Wed. May 22nd, 2024

VietNamNet Bridge – Trang Tien Plaza has been re-positioned as a luxurious goods
shopping mall. Will its new appearance and the new way of operation help the
shopping mall change their fate?

 

Vietnam, Trang Tien Plaza, Hoan Kiem Lake, retail premises

Trang Tien Plaza in the past…

Located on the most advantageous position in Hanoi, in the golden central area
of the capital city, Trang Tien Plaza did not succeed in doing business under
the management of Trang Tien company Ltd, belonging to Vinaconex.

Analysts compared Trang Tien Plaza with a general store that existed in the
subsidization period, or the popular retail market. The product items displayed
there were very poor, while the name “Trang Tien Plaza” could not be shown as
security for the quality of products.

It was unclear about the business performance of the Trang Tien Company Ltd,
because it was not a public company and it did not have to make public the
finance report. However, a source from Vinaconex said Trang Tien Plaza nearly
did not bring profits.

Therefore, SCIC, the State Capital Investment Corporation, after taking over
Trang Tien Plaza, decided to run a restructuring process.

Trang Tien Plaza has been re-positioned as a high-end goods shopping mall
instead of the distributor of popular goods, which mainly serves high income
earners and foreign customers.

A competition was organized for SCIC to choose suitable partners to develop
Trang Tien Plaza in a new way. Five big names in Asia joined the competition,
including Malaysian Parkson, South Korean Lotte and Singaporean DFS.

Finally, DFS, with the chain of duty-free shops at the airports worldwide,
represented by Jonathan Hanh Nguyen, has been chosen as the partner of SCIC. The
businessman, together with his family members, including the daughter-in-law
Tang Thanh Ha, a celebrity of the Vietnamese showbiz, have been very famous in
Vietnam.

The details of the cooperation agreement between the two sides have been kept
secret. However, a senior official of SCIC said DFS would be in charge of
connecting partners, looking for the clients to lease the retail premises.
Meanwhile, the profits would be shared at the proportions agreed by the two
sides.

…and nowadays

With its big experiences in trading high end goods, DFS has successfully brought
the world’s famous brands there, namely Luis Vuitton, Rolex, or Chanel.
Vietnamese brands will also be present there, but in a limited number, because
the retail premises rent would be relatively high, about $150 per square meter a
month.

Trang Tien Plaza is expected to be opened on March 15. However, on pre-Tet days,
it opened to receive visitors already. Analysts believed that Trang Tien Plaza,
with the new appearance and new way of operation would bring good luck to the
shopping mall.

However, they have also warned that big challenges would come. In the economic
downturn, luxurious goods have become out of reach of many Vietnamese, including
the ones who once spent money like water on luxurious items.

Big discounts of 50 percent of 70 percent offered on pre-Tet days at big
shopping malls like Parkson or Vincom could not help increase the sales as
expected. Parkson, for example, offered the big discount rate of 40 percent for
all the goods items here for one day. However, the sales did not increase
significantly.

Meanwhile, Trang Tien Plaza, with the goods items worth tens or hundreds of
millions of dong, would be very fastidious about clients.

In Hanoi, Grand Plaza, owned by IDJ, which was a high end shopping mall, failed
to attract retailers and clients. However, some others have succeeded such as
Vincom Ba Trieu or Parkson Thai Ha.

DDDN

By vivian