To expand retail market share, Vietnamese businesses need to focus on new products.

Mr. Nguyen Anh Duc - Chairman of the Vietnam Retailers Association, General Director of the Ho Chi Minh City Union of Trading Cooperatives ( Saigon Co.op ) - had an interview with a reporter from the Industry and Trade Newspaper about this issue.

Sir, as one of the major retailers in Vietnam, how do you evaluate the picture of this industry in the past 10 years?

Over the past 10 years, the scale of modern retail in Vietnam has increased 10 times, from 2.6 billion USD to 26 billion USD. However, the market share of modern retail only accounts for about 20% of the total market share, compared to 90% in Singapore, 65% in Thailand, 40% in Malaysia and about 20% in India.

Saigon Co.op has launched a series of promotional programs before, during and after the increase in petrol and oil prices. Photo: VGP/Phuong Dung

Vietnam’s retail market is experiencing rapid growth, especially modern retail. However, compared to other countries in terms of market penetration, Vietnam’s modern retail is still considered to be lagging behind.

The positive sign is that Vietnamese retailers are facing great opportunities to innovate, develop new products and take advantage of the high use of mobile devices among consumers to diversify sales methods and increase revenue.

Many people say that Vietnam's retail sector is growing rapidly but is not sustainable. What is your comment on this? What are the opportunities for Vietnamese retailers in the near future, sir?

Vietnam’s modern retail is still growing but still lags behind other countries. The market is shaping new trends, such as the shrinking household size and the growing popularity of health-focused products. Another room for the Vietnamese retail market to increase sales is new products and services.

Mr. Nguyen Anh Duc - Chairman of the Vietnam Retailers Association - General Director of Saigon Co.op. Photo: The Next Power

Reports show that 30% of the revenue of the world's top 500 companies comes from developing new products, the figure in Asia is 20%, while Vietnamese businesses have only achieved 10%.

This means that the potential for increased revenue from new product development by domestic enterprises is still very large. Cooperatives need to take advantage of this period to develop market share and expand modern retail channels.

Currently, the cooperative's revenue in the modern distribution channel is still very modest. What recommendations do you have to help the cooperative's products penetrate deeper and increase sales in the modern retail channel?

In my opinion, cooperatives should apply science and technology in the entire production process, traceability, post-harvest preservation of agricultural products, food processing technology and environmental friendliness. Strengthen cooperation and association with manufacturers to invest in developing raw material areas to have a source of goods that ensures quality, safety at the best price, building trust and ensuring the health of consumers.

Cooperatives and farming households need to create a good production-consumption link to create a stable supply of goods to the market, ensuring the interests of all parties. Saigon Co.op proactively participates in connecting agricultural product consumption in provinces and cities to narrow the gap between producers and consumers, thereby demonstrating social responsibility, contributing to providing good, safe products to consumers as well as gradually increasing farmers' income.

Thank you!

Source: https://congthuong.vn/mo-rong-thi-phan-ban-le-doanh-nghiep-viet-can-chu-trong-san-pham-moi-343508.html