Retail News CRM

Tag: Vietnam

  • VinaPhone launches Vietnam’s first 4G services

    VinaPhone launches Vietnam’s first 4G services

    Vietnam’s VinaPhone has become the market’s first operator to launch 4G services, commencing with a deployment providing full coverage of Phu Quoc Island.

    The VNPT mobile subsidiary has deployed 100 4G base stations to provide total coverage of the island.

    The operator plans to rapidly deploy 4G services in 2017, installing 21,000 base stations nationwide.

    Pricing will be set at the same or in some cases lower rates than 3G services. The company will use the network for services including mobile TV and cloud video conferencing.

    VinaPhone began commercial 4G trials in January, and was awarded a commercial license in the 1800-MHz band last month, along with MobiFone and Viettel.

    Viettel has separately revealed plans to launch its own 4G services in the first quarter of next year. The operator is ready to deploy services nationwide following extensive testing in the province of Vung Tau.

    According to the report, Viettel plans to differentiate by focusing on nationwide expansion, in contrast to deploying in major cities first. The company took a similar approach during it 2G rollout around a decade earlier.

  • Aeon revenues rise

    Aeon revenues rise

    Japanese retailer Aeon has seen its revenue edged up 0.9 per cent in the latest half year,  but its results vary greatly between formats.

    Total sales reached JPY 4,112 billion (US$39.2 billion), for the six months to August 31, while operating profit improved by a meagre 0.1 per cent to JPY72.4 billion (US$0.69 billion).

    In an analysis of the company’s performance, retail research house IGD observed stronger performances by Aeon’s convenience store business and its pharmacy interests than in its general merchandise and supermarket businesses.

    Aeon’s convenience store business reported a 6.1 per cent increase in operating revenues of JPY190.6 billion (US$1.8 billion), up 7 per cent year-on-year for the first half.

    “The group’s Ministop and My Basket operations performed strong thanks to the enhanced merchandise selection and improved services,” says IGD.

    The drugstore and pharmacy business grew revenues by 5.8 per cent, with the Welcia banner increasing its number of 24-hour stores to enhance customer convenience, driving steady growth in same-store sales.

    Conversely, the supermarket and discount store business posted a 7 per cent decline in revenue to JPY1,448.5 billion (US$13.8 billion). This was mainly due to the impact of the transfer of Daiei’s stores.

    And its general merchandise store business suffered a significant loss, amid weak consumer spending in Japan.

    Outside Japan, Aeon reported operating revenue of JPY205.3 billion (US$1.96 billion), down 5.4 per cent year-on-year. Aeon China and Hong Kong achieved an improvement after the group completed refurbishment of its flagship stores, which helped strengthen the business foundation in China and bolster earrings. In the reporting period, the group also expanded further in Asean markets, opening a new stores in Malaysia and Vietnam.

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  • Vietnam retail rents rise as flurry of global brands arrive

    Vietnam retail rents rise as flurry of global brands arrive

    Prime Vietnam retail rents are rising as a flurry of international retail brands move into Ho Chi Minh City.

    The third quarter of 2016 saw major changes of supply market in HCMC, according to a research report by Colliers International.

    In recent months, more than 100,000 sqm of retail space has been added in the city with the opening of the revamped Saigon Center anchored by Japanese department store Takashimaya and a new Aeon Mall opening in Binh Tan.

    But average retail rental rates have slightly increased to US$126/sqm/month in the CBD and US$36/sqm/month in the suburbs.

    Saigon Centre has been completed and occupied by 400 local and foreign brands, including concessions in Takashimaya. Aeon’s Binh Tan mall is the company’s second in Ho Chi Minh City, home to a large supermarket, restaurants, fashion shops, cinemas and a variety of retail stores.

    Geert Jan ten Hoonte, retail advisor of Kusto Management Vietnam, said these two malls will bring an extra level into the market. “It will force other operators to rethink their offer to the consumers. It would be a good development if shopping centre developers start to think in location, functionality and market positioning for the malls they are planning,” he said.

    Foreign brands

    Vietnam’s retail industry’s latest quarter started with the departure of well-known F&B brand NYDC. The exit of the Singaporean dessert and coffee chain partly confirmed the struggle of international F&B brands face competing with domestic players.

