Saigon Co.op: Leading Retailer in Vietnam

Saigon Co.op has served Vietnamese consumers for decades, from the days of self-subsistence to renovation era. The co-operative model became obsolete in the new era. Thus, the People’s Committee of Ho Chi Minh City laid down a policy to change the City Trading Co-operative to the Ho Chi Minh City Union of Trading Co-operative (Saigon Co.op) with two main functions: running the business and promoting co-operative movement. Saigon Co.op is an economic co-operative organisation owned by the community, self-control in running business and bearing responsibility.

 

The collective operating form enables Co.opMart to bring its prominence into full play.

 

Saigon Co.op - Co.opMart is a regular pioneer in stabilising the market prices. For example, when the rice and milk prices soared last year, the supermarket chain pioneered in valorising the prices. “Pursuing the philosophy of protecting consumers, we accept to trim profits to share with customers,” said Ms Nguyen Thi Hanh, Chief Executive Officer of Saigon Co.op. This is a beautiful corporate culture of Saigon Co.op - Co.opMart while other merchants normally seek all measures to maximise profits.

To serve its customers wholeheartedly and devotedly, quality, safety and stable price is the operating philosophy of Saigon Co.op. Therefore, the Co.opMart supermarket chain has long become a reliable shopping destination, even a best friend, for all consumers.

 

In recent years, the supermarket network is continually expanded. In 2007 and 2008, the company opened 19 supermarkets, bringing its total supermarkets to 35. Apart from new supermarkets in Ho Chi Minh City, Saigon Co.op opened new outlets in other provinces and cities to meet the local market demand and match its business strategies.

 

In 2008, the company’s total revenue rose 48.9 per cent year on year and fulfilled 105.8 per cent of its yearly plan.

 

With its endless effort and outstanding achievements, Saigon Co.op has obtained many notable awards and become a leading retailer in Vietnam. The company is one of Top 500 retailers in Asia-Pacific region. Saigon Co.op has turned out to be an exemplary business in Ho Chi Minh City.

 

Apart from its development opportunities, Saigon Co.op also encountered many challenges. Ho Chi Minh City is now a most interest destination for foreign retailers which are coming into Vietnam with powerful financial pluses. They will quickly expand their networks by seizing beautiful locations in commercial centres and residential zones. With rice experience in modern retailing, they will be favourite destinations for retailing elites. Mrs Hanh said: “Competition is challenge but also motivation to advance our development. Saigon Co.op and its Co.opMart market chain will continue upholding its own edge by tightening cooperation with producers, distributors and customers. Saigon Co.op’s customer-centred competing strategy is designed to maximise benefits for consumers and optimise services for consumers.”

She added Saigon Co.op would increase sales promotion programmes and customer programmes, develop trademarks and compete in selling prices. Besides, Saigon Co.op expands its networks in Ho Chi Minh City, upgrades its existing supermarkets and develops food chain called Co.opFood to meet the demand for convenience goods for customers.

 

In 2009, the company forecasts to encounter more difficulties rooting from global economic crisis. Saigon Co.op will intensify its resources, professionalise its staff, complete its governance and accelerate development investment to serve its customers, improve operating efficiency and maintain its leading retailing position in Vietnam. Saigon Co.op will come 20 years this year.