Great joined amphibious retail gold mine of consumer credit loans as great power

Geographical for Vietnam's consumer credit was very large with many elements that support from the population and economic growth. Especially since the big retail names such as CircleK, Shop, FamilyMart, BigC Go &, Fivimart, Aeon, Lotte, Parkson. the same domestic business as Vinmart, Coopmart, the mobile world is open. According to figures published in the seminar about consumer financial market with the theme "financial-retail development opportunities promote consumer, serving economic growth" 12/7 morning, geographical for Vietnam's consumer credit was very large with many elements that support from the population , economic growth.

Great joined amphibious retail gold mine of consumer credit loans as great power

Vietnam has a population of 92 million scale, 70% are aged 15 to 64, economic growth over 6%, these are all important factors for the consumer goods market shows Vietnam attractive. Mr. Nguyen Tu Anh-Deputy Director of the monetary policy, SBV said, Vietnam's GDP consumption increased very fast from 52.5% in 2005 to 77.7% in 2009. the past 10 years, the big retail names such as CircleK, Shop, FamilyMart, BigC Go &, Fivimart, Citimart, Simply Mart, Aeon, Lotte, Parkson, Takashimaya, Metro. the same large domestic retail business as Vinmart, Coopmart, mobile world ... This is obviously very favorable conditions for the development of the consumer credit market in Vietnam.

Big foreign retailers constantly landed in Vietnam. According to experts, the period of 2011-2014 growth of consumer credit market in Vietnam reached approximately 30% annually and reach 2015 59%. Total outstanding consumer loans are loans granted to customers in 2015 is 583 trillion, equivalent to 20.5% of the final consumer values of individuals and households. If the loans to buy houses and repair of residential buildings (such as the practices of the countries of the world) then the total outstanding consumer credit in 2015 reached 272,241 billion (equivalent to 6.62% of GDP), China (6%), Japan but much lower than American (17%), Europe (14%), South Korea (over 20%).

According to DR. Cấn Van-economic expert updated numbers until the end of the year 2016, outstanding consumer credit is 646,000 billion (about 28 billion dollars), accounting for 11.7% of total outstanding of the economy. Prediction of stock companies A free (LIMITED) also shows the scale of consumer finance market will reach the milestone of 1 million billion in 2019. However, with the continuous growth of 20%-30% per year starting in 2010, this figure can be achieved earlier than forecast. Mr. Dang Thanh hung-representative of FE in March figures take Credit 6/2017 of Stoxplus Corporation, consumer credit rate on Vietnam's GDP was 9.8%, still low compared with other countries such as Malaysia (14%), the UK (16%), Canada (23%).

Why the retail stores in the USA closed a series?

People often blame for the Amazon and the increase in online shopping is why retail stores closed, but the reality is not so. .. The rise of Amazon and e-commerce activities still are viewed as the cause of the condition of mass bankruptcy and closure in the traditional retail sector. However, according to retail consultant Doug Stephens, electronic commerce is only part the cause. He said: "When calculating, can see that this phenomenon can not be because its a Amazon." E-commerce sales are rising sharply, with a 15% increase in the most recent quarter, versus 4% of total retail sales.

But total sales e-commerce accounted for only 8.5% of total retail sales in the United States. According to figures of the US population survey, 91.5% of retail activity is still made in the traditional shop. The proportion of the revenue of traditional retail outlets of retail sales, from quarter to quarter of 2016/2017. Photo: BI. What are the shopping malls and the stores closed, if most of the American people still come to the store to shop? Certainly the growth of electronic commerce are factors that cannot be ignored. But there are two other factors played a larger role: excess of the number of retail stores, and can shoot a population change of consumer habits.

In the year 1990, the retail chain has expanded very rapidly, causing the United States overwhelmed hundreds of shopping center with the expectation that demand will increase accordingly. The proportion of the stores online (dark green) than in traditional shops (pale blue) of the airline industry. Photo: BI. According to John Clapp, a Professor of real estate Center, University of Connecticut, the need has never caught up with the speed of opening the store. After that period of economic recession beginning in 2008, resulting in a decrease in expenditure. Clapp said: "now the retail stores in the United States many fold 2 to 3 times the real needs of the people".

The opening of too many retail stores has led to a decrease in retail sales measured in square meters in the United States. According to a real estate analysis firm Green Street Advisors, a chain store like Sears would have to be closed near 1/2 of the store to give the revenue back to the level of/m2 in 2006. The percentage of the retail stores that are close to bringing in revenue/year level 2006 back m2. Photo: BI. Many retailers had anticipated revenues will recover from the recession. But that never happened for the majority of the shops in the commercial centre, mainly because people are changing their shopping habits.

"People are giving more decisions than about what they buy, where they spend, and they spend," Stephens said. Specifically, Americans now are buying the experience is more than buying. This trend has caused heavy damage to the retail clothing chain. Stephens said this trend is due to the development of social networks. "The experience that allows people to better storytelling on social networks than the purchase of these items," he said. The number of retail stores that have closed, from the beginning of the year 2017. Photo: BI/Fung Global Retail

In addition consumers also increased spending in other sectors, such as health, technology and education. And when people go shopping, they also like to hunt bargain price-a habit that they learned during the economic downturn. The store specializes in selling discount furniture such as TJ Maxx, Marshalls, and Ross Stores are growing, while big stores like Sears and Macy's are having difficulties. And then will come at e-commerce plays a larger role in the retail sector because of the rapid growth, but now it's for sure it is not the final nail into the coffin of the traditional retail sector.

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