    Q3 also saw the debuts of many international fashion brands. The first, and largest, was Spanish fast-fashion brand Zara, which has taken up 2400 sqm of Vincom Dong Khoi with its first flagship store in Vietnam. The opening day brought Zara more than VND5 billion sales, reportedly the highest first-day sales of any new Zara store opening worldwide.

    Saigon Center and Takashimaya has enticed many international brands to HCMC such as Dsquared2, Fred Perry, and Ted Baker.

    Other significant retailers to launch in the city during the quarter included faux Japanese, Chinese-headquartered retail chain Miniso, Naughty Cat and Innisfree.

    With its fast-growing young population and emerging middle class, Vietnam’s retail market is expected to mature into a more convenient, modern retail environment in coming years. Vietnam’s admission to the WTO and the upcoming TPP trade agreement will draw a significant amount of FDI from international retailers in the future.

    Online shopping

    Meanwhile, online shopping is growing rapidly, with the Vietnam eCommerce and Information Technology Agency (VECITA) forecasting some 30 per cent of the population will be buying goods online by 2020, spending US$10 billion a year.

    In 2015, online sales were $4.07 billion, and growing at 37 per cent on the previous year.

    Despite being comparatively small by Asian standards, Vietnam’s eCommerce market is growing exponentially with more than 54 per cent of the population now connected online.

    The government plans to boost eCommerce with a goal of 50 per cent of local enterprises setting up online stores and 80 per cent doing business through eCommerce platforms.

    -Yen Hai Nguyen

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  • Foreigners take control of Vietnam’s KAfe Group

    Foreigners take control of Vietnam’s KAfe Group

    Vietnamese chain KAfe Group has been bought out by foreign investors and its founder ousted.

    The unidentified foreign investors have increased the business’ capital from VND16 billion to VND244.825 billion (US$10 million).

    KAfe’s founder and CEO, Chi Anh Dao, has stepped down from her role and has not been involved in any business activities of The KAfe since October 25.

    In October last year, KAfe Group secured US$5.5 million Cassia Investments-led Series A funding to expand its business throughout Vietnam and the Southeast Asia region. It had also planned to list on the Hong Kong stock exchange.

    But the expansion has not been as successful as anticipated and The KAfe outlets in Hanoi and HCMC have not attracted as many customers as budgeted.

    KAfe Group, founded in 2013, is described as an urban fusion food company. It currently operates 20 outlets in Hanoi and HCMC under four brands: The KAfe, The KAfe Village, The KAfe Box, and The Burger Box. The group has recently bought a cupcake chain, and plans to expand to tea and juice business.

    Before announcing its capital change in June, the KAfe faced financial troubles with reports of suppliers going unpaid.

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  • Jollibee Foods counts down to 1000

    Jollibee Foods counts down to 1000

    Jollibee Foods (JFC) has opened the 991st branch of its flagship brand Jollibee in the Philippines, in the Ma-a area of Davao.

    It marks the start of its countdown to its 1000th store, to be unveiled in the first quarter of next year. Its expansion is spread around Cebu, Luzon and Metro Manila “so all the regions will be well represented”, says Jollibee corporate PR and events manager Dennis Reyes.

    “The 1000th store is symbolic, but we cannot divulge yet the exact location,” he says.

    The company opened its first branch in Cubao, Quezon City, and its latest story is the 26th in Davao and 115th in Mindanao.

    Reyes says the countdown campaign is part of Jollibee’s way of thanking its patrons, celebrating its continued expansion as well as the contribution to the local economy with an average of 70 jobs created for every new branch.

    JFC is investing P10.4 billion (US$214.8 million) for capital expenditure this year, with P7.5 billion set for the opening of 200 outlets as well renovations.

    For its latest six months, JFC netted P3.06 billion, or 13.4 per cent more than the same period last year, following a 14.9 per cent increase in system-wide retail sales to P71.45 billion.

    At the end of June, the company had 2528 restaurant outlets in the Philippines under the brands Burger King (62), Chowking (457), Greenwich (237), Jollibee (939), Mang Inasal (455) and Red Ribbon (378).

    JFC also has a 50 per cent interest in 12 Hotpot, Highlands Coffee and Pho 24 (Vietnam), plus a 40 per cent interest in Smashburger (US).

