POTENTIAL FOR SUBURBAN SHOPPING CENTRES IN HO CHI MINH CITY, VIETNAM

Abstract

The purpose of this study is to examine the potential of suburban shopping centres in Ho Chi Minh City (Vietnam) from both demand and supply. In order to pursue the objectives, the survey in a suburban shopping centre and the interviews with real estate experts will provide data for the analysis of this study. The demand analysis suggests that shopping pattern and shopping patronage of customers in a suburban shopping centre is driven by socio-economic factors such as age, income, place of residence, and occupation. It is found that the longer time a shopper stays at the shopping centres, the more money she/he spends on that shopping trip. By using the principal component analysis, the demand analysis identified two factors related to Goods and Services attributes namely “Value for Money” and “Brand”. In addition, five more factors in attributes of Retail Premises are extracted namely “Shopping Centre feature”, “Facilities”, “Atmosphere”, “Personnel” and “Ancillary facilities”. The factor analysis by demographics shows strong relationships of these seven factors with respondents’ profiles. On the other hand, the supply analysis highlights considerations of developers in the provision of suburban retail developments including the sizeable land bank in suburban areas, traffic easement as compared to CBD areas, lower land costs and the increasing population catchment. Positioning strategies with regard to the target market, product selection and tenant mix are found to play a crucial role in the successful operation of a suburban shopping centre.