Market Review and Trends
E-commerce: threat to physical retail?
By PropInvestSG  •  February 21, 2019
In this series Ecommerce is a double-edged sword in Vietnam. Brands are engaging directlywith consumers in a way not possible 10-15 years ago and the transition from physical to online shopping is inevitable. But poor infrastructure, slow deliveries and limited avenues to access goods are impeding online growth. Instead, better information is driving consumers to shopping malls for their retail fix. The e-tailing market is poised to double to US$2bn by 2022. Against a US$143bn retail industry that is growing 10-12% YoY, UBS thinks the market can support the growth ambitions of both ecommerce and physical retail formats. The penetration of modern retail currently accounts for ~25% of total retail and the progressive transition of traditional markets to modern channels would increase the pie. The Ministry of Industry and Trade targets 40% target by 2020 and it could unlock over US$21bn that is accessible by modern retail formats....
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By PropInvestSG
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