Metro'S Wholesale Mode Was Rejected In Vietnam And Forced To Resell Business.

Over the past twelve years,

One of the top five hundred of the world's wholesale giants has opened 19 stores in the south by virtue of its huge advantages in capital, management experience and sales network.

But because of its wholesale mode in Vietnam, Metro had to sell its business in Vietnam to Thailand retail company BJC (BerliJucker).

According to recent reports, it is reported that in the 2012-2013 fiscal year, Metro Group sales totaled 516 million euros, which has been a great success in many countries, but it faces a series of difficulties in Vietnam.

Perhaps Metro's wholesale business model is not suitable for Vietnam.

Metro settled in Vietnam in 2002 and sold well in the early years of Vietnam, but now there is a recession.

According to the famous economist Dr. Nguyen Minh Phong analysis, Metro's initial operation in Vietnam achieved great success with the advantage of three new business models, low prices and diverse items.

But then the external competition began to intensify, and the competition from other supermarkets and the rise of new retail mode led Metro to defeat in Vietnam.

According to another market

Hoang Tung said that the main reason for Metro's failure lies in cultural barriers. Metro's corporate culture is positioning itself as wholesalers.

Because in the early stage of operation, Metro only accepted wholesale customers holding Metro membership cards, narrowing the scope of its customers, while the customers of other brand supermarkets were very extensive, especially retail customers.

In addition, although the market positioning of customers is wholesalers, but Metro's sales strategy can not attract wholesale customers, especially in terms of price, quality and distribution are not attractive.

In recent years, Metro has changed its business model, no longer adopts the membership card sales mode, and begins to accept all the customer groups.

But even that still can't attract retail customers.

There are two main reasons. In Vietnam's eyes, Metro is still a wholesaler rather than a retailer. On the other hand, Metro's competitors know more about retail customers, have established a good retail network, and cultivate a large number of loyal customer groups. Metro wants to penetrate the retail market and find sales agents.

Insiders believe Metro is in.

One of the obstacles to operation is not to suit local conditions (not developing a suitable and feasible sales network development plan in Vietnam).

Metro copied its successful experience in the developed countries and continued to use the previous wholesale business mode. As a result, Vietnam's non developed countries were faced with various marketing difficulties.

And Vietnam's competitors are always glued to Metro's every move, ready to compete with Metro, and offering various preferential activities to maintain the brand loyalty of many existing customers, so that Metro can not take advantage of it.

Finally, Metro is forced to change its business model or sell its own business.