Have you ever wondered why more and more Korean brands are rushing to open physical stores in Vietnam, even as everyone says e-commerce is reigning supreme? The answer lies in an interesting paradox: the very explosion of online shopping is driving South Korean brands to invest more heavily in physical storefronts.
This is not a battle between online and offline. This is an integrated game where offline stores become strategic touchpoints to conquer Vietnamese consumers. And names like Musinsa, Who.A.U, and K-Market are showing that they understand this game better than anyone else.
Background: Vietnam's E-Commerce is Booming Like Never Before
Before diving into the stories of specific brands, let's look at the big picture. Vietnam's e-commerce market is witnessing astonishing growth rates. The total transaction value on major e-commerce platforms in 2025 increased by 34.8% compared to the previous year. More notably, Shopee and TikTok Shop now account for approximately 97% of total market share in Vietnam's e-commerce sector.
But here is the crucial point: Vietnamese consumers do not just shop online. They have a very distinct behavior – researching and experiencing products at physical stores first, then deciding to buy online. This characteristic has opened the door for Korean brands, who are renowned for their ability to build brand experiences at the point of sale.
Musinsa: From Online Platform to Physical Stores in Vietnam
Musinsa – South Korea's leading online fashion platform – officially announced its entry into the Vietnamese market on August 21, 2026, after successfully conquering the Philippines and Indonesia.
What is noteworthy is that Musinsa did not build its own distribution system. Instead, they chose to partner with Au Chau Fashion and Cosmetics (ACFC), a company under Imex Pan Pacific Group (IPPG) – one of Vietnam's largest distributors. IPPG currently distributes over 100 international brands through more than 1,200 stores, while ACFC operates 28 international fashion brands with over 280 stores nationwide.
Under the agreement, the two sides will jointly develop the Musinsa Standard brand in Vietnam and plan to open physical stores in Ho Chi Minh City alongside other key locations. This strategy is expected to help Musinsa quickly adapt to the market and reach Vietnamese consumers.
The driving force behind this decision is demand proven on the online platform. Transaction values on the Musinsa Global Store in Vietnam grew by an average of about 40% annually between 2023 and 2025. Musinsa Standard, positioned as a specialized affordable retail chain, targets young consumers and the middle class in Vietnam.
Choi Woon-sik, Brand Director of Musinsa, shared that the company will combine ACFC's expertise in international brand development with the competitive advantage of K-fashion. This partnership is expected to bring a distinct brand experience to Vietnamese customers.
Who.A.U: When Online Fandom Becomes a Launchpad for Offline Stores
If Musinsa is the story of an online platform expanding offline, Who.A.U is proof of the power of online fandom in driving physical presence.
E-Land World's American streetwear brand made an impressive debut in Vietnam with its first pop-up store at Vincom Mega Mall Thao Dien, Ho Chi Minh City from June 19 to 21, 2026. Right from opening day, a queue of about 50 people waited in line, and many items such as short-sleeve sweaters and two-pack t-shirts sold out.
This success was not due to luck. Who.A.U built a solid foundation early on. The brand opened its official online mall in Vietnam in August 2024, then joined Shopee and TikTok Shop in September of the same year, operating simultaneously across all three online channels.
Who.A.U's strategy targets Vietnam's young generation – those who consume fashion mainly through short-form videos on social media and online lookbooks. At the same time, the brand subtly adapts its products to suit local weather and lifestyles, focusing on items like cardigans, sweaters, and light jackets.
The results are staggering: sales in Vietnam in the first half of 2026 increased by 231% compared to the same period last year. The majority of this came from the official online mall and local online shopping platforms.
And now, Who.A.U is preparing for its next step: opening its first standalone store in major Vietnamese cities, including Ho Chi Minh City, in the second half of 2026.
K-Market: Korean Retail Giant and the Integrated O2O Model
While fashion brands are struggling to connect online and offline, K-Market – the largest Korean supermarket chain in Vietnam – has been operating an admirable integrated model.
