POTENTIAL OF CONVENIENCE STORE CHAINS IN HO CHI MINH CITY, VIETNAM

Abstract

Convenience store is a new retail phenomenon in Vietnam. Macro factors such as positive GDP growth, increasing income, young population, rising numbers of tourist and expats together with recovered retail sales show positive outlook for Vietnam retailing. By using two sample surveys of consumers and investors, the hypothesis whether the demand of convenience store chains in Ho Chi Minh City is substantial for investors to venture into the market is examined. The relationship between consumers ’demand and their profile factors is also tested. Besides, the mismatch between consumers and investors’ opinion is looked into by mean ratings comparison method. The results show that the demand of convenience store chains is real and significant for more investment. Also, currently there is the discrepancy between consumers and investors’ view on important factors that make people shop at convenience stores. In consumers’ eyes, they value those convenience stores’ attributes such as located near their home, workplace and school, high quality, good customer service, attractive display, having products they need at time and enough parking spaces. Moreover, it is found out that more people from the group 19-23 years old, students, housewives and females put more weight on price and promotion It is interesting to know that customers in suburban and upcoming districts seem to value customer service and product quality less than those living in downtown and near downtown areas. Besides, top five most important products to customers are ATM service, household products, grocery, fast food and soft drinks. However, current convenience store chain operators in Ho Chi Minh City do not share the same view on some factors. These findings can serve as reference for convenience store investors to adjust and have appropriate strategy to win the heart of consumers. Recommendations for different store attributes are put forward based on the findings.