Investment in Retail in Vn 2012
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Shopping behaviors Shoppers are more demanding in searching for shopping places that are pleasant, have wide range of products and cost saving. The development of modern trade channel brings more choice to shoppers and they are more willing to experience new stores. The majority of shoppers have top up trip 2-3 times per week. Reducing frequency of shopping is also a way to save money in hard time of the economy. Male shoppers are shopping more and more at Retailers’ store. Consumers are rarely using Retailers’ website.
Transcript of Investment in Retail in Vn 2012
Shopping behaviors
Shoppers are more demanding in searching for shopping places that are pleasant, have wide range of products and cost saving.
The development of modern trade channel brings more choice to shoppers and they are more willing to experience new stores.
The majority of shoppers have top up trip 2-3 times per week. Reducing frequency of shopping is also a way to save money in hard time of the economy.
Male shoppers are shopping more and more at Retailers’ store.
Consumers are rarely using Retailers’ website.
Shopping frequency
Weekly
Every 2 weeks
Every month
Less often
Consumers are visiting stores less frequently but spending more
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2
5923
3118
13
14
18
17
6
2
76
6
11
7
5
44
76
3
2
Supermarkets Minimart/ Foodstores
Convenience stores 24/7
Health & Beauty
Store number of Key players updated until March 2012
1
8
Source: Desktop research
Lowest Price Store
Big C still holds the #1 place in shoppers’ perception as the lowest price store, yet Co.op Mart is back in the game. No improvement from Metro.
Base: All Supermarket shoppers (2010 n=1464, 2011 n=1494)Ref: Q20
New/different stores visited Impact on the store visited
No real change
One of my regular stores
It has become the store I visit most often
It has become my preferred store
Big C, Metro and Maximark are top 3 most visited by new shoppers, while Big C is the most successful in creating loyalty among shoppers
Store Equity Index - Hanoi2008 - 2011
Base: All Supermarket/Hypermarket shoppers (2008 n=1494, 2009 n=1466, 2010 n=1464, 2011: 1494)
Positioning
High
High
LowLOYALTY
PE
NE
TR
AT
ION
REPERTOIREREPERTOIRE LEADERSLEADERS
NICHENICHEUNDEVELOPEDUNDEVELOPED
AWARENESS
THE LOVE RATE: I LIKE A LOT
LARGE/GOOD CHOICE OF PRODUCTS
HAVE ALWAYS WHAT I NEED IN STOCK
PRICE ARE ATTRACTIVE
A LOT OF GOOD PROMOTIONS
SmartShopper
Results based on panelists knowing the RetailerSource: Kantar Worldpanel – Urban Household Panel – Smart Shopper questionnaire
SHORT WAITS AT CHECK-OUTS
A LOT OF ANIMATIONS/EVENTS IN STORE
STAFF IS WELCOMING/HELPING
5.93%
5.72%
5.53%
5.57%
5.89%
Source: Vietnam GSO
~ USD 96 Billions+24.2% vs. 2010
~ USD 110.4 Billions+15% vs. 2011
2012 GROWTH
2012 RETAIL SALES
Gas retailers increased prices by 4%
Fuel prices increased by 18%
Retail electricity prices increased by 15%
CPI was increased by various factors, which directly impacted consumer confidence.
8.1% 8.0%
14.1% 12.8%9.9%
6.1%4.7% 5.8% 6.6%
11.2%12.7%
14.3% 15.0% 13.7%
11.3%
15.8% 3.5%9.5%
11.2%
10.2%15.6%
18.6%14.0%
15.5%
16.0%
5.1%4.4% 2.5%
2.8%
7.4%
19.4%
23.8%
17.6%
22.3%21.1%
16.2%
20.3%
24.4%
20.5%
22.9%
27.2%
17.7%18.7%
17.5%16.5%
0%
5%
10%
15%
20%
25%
30%
2009 2010 2011 2009-Q1
2009-Q2
2009-Q3
2009-Q4
2010-Q1
2010-Q2
2010-Q3
2010-Q4
2011-Q1
2011-Q2
2011-Q3
2011-Q4
Unit Value Growth Volume growth Nominal Growth
Fast Moving Consumer Goods market dynamics
Growth is now mostly driven by inflation
CATEGORIES TRACKED BY NIELSEN
VALUE % CONTRIBUTION - 6 CITIES (TT+MT PARTIAL)
2010 2011
The huge price increase impacted all categories’ growth rate.
