Participants chat at the Indochina Retail Technology & Innovation Summit 2017(Photo: VNA)
HCM City (VNA) — The retail industry has changed dramatically in the digital age where everything is connected, requiringretailers to continue to innovate to better serve customers’ diverse needs, speakers have said at a one-day summit held in Ho Chi Minh City.
More than 200 key decision-makersfrom the region’s rapidly expanding retail sector participated in the IndochinaRetail Technology & Innovation Summit 2017, which opened on November 9 inHCM City.
Speaking at the meeting, NguyenPhuc Khoa, vice chairman of the Association of Vietnam Retailers, said theevent aimed to support efforts to explore the potential of Indochina retaildevelopment and stimulate partnerships.
Khoa, who is also the vicegeneral director of Sai Gon Trading Corporation (Satra), said “Indochina isforecast to continue to grow strongly in the coming years. With a largepopulation, it is expected to be a promising market for the retail sector.”
“Withincreasing disposable incomes, rapid urbanisation and rising living standards,Indochina, as a region, is one of the most dynamic emerging economies in theworld,” he said.
“It is easy to understand whythe biggest brands in the retail sector are constantly looking to expand theirpresence here,” he added.
In addition, consumers,economics and technology are changing at a global scale, upsetting traditionalbusiness models and creating new opportunities for transformation.
In order to remain competitivein today’s environment, retailers are seeking comprehensive strategies that setthem apart and translate into real business value, according to Khoa.
Speaking on the sidelines ofthe summit, Daniel Hee, business solution manager of Comarch, a global ITbusiness solutions provider, said the summit played a key role in exchangingideas about retail technology and innovation in the Indochina region.
Akkasha Sultan, senior directorsales of Microsoft in Asia-Pacific region, said “Vietnam is one of the biggestgrowing markets in Asia Pacific. We expect every retailer and everyorganisation within the industry to be equipped with technologies to servecustomers better in the context of the digital age.”
In an increasinglycompetitive environment, understanding consumer behaviour is the key toretaining customers’ loyalty, he said.
Nguyen Phi Van, executivedirector and founder of Retail and Franchise Asia, said “With the rate ofdevelopment in retail and retail technology in this region, it is essentialthat retailers and retail partners discuss future trends and cooperation inorder to prosper together.”
“Emerging Indochina is a regionwith one of the highest growth rates in consumer expenditures up to 2030.However, it is where household income is the lowest in ASEAN,” she said. “As aresult, transformation will happen at an amazing rate, yet flexibility andinnovation in formats and channels require the utmost attention to capture boththe growing middle class and the bigger bottom of the pyramid.”
“This event has brought thebest and most innovative players of the industry to learn, unlearn, and relearnthe way forward,” she said.
Domestic retailers in Vietnamare very much behind in terms of technologies.
“Technology is a ‘big’ word forthem and they lack guidance on what to do and how technology should work,” she said.
Most local retailers are small-and medium-sized enterprises (SMEs) which lack advanced technologies, whilemost technology service providers overlook SMEs in the country, she said.
Joanne S. Gasgonia, generalmanager of Crescent Mall, said more than 60 percent of the world’s populationbelongs to a generation that was born in an online world or migrated online.
In Vietnam, almost half of thepopulation is Gen X and millenials. Forty-five percent are internet users, with28 percent engage in online shopping.
It is expected that there willbe 62.2 million online shoppers in the country by 2020, she said. Online salestake up 3.39 percent of the country’s total retail market, which indicates thatthere is plenty of room to grow and develop, she said.
The retail market saw 118billion USD in retail sales last year, fueled by a growing middle class withexpanding disposable incomes and an increasing number of internet users.
Consumers now expect brands tobe present across all physical and digital platforms.
“The standing challenge is howto drive online traffic to visit traditional offline stores,” Gasgonia said.
No matter how good you mayalready be, there’s always the potential to do better. If you’re not willing tochange and do the scary new things, someone else will,” she told VietNam News.
“Change is the only consistentthing in this world. Innovate or die,” she said.
Most local retailers are small-and medium-sized enterprises (SMEs) which lack advanced technologies, whilemost technology service providers overlook SMEs in the country, she said.
Joanne S. Gasgonia, generalmanager of Crescent Mall, said more than 60 percent of the world’s populationbelongs to a generation that was born in an online world or migrated online.
In Vietnam, almost half of thepopulation is Gen X and millenials. Forty-five percent are internet users, with28 percent engage in online shopping.
It is expected that there willbe 62.2 million online shoppers in the country by 2020, she said. Online salestake up 3.39 percent of the country’s total retail market, which indicates thatthere is plenty of room to grow and develop, she said.
The retail market saw 118billion USD in retail sales last year, fueled by a growing middle class withexpanding disposable incomes and an increasing number of internet users.
Consumers now expect brands tobe present across all physical and digital platforms.
“The standing challenge is howto drive online traffic to visit traditional offline stores,” Gasgonia said.
No matter how good you mayalready be, there’s always the potential to do better. If you’re not willing tochange and do the scary new things, someone else will,” she told VietNam News.
“Change is the only consistentthing in this world. Innovate or die,” she said.
Indochina, spearheaded by Vietnam,is one of the fastest-growing and best-performing retail markets in the world.
Retailers, in particular, have alsobeen drawn to the country by its relatively young population of consumers, ofwhich 70 percent are aged 15 to 64, who promise to be a key driver of robustmarket growth.
Vietnam’s stable economic growthrate and a population of more than 90 million provide a promising foundationfor development of the retail industry.
During the past few years, thecountry’s retail industry has seen strong growth rates, with retail salesgrowing by 60 percent in the 2013-16 period, and expected to reach 121 billionUSD by the end of the year.
Today, department stores, shoppingmalls, supermarts and convenience stores are rapidly expanding with the wave ofe-retail.
In addition, the way consumers shophas also changed drastically, and with it the structure of retail has had toadapt to embrace the omni-channel age.
As the industry continues to embracethe wider international community, multinational retail groups have takenactive steps to penetrate the market.
The summit was the first retailtechnology-focused event in the region for retailers and solutionsproviders, shopping mall owners, developers, department store operators,supermarkets, convenience stores, brand owners, e-retailers, IT, data andsocial marketing professionals, consultants and suppliers, the media andassociations.-VNA
Retailers, in particular, have alsobeen drawn to the country by its relatively young population of consumers, ofwhich 70 percent are aged 15 to 64, who promise to be a key driver of robustmarket growth.
Vietnam’s stable economic growthrate and a population of more than 90 million provide a promising foundationfor development of the retail industry.
During the past few years, thecountry’s retail industry has seen strong growth rates, with retail salesgrowing by 60 percent in the 2013-16 period, and expected to reach 121 billionUSD by the end of the year.
Today, department stores, shoppingmalls, supermarts and convenience stores are rapidly expanding with the wave ofe-retail.
In addition, the way consumers shophas also changed drastically, and with it the structure of retail has had toadapt to embrace the omni-channel age.
As the industry continues to embracethe wider international community, multinational retail groups have takenactive steps to penetrate the market.
The summit was the first retailtechnology-focused event in the region for retailers and solutionsproviders, shopping mall owners, developers, department store operators,supermarkets, convenience stores, brand owners, e-retailers, IT, data andsocial marketing professionals, consultants and suppliers, the media andassociations.-VNA
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