Vingroup plans hybrid store network
Vietnam property developer Vingroup is continuing to expand its retail business, announcing a 300-strong network of hybrid stores.
The stores will take up large footprints, initially in the company’s fast-growing network of shopping malls – split into four different brands: BeautyZone selling healthcare and cosmetics, ShoeCenter, Sportsworld and Fashion Megastore.
Vingroup has already expanded into the convenience sector with VinMart and is also developing an electronics retail chain. Its move into the hybrid store format is a measure to establish a local beachhead against the rising tide of international retail concepts eyeing the growing organised retail market in Vietnam.
The first store will open in Can Tho, a large city south of Ho Chi Minh City, in July. Vingroup says it hopes to have 74 stores trading within a year and 300 within three years.
The stores, developed by Vingroup subsidiary VinDS Trading and Services, will stock internationally known brands and, in the case of the ShoeCenter, its own range, branded Top Toe.
“These formats signal a new direction for our group, a complete product offering destination through our concepts for the consumers to participate, to enjoy true value and exercise choices,” said Munish Rishi, VinDS CEO.
“VinDS retail stores will be smarter, faster and innovative retail formats built upon partnerships with international, regional and most importantly, successful Vietnamese brands that can truly relate to Vietnamese hearts.”
The ShoeCenter will occupy a 600-1000 sqm footprint stocking some 25 brands for men, women and children, sourced internationally and locally. Vingroup expects it to become the nation’s largest shoe retailer.
BeautyZone will stock cosmetics, healthcare products, makeup and skin and bodycare products in a format which seems likely to challenge Dairy Farm International Group’s Guardian chain, which has been growing steadily in Ho Chi Minh City during the last three years. Vingroup’s chain will focus on mid to high end brands, including L’Occitane, Clarins, Kanebo, Laneige, Yves Rocher and Vichy.
The Sportsworld network will stock adidas, Nike and Aero Sport products, amongst others, ranging from shoes, jogging gear, sportswear and casual fashion to accessories and fitness equipment.
The Fashion Megastore will be the largest of the stores, ranging from 2500-5000 sqm and stock both local and international apparel brands.