Ho Chi Minh City's retail market is witnessing increasingly fierce competition, as consumers tend to tighten their purse strings amid rising prices of many goods, while incomes do not improve significantly.
Competition to retain consumers requires a transparent market, a tailored approach to enhance the shopping experience, and spending incentives.
Prices rise, demand falls
Data from the Ho Chi Minh City Statistics Office shows that the city's consumer price index in June 2025 increased by 0.53% over the previous month, up 5.27% over the same period; of which, other goods and services increased by 5.56%; food and catering services increased by 4.19%.
Essential goods including pork and vegetables increased slightly, causing people's daily spending to increase significantly.
Ms. Nguyen Thi Toan (living in Dien Hong ward, Ho Chi Minh City) hesitated in front of the food counter in the supermarket, carefully examining the price of each item before putting it in the basket.
Ms. Toan shared: “Before, I used to go to the supermarket 2-3 times a week, shop freely, and don’t hesitate to improve my family’s meals with nutritious foods. Now that the cost of living has increased and the new school year is approaching, I’m a little more frugal and consider every purchase carefully.”
Like Ms. Toan, many consumers in Ho Chi Minh City are tightening their spending in the context of rising prices of goods and services, while their incomes have not kept up. Choosing more promotional items or reducing expensive items in their shopping baskets is the solution many people choose.
Ms. Tran Thi Ha (residing in Phu Thuan ward, Ho Chi Minh City) said: “Before, I chose to shop according to my needs, but now I pay more attention to discount programs, many practical items, if there is a deep discount, I will buy them to use gradually. In my daily diet, I also prioritize nutritious foods but at a cheaper price, for example, replacing imported beef with domestic beef, replacing salmon with some cheaper fish…”
Consumer behavior has changed significantly, showing that Ho Chi Minh City residents are gradually becoming more "pragmatic" and "cautious". Ms. Nguyen Thi Hang, a pork trader at Tan Dinh market (Ho Chi Minh City) shared: "Business is getting worse and worse, customers come to the counter to see which type is delicious and has a reasonable price before buying. Instead of buying 1 kg like before, now they only buy 5-7 taels, we have to order less to avoid losses."
According to market analysts, tightening spending is an understandable reaction of consumers in the context of rising commodity prices. Research by Vietstats (an economic data aggregator platform) also shows that Ho Chi Minh City's retail market will continue to face competitive pressure in the context of weak consumer confidence, while freight costs increase, input materials fluctuate, and prices are difficult to reduce.
According to Vietstats' research, although still maintaining a high proportion, many essential commodity groups are gradually decreasing in the commodity structure, specifically: food and foodstuffs decreased from 19% in 2020 to 17.5% in 2024; garments also decreased from 21% to 18%.
Traditional markets are expected to be more affected because it is difficult to compete on price, while modern retail channels, without a long-term strategy, will find it difficult to maintain their appeal to consumers.
Increase promotions, retain customers
In the context of declining purchasing power, traditional markets and modern retail channels must quickly adapt and change their approach to new consumer behavior. Many vendors at traditional markets take better care of their stalls by selling quality, diverse products, ensuring food safety and hygiene, helping people to constantly "change dishes."
Instead of retail, many retailers prepare essential combos, or pre-process and package them, helping shoppers easily choose enough dishes for their meals.
Ms. Pham Thi Huong, owner of a seafood stall at a market in Tan My ward (Ho Chi Minh City) said: “When we prepare the seafood in advance, customers are more satisfied. They take the food home, just wash it and prepare it for the next time. Next time, they come back to our stall. In a situation where business is slow, keeping customers is a blessing, taking the work as profit.”
According to market experts, urban consumers not only shop individually but also expect a comprehensive shopping experience, convenient after-sales service and multi-channel services. Therefore, not only traditional markets, but also retail systems must compete to retain customers.
For example, the Winmart system does not only stop at selling, but also designs experiential shopping spaces, and simultaneously implements a series of attractive seasonal promotions, focusing on over 200 essential products, with strong discounts, some groups of products up to 50% or buy 1 get 1 free.
Grasping the trend of tightening consumption, Lotte Mart supermarket system also focuses on promotions on food groups, practical consumption with the basket of goods of housewives. Not only deeply discounting many household goods, health care products, fashion ..., the system also focuses on promotion programs on fresh food groups to increase purchasing power in supermarkets.
“We work with suppliers to find the best price regulation solutions, focusing on stimulus programs for food, groceries, and essential household goods, diversifying both customer segments and daily consumer baskets, thereby improving and stabilizing purchasing power as expected,” said Mr. Nguyen Chi Cuong, Director of Lotte Nam Saigon Supermarket.
As a vibrant retail market, accounting for about 25% of the national market size, Ho Chi Minh City is also at the forefront of implementing concentrated promotional programs and price stabilization. Not only supermarkets, but businesses are also racing to stimulate the market through concentrated promotional activities implemented from June 15 to September 15.
More than 10,000 businesses launched nearly 80,000 promotional activities, focusing on low-income customers such as workers and laborers.
Mr. Nguyen Nguyen Phuong, Deputy Director of the Department of Industry and Trade of Ho Chi Minh City said: “Enterprises participating in the program invest in research, development, product diversification, creating their own mark on the market, helping consumers easily identify. The market is increasingly competitive in a positive direction, with more diverse and vibrant forms of promotion, stimulating consumers to shop. This is also a solution for businesses to maintain market share and retain consumers.”
According to market analysts, during the period when people tighten their spending, the deciding factor for the success or failure of a sales channel is not only low price, but also quality and consumer trust.
Besides, retailers must understand people's consumer behavior to design products and promotions suitable for each segment to bring practical results.
Mr. Le Hoang Long, Director of Retail, NielsenIQ City Company (a global market research company) commented: “The market supply is higher than the shopping demand, making competition in the retail market in Ho Chi Minh City fierce. In that context, whoever understands customers better will have a better chance of winning. Digitizing customer consumption behavior is very important, helping businesses measure and evaluate spending levels, habits and consumer behavior to stimulate demand at the right focus and key points.”
Consumers are becoming more pragmatic in spending, which is both a challenge and an opportunity for retailers, businesses, and traditional markets to restructure their approach, build trust, and create real value for consumers./.
Source: https://ttbc-hcm.gov.vn/tp-ho-chi-minh-cho-sieu-thi-thay-doi-de-tiep-can-hanh-vi-tieu-dung-moi-1019230.html
Comment (0)