After the entry of well-known Japanese names in the Vietnamese market, such as Aeon, Takashimaya, Family Mart, MiniStop, 7-Eleven, the domestic retail market has recently seen a massive number of other Japanese retail brands that are currently expanding in the country in spite of present difficulties.
BRG Group, one of Vietnam’s leading private multi-sector economic groups, and its Japanese partner, Sumitomo Corporation is planning an inauguration of the 2nd FujiMart at 36, Hoan Cau Street in Hanoi’s Dong Da District after the success of the first one opened at 142 Le Duan in the end of 2018.
Clothing brand, Uniqlo opened it first store covering on a large area across 2 floors in Vincom Center in Hanoi.
MUJI, a popular with its simple packaging and the elegant neutral product design from skincare, clothing to stationery, and housewares launched the first MUJI POP UP store at 1st Floor Parkson Saigontourist Plaza in July.
Miki House offering clothing & accessories for Kids opened the first store in Japanese Akuruhi market in HCMC’s District 1 while Japanese drugstore chain Matsumoto Kiyoshi plans to inaugurate its first pharmaceutical, cosmetic store in coming time.
In fact, those businesses have spent much time in planning and executing their projects after the success of compatriot companies, such as Aeon, Takashimaya and others.
Japanese retail giant Aeon will open its 6th store in Hai Phong in the end of this year and another in Hanoi’s Hoang Mai District in the future.
While Takashimaya Shopping Center in HCMC in April announced results for the first four years of operation with a profit of US$929,000 from the total sales of JPY 2 billion (US$18,7 million).
Big names of Japanese convenience stores are amily Mart, MiniStop, and 7-Eleven that entered into Vietnam while Lawson is carrying out Market research before opening.
The expansion of Japan’s well-known retailers created a direct competitiveness between Japanese convenience shops and Vietnamese traditional retail stores.
Vietnam’s retail market has seen a sharp increase of Japan’s investment capital, said Chief Representative of the Japan Trade Promotion Organisation (JETRO) in Ho Chi Minh City, Hirai Shinji.
The entry of Uniqlo into major cities of Hanoi and HCMC shows that Vietnam is a potential market and attracts many Japanese enterprises, he added.
According to the General Statistics Office of Vietnam, the retail sector earned a revenue of VND2,218 billion (US$95.5 million) in the first seven months of this year, presenting a year on year increase of 3.6 percent.
Vietnam is one of the rare retail markets in the region and the world that gained positive growth in a difficult situation worldwide due to the outbreak of COVID-19.
By Xuan Loc – Translated by Kim Khanh @ SGGP