After the pandemic, many businesses, especially those in the fields of fashion and cosmetics, want to open large-scale stores in prime locations in the center of Ho Chi Minh City.
|A recent event by Uniqlo at Saigon Centre. Photo: Uniqlo.|
Japan’s Uniqlo recently announced that it will open a large-scale store at Saigon Center in District 1, Ho Chi Minh City this spring or summer. With an area of more than 3,000 m2, this will be one of the largest stores in Vietnam, playing an important role in its brand expansion strategy two years after entering the Vietnamese market.
The flagship store of well-known designer Nguyen Cong Tri opened at the Continental Hotel on Dong Khoi Street, District 1, Ho Chi Minh City. Previously, CONG TRI stores were also located in prime locations such as Le Thanh Ton (District 1) or Nguyen Dinh Chieu (District 3) with luxury designs.
Recently, the mother and baby chain named Con Cung opened the first “super center” in District 1, Ho Chi Minh City on an area of 2,000 m2. This firm aims to expand this model in HCM City, with one large-scale store for every 2-3 districts. After the Lunar New Year 2022, the chain opened two more stores in District 5 and Phu Nhuan District.
Other domestic and foreign retail chains such as Muji, Mobile World, AB Beauty World and RitaVo have also opened new large-scale stores.
According to experts, fast-fashion brands will still keep the same large-scale store area to ensure enough space for product display.
The model of multi-brand stores with an area of 350-1,000 m2 is expected to further expand thanks to the strength of diverse goods and prices, providing an integrated destination for customers. The trend of opening large stores will become stronger this year. This strategy is further promoted by Vietnam’s growing domestic consumption.
Experts also said that Vietnam is a potential market for retail industries such as healthcare, mother and baby, fashion, sports, food. This spurs retailers to expand stores to absorb the consumption needs of customers.
On the other hand, large retail groups are still quietly bringing in new international brands of fashion, lifestyle, accessories and outdoor sportswear into Vietnam this year, creating factors to revive the young consumer market.
In addition, international brands in the fields of cosmetics, accessories, and supermarkets that have been interested in Vietnam since 2019 but were hindered by Covid-19 are resuming their investment plans after international flights begin to re-operate in the country this year.
As consumption habits have changed during the Covid-19 pandemic, the fashion industry is gradually expanding into online business.
The local retail market used to have many famous foreign brands. Some have left while others have maintained moderate operations, but many Japanese retail brands have been successful in the market.