Forecasting retail industry growth after Tet Quy Mao

Before, during and after the Lunar New Year of the Cat, Vietnam's retail market becomes more vibrant than ever thanks to the shopping wave and strong spending trends of consumers. The market is on the verge of recovery and development, creating conditions for manufacturing and retail businesses to grow rapidly. This is an opportunity but also a challenge for units affiliated with the industry.

Join LBC International to learn about the retail market after the Lunar New Year and identify the industry's development trends in 2023.

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1. Economic forecasts for 2023

Inflation is tending to spread globally, manifested by tightening consumer spending. Although it is considered that there are still many difficulties, 2023 will still be the year of recovery for the retail industry after the Covid - 19 pandemic. According to a survey by Vietnam Report, the number of businesses achieving business efficiency equal to or exceeding pre-pandemic levels in Vietnam has reached over 53.8%.

The growth of the retail market has contributed greatly to the overall recovery of the economy, although the world situation is still unstable. By the end of 2022, domestic trade activities have begun to show positive signs of recovery. Specifically, in the retail business, retailers have been very quick to change direction to better serve consumers.

Retail units are increasingly investing in technology and human resources, making good use of website, social network, and e-commerce platforms to boost consumption. This is considered a trend in the retail industry in the near future, especially with items such as agricultural products.

In addition, retailers also focus on digital applications in management, operations, logistics and distribution, accelerating the digital transformation process in businesses. In addition, the expansion of foreign businesses in the Vietnamese consumer market is also a noteworthy point in 2023.

In short, the domestic and foreign retail markets will continue to grow strongly and massively in 2023. This is the time of true recovery for the industry after the pandemic, a race for all stakeholders.

2. Factors promoting the recovery of the retail industry

Many signals show that consumer purchasing power will increase sharply this year, with many retail systems reopening and even expanding their scale. The recovery of the retail industry comes from different factors, from income growth, efforts to curb inflation to the recovery of related industries such as tourism, accommodation, and transportation.

Market size increased

According to information from the Ministry of Industry and Trade, Vietnam's retail industry currently has a total market size of 142 billion USD, expected to increase to 350 billion USD by 2025, contributing 59% to the total domestic budget (GDP). The increase in market size also means that the recovery speed of the retail market is accelerating.

The stimulus program has been promoted

Consumption stimulation programs and focused promotional months are held simultaneously in localities, contributing to increased shopping demand. On the other hand, positive customer psychology also creates conditions for retail businesses to recover and develop in both the medium and long term.

Policy to connect supply and demand and control inflation

The connection between supply and demand is well done, stable commodity prices partly help control inflation, and create a stable source of goods between manufacturers and the distribution system. According to statistics, total retail sales of goods and service revenue in 2022 have increased by 21%, far exceeding the industry's growth target of 8%.

Development of related industries

A remaining problem in Vietnam's retail industry is that the commercial infrastructure system (wholesale markets, warehouses, logistics centers...) cannot keep up with development needs. This increases trade costs, reduces competitiveness in the retail market and affects the exploitation of the potential of domestic trade.

However, on the path of recovery after the Covid - 19 pandemic, Vietnam's retail industry has witnessed an incredible growth rate of businesses in digitizing management, operations, logistics and distribution. In addition, retail businesses are also actively expanding sales channels, combining traditional sales with sales via websites, social networks or e-commerce.

3. Retail Pro Prism application in retail business management and operation

Retail Pro Prism is a comprehensive technology solution dedicated to the retail industry. With superior features, the software can be applied to points of sale, chain stores or the entire retail system of a business. With Retail Pro Prism, administrators can easily manage store operations, inventory, personnel, product categories, customer lists...

Retail Pro Prism is favored by businesses and multinational corporations with seniority in the industry. The expertise and reliability of the product has been proven, ready to satisfy all customers. Retail Pro Prism is suitable for fields such as technology, furniture, cosmetics, fashion, jewelry, pets...

The retail market after the Lunar New Year of Quy Mao recovered and developed rapidly thanks to many motivating factors. Hopefully the information in the above article will help businesses understand market trends, thereby gaining more competitive advantages. Businesses wishing to learn about retail industry software can contact LBC International for advice and support.

Articles and images compiled by LBC International.