The mother and baby retail industry is experiencing robust growth, largely driven by improving living standards, a declining birth rate (reached 1.96 children per woman in 2023), and consequent parents' increased focus on child care and nurturing. In 2023, Vietnam had approximately 20.6 million children under 12 and around 50.7 million women of reproductive age (15-49), creating a highly potential mother and baby market.
The economic recovery post-pandemic has significantly boosted household spending, especially on products and services related to children. According to a Nielsen report, the revenue of the mother and baby products and services market in Vietnam in 2023 is estimated at around USD 7 billion, growing at an impressive rate of 30-40%. However, the market share of modern retail chains currently accounts for only about 20%, indicating significant room for growth. Among these, the children's clothing sector is an attractive "pie" yet to be fully exploited. Domestic enterprises have a significant advantage due to their deep understanding of the market and consumer needs. Domestic products are increasingly designed to be modern, and suitable for the trends and physiques of Vietnamese children. Nevertheless, the market still lacks diversity in designs and high-end segments. Although this segment serves a specific group of customers, it can generate high profits and open up many growth opportunities for businesses investing in this area.
In addition, Generation Z - the future parents - are reshaping the children's product market. Beyond fulfilling basic needs, Gen Z parents increasingly prioritize quality, natural origins, and absolute safety of products. They seek products that are not only good for children's health but also environmentally friendly. Moreover, convenience is a top factor when Gen Z makes purchasing decisions, with a preference for online channels, fast delivery, and personalized customer service.
With Vietnam's robust economic growth and deep integration, the children's product market is becoming increasingly vibrant. Rising per capita income, coupled with the signing of numerous free trade agreements, has made high-quality imported goods more accessible at competitive prices, stimulating consumption among Gen Z parents.
With its immense growth potential, the mother and baby industry has become a "lucrative market" and is attracting the attention of numerous businesses. The competition to gain market share is becoming increasingly fierce, as established brands face challenges from innovative and dynamic "newcomers".
In the context of fierce competition, many traditional retailers are facing significant challenges. The pressure from increasing rental costs and inefficient decisions to expand in the past, coupled with the growing demand for product diversification and enhanced customer experience, have put businesses in a difficult position.
Moreover, the rapid growth of e-commerce is profoundly transforming consumer purchasing behavior. Younger generations are increasingly accustomed to searching for information and making purchases online through e-commerce platforms and other online sales channels. This trend is creating significant challenges for traditional businesses, prompting industry "giants" to actively embrace digital transformation, reduce their reliance on physical stores, and invest heavily in online sales channels.
According to the 2023 E-commerce Report released by the Ministry of Industry and Trade, up to 74% of the Vietnamese population regularly engages in online shopping (via websites, social media platforms like Facebook and Zalo, or e-commerce marketplaces). In 2023, B2C e-commerce revenue grew significantly, reaching USD 20.5 billion, a 25% increase compared to the previous year, accounting for 7.8-8% of the country's total retail sales of goods and services.
The mother and baby product industry, traditionally seen as one of the most promising markets, is no exception to this trend. A 2023 report from Metric reveals that this sector consistently ranks among the top 10 best-selling and most stable categories on e-commerce platforms, generating VND 12.49 trillion in sales, accounting for 5.38% of the total revenue of the five largest e-commerce platforms. This growth is primarily driven by official stores from well-known brands such as Bobby, Pediasure, and Huggies...
Con Cung
Con Cung Joint Stock Company, established in 2011, is a prominent entity in Vietnam specializing in providing products and services for pregnant women, newborns, and young children. With a diverse product range, from baby fashion, baby supplies, milk, food, and toys to consulting services for maternal and child care, Con Cung has won the trust of millions of Vietnamese families and is currently leading the market in the mother and baby product sector in terms of both the number of stores and revenue.
After receiving a USD 90 million investment from Quadria Capital in early 2022 (increasing the presence of foreign investors in Con Cung to 49.36%), Con Cung set an ambitious goal of expanding its network to 2,000 stores and owning approximately 200-300 Super Centers by 2025. However, due to the dual impact of the Covid-19 pandemic and the challenging economic situation, the company has had to continuously adjust its business strategy and scale back its store network. Currently, Con Cung is focusing on optimizing its retail network, maintaining approximately 694 stores across 49 provinces, and intensifying its online sales channel.
