GS25: Reshaping Convenience in Vietnam's Retail Boom
South Korea's GS25 has officially become the biggest convenience store chain in Southern Vietnam. This is a major achievement, mirroring the strong growth of the region's retail sector and the changing habits of consumers.
A Recipe for FDI Success
The joint venture between GS Retail (Korea) and Son Kim Retail has combined Korean operational expertise with local adaptations, designed for Vietnamese Gen Z. This creates a successful lifestyle-focused convenience store model.
Impressive Growth Figures
Here's a look at GS25's financial performance:
- 2024 Revenue: Over 1,690 billion VND (up 29.1% year-on-year)
- 2023 Revenue: Exceeding 1,500 billion VND (up 23% year-on-year)
- 2022 Revenue: Almost 1,300 billion VND (up 70% year-on-year)
The chain has also expanded to over 317 stores across Vietnam, starting in Ho Chi Minh City in 2018.
Vietnam's Thriving Retail Market
Vietnam's retail market is predicted to reach $276 billion in 2024 and grow to $488 billion by 2029, with an annual growth rate of 12%. This growth is fueled by young consumers and a need for convenience. GS25 is well-positioned with its affordable prices (22,000-99,000 VND) and store layouts.
Vietnamese Gen Z's Shopping Habits
Here's what's driving the convenience store boom:
- An estimated 40+ million Gen Z shoppers
- Gen Z accounts for 60% of convenience store traffic
- Gen Z embraces Korean culture, including beauty, food, and hangout trends
More Than Just a Store - A Lifestyle Hub
GS25 stores offer a Korean lifestyle experience. They feature study areas, beer sections, and areas showcasing cultural food, with collaborations with brands like Heineken, Jinro, and Nongshim. With its "Night & Day" cafe concept, GS25 provides a space for experiences and connection.
The convenience store industry in Vietnam is rapidly evolving, and GS25 is leading the way. They're focused on customer experience, culture, and creative collaborations. What's next for innovation in the retail and F&B scene?
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