A.T.Kearney’s
said in its latest report on the global retail development that Vietnam last
year stayed at the 23rd position in the ranking list.
Thus, Vietnam’s retail market rating,
according to A.T.Kearney’s, has continuously dropped from the first position in
2008. Compared with newly emerged markets, the retail market’s attractiveness
also went down.
The market has faced some obstacles such as
high space rental at around $94/square meter in centre areas and $48/sqm in
outskirt areas, unfavourable infrastructure as well as underdeveloped
distribution system.
The retail market is facing some obstacles
such as high space rental at around $94/sqm in centre areas and $48/sqm in
outskirt areas, unfavourable infrastructure as well as underdeveloped
distribution system. However, with the advantage of young population and high
urbanization pace, increasing income, Vietnam’s retail market remains
attractive for domestic and international retailers.
According to the General Statistics Office
(GSO), Hanoi has almost 4.3 million people aged from 15 to 65. The number of
households with annual income of more than $5,000 is increasing rapidly. Such
facts are very attractive for retailers.
A recent study of Colliers in Hanoi showed
that women accounted for 70% of shopper number and they are aged between 17 and
45. On average, their spending is around $200 per each purchase. The favourite
commodities of the group of customers mainly are footwear, perfume, fashion and
entertainment. Especially, the group of shoppers aged from 26 to 35 has stable
work and high income, which tend to shop in trade centres. Meanwhile, the
people aged over 45 can afford for high payment, especially purchasing luxury
goods. Their spending for each shopping time is $2,500.
Because the domestic retailing market is at
high development potential, the supply of retail space has continuously
increased through recent years. However, in such a gloomy local and
international economy context, consumers are tending to tighten up spending.
Retailers also do not want to expand, instead
of this; they prefer reinforcing current retail space for which the competition
between retail space suppliers is getting fiercer. To prevent higher vacancy
area, a lot of retail centres are racing to reduce rentals and offer other
preferences.
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