Despite the challenges, Con Cung has achieved many successes. The company has been continuously recognized as "Best Workplace in Asia" for three consecutive years (2021-2023) and has become the official distributor of many famous brands such as Bubs (Australia, New Zealand) and Japanese brands. Cooperating with international partners has helped Con Cung diversify its product range (distributing more than 3.5 million Japanese products and nearly 100 types of products from Australia and New Zealand) and meet the increasing demands of consumers.
Despite significant achievements in collaborating with international partners and expanding its product range, Con Cung's business results in 2023 showed some worrying signs. Revenue reached VND 7,700 billion (a slight decrease compared to the previous year), along with a sharp decline in after-tax profit for two consecutive years, decreasing by 84% and 87% respectively.
Con Cung is strongly focusing on bringing Japanese consumer goods into the Vietnamese market. In early 2024, Con Cung collaborated with the Japan External Trade Organization (JETRO) Ho Chi Minh City Office and the electronic payment service provider MoMo to introduce Japanese children's products to the Vietnamese market.
Kids Plaza
Kids Plaza Joint Stock Company (the operator of the Kids Plaza retail chain), was established in 2009 and is now one of the leading mother and baby stores in Vietnam. Kids Plaza specializes in providing products for pregnant women, newborns, and young children, with a wide range of products including milk, diapers, baby food, toys, strollers, baby bottles, newborn items, bottle warmers, and sterilizers... All products are from reputable domestic and international brands.
With 159 stores nationwide, Kids Plaza has become a familiar destination for parents seeking quality and safe products for their children. Kids Plaza also focuses on online sales channels, but in 2023, due to the impact of the overall economic situation, both traditional and online retail markets faced difficulties. Digital transformation, although prioritized, did not significantly improve business results. To adapt, the business has focused on optimizing costs, diversifying products according to new trends, and cutting back on non-essential products...
Thanks to continuous efforts, Kids Plaza achieved impressive business results in 2023 with a revenue growth of 21.8% compared to the previous year, reaching over VND 2,000 billion and a post-tax profit of nearly one hundred billion VND. This is the third consecutive year that Kids Plaza has recorded positive growth, affirming its solid second position in the market.
In 2024, Kids Plaza focused on product research and development. Notably, a strategic partnership with Moyuum (a leading South Korean children's products brand established in 2014) was formed to bring high-quality products to the Vietnamese market. These products are widely distributed through Kids Plaza's store network, website, app, and online sales channels. Concurrently, the company has continuously invested in modern technologies such as cloud computing to optimize e-commerce operations and provide a seamless shopping experience for customers. Thanks to the application of CMC Cloud, Kids Plaza has reduced operating costs by 30% and met the high traffic on digital platforms (over 1 million visits/month).
Bibo Mart
Bibo Mart - a familiar name to Vietnamese parents, is one of the pioneers in the mother and baby retail sector. Established in 2006 by Bibo Mart Joint Stock Company, Bibo Mart has continuously strived to provide high-quality, safe products that meet the needs of pregnant women (during pregnancy and postpartum periods) and children under 6 years old. With a wide range of products from reputable domestic and international brands, Bibo Mart continues to affirm its position in the mother and baby retail sector.
In parallel with owning a network of 117 traditional stores nationwide, over the years, Bibo Mart has proactively digitized in the context of the growing e-commerce, building a modern digital ecosystem to support retail stores in Vietnam, closely connecting suppliers, dozens of transportation and warehousing units across the country, along with cooperation with banks and e-wallets. As a result, the company has optimized business processes, reduced costs, improved operational efficiency, and enhanced the shopping experience for customers.
In the context of the e-commerce boom and the shift of consumer behavior towards online channels, Bibo Mart has proven to be a flexible and innovative retailer. The ability to quickly adapt to market changes has helped Bibo Mart not only maintain its position but also surpass many competitors. Although revenue in 2023 reached approximately VND 900 billion (a slight decrease of 4.3% compared to the previous year), the company has recorded a return to positive profits after a challenging year thanks to successful digital transformation.
Through relentless efforts to enhance product quality and services, Bibo Mart TM Joint Stock Company has successfully surpassed 11 stringent criteria to be honored as one of the Top 10 Most Reputable Brands in the Nation in 2024.
