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Tag: Vingroup

  • K-Market to expand network with VinGroup

    K-Market to expand network with VinGroup

    Korean chain K-Market is in talks with VinGroup to expand its network.

    K&K, the owner of K-Market supermarket chain and K-Food, wants to expand by opening inside VinGroup’s commercial centres.

    K-Market currently locates its retail stores inside Lotte Mart and Fivimart outlets.

    The retail operators plans to expand its network to 100 supermarkets by 2020, and eyes a turnover of  more than US$100 million in 2017.

    Ko Sang Goo, chairman of K&K, said the company has been researching the Vietnam retail market carefully.

    The group aims to add more services to its chain such as laundry and eateries and to import more Korean products to serve local needs.

    K-Market currently has four stores in Hanoi and nine in Ho Chi Minh City.

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  • South Korean retailer E-mart to invest $200m for retail chain ops in Vietnam

    South Korean retailer E-mart to invest $200m for retail chain ops in Vietnam

    South Korea’s largest discount chain E-mart has committed to invest $200 million in Vietnam, continuing the trend of foreign investors entering the Southeast Asian nation’s rapidly growing consumer sector.

    A memorandum of understanding between E-mart and Vietnam’s Ho Chi Minh City was signed on September 9. Emart will make the investment over the next four years.

    The investment is expected to be used for building new supermarkets and commercial facilities, as well as local social development. E-mart opened a supermarket worth $60 million in Ho Chi Minh City last year, in addition to a toy library in the city.

    The Korean company had earlier said it planned to open 52 stores in Vietnam by 2020.

    E-mart is betting the country’s rapid growth, averaging 5.2 per cent since 2013, driven by a young and urban demographic with higher spending power.

    Vietnam’s growth was the highest among Southeast Asian peers featured in the 2016 Global Retail Development Index conducted by US management consulting firm AT Kearney. Vietnam was seen as the 11th fastest emerging retail market, up from 28th spot two years ago.

    Government data showed that retail sales in the country rose 7.4 per cent year-on-year in August 2016. Consumer spending rose to $116.2 billion, while the retail market was forecast to be worth $109 billion in 2017.

    Free trade pacts signed by Vietnam have encouraged foreign retailers to tap into this liberalizing market. Vietnam fully opened its retail industry in 2015, which is coupled with a lot of tax preferences for investors.

    Japan’s Takashimaya and Miniso have set up retail shops in Vietnam in July. Meanwhile, 7-Eleven is planning a local presence through the franchising route.

    Existing players are opening new outlets, as well as acquiring local businesses. Vingroup, the most active domestic company which launched over 90 stores in 2015, aims to introduce twice as many in 2016. It acquired Maximark and Vinatexmart, two Vietnamese operators, as part of this strategy.

    Thailand’s Central Group had acquired Big C Vietnam for $1.05 billion, along with electronics store chain Nguyen Kim and e-commerce site Zalora Vietnam. Other M&A deals include TCC Holdings buying Metro Cash&Carry Vietnam, and AEON acquiring Fivimart and Citimart.

    Central has since announced that it has halted further investment in  the country and would focus on consolidation.

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  • Expansion brings some cash for VinMart

    Expansion brings some cash for VinMart

    Vietnamese supermarket chain VinMart has tripled its revenue in the second quarter of this year.

    Parent VinGroup says the group achieved VND2,465 billion (US$110.6 million) in sales of its supermarkets and convenience stores, a 226 per cent increase compared to the same period last year.

    One of the reasons for VinMart’s growth is the group’s strategy to bring its convenience stores VinMart+ to “every corner of Vietnam”, making it a part of consumers’ daily shopping routines.

    Up until July, after almost two years of operation, VinMart has 50 supermarkets and 830 convenience stores nationwide, which means the company has been opening three supermarkets a month and 46 c-stores.

    A standout of VinMart+ is the fresh food, distributed by green brand VinEco. The products are exclusive greenhouse vegetables, grown using Israeli technology.

    With this self-supply and self-control strategy, VinGroup has been creating a strong competitive strength in the market.

    Besides VinMart, its other divisions contributed to VinGroup’s profit in the quarter of VND 2,926 billion ($131.2 million): VinHomes, Vincom Retail, Vinpearl Land, Vinschool, Vinmec, and VinPro.

