An outlet store in Royal City shopping mall. (Photo kinhtedothi.vn) Le Viet Nga, deputy director of the Domestic Market Department, Ministry ofIndustry and Trade, revealed that the department was working on a plan topromote outlet stores in Vietnam.
"The proliferation of outlet stores would boost the consumption ofproducts in the textiles, footwear, and other industries," saidNga.
According to Nga, outlet stores first appeared in the US in the 1930s to offerdamaged products to employees at low prices. This win-win concept was sosuccessful that it has quickly become prominent with over 15,000 storesnationwide.
Outlet stores have been present in Hanoi since 2012 but their business was notso profitable because of low product diversity. Some stores, owing to theirmisconception, went as far as to being used as a dumping ground for their low-qualityproducts, alienating Vietnamese consumers.
But the situation is different now. Outlet stores in the country have improvedto win back consumers and become a go-to destination for those insearch of bargains amid the recession.
Commercial expert Vu Vinh Phu underlined the need for new outlet stores in thecountry and highlighted four factors essential for the success of those outletstores, which are convergence, professionalism, connectivity, and governance.
Convergence means the clustering of hundreds of stores of differentbrands in a single outlet mall to increase focus and coherence.Convergence holds the key to their success because it improves diversity andsourcing efficiency.
Professionalism denotes a way of dealing with customers in accordance withcertain normative values. A respective attitude and high standards of servicealways go a long way with better sales of products.
Connectivity signifies the proximity to tourism destinations, entertainmentcentres, and transport hubs. By edging closer to those commercial magnets,outlet malls become better positioned to attract tourists andvisitors.
Governance underlines the importance of a code of conduct for firms'employees and a set of standards for their products. Those values can helpsafeguard producers and consumers against illegal and unethical actions, andimprove their credibility.
Other experts held that outlet stores have been the driving force behind thegrowth of tourism in many countries as they attract hundreds of thousands oftourists looking for bargains during the shopping season.
They reduce an important financial loss for manufacturers and giveconsumers access to quality products at 30 to 70% discounts. As such, thestores can be employed as a measure to stimulate consumption.
Hanoi was considering a plan in February to set aside811ha of land for the construction of new outlet malls. The move wasexpected to bolster commercial activities in the city given two economicdrivers, public investment and exports, are declining./.
VNA
