Outlet stores in Vietnam have become a go-to destination for those in search of bargains amid the recession. — Viet Nam News
HANOI: Experts believe outlet stores would provide an effective solution to the problem of lukewarm consumption demand as they encourage consumers to spend more on deeply-discounted products.
Le Viet Nga, deputy director of the Domestic Market Department at Industry and Trade Ministry, revealed that the department was working on a plan to promote outlet stores in Vietnam.
“The proliferation of outlet stores would boost the consumption of products in the textiles, footwear and other industries,” said Nga.
According to Nga, outlet stores first appeared in the United States in the 1930s to offer damaged products to employees at low prices. This win-win concept was so successful that it has quickly become prominent with over 15,000 stores nationwide.
Outlet stores have been present in Hanoi since 2012 but their business was not so profitable because of low product diversity.
Some stores, owing to their misconception, went as far as to being used as a dumping ground for their low-quality products, alienating Vietnamese consumers.
But the situation is different now. Outlet stores in the country have improved to win back consumers and become a go-to destination for those in search of bargains amid the recession.
Commercial expert Vu Vinh Phu underlined the need for new outlet stores in the country and highlighted four factors essential for the success of those outlet stores, which are convergence, professionalism, connectivity and governance.
Convergence means the clustering of hundreds of stores of different brands in a single outlet mall to increase focus and coherence. Convergence holds the key to their success because it improves diversity and sourcing efficiency.
Professionalism denotes a way of dealing with customers in accordance with certain normative values. A respective attitude and high standards of service always go a long way with better sales of products.
Connectivity signifies the proximity to tourism destinations, entertainment centres and transport hubs. By edging closer to those commercial magnets, outlet malls become better positioned to attract tourists and visitors.
Governance underlines the importance of a code of conduct for firms’ employees and a set of standards for their products. — Viet Nam News/ANN