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  • Vietnam retail on brink of convenience store boom

    Vietnam retail on brink of convenience store boom

    Vietnam retail is on the brink of a convenience store boom as multinationals muscle up against fast-expanding local players.

    The increasing pace of life in urban Vietnamese cities is fuelling demand for convenience stores which, until three to four years ago, seemed few and far between on the streets of Ho Chi Minh City and Hanoi.

    Since then, numerous c-stores have been opened by foreign retailers, such as Japan’s Family Mart, Thailand’s B’smart and US-founded Circle K, competing against local ones, such as C-Express, VinMart, and Co.op Food. According to a Nielsen survey, six out of 10 Vietnamese buyers shop at c-stores because of their advantageous location and five out of 10 because of good design and displays. Local students are the main customers during lunchtime, attracted by comfortable dining spaces, cool temperature and free wifi.

    Pham Ngoc Hung, VP of HCMC Business Association, said the HCMC market is attractive to Thai retailers with 98 B’smart stores and 10 C-Express by Big C stores already trading. In the meantime, local chain VinMart by VinGroup, is approaching 700 stores and is reportedly opening an average of two new stores nationwide each day.

    The fastest-growing chain in the HCMC is Circle K, the local rights owned by Vong Tron Do company. It has 150 stores and promises for further expansion. Today, in every residential quarter, there are two or three Circle K  stores, usually less than 600m apart.

    But the c-store boom is only just beginning. Last year, Japanese c-store giant 7 Eleven signed a master franchise agreement with Seven System Vietnam to expand across the country. The first stores are scheduled to open in 2017, and the target is 1000 within 10 years. CP All, which operates more than 8000 7-Eleven stores in Thailand, is a partner in the Vietnam venture and says it plans for 40 per cent of its stock to be locally sourced, with the balance from Thailand and elsewhere.

    Existing operators are waiting to see what type of stores 7-Eleven will roll out in the Vietnam market – given the considerable difference in sizes of its Thai stores – and the morphing of the format by Circle K in Vietnam to include dining area and fast food focus.

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  • Vingroup more than triples revenue to $98m

    Vingroup more than triples revenue to $98m

    Retail has proved the shining segment for Vietnamese conglomerate Vingroup, with revenue jumping 363 per cent year-on-year to VND2.19 trillion (US$98.3 million) for the first quarter.

    Vingroup has been investing in retail properties for more than a decade, and since announcing two years ago that it aims to become Vietnam’s largest retailer has opened 50 supermarkets under the VinMart brand and 750 convenience stores under VinMart+ brand.

    Its other retail businesses include Vincom shopping centres, VinFashion stores, VinPro electronics shops and Adayroi eCommerce platform.

    With interests also in education, health, entertainment and real estate, the group reports an after-tax profit of VND1.04 trillion – three times higher than the same period last year. Its revenues more than doubled to hit VND15.16 trillion.

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  • Zara Vietnam to launch in July

    Zara Vietnam to launch in July

    Zara Vietnam says it will open its first store in July, just as Euromonitor International reveals the Vietnamese branded goods market may reach $2.7 billion in value by next year.

    As more than more people can afford branded goods, international fashion brands such as Gap, Mango, Nine West, Ralph Lauren and Topshop have become the choice of many young Vietnamese, especially office workers, says Euromonitor.

    Zara is owned by Inditex, which at the end of its latest fiscal year on January 31 had 7013 shops in 88 markets, including 2000 Zara outlets. If the Spanish fast fashion giant follows its normal international expansion course, it will likely roll out some of its other brands in the market, including Bershka, Pull & Bear, Massimo Dutti, Stradivarius and Zara Home.

    There is already a Vietnamese website selling Zara items, with a showroom in Ho Chi Minh City, but the shop sells alternatively-sourced and end-of-season lines.

    Mango, which targets customers between 18 and 40 years old, has been in Vietnam since 2004 through a franchise contract signed with Maison JSC. It also has other franchise partners, including DAFC, a subsidiary of IPP, and BFF, belonging to Vingroup.

    In 107 markets internationally, Mango had $2.6 billion in revenue last year.

    A survey by Nielsen on Vietnamese consumer confidence has shown that Vietnamese are willing to spend money on holidays, tourism, fashion and high-technology products.