    Outside the Philippines, Jollibee has 80 stores including Vietnam (32) and Hong Kong (1).

  • Big C Vietnam closes Cdiscount

    Big C Vietnam closes Cdiscount

    Big C Vietnam says it will close its eCommerce site Cdiscount by the end of December.

    The closure appears to be part of a policy change from Thailand’s Central Group after it bought the supermarket chain in April in a US$1.14 billion deal. The company will soon change the chain’s name and it has other eCommerce brands and established sites it could expand into Vietnam.

    Post-December, after sales service will be transferred to original retailers who used the portal.

    The e-tailer specialises in cell phones, household goods, beauty products and groceries and has been operating since the beginning of 2014. Originally it aimed to become the leading online retailer in Vietnam. However, after two years, Cdiscount has had little impact on the market.

    Vietnam is considered one of the two Southeast Asian nations with the most potential for eCommerce along with Indonesia. Korean retail giant Lotte recently announced plans to launch its first online shopping website Lotte.vn in Vietnam this month.

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  • Lotte to launch Lotte.vn in Vietnam

    Lotte to launch Lotte.vn in Vietnam

    Korean retailer Lotte is entering the Vietnam eCommerce market with Lotte.vn after six months’ preparation.

    By launching its first online shopping website on October 28, the Korean retailer is expecting to acquire 20 per cent of the online market. And it sees Lotte.vn as completing the full spectrum of retail services: physical stores, TV shopping, mobile shopping and now online.

    Despite joining the market a little later than other eCommerce sites such as adayroi.com and tiki.vn, Lotte.vn has some advantages such as its products being available – and sourceable – from its local Lotte Department Stores.

    According to Lotte.vn GM Seo Tae Ho, all products from the department store will be sold online, with cosmetics and apparel expected to be the two most popular categories.

    Furthermore, Lotte is planning to encourage more purchasing by developing a shopping app for Android and iOS.

    Vietnam is still seen to be a leader in the Southeast Asian eCommerce market in the next five years along with Indonesia.

  • FPT Retail Vietnam sets up milk store chain

    FPT Retail Vietnam sets up milk store chain

    Vinamilk and FPT Retail Vietnam have entered a joint venture to open a chain of stores specialising in dairy products.

    This “uncommon partnership” is hoped to bring benefits to both parties, FPT adding extensive retail industry experience and insight, Vinamilk a household name and favourite brand.

    A six-month pilot program will see the concept trialled at two of 200 FPT stores in Ho Chi Minh City, with a nationwide rollout to follow if the trial proves a success. Most of the stores will be located alongside an FPT store.

    Vinamilk-FPT instore

    The two sides hope this ‘win-win partnership’ will maximise their own strengths in manufacturing, distribution and retail.

    Shoppers at the Vinamilk stores will have access to product information, direct or online consultation, delivery and other promotions and offers.

    Vinamilk started selling dairy products online earlier this month to compete with new players in the dairy market, including Dutch Lady, Mead Johnson, Nestle, Abbott and TH True Milk.

  • GTel Mobile has become Vietnam’s fourth 4G licensee

    GTel Mobile has become Vietnam’s fourth 4G licensee

    GTel Mobile has become Vietnam’s fourth 4G licensee, joining MobiFone, Viettel and VNPT in securing a license.

    As with the major operators, GTel Mobile has secured permission to deploy 4G services on the 1800-MHz band.

    GTel Mobile is owned by Vietnam’s Global Telecommunications Corporation (GTC).

    The operator was originally established as a joint venture between Russia’s Vimpelcom and GTC, providing services under the Beeline brand, but Vimpelcom sold its indirect 49% stake in April 2012. The company now provides services under the Gmobile brand.

    The news comes days after the government revealed it had allocated 4G licenses to MobiFone, Viettel and VNPT. The telecoms ministry has set a target of ensuring at least 95% of Vietnam’s population is covered with 3G or 4G infrastructure by 2020.

    GTel’s license acquisition leaves Vietnamobile as the market’s only operator yet to secure a 4G license, the report adds.

  • Carolina Herrera Vietnam flagship opens

    Carolina Herrera Vietnam flagship opens

    Carolina Herrera has opened a flagship store at Saigon Centre shopping mall.

