Under the influence of the fourth industrial revolution, the local retail sector is changing quickly and following four main trends, heard attendees at a recent seminar in Hanoi.

Customers examine dairy products at a Co.opmart supermarket
on Ly Thuong Kiet Street in HCMC. The local retail sector is
changing quickly and following new trends - PHOTO: THANH HOA 

Speaking at the event, Vu Vinh Phu, an economic expert and former chairman of the Hanoi Supermarkets Association, stated that over the past four or five years, the trend of forming joint ventures and mergers and acquisitions has been flourishing in the retail field, resulting in the emergence of giant retailers.

“They are strong enough to compete with big rivals and have an advantage in terms of input and output goods and the quality of products,” Phu said.

The race will become fiercer, causing small firms with weak management and heavy losses to be merged or go bankrupt, he added.

The trend will continue its upward spiral in the coming months, Phu noted.

The second trend he mentioned was the demand among customers for diverse experiences.

In recent years, some major enterprises have developed shopping and entertainment centers, using digital platforms and users’ smartphones to serve customers.

Single supermarkets and commercial centers serving few segments are facing closure, he remarked.

Besides this, as a founder of the first supermarket in Vietnam and an observer of the retail sector for a decade, Phu stated that the trend of building facilities to purchase agricultural products from many areas and regions is on the rise.

Farm produce, which is varied in Vietnam and widely grown, is being eyed by retailers.

Multichannel sales platforms were also presented as a trend of the retail sector by the economic expert. Phu said that some 70% of Vietnam’s population uses mobile phones, opening up the online sales playground.

The ecommerce sector is still facing several legal bottlenecks. The management of the quality of goods sold online remains loose, reducing shoppers’ confidence in these items. As such, setting up multiple sales platforms is considered a good way to diversify retailers’ services and gain further ground in the retail market.