Please enable JavaScript.
Coggle requires JavaScript to display documents.
Retail market 2 (Perception of key players (Key competitors (Saigon Coop…
Retail market 2
Perception of key players
Strengths& Weakness
Traditional trade
Strengths
Low price
1.5 Mil POS
Select
No parking
Weaknesses
Bargaining
Customer service
Loyalty
Promotion
Quality
Originals
Expiration date
Quality standard VietGap
Net weight
No air con
Saigon Coop
Key competitors
Mobile World
Saigon Coop
Satra
Traditional trade
Channels
Street shop medium
Street shop small
Wet market
Areas
Urban
MT 36%
GT 64%
Rural
MT 9%
GT 91%
Total revenue
MT 25%
GT 75%
POS
MT 10,000
TT 1.5 Mil POS
Vinmart
Vinhomes
Convenient store
Saigon Coop
Traditional trade
Wet market
Bach Hoa Xanh
Satra
Bach Hoa Xanh
Vinmart
Convenient store
Consumer behavior :red_flag:
Behavior
Bach Hoa Xanh
Visit mini super market everyday
Price& promotion sensitive
Affordable prodc
GT customers
Prefer Fresh products
Vinmart
Quality
VIETGAP
VinEco
Origins
Not price sensitive
Non Cash payment
Vinhomes residents, urban middle class, office workers
Prefer loyalty
Foreigners (Korean)
Saigon Coop
BHX+ Affordable apartment residents
Best Selling item
Vinmart
VinEco vegetables 300% YOY 2019, 3,200 Bil
14 high technology+ 800 affiliates farms
Vinhomes
91,000 units
300,000 units
Meat Deli
1 Bil USD
50% of Chilled meat
Brewery
Sparkling water Vinh Hao, Vivant
Instant coffee Vinacafe->+ Canned coffee
Tonic water Compact, Tiger
Personal life- NET 3.1 Bil USD
Sauces
Fish sauce
Soya Sauce
Chilli sauce
Instant noodles
Fruits
Import apple
VIETGAP fruits
Saigon Coop
Fruits
Fresh meat
Bach Hoa Xanh
Fresh products 50%
Fruits
Private labels
Gross margin 25-30%, retail price -20%
Import products
Retail price= local products
Higher quality
Attract Rural areas
Common trend in shopping behaviors :red_flag:
Visit Modern trade every day
Air con
Worry free net weight
Competitive price
Quality
Originals
Quality standard, 100% VIETGAP
Expiry date
GT Customers
Price& promotion sensitive
Products availability
Fresh products
Select by themselves
Not so much loyalty
MT
Brand loyalty
Non Cash payment
More premium products
Import Fruit juices, Milk, Cookies, Personal life
Price competitive to local
Differences by Region
Vinmart
Vinhomes- Central Business
Premium products
Imported products ( Fruits, Fruit juice, cookies, personal life...)