    The first Carolina Herrera Vietnam store, it is located on Level 1, facing Le Loi St – one of the most visible spots in the city’s centre.

    Carolina Herrera Vietnam 1

    At the grand opening, CH introduced its latest Fall-Winter collection to customers, with the demonstration of models and Vietnamese Beauty Pageants.

    Founded in 1981 in New York by the “Fashion’s First Lady”Carolina Herrera, CH currently has 129 freestanding stores and more than 220 shops-in-shops in Europe, Asia, Africa, Middle East and America.

    Carolina Herrera Vietnam 2

     

    Carolina Herrera represents elegant lifestyles for men and women through fashion, fragrance, and bridal collections.

    The brand comes to Vietnam under the management of Maison, a local Vietnam fashion distributor which represents 21 international brands including Christian Louboutin, Jimmy Choo, Mango, and Topshop.

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  • Vietnam grants 4G licenses to three cellcos

    Vietnam grants 4G licenses to three cellcos

    Vietnam has granted 4G licenses to three of the market’s major mobile operators – MobiFone, military-run Viettel and state-owned VNPT.

    The operators have been granted permission to roll out LTE services over the 1800-MHz band.

    Each of the three operators have been piloting LTE and LTE-Advanced services in multiple cities, with Viettel launching a trial in late 2015, VNPT testing services since January this year and MobiFone commencing a pilot in July.

    The licenses will be allocated as part of Vietnam’s government-approved telecommunications development plan, which includes a target of covering 95% of the population with 3G and 4G services by 2020 as part of efforts to ensure nationwide coverage of broadband infrastructure.

    According to the report, major operators have indicated they will be ready to launch LTE soon after receiving the licenses. They will be valid until 2024.

  • Tourists boost Central Group revenue

    Tourists boost Central Group revenue

    Thai retailer Central Group expects revenue to rise 21 per cent to Bt320 billion ($9.17 billion) this year following strong growth in overseas business plus tourist spending.

    Controlled by Thailand’s Chirathivat family, Central is seeking to expand in Southeast Asia, says CEO Tos Chirathivat, citing Cambodia, Laos, Myanmar and Vietnam.

    He expects overseas revenue to account for 40 per cent of total in the next five years from 30 per cent now.
    Central bought superstore chain Big C‘s Vietnam business from French retailer Casino in April, comprising 43 stores and 30 malls. Vietnam is Southeast Asia’s fastest-growing market for Central, and the company expects sales to reach Bt37 billion this year.

    Central has also benefited from rising tourist numbers in Thailand, with sales up 15 per cent this year versus 5 per cent for Thai customers, says Tos.

    The group, whose interests include shopping mall developer Central Pattana, Robinson Department Store and Central Hotel Plaza, plans to spend more on its online retail business, which currently accounts for just 1 per cent of revenue.

    Central bought fashion-focused eCommerce site Zalora in April as part of a push to win back shoppers who increasingly prefer internet shopping.

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  • Sprooki platform to launch in Indonesia

    Sprooki platform to launch in Indonesia

    Shopper-engagement platform Sprooki will launch in Indonesia next month at the 125,000 sqm Supermal Karawaci retail precinct in western Jakarta.

    It will be integrated with the precinct’s touchpoints and mobile apps, allowing retailers to offer customers individualised content such as vouchers, special offers, event alerts and store information.

    Sprooki Michael Gethen and Claire Mula

    Sprooki Michael Gethen and Claire Mula

    Customers will be able to share content on social media including Facebook, which has more than 60 million users in Indonesia. Sprooki is available in both English and Bahasa languages.

    Based in Singapore, Sprooki uses customer location, profile and behaviour data to help retail outlets, shopping malls and department stores engage with their customers via smartphones and other devices.

    Supermal Karawaci is the largest shopping centre in Banten province, west of Jakarta, with more than 1000 stores, three cinemas and the largest Timezone arcade in Southeast Asia – complete with an indoor rollercoaster.

    Sprooki CEO/co-founder Michael Gethen says the deployment will help Supermal Karawaci’s retail tenants improve sales and give the mall unprecedented insight into shopper habits and behaviour.