Department Sales 2011Budget 2012
- Actual 2011 (value)
Budget 2012- Actual 2011
%
Dry Food 4,913,671,948.00 6,583,858,830.00 33.99
Fresh Food 1,346,599,127.00 1,800,485,488.00 33.71
Homeline 1,006,435,606.00 1,383,234,686.00 37.44
Hardline 718,784,144.00 992,166,871.00 38.03
Softline 1,059,889,126.00 1,472,075,246.00 38.89
Total 9,045,379,951.00 12,231,821,122.00 35.23%
RETAILER FOCUSTHINKING & SHOPPING
Channels Performance Retailers Performance
Retailer Market Share in Value (%) - Total FMCG
Retailer Market Share in Value per FMCG Category
Year Ending 9th January 2012
Channels Performance Retailers Performance
Retailer Market Share in Value (%) - Total FMCG
Retailer Market Share in Value per FMCG Category
Quarter Ending 9th January 2012
HOW IS BIG C PERFORMING IN ATTRACTIVENESS?
HOW IS BIG C PERFORMING IN LOYALTY?
WHAT DO SHOPPERS THINK OF BIG C?
Choice% of HHs knowing the shop and responding: The retailer propose «a good choice of products»
Promotion% of HHs knowing the shop and responding: the retailer propose «a lot of good promotion »
Place% of HHs knowing the shop and responding « Clean and Comfortable place »
Price% of HHs knowing the shop and responding: the retailer propose « attractive prices »
Staff% of HHs knowing the shop and responding: « The staff is welcoming »
Stock% of HHs knowing the shop and responding « Everything I need in stock »
Animations% of HHs knowing the shop and responding « There a lot of animations/events »
WHAT DO SHOPPERS THINK OF BIG C?
Fresh Food% of HHs knowing the shop and responding: « Fresh Food good quality »
SmartShopper
RETAILER SUMMARY – BIG C
Thinking Shopping
INVESTMENT IN RETAIL IN 2012
Foreign investment in Retail
Currently Big C is the one of 3 most powerful Retail Brand in Vietnam with 18 store nationwide. 8 Store in HCM City, 3 in Centre & 7 Store in the North. Their strategy to build 5 hypermarket & 10 convenient store every years.•July’12: open Big C Can Tho which is near HCM City•Sep’12: open Big C Tan Hiep (province near HCM City)•Nov’12: open Big C Binh Duong ( province near HCM City)•Dec’12: open Big C Tafoco ( HCM City)•2013: open Big C Viet Tri – province near Hanoi( delayed from 2012) anh many project coming from 2013 – 2015 such as
•In Hanoi & Northern Province: Ciputra, Pico Mall, Le Trong Tan, Minh Khai, Bac Ninh, Thai Nguyen, Ninh Binh, Thai Binh,
•In Southern Province: Nha Trang, Dalat, Long Xuyen
Foreign investment in Retail
Metro enter Vietnam in 2002 after Big C 4 years as Whole Sale ( Cash & Carry) and now they already has 17 store in nationwide.
• Dec’12: open Metro Ha Dong in Hanoi City
• 2013: open Metro Rach Gia (province near HCM City)
• 2013: open store number 20 as per agreement between Vietnam Government and Germany
Foreign investment in Retail
On March 12, Aeon company officially announced its operation in Vietnam as well as their plan penetrating the retail Industry•Mar’12: approved to lauch in Binh Duong City – The Canary Complex with 6.2 ha completed in 2013. Investment USD$ 95 mils•Sep’12: start building Aeon – Tan Phu Celadon Department Store with 77,000 sqm of shopping completed in 2014•2015: open 1st department store in Hanoi•2020: achieve 20 department stores in Vietnam.
Foreign investment in Retail
Lotte Mart already has 2 department store in HCM city•Nov’12: Open the 3rd Lotte Hypermarket in Bien Hoa City•Dec’12: Open the 4th Store in Da Nang City•2013: open 1st department store in Hanoi – opposite Daewoo Hotel in Kim Ma Street•2014: open other store in Binh Duong City – The Seasons Binh Duong with 2.1 ha. Investment USD$ 34.8 mils•2020: achieve 60 department stores in Vietnam.
Local investment in Retail
• Plan to open 30 stores including 20 supermarkets in 2012.• Main focus on 30 cities or 53 cities instead of Ho Chi Minh and
Ha Noi.• Current number of store: 62 in 26 provinces.• Target by2015: achieve 500 stores nationwide.
• Opened 2nd store in 113-115 Cong Hoa Str., Tan Binh District.• The 3rd store located in XI Riverview Palace, 190 Nguyen Van
Huong, Dist. 2 will be opened in May 2012• Provides: high quality fresh food, comfort food, Eastern –
Western ingredients, etc.
Main shareholder is Son Ha Group (75%) jointed with a foreign retailer and total investment is USD 40 mils.3 stores will be opened this year:•Hiway Supercenter Ha Dong•Hiway Supercenter Hoang Quoc Viet•Hiway Supercenter Dien
