partnering with more than 100 Fortune 500 companies for over 16 years.
The potential growth difference for the retail market in Vietnam between 2021 and 2026 is USD 82.70 bn. To get the exact yearly growth variance and the Y-O-Y growth rate, Talk to our analyst.
Key Market Dynamics:
- Market Driver
- Market Challenges
The retail market growth in Vietnam is driven by the growing demand for convenience food products. With the advent of dual-income households, the time spent on household chores is declining due to hectic work schedules. This has led to a reduction in the traditional method of cooking food and has led to a shift in consumer preferences for convenience food products and eating outside. This, in turn, has increased the demand for convenience food products, which are easy to cook and are less time-consuming. These factors are expected to increase the demand for convenience meat and poultry products that are rich in nutrition, thereby fueling the growth of the retail market in Vietnam during the forecast period.
The retail market growth in Vietnam is hindered by the issues related to logistics and supply chain operations. The country’s supply chain infrastructure is still developing. Hence, it involves functions such as the acquisition of products, warehouse management, packaging, inventory management, distribution, and merchandising of products. The costs involved in such processes are quite complex and involve significant expenditure and costs for back-end support for IT, infrastructure management, and customer support. Managing multiple tasks related to transportation and supply constitute a complex process, particularly when it concerns retailers with multiple retail stores across the country. Such complex processes are expected to limit the market growth during the forecast period.
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Market Segmentation
The retail market in Vietnam report is segmented by distribution channel into offline and online segments. The offline segment will have significant market share growth during the forecast period. Offline channels dominate the retail landscape. Supermarkets provide items that suit the demands of common consumers on a daily basis. They also provide food, non-food items, and household appliances. This makes shopping easier for clients, as they can find everything under one roof. Such factors tend to drive the segment growth during the forecast period.
The retail market in Vietnam report is segmented by type into grocery, electronics and appliances, home and garden, health and beauty, and others. The grocery segment will have significant market share growth during the forecast period. The Vietnamese grocery sector is dominated by traditional food shopping through local markets and small businesses. Contemporary channels are fast developing due to a shift in customer behavior, aided by the rise of e-commerce during the COVID-19 pandemic.
View our sample report for additional insights into the contribution of all the segments, and regional opportunities in the report.
Some Companies Mentioned
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- 7-Eleven Inc.
- AEON CO. Ltd.
- Central Group of Company
- E-Mart Co. Ltd.
- FPT Retail Joint Stock Co.
- Lotte Shopping Plaza Vietnam Co. Ltd.
- Masan Group
- MM Mega Market Vietnam
- Mobile World Information Technology Co. Ltd.
- Saigon Union of Trading Cooperatives
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