Page 15 - [STUDY CASE_GROCERY WARS] Report

Regarding Vietnam, although
traditional grocery shopping through

local markets and independent
stores dominate the national grocery
industry, modern channels are
expanding rapidly due to a shift in
customer behavior, pushed extra by

the growing e-commerce during the
COVID-19 pandemic. Since 2014,
grocery retail has grown by 5% per Since 2020, modern grocery has
year, with the traditional channel seen a boost in online sales due to
(markets and independent stores) the COVID-19 pandemic.
continuing to dominate the market, Additionally, key e-commerce
accounting for more than 90% of the vendors in Vietnam, such as Tiki,

total. Although the modern channel Shopee, Lazada, Sendo, Foody, etc.,
accounts for only about 8% of total have expanded their product
grocery commerce, its 8.5 percent offerings to include groceries and
annual growth rate indicates that it is fresh food. Vietnam’s e-commerce
growing faster than the market sector has already been
average. experiencing significant annual

growth of 30% over the past two
years, and it is becoming even more
clear that the rise of online
shopping is one of the dominant
trends in the future.

In conclusion, in the future, the

growth of omnichannel retailing, e-
commerce shopping, and market
consolidation are pinpointed as
major trends within the
Vietnamese grocery market.
Furthermore, compared to other
Southeast Asian countries, Vietnam's
retail market has the fastest growth
rate in modern grocery retail. As a

result, Vietnam is expected to have
the most considerable potential for
modern grocery retail expansion in
the future.

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