Shopping malls 'merge' with traditional markets: An inevitable trend

The vitality of traditional markets

Going to the market has become an indispensable daily routine in every Vietnamese family. It is estimated that the amount of goods bought and sold and circulated through the traditional market system nationwide currently accounts for more than 60 - 70% of people's daily consumption. Therefore, the market has become the most important retail stage, promoting both production and consumption; contributing significantly to the economy of each locality.

Cities always need markets because they are a source of daily fresh food for people. Photo: Internet

A survey of some markets in Vietnam shows that many places are considered to have the most expensive rental and transfer prices in the world due to huge business profits. For example, at Ben Thanh Market (HCMC), the rental cost of a kiosk in a prime location reaches 30-50 million VND per month, the transfer fee is about 1.2 - 2.5 billion VND (for a kiosk with an area of ​​2 - 4 m2); it can even be up to 8 billion VND in "VIP areas". Kiosks at Ninh Hiep Market (Hanoi) cost 3 times more than luxury villas with rental prices from 20 - 70 million VND/month and selling prices of 70 million VND or more...

Shopping malls join the game

Although traditional markets are still a habit in people's daily life, many items in shopping malls are also 10-15% more expensive than in the market, however, a recent study shows that up to 70% of consumers agree that they will choose shopping malls. It can be seen that consumer behavior is changing slowly but clearly, from preferring to shop in traditional markets to prioritizing modern business locations with abundant goods, listed prices, guaranteed origin and quality, and professional service style.

Modern distribution channels are gradually conquering consumers. Photo: Internet

Experts say that modern retail models such as shopping malls will continue to grow strongly in the coming time following the general market development trend in the world. Therefore, changing the service business method and infrastructure to harmonize traditional and modern channels is an issue to promote the effectiveness of business activities.

Trend of developing shopping mall model combined with traditional market

In the article titled “Are customers gradually moving away from traditional markets?” posted on brandsvietnam.com, it is explained that most traditional markets were built about 40-50 years ago, so the infrastructure has degraded, the stalls are small, the aisles are narrow, hot, and do not ensure fire prevention and food safety, contrary to modern business models such as shopping malls.

According to the target by 2030, shopping malls and supermarkets will account for 40% and markets will account for about 60% of the retail system (currently this ratio is 20/80%). The issue for managers and planners is the location of the market, solving the problem of fire prevention and food safety; so that the market can exist in parallel instead of opposing the shopping mall.

The Do Luong traditional market combined with commercial center is considered a highlight in the trade and service system of the whole district, built on National Highway 7 to replace the old degraded market. Photo: Document

One of the models that solves this problem is the combination of a shopping mall and a traditional market, which has been successfully tested in many cities across the country such as Lien Phuong market in Hanoi; An Suong and Binh Dien markets in Ho Chi Minh City; Thu Lo market (Quang Ngai); Nui Deo market (Hai Phong); Dinh Huong market (Thanh Hoa); Do Luong market in Nghe An...

Operating in a professional manner, focusing on hundreds of diverse product lines, modern infrastructure, with a management board supervising market operations, ensuring civilization, safety, urban aesthetics, the shopping mall combined with a traditional market stimulates consumer demand many times over; making business easier and more convenient. The factor of "buying with friends, selling with partners" is fully exploited, bringing shopping experiences for all goods and services from high-end to daily necessities, conquering a large number of customers.

With the “2 in 1” combination, the shopping mall combined with the traditional market helps increase the competitiveness of the market while promoting the advantages of the shopping mall, which is an inevitable trend for traditional markets and shopping malls to maintain their vitality in modern urban areas. With the continuous development cycle, there will be many new forms emerging to adapt to consumer needs, but at present, the shopping mall combined with the traditional market is still considered the “king” of the retail system./.