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The Vietnam Retail Market size is estimated to grow by USD 226.4 billion at a CAGR of 13.64% between 2023 and 2028. The market's growth trajectory hinges on various factors, notably the rising consumer preference for convenience food items, the proliferation of retail outlets, and the increasing appeal of private-label brands. However, challenges persist, encompassing logistical and supply chain complexities, inadequate infrastructure, and the burgeoning presence of counterfeit goods. With the growing prevalence of smartphones and a tech-savvy Generation Z demographic, retailers are capitalizing on mobile commerce, streamlined ordering processes, and voice-activated shopping to accommodate changing consumer preferences. Moreover, the incorporation of chatbots, mobile payment platforms, Internet of Things (IoT), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), and automation is amplifying operational effectiveness while providing tailored suggestions for products.
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The market share growth by the offline segment will be significant during the forecast period. The market in Vietnam has a lot of room for expansion, but there are also a lot of rivalries. Domestic and foreign giants in Vietnam are fighting for supremacy with a variety of shop formats, including commercial centers, supermarkets, and grocery and convenience stores, as they embark on aggressive development initiatives. However, despite the advent of digital channels, physical channels continue to dominate the landscape.
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The offline segment was valued at USD 145.20 billion in 2018. In this segment, Supermarkets provide items that are more suited to the demands of the common consumer on a daily basis. They also provide food, non-food items, and household appliances, making shopping easier for clients because they get everything they need under one roof. Similarly, Convenience stores are small stores that offer everyday products like groceries, confectionaries, soft drinks, snacks, personal care products, toiletries, and other regular-use items. Some stores also sell alcohol if they possess a license. Also, a department store or commercial center is a store that offers a wide variety of consumer goods to buyers. In cities, department stores have shaped the shopping habits of people and redefined luxury services. Due to this type store, the offline segment will grow during the forecast period.
The retail market in Vietnam is experiencing a profound transformation driven by economic development and the digital wave. Traditional formats like shopping malls, boutiques, and specialty stores coexist with modern retailing through ecommerce platforms and brick-and-mortar stores. Tech-savvy consumers are shaping the landscape, demanding seamless shopping experiences and influencing brand awareness. Wellness products, including fitness products and supplements, are gaining traction in an organized sector. Businesses are leveraging digital technologies such as AI, machine learning, and IoT to enhance operations and customer engagement in an omnichannel environment. Despite price sensitivity, the economy is fostering growth, making Vietnam a promising hub for retail innovation and expansion.
The market is experiencing a significant upsurge, driven by various factors such as rising disposable incomes, rapid digital transformation, and substantial investments in innovative technologies. With the increasing adoption of smartphones and a tech-savvy Gen-Z population, retailers are leveraging mobile commerce, one-click ordering, and voice shopping to cater to evolving customer behaviors. Furthermore, the integration of chatbots, mobile wallet payments, IoT, AI, AR, VR, and automation is enhancing operational efficiency and offering customized product recommendations. Both in-store and online shopping experiences are being enriched through data analytics, machine learning, and inventory management, fostering sustainability and environmental stewardship through eco-friendly practices and reduced carbon footprints.
Further, Vietnam's market is heavily influenced by government regulations and policies that shape the economic landscape. The Vietnamese government actively engages in managing and supporting the sector. Policies aim to foster a conducive environment for sales, with a focus on nurturing local businesses. Trade stores and markets are subject to specific regulations to ensure fair competition. The market witnesses the impact of these policies on the stores and Vietnamese companies. As the government encourages the growth of the trade sector, Vietnamese retailers navigate a dynamic regulatory environment, balancing compliance with the evolving needs of the vibrant Vietnamese market.
Urban lifestyles are another factor supporting the market growth. Vietnam is seeing continued urbanization and changing demand trends among young urban customers, resulting in a substantial development in contemporary channels such as convenience shops and quick e-commerce penetration. As online distribution channels eliminate the need for physical stores, merchandise, salespeople, and inventory, both established and private retailers in the market are focusing more on online sales.
Moreover, likewise, they are leveraging factors such as the significant increase in internet and smartphone penetration to offer their products online. Indeed, the growth of formats such as tiny supermarkets, which cater to the desire for food shopping that fits into the flow of hectic urban lifestyles, demonstrates the rising importance of such variables. Such factors will drive market growth and trends.
The issues related to logistics and supply chain operations are hindering the market growth. Back-end processes involved in supply chain management operations are complex in the market as the country's supply chain infrastructure is still developing. They involve functions such as the acquisition of products, warehouse management, packaging, inventory management, distribution, and merchandising of products.
However, the costs involved in the above-mentioned processes are quite complex and involve significant expenditure and include costs for back-end support for IT, infrastructure management, and customer support. Managing multiple tasks related to transportation and supply constitutes a strenuous process, particularly when it concerns retailers with multiple stores across the country. This, coupled with the risk of product damage, adds to the complexity of the supply chain process.
The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market analysis and report also includes detailed analyses of the competitive landscape of the market and information about 13 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Our market research and growth provides data that is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The retail landscape in India is undergoing a significant evolution driven by a tech-savvy consumer base and the adoption of omnichannel strategies. Customer loyalty is increasingly influenced by sustainable practices and eco-friendly products, amidst concerns over environmental impact and plastic use. Green technologies are gaining prominence, expanding product ranges such as wellness supplements. Modern retail integrates seamlessly with traditional formats like kirana shops and street vendors, maintaining a local connection and offering personalized service. Lower operational costs and cultural significance further enhance the appeal of these establishments. With increasing consumer preference for e-commerce expansion, businesses are adapting by offering an omnichannel experience with diverse payment options. Economic development is intertwined with digital technologies such as AI, machine learning, and IoT, driving convenience and reshaping the retail sector in India.
Market Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2023 |
Historic period |
2028-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.64% |
Market growth 2024-2028 |
USD 226.4 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
11.74 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
7 Eleven Inc., AEON CO. LTD., Berli Jucker Public Co. Ltd., Central Group of Company, Central Retail Corp., Charoen Pokphand Foods PCL, Circle K, E Mart Co. Ltd., FPT Retail Joint Stock Co., Lotte Shopping Plaza Vietnam Co. Ltd., Masan Group, MM Mega Market Vietnam, Saigon Union of Trading Cooperatives, and SPAR International |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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