With a network of 150 directly managed supermarkets specializing in Korean food and K-consumer products, K-Market also operates logistics centers in Ho Chi Minh City and Hanoi, facilitating product distribution to stores across the country's two largest economic hubs.
What is noteworthy is that K-Market recognized the importance of integrating online and offline early on. They implemented a system allowing customers to pick up online orders at the nearest offline store, helping reduce logistics costs and bring convenience to consumers.
However, K-Market Chairman Ko Sang-goo also expressed concerns about intensifying competition. He noted that Japanese and Chinese brands are expanding aggressively in Vietnam, and K-food is no longer the sole market driver. He emphasized: "Hallyu is no longer safe in Vietnam. It will not last forever."
O2O Strategy: When Physical Stores Become 'Showrooms' for Online
The common thread in the strategies of all these Korean brands is the O2O (Online to Offline) model – an approach that is completely changing how retail operates in Vietnam.
Instead of competing with e-commerce, these brands use physical stores as an experiential touchpoint. Customers can come to the store to see products, test them, and feel the materials – then decide to buy online or on the spot. Physical stores become "showrooms" that help build trust and reduce risks for buyers.
This model is particularly effective in Vietnam, where consumers have a habit of thoroughly researching before buying. They want to see and touch products with their own eyes and hands before spending money. And Korean brands are making full use of this characteristic.
Regional Competition: Korea is Not the Only One Seeing Opportunities
Vietnam's retail market is witnessing fierce competition among giants coming from East Asia.
Japan is expanding aggressively with Aeon Mall – which currently has 9 large shopping centers in Vietnam and aims to expand to 100 centers by 2030. Sumitomo Corp's FujiMart supermarket chain is also focusing on Hanoi and plans to increase to over 50 locations by 2028. Convenience store brands like FamilyMart and Ministop also maintain a widespread presence.
China is not standing on the sidelines either. Miniso appears in many major shopping centers with products in collaboration with Sanrio and Disney. Mixue has established more than 1,000 ice cream and milk tea stores nationwide. And of course, one cannot overlook Lazada and TikTok Shop – two e-commerce platforms dominating the market.
In this context, Korean brands stepping up investments in physical stores is not just a strategy to get ahead of e-commerce, but also a way to maintain presence and compete against the influx of entry from Japan and China.
Lessons for Vietnamese Enterprises: Don't Lose Your Home Turf
Facing the wave of investment from Korean brands, what can Vietnamese businesses learn?
First, do not underestimate the power of physical experience. In the digital age, physical stores are not obsolete. They become important touchpoints to build trust and emotional connections with customers.
Second, integrate online and offline instead of competing against them. The O2O model is proving its clear effectiveness. Let physical stores support the online channel and vice versa.
Third, do not underestimate the power of fandom. Who.A.U has proven that a loyal community of fans online can become a solid foundation for real-world expansion.
Fourth, learn how to collaborate instead of doing everything alone. Musinsa chose to partner with IPPG to leverage an existing distribution network, saving time and costs. Sometimes, going fast alone is not as good as going far together.
The Game of Those Who Understand Consumers
I have witnessed quite a few waves of foreign investment into Vietnam's retail market over the past two decades. But this latest wave carries a distinct characteristic: it is not just about products, it is about experiences.
Korean brands bring more than just beautiful, quality products. They bring a consumer approach tailored specifically for the Vietnamese market: understanding that Vietnamese people want to experience before buying, want to connect emotionally before spending money, and want to be served both online and offline.
And in this game, the winner is not the one with the best product, but the one who understands the consumer the most.
What do you think about the wave of Korean brands landing in Vietnam's retail market – is it an opportunity to learn and raise competitive standards, or a threat to domestic businesses? If you are running a Vietnamese brand, what will you learn from the O2O strategies of Musinsa and Who.A.U to retain your customers? Share your views below, because in this retail war, those who refuse to learn will soon be left behind!
0 Comment
Add your comment to this article