VietNamNet Bridge - The ‘pure shopping mall’ has lost its position amid the strong rise of ‘shopping mall complex’, or ‘one-stop shop’. Experts believe that ‘one-stop shops’ will be dominant in the retail market in the future, especially in large cities.

Analysts noted that the two models of modern retail – pure shopping mall and shopping mall complex – have gained ground in large cities of Vietnam. According to Vaughan Ryan from Nielsen Vietnam, 57 percent of Vietnamese are young and busy people and 73 percent of Vietnamese consumers are willing to pay higher to get higher-quality products and services.

They also noted that of the two models, the shopping mall complex would be the ‘dominant retail model of the future’.

Parkson, Trang Tien Plaza, Zen Plaza and Grand Plaza are the typical names for pure shopping mall model. Meanwhile, Aeon Mall, Vivo City, Royal City and Crescent Mall are well known names for the modern shopping mall complex model.

“One-stop shop’ is another name of modern shopping mall complex. It is the combination of shopping mall, entertainment area and food resort.

An analyst commented that the tendency of the retail market can be seen in the story about Parkson (department store) and Aeon Mall (shopping mall complex).

Parkson came to Vietnam very early, in 2005. Its first store was set up in HCM City with the initial investment capital of $10 million. Just within nine years, the retailer opened nine stores with the total investment capital of $90 million, specializing in distributing branded goods.

In the Asian market, the average retail turnover by Parkson stores has decreased by 7 percent compared with last year. In 2014, the sales in the home market of Malaysia dropped by $200 million, while the figure was $26 million in Vietnam.

Parkson, which has been present in Vietnam for one decade, has witnessed its pretax profit decrease in the last five years from $5 million in 2011 to minus (-)$2.3 million in 2014.

An analyst commented that if Lion Group, the owner of Parkson, had brought Centro – a middle-class brand, to Vietnam, instead of Parkson which targets high income earners, it would have seen better business results.

Parkson Vietnam’s general director Toh Peng Koon said Parkson takes a loss in Vietnam because it has to spend a lot to set up new stores. 

However, some branding experts believe that Parkson cannot succeed because it acted singlehandedly and does not cooperate with Vietnamese companies.

Meanwhile, Aeon has taken a wise move when finding Vietnamese retailers for its strategic partner. It started business with Ministop convenience store chain and then  injected $500 million into three shopping mall complexes in HCM City, Binh Duong and Long Bien in 2014.

NCDT