Retail industry needs to continue strong restructuring

Consumers shop at Co.opMart Ha Dong supermarket (Ha Dong district).

- Can you tell us about the main trends shaping the Vietnamese retail industry?

Chairman of Vietnam Retailers Association Nguyen Anh Duc.

- The most obvious trend is the change in consumer behavior towards more convenience, intelligence and speed. Second, the trend of digitalization and innovation has created new steps in modern commerce, while also affecting traditional commerce. Third, after the pandemic, consumers are more concerned about health, safety and sustainable development. This reshapes the operations of retail units, especially from 2025. Fourth, the trend of optimizing efficiency and value for consumers. This trend encourages retail businesses, both modern and traditional, to change their product structure, organizational structure and operating model to bring better efficiency and value to consumers.

- In reality, the multi-channel sales model is being chosen by the majority of retail businesses. What do you think about this development direction?

- Domestic retail businesses are currently implementing a multi-channel retail model combining direct and online sales. Multi-channel sales have a seamless, synchronized experience with buyers. However, it is necessary to aim for personalized retail services for each customer segment according to their shopping behavior.

To develop effectively, businesses need to take advantage of the existing strengths of the traditional retail model, combined with technology platforms to expand sales channels. Moreover, Vietnamese retail businesses need to operate according to their own characteristics, based on the nature and characteristics of Vietnamese products and goods to have appropriate forms of online distribution and e-commerce.

- The retail industry is assessed to have the potential to break through in the coming years but still faces many difficulties. Could you be more specific?

- Although the retail industry is considered to have the potential to break through in the coming years, there are still many difficulties and challenges to overcome. Domestic retail businesses have the characteristic of developing in the domestic market and from tradition, so they still have some internal inertia and are slow to change and develop.

The process of adapting to major global development trends of domestic retail businesses is still slow due to lack of experience and lack of proper preparation. The industries and fields supporting retail and logistics have not developed synchronously, affecting the supply chain. Along with that is the lack of synchronization from production to consumption, distribution, and retail, hindering cost optimization and enhancing product value.

- Given the above trends and many challenges, in your opinion, what should retail businesses do to develop and contribute to the overall growth of the economy?

- Enterprises need to review and develop based on their core competencies, focusing on exploiting values ​​and areas of strength instead of expanding to many areas. The advantage of Vietnamese retail enterprises is understanding the Vietnamese market and consumers.

To develop in the new era, retail businesses need to have more connections, cooperation and sharing, creating a foundation of resonance between domestic businesses, associations, and businesses in other fields. From there, creating higher competitiveness...

Enterprises also need to have even development in all stages and fields, especially the group of enterprises supporting retail, logistics, stages related to production, added value in the general value chain, with clear specialization...

- What proposals and plans does the Vietnam Retailers Association have to support domestic enterprises to develop more strongly, sir?

- In order for the Vietnamese retail industry to develop more strongly and create a boost for growth, in my opinion, there are three issues that need to be focused on. The first is to strengthen the consumer confidence index in two aspects: individual consumers must have income to increase their spending power further. Along with that, the health of domestic enterprises and enterprises operating in the Vietnamese market also plays a role in promoting consumption.

Second, it is necessary to restructure the retail industry, in which retail businesses reorient themselves to retail types with their own functions and tasks to participate in the Vietnamese market. There needs to be a specific vision such as how much e-commerce is appropriate, how much physical stores are needed and which segments to serve.

Third, it is necessary to restructure the common value chain of Vietnamese goods and goods in the global value chain operating in the Vietnamese market. This will ensure that consumers receive more value from this restructuring. Through this, we will assign tasks to each industry, ensure the role of synchronous development in all industries and promote the whole economy.

The Vietnam Retailers Association will continue to promote its role, participate in building and consulting on policies to support retail businesses; promote links between domestic businesses to create common strength. In addition, the association will grasp international trends, update information for retail businesses to further improve competitiveness.

Thank you very much!

Source: https://hanoimoi.vn/nganh-ban-le-can-tiep-tuc-tai-cau-truc-manh-me-697380.html