Vietnam's mother and baby market & The big boys' ambition to capture market share

Updated: Nov 15

Potential mother and baby market


According to the General Statistics Office of Vietnam, as of 2019 Vietnam has 24.7 million children, accounting for 25.75% of the total population of the country and about 24.2 million women of childbearing age (from 15 to 49 years old). In addition, with about 1.5 million babies born each year, along with the increased spending power and the tendency of parents to prefer domestic products. With this feature, Vietnam is a potential market for businesses providing products and services related to mothers and babies.


On the other hand, according to Euromonitor, sales of Vietnamese mother and baby products (including baby food, baby products, and children's clothing) will reach about VND 50,100 billion in 2021 and are expected to grow about 7.3%/year in the period 2021-2025. However, the market share of modern retail chains in children's goods is only about 20% and the remaining 80% belongs to small stores. This has attracted the participation of the big retail tycoon, The Gioi Di Dong.


The mother and baby market have enjoyed steady growth in recent years despite the pandemic. Especially, when consumers' shopping habits have shifted from the traditional model are markets and supermarkets to a chain selling products exclusively for mothers and babies. That is also the reason that in recent years, businesses and investors, especially foreign investors, have constantly poured capital into the mother and baby market, making this field more exciting than ever time out compared to the previous time.


Typically, the attack and strong rise of a series of names such as Bibo Mart, Kids Plaza, Con Cung, Shoptretho, TutiCare... Along with the presence of domestic names, foreign firms are also looking for ways to penetrate the Vietnamese market such as the Soc&Brothers brand from Japan or Mothercare from the UK.


The outstanding growth in the number of stores


In the past few years, mom & baby stores have sprung up more and more. We can easily see mother and baby stores with familiar brands such as Con Cung, Bibo Mart, Shoptretho, Kids Plaza, etc., with a grand scale located right on the fronts of major streets.


Up to the present time, Con Cung is the market leader in mother and baby products. Updated on the website, Con Cung currently has 700 supermarkets nationwide. The company has 3 retail chains for pregnant women and babies, including Con Cung, Toycity, and CF (Con Cung Fashion).


The store system of other brands is also constantly expanding. Currently, the Bibo Mart chain owns 161 stores and is present in 33 provinces/cities. Followed by the Kids Plaza chain with 157 stores.


TutiCare's store scale is also quite large with 50 large and small stores across the country. Next is the Shoptretho, with the first store being opened in Hanoi, so far this system has more than 22 stores operating in major cities, of which the most developed cannot fail to mention the branch in Ho Chi Minh City.


Brand from the UK - Mothercare currently has 14 retail stores nationwide under the exclusive distribution of Au Chau Fashion and Cosmetics Company Limited (ACFC) of the Imex Pan Pacific Group - IPP Group.


Soc&Brothers currently has 5 showrooms displaying and introducing products on a very large and modern scale. Here, customers will see a full range of products distributed by Soc&Brothers, always displayed richly, scientifically and neatly in a brightly decorated, bright space with clear, joyful music.

At the beginning of this year, the mother and baby product market was more excited when welcoming a new member of MWG - AVAKids. The store chain is aimed at consumers who are pregnant mothers and families taking care of young children. Despite being in the position of a latecomer, AVAKids has the advantage of being laid down in the past - experience in developing, operating and managing chains from MWG. As of June, the chain reached 50 stores after 5 months of launch. Up to now, MWG has shown determination when opening up to 71 AVAKids stores in the Ho Chi Minh area and many neighboring provinces, including "ultra-wide" addresses located on busy streets.


Thus, the new chain of MWG has just entered the market, but with the current expansion rate and the company's goals for this year, it is likely that AVAKids can catch up with the "big hands" on this potential market in terms of the number of stores.


The journey to conquer the billion-dollar market of players


CON CUNG

Con Cung Joint Stock Company is a pioneer company in Vietnam specializing in children's products. The company's field of activity includes: Developing retail chain systems for pregnant mothers & babies: Con Cung, Toycity, CF (CON Cung FASHION). Research and produce safe, quality and affordable products for children.


Con Cung is the mother and baby chain that recorded the strongest growth rate when it ranked first in terms of the number of stores and revenue compared to other chains. Specifically, at the end of 2019, Con Cung achieved a revenue of nearly 2.5 trillion VND, but by 2021, it has increased to 5.7 trillion VND (an increase of more than 50% compared to the same period in 2020). Profit after tax also increased sharply from nearly 15 billion Dongs in 2019 to nearly 90 billion Dongs in 2021.


With the ambition to have 2,000 convenience stores and 200-300 supermarkets by 2025, Con Cung expects to reach the revenue milestone of 1 billion USD in 2023 and account for 30% of the market share to reach 2 billion USD in sales in 2025. of which at least 30% come from e-commerce.


