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Why is AEON so profitable in Vietnam

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Why is AEON so profitable in Vietnam

January 27
04:10 2022
In addition to the successful business model, Aeon also scores with consumers for the small things related to customer service, creating the image of a clean, spacious Japanese mall and good service.

Ameer

Recently at a meeting with Prime Minister Pham Minh Chinh, Mr. Motoya Okada, Chairman of AEON Group said “the Group is implementing medium and long-term plans in Vietnam, considering Vietnam as an equally important market. main market in Japan. The group plans to double its commercial centers in Vietnam in the near future. In addition, the chairman of AEON also said that the group plans to list on the Vietnamese stock market and promote the export of Vietnamese goods such as seafood, garments, etc. to Japan”.

Looking back at the history, AEON officially operated in Vietnam since the end of 2009 in the form of a representative office. Up to the present time, AEON has 4,000 employees, expanding its business in 6 provinces and cities, with 4 main models: Shopping Center and General Department & Supermarket, specialized stores, supermarkets small and medium size and e-commerce platform.

Why is the Japanese retail giant doing successful business while many other foreign giants are falling behind in the race?

Better than the mall model 

A recent retail analysis report by Ban Viet Securities Company stated that in the field of real estate rental, the shopping and entertainment model at a single destination has proven to be a recipe for success. success for modern shopping centers. Businesses pursuing this model include Aeon and Vincom Retail.

Sharing with Forbes magazine in May 2020, Mr. Nishitohge Yasuo – former General Director of Aeon Vietnam Co., Ltd. said that compared to other countries, the needs of Vietnamese customers change rapidly, in the same direction as the increase. economic growth of Vietnam. Changing consumer preferences also lead to a shift in retail models.

Looking back on history, Parkson’s first store in Vietnam – Parkson Saigon Tourist Plaza – opened in 2005 in the central area of ​​Ho Chi Minh City. HCM. This retail business achieved its peak in the period 2005-2010 with 9 department stores operating in Vietnam to help introduce international brands to domestic consumers.

However, this department store model soon revealed some disadvantages compared to the shopping mall model applied by Aeon and Vincom Retail. Meanwhile, shopping malls provide a one-stop shopping experience in which consumers can enjoy a diverse retail experience.

For example, Aeon’s integrated shopping mall model with more than 70% of space for lease, has a wide range of products at different price ranges. A family can spend a whole day shopping and discovering most products and services from fashion, cosmetics, food, movies, banks, fitness centers, dining…

Food stalls are present on all floors, divided by style. The ground floor of Aeon Mall centers is the fast food stalls of KFC, Pizza Hut, Paris Baguette, Texas Chicken. The other floors have large dining areas with large capacity and idiosyncratic restaurants. In addition, Aeon also has Delica, Aeon’s own culinary brand that sells sushi and sashimi after this group conducted a survey to show that Vietnamese people prefer Japanese sushi.

In addition, the retail area of ​​department stores is usually smaller than that of shopping malls. In addition, department stores usually have an area of ​​less than 20,000 square meters and the number of tenants focuses on cosmetics and fashion items. The relatively small space and traditional open display also make it difficult for department stores to optimize benefits for each tenant as well as accommodate additional services.

Aeon also scored points with the cultural processing phases dedicated to serving Japan. Remember the summer of 2019 when Hanoi experienced its peak heat wave, hundreds of people flocked to Aeon Long Bien (Hanoi) to lie on the floor to avoid the heat. The very next day, Aeon Mall added tables and chairs right at the location where people had rested before. Or recently, this business donated meat, fish, vegetables, tubers, fruits, … which have expired customer service standards but still ensure conditions for making animal food after the call for help from customers. Botanical garden. It is known that each week the Zoo and Botanical Garden will receive 2 batches and each batch of about 200kg of food of all kinds.

Media Contact
Company Name: AEON Vietnam
Contact Person: Media Relations
Email: Send Email
Country: Vietnam
Website: https://www.aeon.com.vn/

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