Retailers reach out for business

In one day during December 2011, Nguyen Kim - a local leading electrical appliances retailer - simultaneously launched five retail outlets in four provinces and municipalities including Ho Chi Minh City, Danang, Vung Tau and Bien Hoa city.

A Nguyen Kim representative unveiled the firm would open 12 new outlets in 2012 and aim to expand the system to 50 by 2015.

The firm was first founded in 1992 as an electronics store selling audios, videos and household appliances. It became the first electronics shopping center in Vietnam in 1996 and changed its name to Nguyenkim Trading Joint Stock Company in 2001.

The firm just opened five retail outlets until 2011. In 2011 alone it rolled out five new outlets demonstrating its strong determination to deepen root in the domestic market.

Around VND15-20 billion ($715,000-$950,000) worth in investment capital and at least 1,000 square metre in space would be required to open a retail supermarket for electrical appliances, according to Nguyen Kim. Thus, the firm needs to inject at least VND600 billion ($28.5 million) to have 40 new outlets in place within the next four years to meet the set target.

“Revenue figures of several product groups like telephones, TVs and laptops would continue surging in the coming years. This is why Nguyen Kim decided to expand our presence to make the most of our experiences and advantages,” said the firm’s marketing sales director Phan Linh Phuong.

Like Nguyen Kim, Vinatex Mart - a big textile garment retail mart system under the Vietnam National Textile Garment Group (Vinatex) - just inaugurated five textile apparel marts in the past over a month in locations across the country worth more than VND100 billion ($4.7 million) in total investment.

To manage 200 textile apparel store and mart system by 2015 Vinatex Mart’s management is stepping up negotiations on space leasing in locations across the country.

“We envisage rolling out 12 new stores in 2012, bringing the store number to 75 by the year end,” said Vinatex Mart director Nguyen Thi Hong Huong.

With nine showrooms and 69 sales agents throughout Vietnam, Hanoi Textile Garment Joint Stock Corporation (Hanosimex) has carved a firm foothold in the home market. The firm, however, just opened a new Hanosimex trading centre in Hanoi’s Ha Dong district.

“From 2011-2020 Hanosimex will scale up investment to expand home distribution network. Total investment for the period will be around VND4.5 trillion ($214.2 million),” said the firm’s general director Chu Tran Truong.

In a related development, Gap, a US leading garment retailer, later last year launched its first store in Ho Chi Minh City. The firm intends to open similar shops in Hanoi and also Ho Chi Minh City in 2012 primarily serving the kids and teenagers.