    Meanwhile, Mango and Zara are among brands that have garment factories in Vietnam.

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  • Index Living Mall plans ASEAN expansion

    Index Living Mall plans ASEAN expansion

    Home-furnishing retailer Index Living Mall has announced its 2020 vision to continue its push beyond Thailand into other ASEAN countries.

    With franchised stores already trading in Malaysia, Thailand and Vietnam, the company believes the region’s urbanisation has shifted consumers toward a more modern lifestyle, including the way they buy and use home-furnishing products. It also notes a rise in the number of middle-income earners throughout the ASEAN Economic Community.

    MD Kridchanok Patamasatayasonthi says the company aims to double the present 5 per cent contribution to its total revenue from AEC markets by 2020. The company’s total revenue of Bt9.5 billion (US$264.8 million) last year was 5 per cent up on 2014.

    “Our market expansion through international franchisees is the result of growth in the home-furnishing and accessories sectors among ASEAN member countries,” says Kridchanok. “Other positive factors, including the bustling economic outlook, rising gross incomes and similar customer behaviour, helped accelerate our decision to look for investment opportunities in new markets.”

    She says the company has appointed VinDS, the retail investment arm of Vietnamese commercial property developer Vingroup, as its franchisee to tap into the home-furnishing and accessories retail market in that country. The first Index Living Mall under that partnership had a soft opening last month in Ho Chi Minh City, occupying 7000 sqm in Vincom Mega Mall Thao Dien. Costing more than Bt200 million, the store is expected to achieve Bt350 million in sales in its first year.

    Index Living Mall has had a store trading in Ho Chi Minh for more than four years, effectively testing the market. Now with VinDS it expects to open 10 more stores in major cities in Vietnam, including Ho Chi Minh, Hanoi and Da Nang, within five years.

    “Economic growth indicators show that the Vietnamese retail market is number two in Asia, after only China,” says Kridchanok.

    “During the first half of last year, the Vietnamese economy posted 6.28 per cent growth, the highest since 2008. With a population of 90 million, this will continue to grow, thanks to per capita income rising more than 10 per cent over the past decade.”

    Kridchanok says it is expected that the number of Vietnamese earning a median income of 15 million dong ($673) a month will grow to 33 million by 2020.

    Index Living Mall’s director for international business development Ekaridhi Patamasatayasonthi says the company’s venture into Vietnam highlights its marketing direction to tap into emerging CLMV (Cambodia, Laos, Myanmar and Vietnam) markets, aimed at strengthening its leadership position in the home-furnishings and accessories retail market in the ASEAN region.

    Ekaridhi says the company plans to open store in Manila in September via a joint venture with SM Retail, a Philippine business conglomerate involved in shopping mall, property development, banking and retailing. Index Living Mall has a 30 per cent stake in the venture.

    In Malaysia, Index Living Mall opened its first home-furnishing store in Putrajaya last year in a joint venture with AEON. Three more stores are planned for Malaysia this year – in Kuala Lumpur in March, Kota Bharu in April and Johor Bahru in the fourth quarter.

    Ekaridhi says there are six franchised stores in five countries – Malaysia, Russia, Maldives, Nepal and Vietnam – as well as dealers in Laos and Myanmar. In its home country, the company has 25 stores in 17 provinces, of which nine are in Bangkok. It plans to invest Bt470 million this year to open two stores, in Nakhon Pathom and Chachoengsao.

    Index Living Mall expects to post Bt10 billion in revenue this year and to grow its annual sales by 10 per cent over the next five years.

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  • Vietnam’s Vingroup snaps up local grocery chain

    Vietnam’s Vingroup snaps up local grocery chain

    Vietnam’s largest retail group has snapped up local supermarket chain Maximark.

    Vingroup, whose assets already include 12 Vincom shopping centres with a raft of its own retail brands inside, and 125 VinMart grocery stores, will rebrand the nine Maximark hypermarkets under the VinMart+ name.

    “The acquisition aims at expanding Vingroup’s retail network reinforcing the status of Vietnamese brands to create a counterweight to international brands that are coming into Vietnam,” Vingroup said in a statement.

    The seller is Hanoi-based An Phong JSC which developed the chain from scratch.

