In a world where retail behemoths seem sometimes to be taking over, Vietnam can often seem like a breath of fresh air. Whilst Makro and Casino have a presence, and convenience store chains such as Circle K are experimenting, this is a market where big global retail has not yet taken over. And whilst complex regulation is part of the reason why, the other part lies in understanding the Vietnamese shopper.
In our shopper marketing training and workshops, we talk about one of the biggest shopping decisions a shopper makes (and yes it takes place outside the store!): where will I shop?
This decision is based on the shopper’s interpretation of the consumption needs and the needs of the shopper. I was in Vietnam earlier this week meeting potential partners and coaching sales and marketing leaders for a CPG company there. After some great coaching sessions I had a little spare time to explore some stores, and found some which are possibly unique to the market there and a perfect example of shopper needs driving outlet selection.
In Ho Chi Minh City there is a curious store type, called (rather unimaginatively) “Milk, Biscuit and Spirit Storesâ€. One step further than Dr. Feelgood at least! These are a curious breed of shops which sell (go on, guess!) milk, biscuits, and spirits. Many of them sell a little of other categories – perhaps some confectionery, or some diapers – but the vast majority of their range is limited to those three categories.
This rather unique store is apparently a throwback to a time when some Vietnamese had access to imported goods via relatives living abroad and they started to sell the surplus. The stores are clustered on a single street and virtually every store sells the same stuff. You can even find a “store†consisting of two women, two lawn chairs and a box of product that the ladies bought from a shop further down the road (unfortunately they declined to be photographed).
In this day and age it’s hard to imagine how it works until you see the shopping process. Shoppers mount the pavement on their motorbikes, have a brief chat to the shop assistant and drive off with their product. Milk powder is expensive enough to warrant a detour home, the price is good, and the shopping experience perfect – you don’t even need to switch off the engine. In Vietnam this (existing convenience and focus on the shopper?) is one of the reasons big box retail has struggled. By far the dominant form of transportation in urban areas is by motorcycle, and there is only so much stuff I can pack onto a bike on the way home. By contrast the Milk Shop hits shopper needs almost perfectly.
In the world of shopper needs – convenience is often king.
