CEO Luu Anh Tien asserts that 1,000 stores is not a destination, but a foundation for Con Cung to enter a new growth phase. He explains that larger scale leads to better and more stable prices, not by compromising quality, but by relying on three strategic pillars: a cost-optimized model, quality control, and the team's operational capabilities. With this foundation, Vietnam's major mother and baby industry player confidently aims for 2,000 stores in the next three years, while targeting USD 1 billion in revenue within the same period.

Cost-optimized model

Unlike many retail chains, Con Cung heavily invested in automation and process standardization from the outset. Consequently, the cost to open a Con Cung store is 20-30% lower than the industry average.

"We do not pursue having the largest or most beautiful stores. Instead, each store is designed to be optimal in terms of area, layout, and operation", Mr. Tien explained. A standardized system makes replication significantly easier and more cost-effective.

Con Cung's store expansion rate clearly demonstrates this. After building its foundation from 2011-2017, the system entered an acceleration phase from 2017-2018, doubling its store count. From 2021 until now, the company has maintained an average opening pace of nearly 100 stores annually, reaching 600 stores in 2021 and 1,000 stores by the end of 2025.

Con Cung stores attract many customers for visits and shopping. Photo: Con Cung

Con Cung stores attract many customers for visits and shopping. Photo: Con Cung

According to Mr. Tien, the philosophy that "good prices result from good management" is evident in how the company cuts intermediate costs, optimizes its supply chain, and leverages technology for operations. The company proactively invested in logistics infrastructure and warehousing early on to prepare for large-scale expansion, creating an efficient operational foundation as the system approached 1,000 stores nationwide. This strategy explains why Con Cung's prices become more competitive and stable as its scale expands.

"When the scale reaches thousands of sales points, negotiation leverage with suppliers significantly increases, and transportation and storage costs are better controlled. All these factors are calculated to provide reasonable and stable prices for consumers", the CEO stated.

Quality – a top priority

While cost optimization provides the foundation, product quality has been Con Cung's guiding principle for over a decade. Mr. Luu Anh Tien vividly recalls a crucial meeting over 10 years ago between Con Cung and Friso at the Bitexco building. "The meeting was not about sales strategies or revenue; it focused solely on ensuring every product reaching consumers met the highest standards", Mr. Tien remembered.

That meeting opened the door for strategic cooperation between Con Cung and many leading international brands. Building on increasingly deep partnerships, Con Cung is gradually shifting towards a shortened supply chain model, prioritizing collaborations that allow products to move directly from manufacturers to the distribution system, minimizing unnecessary intermediaries. This "manufacturer to consumer" model offers a dual benefit: ensuring the best product quality while optimizing costs, thereby helping maintain competitive prices.

Families take photos with gifts and Takato products at the event celebrating Con Cung reaching 1,000 stores. Photo: Con Cung

Families take photos with gifts and Takato products at the event celebrating Con Cung reaching 1,000 stores. Photo: Con Cung

A prime example is the partnership with Takato, a premium diaper brand from Japan. At the event celebrating the 1,000th store, a representative from Takato Vietnam confirmed that Con Cung was the first strategic partner the brand chose upon entering the Vietnamese market. "Con Cung's model allows diaper packs to go from the factory directly to consumers quickly and transparently. That is why we confidently entrust our brand image", shared the Takato Vietnam manufacturer representative.

Over 2 million diaper packs of Takato have been sold at Con Cung, making this product one of the top 3 best-selling diaper items in the system, demonstrating the success of this cooperation model.

Beyond selecting reputable brands, Con Cung also focuses on localizing its product catalog. "Each region has its own specific preferences, consumption culture, and purchasing power. We do not impose a common product catalog for all stores", Mr. Tien explained, citing differences in demand between northern and southern provinces and various small and medium-sized markets.

Team and operational system

To realize its goal of 2,000 stores, Con Cung is heavily investing in two key factors: people and technology.

Regarding personnel, Con Cung builds a team with a "standardized but flexible" mindset. Each employee receives thorough training in product knowledge, consulting skills, and operational procedures. They are also encouraged to be creative and adaptable in their approach to customers, especially Gen Z parents, a generation of informed consumers with high demands for experience and quick adoption of trends.

The CEO notes that if a business fails to quickly grasp new trends, even short-lived ones, it risks falling behind. Therefore, the company has, from early on, applied technology to analyze consumer behavior, predict, and even create trends, rather than merely following existing "footprints".

From a technology perspective, Con Cung applies the 80:20 philosophy, focusing 80% of resources on core technology and the supply chain. A robust data system helps the company manage all 1,000 stores in real time. "Every morning, I just need to open my laptop to access all operational data: revenue per store, best-selling products, inventory, and even customer feedback", Mr. Tien shared.

One of Con Cung's biggest highlights is its comprehensive digital transformation. Currently, online channels contribute approximately 30% of total revenue, a notable percentage in the traditional retail sector. Simultaneously, the Con Cung application is developed as a customer care platform, integrating utilities such as vaccination reminders, child development milestone tracking, and age-appropriate product suggestions. These new features have been recently implemented and are being expanded based on positive user feedback.

Users experience seamless shopping, information lookup on the Con Cung app, and direct consultation with staff in-store. Photo: Con Cung

Users experience seamless shopping, information lookup on the Con Cung app, and direct consultation with staff in-store. Photo: Con Cung

The combination of online and physical store systems also helps Con Cung shorten delivery times. Customers can order via the application and receive goods within 30 minutes if near a store, or opt for same-day delivery.

Nguyen Thu Ha, a customer in TP HCM, states that young families today prioritize not just convenience, but also prices commensurate with the experience and assurance of product origin. "I choose Con Cung because the products are genuine, quality is stable, and prices are reasonable. The store frequently offers many promotions; I often follow live streams on the app to hunt for discount codes, which makes shopping more economical", Thu Ha said.

From 1,000 stores to a USD 1 billion vision

According to the CEO, the 1,000-store milestone not only reflects scale but also serves as a measure of Con Cung's operational capability and ability to control prices effectively. While many other retail chains face cost pressures and purchasing power challenges, this company determines that good prices do not come from quality cuts, but from efficient management at a large scale.

Mr. Luu Anh Tien stated that Con Cung's goal extends beyond becoming the largest mother and baby chain; it aims to build a comprehensive ecosystem, accompanying parents from pregnancy through their child's early years. The standardized operational platform across the entire system allows the company to expand its scale while maintaining stable quality and prices. Exceeding the 1,000-store threshold, Con Cung enters a new growth phase where operations, technology, and the supply chain become core competitive advantages. This also serves as a premise for the company to expand value-added services and strengthen long-term relationships with customers.

"We do not expand at all costs. Con Cung will continue to focus on cost optimization, quality assurance, and enhancing operational efficiency, which are the core values that help the company develop sustainably and gradually move closer to its USD 1 billion enterprise goal", CEO Luu Anh Tien emphasized.

Thai Anh