Vietnam Tipped to Be Asia’s Fastest-Growing Covenience Market, Followed by Indonesia
President Jokowi tours the newly inaugurated LuLu hypermarket in Cakung, Jakarta. The hypermarket is part of a US$500 mn investment commitment by UAE-based LuLu Group International.
Watford, 29 Jumadil Akhir 1438/27 March 2017 (MINA) – Vietnam is forecast to be the fastest-growing convenience market in Asia by 2021, followed by the Philippines and Indonesia, according to new data released Monday by international grocery research organisation IGD.
Asia’s grocery market is the largest in the world, with a predicted 6.3% compound annual growth rate up to 2021.
Its size is forecast to reach US$4.8 trillion by 2021, equivalent to Europe’s and North America’s combined, esmmagazine.com reported.
In the convenience channel, IGD is forecasting high double-digit compound annual growth over the next four years in Vietnam (37.4%), the Philippines (24.2%) and Indonesia (15.8%), based on the performance of the leading convenience store operators in each market.
A shift in the market
Nick Miles, head of Asia-Pacific at IGD, says: “The retail markets in these three countries are gradually shifting from traditional to modern trade, and there are several factors driving this: a positive economic outlook; a significant increase in GDP per capita; deregulated markets encouraging more foreign investment; and rapidly changing shopper habits.”
“Among all the bricks and mortar grocery channels, convenience shows the strongest growth prospects in Asia, thanks to rapid urbanisation, a growing young population and greater levels of disposable income”, Miles explained.
On the particularly strong growth tipped for Vietnam, Miles says, “convenience stores in Vietnam have become popular destinations for young consumers to shop and hang out, as the stores provide them with an air-conditioned environment, well-organised shelves and seating areas, high quality products and, in some stores, free Wi-Fi.”
Vietnam, the Philippines and Indonesia share similar characteristics that make their convenience markets particularly ripe for growth, according to IGD.
These three convenience markets are predominantly driven by an increase in store numbers. (T/RS5/RS1)
Mi’raj Islamic News Agency (MINA)