    Sprooki

    “By implementing the Sprooki platform, our mall will be one of the first shopping precincts in Indonesia to incorporate a data-driven mobile platform to improve shopper experience,” says Supermal Karawaci marketing and leasing GM Pipih Tjandra.

    Sprooki’s mobile platform is already being used by Southeast Asian shopping malls such as a Lend Lease’s 313@Somserset in Singapore and Crescent Mall in Ho Chi Minh City, Vietnam, as well as thousands of retailers and major brands such as Coffee Bean and Tea Leaf, Forever 21, Gap, GNC, Marks & Spencer and Pie Face.

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  • Vietnam’s retail lures foreign capital because of urban population growth

    Vietnam’s retail lures foreign capital because of urban population growth

    JLL released a brief report on Asian and European retailers ready to penetrate the market of more than 90 million people.The report pointed out evidence of the expansion of foreign retailers in Vietnam’s market.

    At the end of 2014, Berli Jucker Plc (BJC) acquired Metro Cash & Carry Vietnam at the cost of 655 million euros, the largest ever M&A deal at that time, which signaled the penetration into Vietnam’s retail market of Thai groups.

    Shortly after, another giant from Thailand – the Central Group – acquired Nguyen Kim – one of the leading electronics retailers in Vietnam and then Big C.

    In October 2015, Emart – Korean leading retailer – inaugurated a $60 million shopping mall in north Saigon, where another Korean retailer – Lotte Mart – has been successful with 11 supermarkets and expects to increase the number to 60 stores by 2020.

    Most Japanese investors see the success of Aeon in Vietnam as a positive sign for foreign projects. Aeon has opened four trade centers in Vietnam and aims to increase the number to 20 in 2020. By July 2016, another retail giant from Japan –  Takashimaya – opened at Saigon Centre.

    Simply Mart openedthree more stores in Saigon; AuchanSuper – the retail brand from France – also plans to launch another 17 supermarkets by the end of next year in HCM City and 20 stores by 2020 in the north.

    Major fashion brands like Gap, Mango, and Topshop have become the first choice of many young people in Vietnam. In early September this year, Zara opened its first flagship store in HCM City. At the same time, H&M is completing procedures to open its first store in Vietnam early next year.

    According to JLL, a young demographic and high growth potential are the factors attracting foreign investors to Vietnam’s retail market.

    With a population of over 90 million people and 70% of people aged from 15 to 64 and the anticipated annual growth rate of urban population of 2.6% in 2015 – 2020 period, the highest growth rate in Southeast Asia, Vietnam’s retail market is very attractive to foreign investors.

    Increasing disposable income, urbanization rate and living standards have made Vietnam one of the most most dynamic emerging economies in Southeast Asia.

    According to Boston Consulting Group, the upper and middle class in Vietnam are growing at the fastest pace in the region and this number is expected to double from 12 million in 2014 to 33 million in 2020. With income of VND15 million ($700)/month, the consumers of these classes are potential customers for retailers.

    In addition, Vietnam’s e-commerce boom has also contributed to the growth of the retail market.

    A Nielsen report said that that 9 out of 10 consumers in Vietnam (91%) owned smartphones, compared to 82% in 2014.

    Na Son

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  • Innisfree Vietnam marks maiden store

    Innisfree Vietnam marks maiden store

    The Korean eco-cosmetics brand Innisfree has officially launched in the Vietnam market.

    The first Innisfree Vietnam store will open at 257 Hai Ba Trung St in District 3, on the edge of Ho Chi Minh City’s CBD on October 29.

    Vietnam is the ninth overseas market that Innisfree has chosen for international expansion.

    Innisfree Vietnam store

    The brand will join a booming Korean cosmetics market in Vietnam along with TheFaceShop, Etude House and Skinfood. For a long while, Vietnamese eco-cosmetics lovers have been buying Innisfree items online and having them brought in by travellers, hand-carried from Korean cosmetics shops.

    Innisfree is founded in 2000, under management of Amore Pacific, the parent company of other brands such as Laneige, Sulwhasoo and Etude House.

    With its mission to bring the most authentic beauty ingredients extracted from Jeju island green tea and volcanic rocks, Innisfree appeals to women who prefer natural beauty methods.

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