BIBO MART

Established in 2006, the Bibo Mart Mom & Baby store system is under the management of Bibo Mart TM Joint Stock Company. Bibo Mart specializes in providing products for mothers and babies from reputable brands in the world such as Combi, Chicco, Fisher-price, Farlin, Hipp, DrBrown... all tested and certified for safety for the health of Mothers & babies.


Before the epidemic happened, Bibo Mart's store chain was doing very well and brought in more than 8 billion dongs in profit after tax, an increase of 7 times compared to 2018. However, when the epidemic began to appear in In Vietnam, the revenue of this system also slowed down.


Trinh Lan Phuong, CEO of Bibo Mart, said that the company at that time was restructuring to prepare for the IPO plan with the participation of leading experts from Amazon, Taobao, and Walmart.


KIDS PLAZA

Born in 2009, Kids Plaza offers more than 10,000 genuine products for Mothers and Babies, certified by the world to be safe for children from leading prestigious brands in Vietnam and the world.


Kids Plaza also constantly affirms its position in the race when the revenue of this giant has continuously increased over the years. Specifically, in 2019, the revenue of this Mother & Baby store chain reached nearly 940 billion VND and increased to nearly 1.4 trillion VND in 2021. However, the profit fluctuated quite a bit, as in 2019 the profit was only 2,5 billion VND, increase to 15.7 billion VND in 2020 and decrease to 12 billion VND in 2021.


SHOPTRETHO

Established in 2009 with the first establishment at 623 Hoang Hoa Tham, Ba Dinh, Hanoi, up to now, Shoptretho has 22 stores operating in other cities, especially in Ho Chi Minh city.


For more than 10 years of establishment and development, Shoptretho is one of the most prestigious suppliers of newborn and mother & baby products in the Vietnam market. This chain of stores offers more than 15,000 items and 500 major brands worldwide with diverse designs, safe quality voted for and highly appreciated by consumers.


In the past few years, the revenue of this chain of stores has also increased continuously, from about VND 120 billion in 2019 to more than VND 210 billion in 2021, however, this system still reports losses. Accordingly, in 2020, Shoptretho will lose nearly 270 million VND and by the end of 2021, this loss will reach nearly 5 billion VND.


SOC&BROTHERS

Established in 2007, Soc&Brothers now offers more than 20,000 products ranging from a wide range of products for mothers and babies to household products, furniture, and health for the family. Soc&Brothers is the exclusive representative in Vietnam of 6 famous brands in the world and only provides genuine, branded, reputable and specially insured goods.


It can be seen that in recent years, the revenue of this chain of stores has fluctuated erratically. In particular, the profit after tax of the Mother & Baby supermarket system gradually decreased in the period of 2019 - 2021. In 2020, Soc&Brothers recorded a revenue of about 150 billion VND, down by nearly 15% compared to 2019. But in 2020. In 2021, the revenue of this chain of stores will reach more than 180 billion VND.


TUTICARE

TutiCare - Vietnam's leading prestigious mother & baby store system, managed by VEETEX Corporation Company. TutiCare provides all newborn products, mother & baby products to serve the process from the time the mothers are pregnant, giving birth, and taking care of the babies. This is the convergence of selected, genuine brands for mothers & babies famous in the world, which have long been known and trusted by parents and children around the world: Chicco, Phillips Avent, Munchkin, Combi, Braun, Aptamil, Nuk, Bubchen, Arau, Graco, Lego...

Like Shoptretho, Tuticare's business situation in recent years has not been very positive. Specifically, in the period of 2019 -2021, the revenue of this chain of stores will gradually decrease from more than 170 billion VND (in 2019) to about 125 billion VND (in 2021).


AVAKIDS

AVAKids is a chain of stores specializing in selling products for mothers and babies of The Gioi Di Dong. The main products sold in the system can be mentioned as milk, diapers, foods, foods of clear origin, safe cosmetics, daily necessities, toys or other items fashion goods, children's bicycles, ...


The Gioi Di Dong is a business often better known in the field of electronics and technology retail. Although starting slower than the big competitors, but not because of that, MWG is willing to appear less competitive.


In particular, the wide-chain ecosystem of Mobile World, helps chain stores to open more shops without much difficulty in terms of space, as well as develop online sales channels. Along with that, taking advantage of the huge loyal customer base of The Gioi Di Dong helps AVAKids to take shortcuts, and catch up, without having to "follow" competitors.


In fact, the mother and baby cake in Vietnam is delicious, but there are many barriers. The proof is that many famous names in this industry have quietly withdrawn from the market. These are Kids World, Deca, Beyeu, Babysol… The departure of once-popular brands shows that this is a fiercely competitive industry and requires high sensitivity.


Especially in the recent period, when consumers change their shopping behavior from traditional models to online shopping. Therefore, businesses in this industry need to invest in technology and have a digital vision to explore this billion-dollar mother & baby consumer market.


Source: Viétdata