Japanese retailer AEON will partner with domestic retailers Fivimart and Citimart to sell its Topvalu private label products, Viet Nam News reports.
New outlets for private label will accelerate scale for AEON
AEON's cooperation with Fivimart and Citimart will offer a short-cut to scale for AEON in the Vietnamese market; the domestic retailers have a combined network of more than forty stores, whereas AEON currently operates a single store as the anchor tenant of its first mall in the market, which opened in January. Though further sites are under construction, ambitious expansion plans are likely to take time to realise. Meanwhile, the retailer sells a high proportion of private label and Japanese imported products in its stores, a factor that helps it differentiate from its competitors.
Potential for fruitful new relationships?
Should this relationship bloom further, it could be a fruitful one for AEON. Both are well established players in the market - Fivimart holds a strong position in Hanoi, whilst Citimart is a dominant player in Ho Chi Minh City - and possess a wealth of local knowledge and experience. Citimart's five year agreement with Hong Kong based Dairy Farm fizzled in 2012, whilst Fivimart is similarly unattached, which may provide potential for closer collaboration in the future.