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FRANCHISING,
A STRATEGY FOR FOR SMALL & MEDIUM RETAIL STORES IN VIETNAM ?
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1. Role of small and medium retail stores ( C-Stores) chain.2. Franchising challenges3. Expectation of Potential Franchisee in C-store business4. Competition Strategy5. Critical issue
CONTENT
Role of small and medium retail store chain
Who CREATE convenience store concept ?
Who DOMINATE convenience store business ?
What is a convenience store?
Role of small and medium retail store chain
“A convenience store is a small store or shop that sells items such as candy, ice-cream, soft drinks, lottery tickets, cigarettes and other tobacco products, newspapers and magazines, along with a selection of processed food and perhaps some groceries…”
What is a convenience store?
Wikipedia
Role of small and medium retail store chain
The participatio
n of convenience stores in distribution of essential products in
ASIAN market
Source: Japanese franchise association
Role of small and medium retail store chain
Who will come and
success in Vietnam?
Who will come and
success in Vietnam?
Role of small and medium retail store chain
Since 1996 Supermarket stores with a size range from 1000-3000m2 were set and quickly took a key playing role in the retail market. Key players have been local retailers
From1999 some foreign player have taped in the marker with store format like supermarkets, department stores, Cash & Carry such are: Big C, Metro, Lotte, Dairy Farm…
2008 The WTO commitment effected and foreign big boys expanded their chain and modern trade channel took a big step in development
2006 Modern small and medium stores concept said “hello” to the market…Then many more smart player put their foot prints and made some noise in “retail franchise industry” : G7 Mart, Shop&Go, Circle K, Familymart…and some more rumours
Market development sistuationMarket development sistuation
Role of small and medium retail store chain
In the next 5 years, there will be around 3,000 real convenience stores estimately
Most of players will expand their chain by FRANCHISE STRATEGY
Role of small and medium retail store chain
Franchising challenges
Franchise agreements challenge:-Lack of industry momentum-Lack franchise knowledge of potential franchisee-Lack of legal base to protect franchisee
Decree 35 laid some groundwork for increasing franchise activities
Franchising challenges
Expectation of potential franchisee in C-store business
E. Daily sales
E. Mix margin
We conducted a survey on 100
Mom-Pop stores in
HCMC about
business performan
ce
Current situation
Expectation of potential franchisee in C-store business
We conducted a survey on 100
Mom-Pop stores in
HCMC about
business performan
ce
Current situation
Stock control
No of people
Expectation of potential franchisee in C-store business
We conducted a survey on 100
Mom-Pop stores in
HCMC about
business performan
ce
Current situation
Willing to be a part of a system
Expectation of potential franchisee in C-store business
We conducted a survey on 100
Mom-Pop stores in
HCMC about
business performan
ce
Minimum required performance
to be able franchised
-Target ADS: 15 Mil Dong-Target of GP Ratio : 20%- Hold down construction/equipment cost
Competition StrategyMen
Female
SweetDeli
Family Mart
Circle K, Shop & Go
Coming soon
Segmentation target?
( It is hard to
specialize however)
The Exciting game
has just started
A RETAIL & FRANCHISE CONSULTANT IN [email protected]
