Modern retailers are trying to compete with traditional markets with mini-marts, where they offer safe food at reasonable prices.
Retail market: foreign investors may dodge laws
Foreign retailers striding, domestic ones ambling
Co.op mart comes to residential quarters
Mini marts are now avaialble at residential quartersSaigon Co-op, on December 20, declared their plan to develop a retail mini-mart chain, specializing in selling foods with the new brand-name, Co.op Food. Prior to that, the market already witnessed the appearance of Vissan’s, Fresh CP Mart’s and Sagrifood’s food mart chains.
According to Nguyen Thanh Nhan, Deputy General Director of Saigon Co-op, in charge of Co.op Food chain, the mini-marts of the chain will be open from 6 am to 9 pm, and will sell fresh food, preliminarily-treated, treated and frozen food. Each of the shops will provide food in accordance with the taste of consumers. Co.op Food aims to provide safe food at reasonable prices.
The opening of Co.op Food in the Phan Van Tri residential quarter, in district 5, HCM City, on December 27 will kick start the opening of the chain of 20 mini-marts in 2009. Covering an area of 220 sq m, the mart aims to serve 8,000 households in the locality, within the diameter of 500 m.
Nguyen Thi Hanh, General Director of Saigon Co-op, said that this model of food supermarket will be the ‘arm’ of the existing supermart chain, which has been overloaded in selling food.
Hanh said that the model of food mini-marts proves to be a good choice as it helps to bring products directly to consumers, while retailers do not have difficulties in workshop premises while opening small-scale marts. The standard area for a supermart is 500 sq m, while the area for a mini-mart is just 30-100 sq m. The investment in mini marts is also not high, just VND 500 million to VND 2 billion.
Safe, clean food will be the choice of consumers
Domestic retailers believe that foreign retailers have advantages in capital and technology, but they will not be competitive in selling fresh food. Therefore, they will focus on this segment of the market. In the long-term, domestic retailers plan to co-operate with producers and research centers to develop a new model of production-distribution, which allows them to put out and sell high quality products at reasonable prices.
Currently, the volume of pork provided by well-known brand-name suppliers through the mart and showroom systems just meets 20% of the demand of local residents in HCM City. Consumers have gotten used to purchasing food from the marts and showrooms.
The showroom of Vissan Company, on Le Van Sy street in district 3, HCM City, is always crowded with consumers, though it is located next to a traditional market that is considered to have many advantages thanks to their low prices. The food sold at the mart proves to be a little more expensive than at traditional markets, but they are believed to have better quality, thanks to preservation equipments.
While Vissan and Sagrifood have advantages in pork, Fresh CP Mart’s advantage is in poultry eggs and meat. The shops of Fresh CP Mart are 30 sq. m. each, but they are clean and equipped with preservation cold storage systems.
The big challenge for small shopkeepers
The organizers of the food chains are still thinking of developing their networks further. CP plans to conquer residential quarters and high-rise apartment buildings with the high-grade chain. By that time, the company will also sell fresh fish, in addition to chicken and pork. The 20 marts it currently has will be developed into 30 before the end of 2008.
Van Duc Muoi, Deputy Director of Vissan, said that in addition to the plan to develop a distribution network of 50 food marts, Vissan will also pay attention to diversifying the varieties of food.
It is believed that the development of the mini-mart model will not affect the existing traditional markets. However, it is clear that the sale of food at traditional markets has been decreasing. If the traditional markets do not change their ways of selling and preserving food, they will lose consumers to mini-marts, which are arising everywhere.
(Source: Tuoi tre)
Retail market: foreign investors may dodge laws
Foreign retailers striding, domestic ones ambling
Co.op mart comes to residential quarters
Mini marts are now avaialble at residential quartersSaigon Co-op, on December 20, declared their plan to develop a retail mini-mart chain, specializing in selling foods with the new brand-name, Co.op Food. Prior to that, the market already witnessed the appearance of Vissan’s, Fresh CP Mart’s and Sagrifood’s food mart chains.
According to Nguyen Thanh Nhan, Deputy General Director of Saigon Co-op, in charge of Co.op Food chain, the mini-marts of the chain will be open from 6 am to 9 pm, and will sell fresh food, preliminarily-treated, treated and frozen food. Each of the shops will provide food in accordance with the taste of consumers. Co.op Food aims to provide safe food at reasonable prices.
The opening of Co.op Food in the Phan Van Tri residential quarter, in district 5, HCM City, on December 27 will kick start the opening of the chain of 20 mini-marts in 2009. Covering an area of 220 sq m, the mart aims to serve 8,000 households in the locality, within the diameter of 500 m.
Nguyen Thi Hanh, General Director of Saigon Co-op, said that this model of food supermarket will be the ‘arm’ of the existing supermart chain, which has been overloaded in selling food.
Hanh said that the model of food mini-marts proves to be a good choice as it helps to bring products directly to consumers, while retailers do not have difficulties in workshop premises while opening small-scale marts. The standard area for a supermart is 500 sq m, while the area for a mini-mart is just 30-100 sq m. The investment in mini marts is also not high, just VND 500 million to VND 2 billion.
Safe, clean food will be the choice of consumers
Domestic retailers believe that foreign retailers have advantages in capital and technology, but they will not be competitive in selling fresh food. Therefore, they will focus on this segment of the market. In the long-term, domestic retailers plan to co-operate with producers and research centers to develop a new model of production-distribution, which allows them to put out and sell high quality products at reasonable prices.
Currently, the volume of pork provided by well-known brand-name suppliers through the mart and showroom systems just meets 20% of the demand of local residents in HCM City. Consumers have gotten used to purchasing food from the marts and showrooms.
The showroom of Vissan Company, on Le Van Sy street in district 3, HCM City, is always crowded with consumers, though it is located next to a traditional market that is considered to have many advantages thanks to their low prices. The food sold at the mart proves to be a little more expensive than at traditional markets, but they are believed to have better quality, thanks to preservation equipments.
While Vissan and Sagrifood have advantages in pork, Fresh CP Mart’s advantage is in poultry eggs and meat. The shops of Fresh CP Mart are 30 sq. m. each, but they are clean and equipped with preservation cold storage systems.
The big challenge for small shopkeepers
The organizers of the food chains are still thinking of developing their networks further. CP plans to conquer residential quarters and high-rise apartment buildings with the high-grade chain. By that time, the company will also sell fresh fish, in addition to chicken and pork. The 20 marts it currently has will be developed into 30 before the end of 2008.
Van Duc Muoi, Deputy Director of Vissan, said that in addition to the plan to develop a distribution network of 50 food marts, Vissan will also pay attention to diversifying the varieties of food.
It is believed that the development of the mini-mart model will not affect the existing traditional markets. However, it is clear that the sale of food at traditional markets has been decreasing. If the traditional markets do not change their ways of selling and preserving food, they will lose consumers to mini-marts, which are arising everywhere.
(Source: Tuoi tre)
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