Infusion of Vietnamese and Japanese retail at Fuji Mart

Keisuke Hitotsumatsu, CEO of Fuji Mart Vietnam

FUJI MART IS THE RESULT OF STRONG CO-OPERATION BETWEEN VIETNAM’S BRG AND JAPAN’S SUMITOMO. WHY DID THE TWO CHOOSE RETAIL, WHICH IS HIGHLY CONTESTED AT THE MOMENT?

Despite retail being very competitive, Vietnam’s macroeconomic situation shows that demand is growing at a double-digit rate.

We recognise the trend will continue as Vietnam’s economic prospects remain positive, and we see living standards improve day by day.

Many friends of mine said that the purchasing attitudes of the Vietnamese are changing as the economy grows. Furthermore, the food retail market is about to undergo a major transformation.

Growing interest in food safety and trust is expected to force a transition from shopping at traditional wet markets to modernised supermarkets for fresh produce.

Both BRG and Sumitomo have great resources to make comprehensive investments in this project.

Sumitomo has more than 50 years of experience in operating supermarket chains and BRG has good working knowledge of a variety of businesses in Vietnam. Therefore, we agreed to develop a modern supermarket chain in this country.

Through the Fuji Mart retail model, both BRG and Sumitomo hope to provide Vietnamese people with the most delicious, nutritious, and safe food products.

IN JAPAN, SUMITOMO STORES ARE KNOWN FOR THEIR FRESHNESS AND GOOD SERVICES TO CUSTOMERS. ARE THESE EXPECTED TO BE THE CORE VALUES OF THE FUJI MART CHAIN IN VIETNAM?

Exactly. We are sure Fuji Mart will also be known for excellent store operations in Vietnam, and we adopted a series of basic concepts to ensure this. For instance, 5S is a principle commonly used by Japanese manufacturers, retailers and service providers.

The five S’s can be explained as Seiri (disposal of disused items), Seiton (arrangement of items in the necessary location), Seisou (cleaning), Seiketsu (to maintain continuous cleanliness by the implementation of the previous three factors), and lastly, Shituke (discipline).

It is important for us to work based on this concept and to ensure products are fresh everyday.

The first Fuji Mart store opened in Hanoi in December, promising a fresh perspective

DO YOU THINK THIS CONCEPT MAY RESULT IN HIGHER OPERATION COSTS AND, ULTIMATELY, HIGHER PRICES?

We will apply our modern management model to ensure labour productivity and efficiency, and to reduce markdown or disposal losses. We will manage all operating expenses to realise affordable prices for customers.

WHAT ARE THE DIFFERENCES ­BETWEEN FUJI MART AND OTHER SIMILAR OUTLETS IN VIETNAM?

We will create a brand new model that Vietnamese customers have never experienced before by implementing Japanese supermarket know-how as much as possible. At the same time, we will treasure Vietnamese food culture and the local communication style, because first and foremost Fuji Mart is a supermarket chain for Vietnamese people. Seeing is believing, and we will welcome all customers. We want to ensure each customer is satisfied at Fuji Mart.

BUSINESS IN THE RETAIL ­INDUSTRY REQUIRES LONG-TERM VISION. HOW DO YOU PLAN TO RISE ABOVE THE CHALLENGES?

With the purpose of bringing the best quality products for Vietnamese consumers, we decided to blend Vietnamese food culture with Japanese service quality. BRG and Sumitomo discussed this many times in order to deepen mutual understanding and realise our concept for this first Fuji Mart store.

This challenge will continue forever, because Fuji Mart stores have to change according to Vietnamese market trends and customers needs. However, as long as BRG and Sumitomo share the desire to improve the quality of life for the Vietnamese people, we will always try to find common solutions to maximise value for our consumers.