Many customers but fashion stores still pay for premises

Recorded on Nguyen Trai, Nguyen Van Cu extended, Mau Than streets... (Ninh Kieu district, Can Tho city), many stores are closed, with signs for sale or for rent.

Many premises on Nguyen Trai fashion street have signs for rent. Photo: My Ly

Doing business on Nguyen Trai Street (Ninh Kieu District, Can Tho City), Mr. Nguyen Hoang Lam could not help but feel frustrated when the number of customers coming to his store was still stable but the number of products sold was low. The reason did not lie in the quality of the products or consulting services but because customers compared prices on e-commerce platforms.

“Many customers come to the store, compare prices on e-commerce platforms, and then choose to buy online because they get a promotional code. For the same product, of course, consumers will prioritize the place that sells at a more favorable price. I can understand this and try to offer the most preferential price to retain customers, but only to a certain extent because of the burden of money for premises, electricity, water…”, said Mr. Lam.

With many customers but low product consumption, some stores have returned their premises to sell online. Photo: My Ly

According to Mr. Lam, except for peak shopping seasons such as holidays and Tet, in normal months, after covering staff costs, electricity, water, etc., the remaining amount is only enough to pay for the rental space. Therefore, to improve business, product price competition is something Mr. Lam is very concerned about.

“Many stores on this street could not hold on and had to give up their premises. I plan to cut staff and find another premises with lower rent to ease the burden of costs, improve prices, and increase consumer purchasing power. Nowadays, even if the same product and quality are priced 5,000 - 10,000 VND higher, customers will be lost,” Mr. Lam shared.

Ms. Le Thi Kieu Loan - owner of a fashion store on Mau Than Street (Ninh Kieu District, Can Tho City) - shared that the number of products the store sells online is higher than direct consumption. Regular customers come in large numbers, but many people tend to buy online. The reason is that the same product from the store, but when buying on e-commerce platforms, customers are subsidized or have promotional codes, so they choose to buy online.

“Realizing the increasing demand for online shopping among consumers, I also opened a clothing store on e-commerce platforms. However, with high demand and many sellers, I have to compete with other shops on price to attract customers. By the end of September, I will return the premises and focus on selling on e-commerce platforms to reduce costs and prevent product prices from increasing,” said Loan.

According to the report "E-commerce Market - The Time of Shopping and Entertainment" by Kirin Capital released in early April 2024, the number of Vietnamese customers who prefer to shop online now accounts for 50%.

Statistics show that up to 61% of people shop online through e-commerce platforms, 55% through social networks and 34% through e-commerce websites.

Source: https://laodong.vn/kinh-doanh/khach-dong-nhung-cua-hang-thoi-trang-van-tra-mat-bang-1364906.ldo