Retail and shopping sectors Lecturer: Prof. Dr. Karl Kluegel Students: Nguyen Dinh Khoa Nguyen Tan Hung Phan Thanh Binh

Table of Contents

352,790 sm GFA Department stores: 113,840 sm Shopping centers: 238,950 sm Overviews of Retail market in Total HCMC stock

2009: 92% 2010: 88% Q3/2011: 85.3% Overviews of Retail market in Total HCMC stock Occupancy rate

Overviews of Retail market in Total HCMC stock Occupancy rate Prices (in average) 2010 (US$/sqm/month) CBD: 96.6 - 123.8 OUT CBD: 39.5 - 57.7 2011 (US$/sqm/month) CBD: 109.4 - 125 OUT CBD: 49.3 - 33.1

Overviews of Retail market in Total HCMC stock Occupancy rate Prices (in average) Commercial Centers vs. Traditional Markets Tendency of combine commercial centers and Traditional Markets

Overviews of Retail market in by CBRE report Q1/2011 Table 1: Report Of Retail Market

Projects’ information SjC tower Sabeco Ben Thanh Towers

Projects’ information SaiGon Plaza Eden Time square

Projects’ information

Distribution of key projects Time Square 22-36 Nguyen Hue street. Eden Eden quadrangular, District 1 BenThanh Towers Quach Thi Trang Square SaiGon Plaza Le Thanh Ton SJC Tower Le Thanh Ton Sabeco Plaza 2-4-6 Hai Ba Trung, Dist1 1 2 3 4 6 5

Projects’ information Table 2: Report Of Retail Market * According to Vincom rental prices * Average Price by CBRE 01/11 report

Criteria comparison/ Location All Projects are situated in District 1: main streets: Lethanhton, NguyenHue, TranHungDao, DongKhoi. Strategic location. Attraction passengers/buyers BenThanh Tower is located in the most strategic location. Grade 5 Sai Gon plaza is far from City center, less passengers. Grade 3

Criteria comparison/Traffic

Issues Income 45%

Issues Singapore ? SaiGon

Issues District 7? District 1

Conclusion Finding products at cheaper prices - and these lower prices are usually found outside commercial retail centers. The popularity of local shops & markets coupled with the predominant use of motorbikes for inner city transportation, has proven convenient to Vietnamese shoppers for now but has also adversely affected the development and expansion of shopping centers. The limited supply of purpose-built shopping centers has created few choices for local distributors who want to expand their brand.

Conclusion Not for shopping needs Change the using purpose of Retail Decrease of visits Volume of high-end products go down, replaced by mid-end products

Thank you