    “The nationwide expansion will assist the spread of Vietnamese product brands and help retain their market share, contributing to building the competitiveness of local manufacturers amid an influx of global companies into Vietnam,” Vingroup’s vice chairman Le Khac Hiep said.

    Vingroup plans to operate 40 shopping centres across the nation by the end of 2016 and 100 by 2020.

    In June, Vingroup Retail received a US$100 million private equity capital investment led by Warburg Pincus, to help fund its ambitious retail expansion plans.

    Vingroup Joint Stock Company is Vietnam’s largest publicly-traded real estate operator and one of its largest companies by market capitalisation.

    The Vincom Retail malls are home to more than 700 domestic and international brands, with major tenants such as Robins Department Store, Marks & Spencer, CJ CGV, Mango, DKNY, French Connection, BCBGMaxazria, Karen Millen, GAP, Lacoste, Nike, Adidas, Emigo, VinMart, VinPro and Vinpearl Land.

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  • Vingroup plans hybrid retailer community

    Vingroup plans hybrid retailer community

    Vietnam property developer Vingroup is constant to increase its retail enterprise, saying a 300-strong community of hybrid shops.

    The shops will take up giant footprints, initially within the firm’s fast-growing community of buying malls – cut up into 4 totally different manufacturers: BeautyZone promoting healthcare and cosmetics, ShoeCenter, Sportsworld and Trend Megastore.

    Vingroup has already expanded into the comfort sector with VinMart and can also be creating an electronics retail chain. Its transfer into the hybrid retailer format is a measure to determine an area beachhead towards the rising tide of worldwide retail ideas eyeing the rising organised retail market in Vietnam.

    The primary retailer will open in Can Tho, a big metropolis south of Ho Chi Minh Metropolis, in July. Vingroup says it hopes to have 74 shops buying and selling inside a yr and 300 inside three years.

    The shops, developed by Vingroup subsidiary VinDS Buying and selling and Providers, will inventory internationally recognized manufacturers and, within the case of the ShoeCenter, its personal vary, branded Prime Toe.

    “These codecs sign a brand new course for our group, an entire product providing vacation spot via our ideas for the shoppers to take part, to take pleasure in true worth and train decisions,” stated Munish Rishi, VinDS CEO.

    “VinDS retail shops shall be smarter, quicker and revolutionary retail codecs constructed upon partnerships with worldwide, regional and most significantly, profitable Vietnamese manufacturers that may really relate to Vietnamese hearts.”

    The ShoeCenter will occupy a 600-1000 sqm footprint stocking some 25 manufacturers for males, ladies and youngsters, sourced internationally and regionally. Vingroup expects it to turn into the nation’s largest shoe retailer.

    BeautyZone will inventory cosmetics, healthcare merchandise, make-up and pores and skin and bodycare merchandise in a format which appears more likely to problem Dairy Farm Worldwide Group’s Guardian chain, which has been rising steadily in Ho Chi Minh Metropolis over the past three years. Vingroup’s chain will give attention to mid to excessive finish manufacturers, together with L’Occitane, Clarins, Kanebo, Laneige, Yves Rocher and Vichy.

    The Sportsworld community will inventory adidas, Nike and Aero Sport merchandise, amongst others, starting from footwear, jogging gear, sportswear and informal style to equipment and health gear.

    The Trend Megastore would be the largest of the shops, starting from 2500-5000 sqm and inventory each native and worldwide attire manufacturers.

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  • Vingroup buys VinatexMart chain

    Vingroup buys VinatexMart chain

    The Vinmart Supermarket Joint Stock Company of Vietnam’s leading property firm Vingroup has signed a contract to buy a 100 percent stake in the VinatexMart supermarket chain.

    VinatexMart, one arm of the State-run Vietnam National Textile and Garment Group (Vinatex), has 58 outlets in 26 provinces and cities nationwide.

    Its supermarkets stock 60,000 items from five main categories of goods such as garments and textiles, fresh food, cosmetics and home appliances.

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  • Vietnam’s Vingroup announces new retail venture in electronics

    Vietnam’s Vingroup announces new retail venture in electronics

    A Vingroup official announced the establishment of the firm’s new technology and electronics retail brand on Wednesday called VinPro.

    A group representative said opening the chain was part of the group’s strategy to become a leading retail brand in Vietnam, adding that it will open four VinPro stores in Hanoi and HCM City on 21 March.

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