In Vietnam, small-scale mom-and-pop retailers are an important factor in the country’s economic growth. They account for 75% of the country’s retail market, helping to shape Vietnam’s rapid economic development.
These regions even managed to beat the Southeast Asian FMCG market by twice the growth rate and key contributors to this growth came from mainstream and premium products, accounting for nearly 40% and 38.5% respectively, according to a Nielsen study.
With over 1.1 million such businesses spread across all 58 provinces, their influence is undeniable. As a result, many Vietnamese corporations have prioritised marketing their goods to these rural areas.
6 Growth Strategies for Vietnamese Mom-and-Pop Grocery Stores
#1: E-commerce
With more than 70% of rural consumers owning a smartphone, e-commerce stands to be a very lucrative business model for traditional retailers. By selling online, mom-and-pop stores will be able to reach a much wider customer base, access new markets, and increase overall sales.
#2: Embracing Technology
To run a more efficient business, small retailers can consider investing in in-store technology. Point-of-sale systems can help to unify all transactions into a simplified data view, inventory management systems allow retailers to better assess trends in demand and supply, and accounting software provides a quick method for tracking financials.
In addition, grocery store owners can also benefit from attending simple Excel courses on reporting to better understand their store’s performance.
#3: Diversifying Products and Services
Rural consumers have also shown a strong inclination towards new products, with 77% being eager to try them and 95% stating their appreciation for a wider range of products.
A mom-and-pop store that carries a diversified range of products from global brands can then stand out among the competition and appeal to a wider segment of the population.
#4: Offering Delivery Services
As delivery services become more prevalent everywhere around the globe due to consumer preferences for convenience, Vietnam’s rural market is no different.
Delivery services are another way for mom-and-pop stores to reach a wider customer base comprising those who are unable to visit the store in-person, such as the elderly or disabled.
#5: Governmental Support
To better seize the economic opportunities from the expanding rural market, Vietnam’s government could provide more support for rural retailers through up-skilling courses, mentorship programmes, and subsidies to help these mom-and-pop stores gain competitiveness.
#6: Partnerships with Other Businesses
Many innovative partnerships could be created with various industries along a product’s journey from development to distribution. These include agricultural cooperatives or distributors that can help rural grocery stores access new resources and markets.
At Ninja Mart, we have full coverage of 29 provinces, not only focusing on the South Mekong but also expanding to Central, Highland Northern Vietnam, and suburban areas of major cities.
Our current services for mom-and-pop stores include weekly store visits from our in-house sales team, inventory managing, one-stop shop with over 500+ variety of products to offer from international and local FMCG brands, and a 48 hour delivery policy. Keen to find out more opportunities with us? Partner with Ninja Mart today!
