VietNamNet Bridge – In April, Kumho Asiana
Plaza Saigon
closed retail kiosks and shifted to another type of business. Meanwhile, some
other shopping malls have also seen the turnover decreasing by 20-40 percent in
comparison with the same period of the last year.

Few buyers

The big
shopping malls in districts 1, 5, 11 and 7 in HCM City
were still crowded last weekend. However, people just visited the shopping
malls, while they did not make purchases. At Vincom center in district 1, a lot
of people were seen sitting in front of the center contemplating scenes.
Although there were many people inside,
they did not purchase goods.

At the
cosmetics stall on the first floor, which faces the Dong Khoi Road, where there were
eye-catching decorative lamps; a group of youths was seen taking pictures.
There were about 10 saleswomen at Runway fashion stall, but the number of
visitors to the stall was always lower than the number of staff.

According
to Quyet, the shop’s manager, fewer people come to buy goods these days.
Especially, many people drop into the stall, but they do not make purchases.

Parkson,
the shopping mall located opposite to Vincom, was also in the same situation.
The cosmetics stalls on the first floor of the shopping malls did not see many
visitors. Meanwhile, the stalls on the upper floors, including Clarks or Geox footwear stalls, only received visitors,
not buyers.

Business does not go smoothly

Duong, the
owner of T brand children’s wear, who is leasing stalls at different high grade
shopping malls in HCM City, complained that the sales have dropped by 15
percent in comparison with the same period of the last year, because there have
been few buyers.

Duong said
that he has to pay rent of 70 million dong per month for a stall on the second
floor of Vincom shopping mall. Meanwhile, he can sell only several kid’s
clothes a day. Despite the slow sale, Duong still has to continue leasing the
retail premises, because the leasing contract has the validity of three years
and he had to pay money for six month rent already. If Duong gives back the
stall right now, he will lose the deposit money, while he fears he will not be
able to rent the premises later, when the purchasing power increases and
business goes better.

At Tax
trade center, a manager said the number of visitors has decreased sharply by 30
percent. At Zen Plaza, according to Trieu Thi Huong
Giang, Deputy General Director, though there is no idle stall, the turnover has
decreased by 20 percent from the same period of the last year.

“Those
customers, who have demand, purchase fewer goods nowadays than they did
previously, while visitors always think very carefully before making
purchases,” Giang said.

In order to
boost sales, shopping malls are trying to lure customers with sale promotion
programs. At Tax Trade Center,
many shop owners are considering selling less expensive products instead of
luxurious products. Meanwhile, retailers are trying to persuade shopping mall
developers to reduce the retail premises rents.

According
to Duong, a shopping mall in district 1 has agreed to cut down the rent by 45
percent.

It’s difficult now to lure customers

According
to Tran Quoc Chung, General Director of Phuong Phat Company, the distributor of
perfume products of hundreds of brands, medium class people have been divided
into two groups: the first one has cut down spending, while the other group
still continues using branded goods. However, there are not many luxurious
products in Vietnam
which can satisfy the group of customers.

Huy, who
has VIP buyer’s pass at many shopping malls in HCM
City, said that there are few well
known brands in Vietnam,
while the products are very expensive; therefore, it is difficult to choose
products. He said that he could purchase a branded handbag in Singapore, which was cheaper by 20 percent than
the same product in Vietnam,
while a pair of glasses he bought in Hong Kong
was 30 percent cheaper.

Source: SGTT