Vietnamese Entrepreneurs in Russia Pioneer New 'Storefront' Business Model in Markets

In Moscow's Sadovod market, a bustling hub often referred to as the 'Bird Market,' Vietnamese entrepreneurs are pioneering a shift from traditional kiosks to a 'storefront' business model. This transformation aims to offer an enhanced shopping experience akin to that found in shopping malls, responding to evolving trends in Russia's fashion retail sector and the growing preference for hybrid online-offline consumption. Nguyen Nam Son, a 24-year-old entrepreneur born and raised in Russia, exemplifies this new approach. Driven by a desire for more effective strategies and recognizing consumers' need for direct product interaction, Son recently invested significantly to consolidate nine traditional kiosks into a spacious fashion store. The revamped space features a festive balloon-decorated exterior, bright interior lighting, fitting rooms, and a professional checkout counter, designed to emulate the experience of a commercial center. Despite monthly operating costs of approximately 1 billion Vietnamese Dong (around $40,000 USD), largely due to rent, Son is confident in the model's potential for growth by elevating the customer shopping experience. Olga, a regular Russian shopper at the market, praised the new model for its cleanliness, comfort, fitting rooms, and professional display, while noting the prices remain reasonable. She believes this format aligns well with current shopping demands. Adjacent to Son's establishment is VinModa, another Vietnamese-invested brand, marking the owner's fourth store in Sadovod. The shift by Vietnamese traders occurs against a backdrop of significant changes in Russia's fashion retail market. A recent Kommersant survey indicated a roughly 10% decrease in clothing and footwear orders in the first five months of 2026 compared to the same period last year. However, the fashion market's value has grown, attributed by experts to rising prices caused by increased production costs, including labor, materials, and logistics. Consequently, 34% of Russian consumers are reportedly moving to lower-priced segments or waiting for sales. This trend coexists with the robust growth of e-commerce. Research from Russia's Higher School of Economics (HSE) shows that one in two Russians shops online. Notably, the segment of consumers who combine both online and in-store shopping has grown from 39.9% to 50.9%. For traders like Son, these signals present an opportunity to develop new business models that integrate online reach with well-equipped physical stores to retain customers. Other Vietnamese vendors at the market express admiration for the boldness of younger entrepreneurs like Son, acknowledging that the 'storefront in the market' model requires substantial capital and courage. Ms. Trinh Thi Thu Thanh, a Vietnamese customer manager at Sadovod, noted that the market administration encourages larger rental spaces with preferential policies. She also observed that since the COVID-19 pandemic, the storefront model has emerged, with Vietnamese traders taking risks by expanding their spaces. Thanh mentioned that foreign businesses, including Chinese investors, are making large-scale investments in new market areas, leasing extensive spaces for flagship stores that leverage supply advantages and price competitiveness. While Son acknowledges the challenges ahead, he remains optimistic about his venture, believing that these large-scale stores in a market traditionally characterized by small, adjacent kiosks can offer effective new business avenues for Vietnamese in Russia. Source: Nhan Dan