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|AEON's first supplier conference aimed to enhance Vietnamese goods' access to the Japnaese retailer's global supply chains|
On June 12, in Hanoi, AEON Co., Ltd, AEON Vietnam Co., Ltd., and AEON TOPVALU Vietnam Co., Ltd. organised the annual AEON supplier conference for the first time with the aim of promoting the export of Vietnamese goods to Japan, receiving the attendance of representatives of authorities from Vietnam and Japan, and 142 valued domestic and foreign suppliers.
In the framework of the conference, AEON Co. Ltd. and AEON Vietnam Co., Ltd. shared their business policy, philosophy, and product development strategy to pursue the target of constantly improving the quality of products and services not only satisfying local customers but also matching with international exporting standards.
“During the past years, AEON has been making efforts to contribute to the local industries, thus the export from Vietnam to AEON's worldwide network increased in the fiscal year of 2018 with the total export turnover of $240 million. The figure is expected to reach $500 million in the 2020 fiscal year and $1 billion in the 2025 fiscal year,” said Shibata Eiji, chief merchandising and logistics officer at AEON Co., Ltd.
“The target for the 2025 fiscal year is feasible because the export turnover of numerous products, especially TOPVALU-branded products, have been soaring in recent years. Notably, in the 2018 fiscal year, the company's export turnover from zipper roller baggage was $6.7 million, up 147 per cent on-year. Besides, the dress shirts of VIETTIEN Garment are expected to reach $2 million, up 213 per cent on-year – and these are only examples,” said Shibata Eiji.
|AEON expects to increase the export from Vietnam to AEON of the world to $1 billion in the fiscal year 2025.|
After a conference section, the suppliers attended a seminar where AEON TOPVALU Japan and AEON TOPVALU Vietnam shared AEON Group's policies and requirements on product development with specific criteria for the three key lines of food-line, soft-line, and hard-line to respond to rising domestic and export standards.
Through its activities of strengthening collaboration with suppliers, AEON Group endeavours to satisfy customers while contributing to Vietnam's economic growth and the sustainable development of the local community.
According to Nishitohge Yasuo, chief executive officer of ASEAN Business at AEON Co., Ltd., as of the end of 2018, Aeon Vietnam had a partner network of 2,625 local suppliers, 52 per cent of whom are in the food line, 27 per cent are the soft-line (fashion, products for children) and 21 per cent are in the hardline (electronics, home appliances, and household goods).
Regarding the sales composition in 2018, 81 per cent of sales came from local products, 14 per cent from imported products.
“In the future, along with increasing co-operation with local partners, AEON Vietnam will try to modernise the supply chain from logistics, information technology, and QC management,” said Nishitohge Yasuo.
AEON has built its private brand TOPVALU with high standards and strict quality management procedures from planning to production and distribution. TOPVALU has become one of the popular and reliable private brands in Japan with more than 6,000 products. In Vietnam, more than 100 TOPVALU products have been imported directly from Japan and Malaysia and are sold at AEON Vietnam General Merchandise Stores and Supermarkets. In addition, 2018 is the first year TOPVALU products have been developed and produced by AEON TOPVALU Vietnam Co., Ltd. in collaboration with Vietnamese enterprises.
AEON is one of the largest retailers in Japan with a history of over 250 years. It has established and operated business in Japan, and other Asian countries. In Vietnam, AEON has launched four large shopping malls nationwide. It has planned to open more and more shopping malls in the upcoming 10 years in response to the growing customer demand in Vietnam, particularly in retail.