Non Cash payment
More foreigners ( Korean)
Fresh products
Region
Hanoi
Non Hanoi
Bach Hoa Xanh
Urban- Non Central Business District
Import products
Private labels
Fresh products
Tier 2 Provinces, rural
Private labels
Import products
Fresh products
Saigon Coop
Preprocessing food Combo
Regions
North
South
Macro :red_flag:
General
Central 28% Population, 20% GDP
South 37% Population, 46% GDP
North 36% Population, 34% GPD
Income per capita
North
Urban 1,900 USD pa
Rural 879 USD pa
South
Urban 1,760 USD pa
Rural 931 USD pa
Domestic brands
North
Urban 72%
Rural 91%
South
Urban 67%
Rural 80%
Bigger package :red_flag: :red_flag:
North
Urban 65%
Rural 72%
South
Urban 64%
Rural 62%
Convenient& time saving- Prepare meals
North
Urban 55%
Rural 56%
South
Urban 70%
Rural 61%
Advertisement of new products :red_flag: :red_flag: :red_flag:
North
Urban 27%
Rural 31%
South
Urban 46%
Rural 40%
Categories :red_flag:
North
Hanoi
Brewery 17%
Dairy 31%
Packaging food 28%
Personal care 14%
Family care 9%
Rural
Packaging food 38%
Personal care 10%
Brewery 22%
Family care 10%
Dairy 20%
Central
Brewery 32%
Packaging food 32%
Personal care 8%
Family care 8%
Dairy 20%
South
HCM
Packaging food 20%
Personal care 15%
Brewery 22%
Family care 9%
Dairy 35%
Rural
Brewery 24%
Packaging food 28%
Personal care 12%
Family care 9%
Dairy 27%
Media :red_flag:
North
Hanoi
Viral
TV ad
Retailer adviser :red_flag:
Rural
Viral
TV Ad
Retailer adviser :red_flag:
South
HCM
Viral
TV Ad
Promotion& Discount
Rural
TV Ad
Viral
Retailer adviser :red_flag:
Central
Viral
Promotion& Discount
Retailer adviser :red_flag:
Retailer adviser is very helpful-> Train the staff to cross sell :red_flag:
FMCG consumption pa
North
Hanoi 142 USD pa
Rural 77.5 USD pa
South
HCM 147 USD
Rural 100 USD
Lunar New Year :red_flag:
FMCG Purchasing power 1.95 Bil USD 2018
New Year Gift ~33% of FMCG
Gifts
Parents- Money
Children- Clothes, shoes, jewelry
Teachers
Urban- Money
Rural- Confectionery
Siblings& relatives- Confectionery
Parents in law
Urban- Gift basket
Rural- Fresh
Avr. Value
Urban 19.5-26 USD
Rural 13 USD
Channels :red_flag:
North
Hanoi
Hyper market 79%
Super market 43%
Street shop 88%
Rural
Super market 46%
Hyper market 29%
Street shop 91%
South
HCM
Super market 64%
Street shop 58%
Huper market 83%
Rural
Super market 75%
Street shop 72%
Hyper market 15%
Places where you plan to purchase Lunar new year gifts
Food safety :red_flag:
Bach Hoa Xanh
Corporate culture
Strong commitment from CEO
Scoring on Customer satisfaction
Promote on Customer satisfaction not on Revenue& profit
Most competitive benefit
Cateogory
Integrity
Delivering kindness
Being honest
Taking responsibility
Customer experience
Selling customer satisfaction
Quality
100% VIETGAP
Vincommerce
Core Value
Creativity
Credibility
Integrity
Speed
Quality
Humanity
Very strict Compliance& Quality Assurance
VinEco
Greenhouse technology from Israel
Saigon Coop
Core Value
Safety
Convenience
Fresh
Safe Convenient food store
Quality
80% VIETGAP
BSI Quality control
Process for Quality control from Origins
Not safe vegetables at Mega market, LOTTE Mart, Metro in the North 2015-2016
Corruption from Purchasing Dept.
