Diverse retail players turn heads towards interior design

Central Retail Vietnam last week launched its subsidiary Come Home brand, positioning it as a comprehensive solution for interior decoration. The move marks a significant foray into Vietnam’s non-food business sector for the Thai-led company, with the first store located at SC VivoCity Shopping Centre in Ho Chi Minh City.

Diverse retail players turn heads towards interior design, illustration photo/ Source: freepik.com

Come Home is set to play a vital role in the company’s ambitious $1 billion investment strategy, targeting Vietnam’s thriving interior decor market.

Operating under a one-stop-shop model, Come Home offers customers a diverse range of options to curate and furnish their homes. The inaugural store showcases meticulously designed rooms, each representing various areas of a residence and crafted in three distinct styles and price points.

With a vast ecosystem of renowned brands such as GO!, Tops Market, Family Mart, Lan Chi, and Nguyen Kim, Central Retail is attempting to solidify its position as one of Vietnam’s retail powerhouses.

According to Central Retail’s estimation, the domestic market’s revenue in 2022 amounted to approximately $1.25 billion, with a projected surge to surpass the $1.4 billion mark by the end of this year. It expects an estimated compound annual growth rate of nearly 10 per cent in the market for the 2023-2027 period.

Notably, the living room furniture segment emerges as a frontrunner, poised to generate substantial revenue of $523 million this year. Equally promising, the bedroom furniture and decorative items categories showcase a robust upward trajectory, the company said.

Amid the backdrop of global economic headwinds and waning purchasing power, Vietnam’s interior decor market is continuing to witness strong demand, which is propelled by an upswing in modern aesthetics and personalised home environments.

“We have meticulously prepared for this launch over a span of two years, aiming to spearhead Vietnam’s interior decor market,” said a spokesperson from Central Retail.

Other players in the furniture industry are making strategic moves. JYSK, a modern retail space offering a wide range of Scandinavian-style furniture and home decor products, in late June opened a new centre in Hanoi, providing customers with a convenient and visually appealing shopping experience.

With over 1,000 diverse products on display, including furniture, bedding, lighting, and outdoor essentials, JYSK has been bringing the essence of Nordic living closer to Vietnamese consumers since 2015.

“With 12 stores across major cities and a well-established online presence, JYSK Vietnam is committed to delivering the best shopping experience with guaranteed quality, reasonable prices, ease of purchase, and attentive customer service,” the company said in its statement.

While Vietnamese products are highly sought after in discerning international markets such as the United States, European Union, and Japan, they remain relatively underrepresented in the domestic market, according to Phung Hoa Cuong, CEO of FURNILAND Furniture.

“This is due to a predominant focus on exports by local manufacturers and represents a missed opportunity for Vietnam, considering its status as the second-largest wooden furniture exporter in Asia. Making these globally recognised products available domestically would quickly garner significant market share,” Cuong said.

Trang Le, a freelancer marketing consultant based in Ho Chi Minh City, told VIR that a list of prominent furniture brands, ranging from mid-range to high-end, offers a distinct style and catering to various preferences.

“There are a few top furniture brands known for their quality, such as A Concept, Baya, MOHO, JYSK, Nha Xinh, Index Living Mall, Chilai, and Sonder Living, to name a few,” Le said.

Even well-established corporations are acknowledging the constantly evolving furniture industry.

Capping off nearly three decades of growth, Hoa Phat Furniture JSC, a subsidiary of steelmaker Hoa Phat Group, embarked on a strategic brand repositioning initiative at the beginning of 2022.

Under its new moniker, The One Furniture, the company unveiled an invigorated slogan and a fresh visual identity, aiming to communicate its comprehensive vision for future development.

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