Thien Thanh Building Materials – Interior Decoration Accessories Supermarket & essential needs of society

In the recent years, Vietnam’s economic growth is very fast and stable, the average GDP has reached 7-8% per year, Vietnam is considered as a large market (over 80 millions people) and potentially in local and over the world by many foreign economists. Vietnam’s economy is growing day by day, citizens’ lives are also constantly improving (per capita income increases by nearly 5 times as compared to 1985); therefore, construction material industry also reach a growth rate with an average of 10 percent per year (5 times higher than that of 1997). According to the evaluation of Material Management Department, Ministry of Construction, this industry’s need will reach double in the next five years and increases by 4-7 times in 2020. However, actual Vietnam Construction Material market today remains the limitations of fragmented, small and backward economy such as trading is primarily conducted in the shops, showrooms, retail space restriction, the products being sold everywhere, not concerntrated. Enterprises, individual business households buy – sell products of various companies having unguaranteed quality, unclear origin…, which reduce the consumers’ reliability in particular as well as break modern business model in the period of global economic integration in general. In addition, with the small and backward model as above, businesses also pay for the huge advertising costs (up to 20-30 percent of total costs), which does not meet the aestheticism of urban architectural planning in general. The above-mentioned issues will become the major challenges when Vietnam implement the route as committed to join the World Trade Organization (WTO) in coming years, especially the items related to management, goods distribution in the country in particular and the region in general. Foreseeing this inevitable development trend, Thien Thanh Building-Trading-Producing Co. Ltd. has strongly planned long-term strategies for the immediate period (2007-2025) which is to build the first Thien Thanh Building Materials – Interior Decoration Accessories Supermarket in HCM City (and the Southern area – behind Me Linh Plaza in Gia Lam – Hanoi), with a floor area of 500,000 square meters of use (40 floors), the total investment is expected up to more than 60 millions USD; including shopping centers, offices for lease and general merchandise store…

 

* The venue expected to build:

1. No. 302 To Hien Thanh Street, Ward 15, District 10, HCMC. Area: 25,097 m²

2. VK 928 Su Van Hanh prolonged Sreet, W.12, D.10, HCMC. Area: 6,852 m²

* The establishment of Thien Thanh Building Materials & Interior Decoration Accessories Supermarket will meet the specific needs as follows:

1. Providing genuine goods: - Thien Thanh Building Materials Supermarket which will provide a comprehensive service with the closed model is the focus of most building materials products, interior-exterior equipment, nice and scientific model decoration… create a major attraction for consumers in particular, domestic and foreign partners in general. – The consumers will have more opportunities to choose the products which have reputation, assured quality consistent with the needs of all customers, thanks to the real simulation exhibition space and other customer consulting services. This center will become a place where can gather most of the manufacturers, business firms, the largest domestic and international dealers. Besides, it is a strict inspection system for goods quality, product origin, etc. in order to punctually prevent and eliminate poor-quality products, counterfeit goods.

2. Price:

Goods are scientifically displayed in each area; the prices are regularly updated and listed in specific codes to make sure that the price is from 3 to 10% lower than the outside market ground – Thanks to online shopping, joint venture, it can minimize the intermediate costs such as commissions, sales discounts and advertising.

3. Supporting for goods consumption of local manufacturers, joint venture:

With the policy of attracting investment, the whole country have currently built many construction materials factories which have high productivity, the application of high technology, especially the ceamic brick, granite, fire-brick, porcelain, natural and artificial ashlar paving stone factory (current average yields have increased hundreds of times as compared to the early ‘90s). However, the consumption of this group is rather limited than the imported products, especially for the luxury goods, because of its unscientific market access in many aspects such as high price (due to many levels of distribution), advertising, product display, uneven quality … The birth of Thien Thanh Building Materials Supermarket will be a model of new specialty supermarket as a major breakthough. The solution for the above limitations will positively contribute in supporting for domestic manufacturers, boosting output of goods consumption in the construction materials market in a stable orbit, shortening the gap between producer and consumer, adjusting construction materials market of the city and the oriented developing southern in the short and long term.

4. Saving the advertising cost, building the brand for domestic and foreign enterprises: The location in the heart of the largest construction materials center in the country (To Hien Thanh, Su Van Hanh), Thien Thanh Construction Materials Supermarket will become the largest construction materials center in HCM City and southern region (more than 40 floors) and have great attraction to consumers. Thanks to the dominant focus as well as a favourable position, the enterprises in this supermarket will have a maximum limited cost of advertising, the introduction of technology, new products, organizing conferences… in order to strengthen and build their company’s brand.

5. Reasonable price for rent: With the wide space (25,000 and 7,000 square meters) which is convenient for business, transportation (the junction of 4 boulevards: To Hien Thanh, Dong Nai, Tam Dao, Thanh Thai), Thien Thanh Supermarket is large enough to attract most of the reputable companies in the construction materials market to participate in business with the prices of 5-10% lower than the common ground in the market, this will be a huge advantage of Thien Thanh Supermarket which can not be obtained elsewhere.

6. The Center for exchanging among the major construction materials corporations over the world: There was the model of ConstructionMaterialsBusinessCenter in the developed countries in the world for a long time such as: OBI in Germany, Homedepot in the United States, Bunning in Australia, HomePro in Thailand, B&Q or Easyhome in China. The establishment of Thien Thanh Supermarket will create an important landmark in the field of specialty supermarket. That supermarket is a place where regularly have the meetings of the large construction materials corporations in the world and region, which contributes to economic development in the city in particular and the whole country in general.

7. Creating a new breakthrough in the specialty supermarket: - Building Thien Thanh building materials supermarket is a business model which is new, modern, indispensable, consistent with the current period of Vietnamese economic development, besides that, this strategy is also a huge breakthrough in the construction materials industry in southern region (after Melinh Plaza in Gia Lam – Hanoi). – With the urgent demands for Construction Materials market as mentioned above, along with the trend of international economic integration in the short and long term.

- Along with the existing advantages of Thien Thanh Manufacturing-Trading-Constructing Ltd.Co. of its position, finance, human resouces, domestic and foreign counterparts… The establishment of Thien Thanh Construction Materials – Interior Equipment Supermarket in the near future will be a new power to push the development of this sector in southern region, in particular and contribute in gradual professionalization of the country’s business, services, financial consultancy… in general in the process of implementing the commitments of a member in the World Trade Organization (WTO) today.

(Nguyen Tan Vang – Economic Development Magazine)