Basic Brands& Info :red_flag:
Mobile World :red_flag:
Stores 1,000-> 2,000 Target 10,000, MS 10%-15%~10 Bil USD
Revenue
2019 10,000 Bil VND
2020 25,000 Bil VND
2022 3 Bil USD
EBITDA
2019 20%
2018
2020 27-28%
Key players Supply chains
FMCG Distributor/ Importer-> DC-> Logistics :red_flag:
Import->DC Logistics :red_flag:
Price lower 20% vs competitors
Retail price= local products
Business household-> DC-> Logistics :red_flag:
Shorten delivery time 4-5 days-> 2 days
Increase Gross Margin 15-20%
Fresher
Customer visit frequently
OEM-> DC-> Logistics :red_flag:
Retail price decrease 20%
Gross margin increase from 15-20%-> 25-30%
Distributor 15-20%-> Customer, 5% for Better Bargaining, 5-10% for Back margin-> Increase 10-15% Gross Margin :red_flag:
Key cost components
Operation 18%-19%-> Optimize
Area
Urban
Non-Central Business District
Front
220-300m2
35.7 USD/m2/month
Central Business District
Front
150m2
135.5 USD/m2/month
Rural
Front 12m
150-200m2
300m2
Corner
General
6-10 years, pay quarterly
Staffs
Small 10 staff
Big 25 staff
Utilities
Promotion
Lost 0.5%
DC 4.5%-5.5%-> 4-4.5%
Spoilage 2.5%-3% -> 2.5%
Vinmart :red_flag:
Stores
134 Vinmart, 2,888 Vinmart+-> 3,022 Vinmart
600 Stores Vinmart+ in QIV, 2019
2020
Close
Vinmart 10-30
Vinmart+ 150-300
Opening
Vinmart 10-30
Vinmart+ 300-500
Revenue
2019
26,000 Bil VND, +67% YOY
2020 42,000 Bil VND +65% :red_flag:
17,000 Bil Vinmart, +48% YOY
25,000 Vinmart+, +78% YOY
2023 1 Bil USD MEAT Deli
SSSG :red_flag:
Vinmart 24% Vinmart+ 25%
Better bargaining power+ Optimize cost + Higher Sales/m2
EBITDA :red_flag:
2015
-69 Mil USD, 37.4%
2016
-157 Mil USD, 39.6%
2017
-164 Mil USD, 29%
2018
-221 mil USD, 26.5%
2019
-90 Mil USD, 8.1%
2020
-3%- 0%
Region ( USD /m2/month) :red_flag:
Vinmart :red_flag:
Hanoi
2018 - 3.4
2019 -6.0
2017 -14.4
Others
2018 -15.1
2019 -11.1
2017 -28
Vinmart+ :red_flag:
Hanoi
2017 -43.4
2018 -29.3
2019 -3.0
Others
2018 -37.5
2017 -51.7
2019 -22.4
Key players in supply chain
Key cost components
Saigon Coop :red_cross :red_flag:
EBITDA
Stores
~400 Coop food
8,000-10,000 SKU
130 Super market
30,000 SKU
800 Shops
Saigon Coop food
Coop Xtra
Saigon Coop
Coop Smile 24/7
Ben Thanh Market
Cheers
Complex Vivo City
Department Store Sense City
TV Shopping HTV Coop
Premium Finelife
Revenue
2018 1.38 Bil USD
Net income after tax , YOY
2019 1.52 Bil USD, +9.4% YOY, +200 Stores :red_flag: :red_flag: :red_flag:
2020, 1.68 Bil USD, +10.58% YOY + 200 Store-> 1,000 Stores :red_flag: :red_flag: :red_flag:
Key players in supply chain
FMCGs-> DC-> Logistics
OEM( Private labels)-> DC-> Logistics
Key cost components
Area
Staffs
Lost
DC
Spoilage
Market positioning and how to achieve :red_flag:
Saigon Coop
Market positioning
Compete with GT
Primary customer-> GT Customer, Affordable residence
Support farmers in selling agriculture products without profit campaign
Vietnamese market, SKU 90% Vietnam
How positioning affect
Location inside Affordable& Non Central Business Districts
Affordable feeling
Wide range assortments
Key elements-> Customer return
Price compete vs. GT
80% VIETGAP
50% Fresh products
Loyalty member
Wide range assortments~6,000-8,000 SKU
Saving farmers
How to Market this proposition
Saving fruits
No profit
Low price
Improve
Category
10,000->3,000
Expansion
200/year-> 1,000/year
Focus
130 Coop-> 200 Coop
Coop Food-> 400-> 1,000
Financial performance
SSSG 25%
Revenue 20%
Vinmart
Marketing
Email, notifications on VinId app, email of Vinhomes
