Variety Stores in Vietnam

2020 IMPACT

Channel suffers as stores shut and consumers stay away

Similar to department stores, variety stores, which is another channel that mostly sells non-grocery products, was hit hard by the COVID-19 effects on trade in 2020. Due to national lockdown and ongoing social distancing, which led to outlets closing and reduced footfall respectively, variety stores experienced a sharp decline in current value sales.

Craze for Korean culture increasingly influencing variety stores

In variety stores, Vietnamese consumers display a preference for Japanese or South Korean brands. Japanese variety store retailers such as Daiso and Komonoya were pioneers amongst international variety stores in Vietnam.

Miniso is at the summit of variety stores

Le Bao Minh Group’s Miniso brand maintained its leading position in variety stores at the end of the review period. The brand was at the forefront of the influx of Korean- and Japanese-style variety stores in Vietnam, followed by rivals with similar concepts, such as Minigood and Mumuso.

RECOVERY AND OPPORTUNITIES

Franchise model offers solid route to achieving sales growth

The variety stores channel is expected to begin to recover from 2021 as COVID-19 cases in Vietnam are relatively few thanks to government efforts, which means further lockdowns appear unlikely. As such, Vietnamese consumers will be more confident to spend on non-grocery products than they were in 2020.

Online sales unlikely to gain traction for variety stores

While e-commerce grew rapidly in 2020 as consumers spent much more time at home and were unwilling to venture out to stores unless necessary, it still has little impact on variety stores. This is because Vietnamese consumers continue to prefer to experience variety store products first-hand before making a purchase.

Diversification in the in-store experience can help achieve stand-out

There are many similar variety stores in Vietnam, including Miniso, Mumuso, Minigood and Yoyoso, amongst others. They are similar in terms of their white and red logos, white-washed store décor, product ranges, packaging designs and price ranges.