TRADITIONAL MARKETS AND MODERN SUPERMARKETS IN HO CHI MINH CITY : INSIGHTS INTO SHOPPER ORIENTATION AND SHOPPER TYPOLOGIES

Abstract

As one of the fastest growing transitional economies in Asia, Vietnam is in a process of constant change and transformation. To many international observers, the retail sector in Vietnam is one of the most lucrative real estate market segments, justified by the country’s huge potential, relative political stability, and the underdeveloped local retail system.

The rapid growth of the Vietnam’s economy, together with the government’s initiatives to modernise the retail system as well as demographic changes in the population, have opened a new chapter for Vietnam’s retail scene. Specifically, there have been dramatic changes to both the traditional retail and modern retail sector, one of which is the “supermarket revolution” in Vietnam. As Vietnamese consumers increasingly embrace the forces of retail modernisation, the question is: Will the old traditional markets in Vietnam continue to stay relevant and sustainable for a long time?

This study recognises the need for in-depth consumer research for the retail sector in Vietnam, and aims to address this gap in the literature by investigating consumer perceptions on the retail attributes of both traditional markets and supermarkets. This is also the first study to shed light on the shopper typologies in a traditional market as compared to those in a supermarket, within the context of Vietnam as a developing country.

By adopting both qualitative and quantitative research, using methods of in-depth interviews and multivariate analysis, the study hopes to explore the shopping orientation of Vietnamese consumers in traditional markets and modern supermarkets, evaluate the performance of the two retail formats with implications for retail strategies, and identify shopper typologies for both retail formats. It is notable that because of the limited research scale, this study will only focus on the operating environment and shoppers in Ho Chi Minh City, a major mega-urban region in Vietnam. Future research concerning retail markets in other Tier-II cities will need certain modifications.