VietNamNet Bridge – After the manufacturers, it’s
now the turn of retailers, the last link in the supply chain to taste the
bitterness of the economic downturn. A lot of retailers have narrowed their
business scale or shut down.
Difficulties
pile up
In the last week, Ninomaxx and Maxxstyle, the two
well-known fashion brands, have announced the price discounts of 80 percent,
goods liquidation, a step of the plan to shut down some shops of the chains.
The information that Thoi trang Viet Company, the owner of the two brands, has
fallen into big difficulties has also stirred up the public.
Ignoring the explanations by the shops’ managers,
the business circle still has raised doubts about the health situation of
Ninomaxx and some other fashion brands such as Viet Thy, Foci, Legamex and May
Saigon 2, since the number of shops, product items and the number of buyers
have dropped dramatically.
Deputy Director of a well-known domestic fashion
brand said that he saw the low demand before Tet, therefore, he decided not to
make out products in big quantities. However, even with the limited products,
the clothes of the company still have been left unsold.
He said that the company has cut down 50 percent of
the new designs, while having focused on making products for export, or making
products to the orders by companies and schools.
Home appliance centers prove to be the biggest
sufferers in the crisis. A director of a home appliance center in HCM City said
that the purchasing power has dropped by 40 percent since 2011. The revenue of
the chain has dropped sharply, while it still has to pay money for the retail
premises.
High costs, low demand, big stocks all have pushed
enterprises against the wall. Especially, the establishments which have been
set up recently in the “wave of home appliance centers” have been facing high
risks.
Leaving
the market quietly
In mid-2011, a lot of retailers had to leave the
market quietly because of the goods unsalability. Not only small home appliance
centers located in the suburbs-- WonderBuy, a big brand, also declared
bankruptcy in June 2011 after it lost 52 billion dong after one year of
operation.
Prior to that, Loc Le, Vietnamshop.com also had to
shut down because of few buyers. The list of the shut down home appliance
centers has seen a new name – Best Carings in Phu My Hung new residential
quarter in district 7 of HCM City.
In Hanoi, Pico, Tran Anh and Media Mart have also
narrowed their business scale.
In late February, Nhat Nam Company closed Fivimart
Phu My Hung, the last supermarket of the once-existing four supermarkets in HCM
City. Vu Thi Hau, Deputy General Director of Nhat Nam, admitted that it was
really very difficult to do business in HCM City due to the stiff competition
there.
In mid-November 2011, Satra Bau Cat, belonging to
the Saigon Trade Corporation, also shut down. No official statement was
released about the event, but the business circle believes that it was because
of the ineffective business.
Meanwhile, analysts believe that the leave of the
two supermarkets is just the start of the “enterprise filtration process”
occurring as a result of the opening of the Vietnamese market to foreign
investors.
Foreign retail groups have been flocking to Vietnam.
Besides Metro, Aeon, Casino, Lotte, many other foreign investors are planning
to jump into the Vietnamese market. The existing retailers have been trying to
open 4-5 new supermarkets a year and they have revealed the plan to set up many
more supermarkets in 2012.
Le Khac
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment