I have been to Vietnam many times on work assignments. However I’ve only been to Ho Chi Minh, in the south, the city which straddles the Saigon river.
Two weeks ago I visited again for a client workshop and in between sandwiched some other engagements.
One was with an ex-Nestlé colleague who now works for the Annam Group.
Annam is a very interesting and fast growing business that is an epitomy to how far and fast Vietnam is changing.
Founded in 2001, Annam has several retail businesses including Annam Gourmet, the Warehouse a wine & spirits operation plus Yves Rocher and Flormar beauty shops. It also has an agency distribution business importing, selling and marketing consumer brands. Whilst Annam’s core is Vietnam it has also expanded into the Cambodian and Myanmar markets.
Although the company is privately held, it’s certainly on the radar for other retail chains and private equity investors. (Even in Japan or Hong Kong I think chains like Seijo Ishii or City Super could learn a trick or two from Annam!)
Annam Gourmet is the most visible of the group’s operations with around 26 stores, largely in HCM but with some others in Hanoi and Danang.
I only had time to visit two stores, but clearly a lot of thought has gone into their layout and architecture.
I understand the management team travels extensively and is well aware of what is happening in premium F&B globally. At the centre of both stores was a restaurant and café clearly designed to get shoppers to linger and explore the food offerings. Besides ambient food there were large sections of chilled, dairy and fresh produce as well as meats.
I could not count the number of SKUs each store held (!) but it would have been in the tens of thousands, many coming from Europe, the US and Japan-Korea.
For many Vietnam is classed as a developing market but there has been a rapid rise in the number of ultra wealthy Vietnamese. A news report earlier this year claimed there are over 70,000 with assets greater than US$1m.
Annam Gourmet is not the biggest retailer in Vietnam. Chains like Tops, Coop and Winmart have more outlets. Korea’s GS25 has made strong inroads into the market and is set to expand dramatically. Now it has around 400 outlets I heard. However in premium retail, Annam created a niche of its own, although others have since followed like Naman market.
The times they are a changing.