AVAKids
AVAKids, a mother and baby brand under Mobile World Investment Corporation, has made a significant impact since its market entry in 2022. With a diverse range of quality products, competitive pricing, and the advantage of a loyal customer base from its "elder sibling" - Thegioididong, AVAKids has rapidly expanded its network to 71 stores within just one year.
However, due to the impact of the overall economic situation at the end of 2022, AVAKids' expansion plan had to be adjusted. The number of stores decreased to 64 and has remained stable since then. Nevertheless, AVAKids' revenue still grew impressively by 80% in 2023, reaching nearly VND 900 billion, quickly rising to the top 4 companies with the highest market share in the mother and baby retail industry. AVAKids is currently the mother and baby retail chain with the highest average revenue per store in Vietnam, reaching 1.7 billion VND/store. Notably, the online channel contributed 30% to AVAKids' total revenue, demonstrating the great potential of e-commerce.
Based on the positive results, AVAKids has decided to allocate all resources to developing its online channel in 2024. Existing stores will primarily serve as showrooms and build customer trust. This decision is driven by the recognition of changing consumer behavior, with more and more people opting for online shopping.
Soc&Brothers
Established in 2007, Soc&Brothers, a member of Thegioituoitho SNB Joint Stock Company, has solidified its position as a renowned brand in Vietnam's mother and baby products market. With a diverse range of over 20,000 products, from milk powder and organic food to baby essentials and smart toys, Soc&Brothers provides a comprehensive product ecosystem that caters to the needs of both children and mothers. All products are carefully selected from reputable global brands, ensuring quality, safety, and a natural, environmentally friendly origin. As a result, Soc&Brothers has earned the trust of Vietnamese mothers.
In response to the unpredictable market fluctuations, Soc&Brothers has decided to undertake a significant business model transformation. The brand has swiftly shifted its focus towards online channels, investing heavily in the development of e-commerce platforms such as websites, fanpages, and marketplaces. Additionally, Soc&Brothers has optimized its product portfolio, concentrating on product lines that align with the needs of online customers. The decision to downsize its physical store network to a single location in Hanoi has enabled the company to effectively control operating costs and enhance its market adaptability. Although revenue decreased by approximately 60.8% in 2023 compared to the previous year (falling below VND 100 billion), the after-tax loss has shown signs of improvement compared to 2022.
ShopTreTho
ShopTreTho, one of Vietnam's leading retail brands specializing in mother and baby products, was officially established in 2009 under the management of Aura Vietshop Company Limited. With over 15 years of experience, ShopTreTho offers a wide range of more than 15,000 products from 500 renowned global brands, catering to all the needs of mothers and babies.
In the face of unpredictable market fluctuations, ShopTreTho has decided to undertake a significant restructuring of its business operations. From a chain of 22 stores in 2022, the system has now focused on 4 key stores (in Hanoi, Ho Chi Minh City, and Lam Dong), while simultaneously strengthening its online sales channel. Thanks to these changes, revenue in 2022 grew impressively by 14.5%, reaching VND 240 billion, and the company transitioned from a loss to a profit.
Tuticare
TutiCare, established in 2011, is one of Vietnam's leading mother and baby supermarket chains, operated by VEETZ Joint Stock Company. TutiCare stores offer a complete range of newborn products, mother and baby supplies, catering to mothers from pregnancy, childbirth, and childcare for babies from 0 to 5 years old.
Pioneering the franchise model since 2021, TutiCare has made a significant breakthrough. With over 55 stores (including Tuticare and Tutie franchise stores) spanning 20 provinces and cities, TutiCare is currently the leading brand in the mother and baby franchise sector. The franchise model not only helps TutiCare expand its market but also provides customers with a more convenient shopping experience. As a result, revenue in 2022 grew impressively by 29%, reaching approximately VND 160 billion. However, the brand's profit margin is relatively low compared to “giants”, amounting to only a few tens of millions of VND each year.
From 2021 to 2023, the mother and baby industry continued to witness strong growth driven by various factors such as a declining birth rate leading to increased awareness of childcare and the development of e-commerce. However, alongside these opportunities, businesses have also faced numerous challenges including intense competition, pressure on rental costs, and changing consumer behaviors.
Source: Vietdata's Mother and Baby Market Report 2023
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