GT Shoppers
Not competitive
Locates in Vinhomes ground floor
How market positioning impact the store
80-100m2
Street
How to improve
Category
Fresh products 30%-> 45%-> Attract GT customers, 50% for Vinhomes residence
Key players in supply chain :red_flag:
OEM-> DC-> Logistics
Import-> DC-> Logistics ( Apple :red_flag:)
Business origins> DC-> Logistics
PSI managemetn
Assortments 6,000-8,000 SKU-> 2,500 SKU
Low bargaining power
Insufficient inventory
Products availability
Standard layout& Display-> Focus on Customer needs
Price printing from system
Decrease price, increase Gross profit
Increase Premium products
Imported products (Korean)
Customize Category/ Assortment across North, South and Central
Customize specific gift for Lunar New Year & Full Moon Festival :red_flag:-> Increase Sales 50-100% in Jan/Feb
Store layout :red_flag:
Close 80-100m
Open 150m, fron 10m- 15m, 150m2
Financial KPI
SSSG 25-30%
Improve EBITDA for HCM area and provinces
Sales per shop
Others 21,600->30,000 USD/month
Hanoi 28,000-> 45,000-50,000 USD/month
Hanoi 29% Shop, 45% Revenue
VinEco 138 Mil USD-> 1Bil USD
MEAT Deli 1 Bil USD
Co-branded card
Cash back 1%
Market positioning/ Primary customers
Urban& officers
Vinhomes residents
Not price sensitive
Paying via cards
Brand loyalty
Care about Health, Branded, quality, availabilty, convenience
Willing to pay higher
12-25% Foreign residents
Customer satisfaction& return visits
VinEco vegetables
VinId earning points 0.3-3%
Vinhomes
91,000 units sold since 2010
300,000 units to be sold
Mega City Vinhomes Ocean park 420ha, Vinhomes Smart city 280ha, Vinhomes Grand Park 271ha
Convenience- Ground floor
Mobile World
Market positioning/Primary customer
Saigon Coop
Compete with GT
Primary Customer: GT& Affordable residential
Vinmart
Convenient store
Primary customer
Vinhomes Residents
Urban residents
Middle class
Less price sensitive, willing to pay 10-15% more for convenient, care about health, payment by Credit/Debit card, use loyalty card
Bach Hoa Xanh
Compete with GT, primary GT customers
Primary customer GT
Price sensitive
Visit Grocery chain everyday
How positioning impact store
Category
Price= Traditional trade
50% Fresh-> 65%-> Visit every day
Import, foreign quality, low price, lower 20% vs competitors
150m2, 2,500 SKU, 300m2, 3,500 SKU
Ordering daily
100% Viet Gap
Store
Store layout
Location
Areas 150-200m2, 300m2
Display
50% Fresh
Customer experience
Buy 1 bunch, see 10 bunches or 10 kinds of vegetables
Air con
Select by themselves
1,000->2,000 in 2020, 10,000
Customer satisfaction& return
Deliver kindness
Competitive price
Fresh category
Products availability
Marketing
Slogan
Special promotion
Opening
Viral
Leaflets& Brochures
GT Shoppers
10-15% of GT Shoppers
Successful, improve?
Category :red_flag:
Fresh 50%->65%
Import Fresh fish, meat, dry goods( Candies, cookies)& Fruit juices
Prepare Category/Assortments for Central& North
Customize Specific SKU for Lunar New year& Full moon festival-> Increase 50-100% Sales
Private brand-> Decrease retail price 20%, Gross profit 15-20%-> 25-30%
Loyalty
Spoilage ratio 10% of Fresh~ High value bill
Earning points
Optimize cost
Spoilage 3.5%-> 2.5%
Operation cost 18%
Distribution center 5.5%-> 4.5%
Same Store Sales Growth 25%
Collection for Utilities bills
Successful? Yes-> sales grow from 28,000 USD-> 60,000 USD-> 85,000 USD/month, Daily bill 600/day, Value 4-4.5 USD/ bill