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| Representatives of the parties responded about the promotional program within the framework of the JAPAN MALL project to introduce Japanese products to the Vietnamese market in the field of children's products. (Source: JAPAN MALL) |
Accordingly, the project will expand the distribution network, partly solving the problem of Japanese products not being widely distributed to other areas outside urban areas in the Vietnamese market. By expanding and providing high-quality products of Japanese companies to the Vietnamese market, JETRO will create a better environment for consumers.
The project will implement O2O (Online to offline: Marketing method to approach customers from the Internet to physical stores) promotion programs for Japanese products being sold at Con Cung with 699 supermarkets (as of January 23, 2024) through the use of the MoMo platform - the largest electronic payment service provider in Vietnam, accounting for 68% of the market share (as of the first quarter of 2023). In addition, JETRO also cooperates with Momo to promote the project's products being sold at Hachi Hachi - a partner retailer of JAPAN MALL.
According to Mr. Matsumoto Nobuyuki, Chief Representative of JETRO Ho Chi Minh Office, in recent years, Vietnam has been attracting attention because it has become not only a "production headquarters" for foreign companies but also a "consumer market" due to its large population and increasing purchasing power.
According to a survey conducted by JETRO from August to September 2023, most Japanese companies operating in Vietnam consider “market size/growth potential” an advantage in Vietnam’s investment environment. 70.2% of the companies participating in the survey commented on these advantages of Vietnam.
Vietnam’s retail and service sales continued to grow at an annual rate of over 10% per year from 2010 to 2019, before the Covid-19 pandemic, according to the General Statistics Office of Vietnam. Moreover, even after the Covid-19 pandemic broke out, the growth rate continued in 2022 with an increase of 18.6% year-on-year including the status quo from the previous year’s lockdown and an increase of 9.3% in 2023, despite the domestic economic downturn.
In addition, Vietnam's baby products market continues to expand along with economic growth. According to Euromonitor , the size of the baby food market in 2022 has an estimated retail revenue of about VND 32.5 trillion and the CAGR (compound annual growth rate) from 2022 to 2027 is expected to be about 6%.
Similarly, retail sales of products for infants and children (hygiene products, skin care, hair care, pharmaceuticals, etc.) in 2022 are estimated to reach VND 1.4 trillion, with a CAGR (compound annual growth rate) from 2022 to 2027 expected to be around 10%.
In particular, according to GlobalTradeAtlas, in terms of importing infant formula (HS1901.10) into Vietnam, Japan ranks first in import value by country (303.94 million USD, 2022), accounting for a market share of 20% and the import value has been increasing over the years.
“In this way, we can expand the promotional area to consumers in areas that were previously inaccessible, through online sales channels with traditional stores (offline), consumers can better understand the benefits of Japanese-made children's products and daily necessities. We hope that as awareness of Japanese products expands not only in Ho Chi Minh City and Hanoi but also in suburban and rural areas, it will contribute to promoting consumption activities,” said Mr. Matsumoto Nobuyuki.
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| The project will implement O2O promotion programs for Japanese products being sold at Con Cung with 699 supermarkets through the use of the MoMo platform. (Source: JAPAN MALL) |
Mr. Akihiro Nakamura, Senior Strategy Director of Online Mobile Services Joint Stock Company (MoMo), also said that MoMo is currently the largest electronic payment service provider in Vietnam, accounting for 68% of the market share (as of the first quarter of 2023). Promoting and promoting products through the MoMo platform will give users additional benefits from promotional activities and enhance product recognition. Similar will be the joint activities with Hachi Hachi.
Con Cung representative also said that it is currently the leading mother and baby retail chain in Vietnam with 699 supermarkets. According to shared data, in 2023, the Con Cung system distributed more than 3.5 million Japanese products nationwide in all product groups such as nutrition for mothers and babies, child care products, functional foods, etc. and recorded sales of nearly 40 million USD. Currently, Con Cung is cooperating with many Japanese manufacturers and is also the official distributor of Japanese brands in Vietnam.
JETRO's promotion activities with the O2O promotion program are one of the following directions of the JAPAN MALL project. This is a project to develop foreign sales channels for food products, daily necessities, cosmetics, children's products... through retail stores and e-commerce sites abroad.
In Vietnam, the project started in 2016 and is increasingly diversifying its activities, expecting that genuine Japanese products will be known and used more by the main customer groups on Vietnamese e-commerce sites, contributing to raising awareness of Japanese products in the market.
The JAPAN MALL project is one of the projects in the series of activities to celebrate the 50th anniversary of the establishment of diplomatic relations between Japan and Vietnam. In 2023, Vietnam and Japan marked the 50th anniversary of the establishment of diplomatic relations and furthermore, the two countries will continue to cooperate and develop economic activities between Vietnam and Japan. JETRO will continue to support Japanese companies to promote their activities in the Vietnamese market to contribute to the sustainable development of both countries.
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