“Founder Xedap.vn, Peter Nguyen, Shares His Story of Resilience in the Face of Retail’s ‘Winter’: ‘Vietnam Will Become the World’s Bicycle Manufacturing Hub in the Next 4-5 Years””

Green Circle was established in 2016 and initially served as the official distributor for Giant
International, the world’s largest sports bicycle brand. Three years later, Xedap.vn was born with
the ambition to standardize the bicycle retail market, similar to how The Gioi Di Dong revolutionized
the electronics industry, and Pharmacity and Long Chau entered the pharmaceutical sector.

In a country with over 60 million motorbikes like Vietnam, bicycles still find their niche by
becoming a unique lifestyle, especially with the rise of keywords like “greening” and “self-care.”

After reaping success by establishing itself during the Covid-19 pandemic, when people prioritized
health and the environment, Xedap.vn now faces new challenges amid economic hardships. To maintain
growth, Peter Nguyen, the Founder & CEO of Green Circle, had to find another path.

You previously founded a technology company in the marketing field. What inspired you to
“start over” in the bicycle retail industry?

I chose bicycles as my destiny. After selling Buzzmetrics, I often participated in Iron Man
competitions and developed a passion for this sport. From there, I decided to partner with a friend
to develop a distribution network for the Giant brand and eventually ventured into retail.

For me, bicycles represent a fascinating and unique world, featuring futuristic models. In many
places like Taiwan and the Netherlands, the bicycle industry has become an integral part of their
lifestyle.

How has cycling changed your life?

I live in a world of two wheels, exploring the country’s scenic spots on my bicycle, experiencing
unique bike models, and even designing bicycles with distinct aesthetics within our product range…

While it doesn’t have to be cycling, I encourage everyone to engage in sports. After a workout,
your body’s energy is replenished, becoming more resilient and vigorous, leading to a clearer and
more flexible mind. The adrenaline and dopamine released during exercise empower you with the courage
to try new things and break free from your comfort zone.

When you surpass your physical limits, you’ll shed your hesitations. You’ll be motivated to step
outside your comfort zone, embrace new challenges, and become a vibrant individual who can inspire
others to join your world. All of this begins with taking on physical challenges and overcoming
psychological barriers.

Sports aren’t just about getting fit; they offer so much more. You’ll notice improvements in your
health, work, friendships, and social life. That’s what I strive for, so bicycles are more than just
a sport to me.

What was the state of the Vietnamese bicycle market when you started building Xedap.vn?

The bicycle market back then resembled the state of the mobile phone retail industry before The
Gioi Di Dong standardized it, or the pharmaceutical sector before Pharmacity and Long Chau stepped
in. Most dealers operated in a small-scale, traditional manner. Owners assembled bikes themselves,
and the origin, brand, and pricing of products were unclear, with technical services often
neglected.

Xedap.vn aimed to bring standardization and build a long-term strategy aligned with the green and
healthy lifestyle aspirations of Vietnamese people.

What motivates customers to choose professional bicycle retail stores like Xedap.vn over
second-hand purchases or small, traditional shops?

The reason is similar to why people opt for convenience stores or supermarkets instead of
traditional markets. It’s about offering a modern shopping experience with transparent product
origins, clear branding, and a range of price points for different segments. From children’s bikes
to MTB (mountain bikes), touring bikes, folding bikes, fashion bikes, and even e-bikes, we’ve got
you covered.

After-sales service is also crucial when buying a bicycle. Customers want to know that they have
a place to turn to for repairs or maintenance. Xedap.vn fulfills all these requirements.

Xedap.vn experienced strong growth during the pandemic when people prioritized health. Did
you achieve success right from the start?

We had to navigate through numerous challenges and experiment with different business models,
such as opening Giant brand distribution outlets, selling premium bikes, and even combining bikes
with coffee shops. After several failures, we found success with a multi-brand retail chain model
catering to diverse customer needs.

During 2020-2021, Xedap.vn performed well as people prioritized health amid the pandemic. However,
we also faced difficulties in the post-Covid era, leading to downsizing like many other industries.
2023 has been a year of stabilization, and although the situation hasn’t improved significantly, our
strategy shift has kept us growing.

You previously set a target of reaching 100 Xedap.vn stores by 2025. Has this goal changed
due to the current economic situation?

We remain committed to our goal of 100 stores, but the timeline has been adjusted to 2027.
Currently, we have around 30 Xedap.vn stores. We plan to resume store openings next year to adapt
to the economic climate.

Despite challenges in the retail market, we continue to grow and expand through alternative
strategies, such as partnerships with supermarkets and our Xedaptot.com franchise network. This
franchise model has reached approximately 110 stores in less than a year since its launch.

I believe franchising is a suitable approach to navigate the economic downturn since 2023.
Instead of opening company-owned stores, we collaborate with dealers nationwide to establish a
model where we provide operational formulas, support store design and construction, train staff,
and supply products to help them thrive in their regions.

E-commerce and live streaming sales are gaining popularity. Is Xedap.vn investing in
these channels?

The bicycle industry is quite traditional. The customer journey involves a lengthy consideration
process and research. Therefore, offline stores and technical services for bicycle repairs are
essential. Our business model bridges the online and offline worlds. The online channel cannot
operate independently.

Our team of skilled and experienced bicycle technicians is one of our greatest assets. We invest
in vocational training centers, technical assembly testing centers, and certification programs to
train bicycle technicians not just for Xedap.vn but for the entire country. This is a unique aspect
of our industry, and it requires us to have a long-term strategic vision for our technical
personnel.

The company currently employs approximately 260 people, excluding dealer staff.

Is increasing customer demand and attraction the biggest challenge in opening more
stores?

In my opinion, purchasing power is closely linked to the economy. The fundamental task is to
ensure that our staff not only sells bicycles but also inspires customers to lead a more balanced
life through cycling. They must be cyclists themselves and evangelists for the cycling culture and
lifestyle.

Many people buy bikes as a fad and then give up. Our staff has the responsibility to inspire and
motivate customers to keep cycling. In parallel, we also advocate for bike lanes in residential
areas and work with local governments to make this a reality. As infrastructure improves and
residential areas become greener and safer for cyclists, the cycling movement will gain momentum.

These factors are still in their infancy but are gaining traction, such as proposals to restrict
motorbikes in inner cities, the operation of metro systems, and the introduction of bike lanes in
some urban areas. These are very positive signs for the bicycle industry.

Therefore, Xedap.vn remains optimistic and confident in our path because what we do goes beyond
just selling products. As an Iron Man athlete myself, I feel a sense of responsibility to inspire
those around me to cycle more.

Which segment is the top-selling at Xedap.vn?

Children’s bikes are the highest in sales volume because a family may buy up to three bikes as
their child grows: one for the 2-5 age range, another for 5-9, and a third for the 10-15 age group.

Coming in second are touring bikes—slim, versatile bikes with small wheels, suitable for
commuting, leisure rides, and even light off-road adventures. Third is the MTB (mountain bike)
segment, featuring large wheels and shock absorbers, perfect for off-road and adventurous rides.

In terms of growth rate, it’s worth looking at price segments. This year, the focus has been on
the affordable range of 3-5 million VND. The premium segment, with prices starting at 10 million
VND, has slowed down due to purchasing power constraints.

How do you assess the potential of the bicycle retail industry in a “motorcycle country”
like Vietnam?

As the economy grows, the middle class expands, and infrastructure modernizes, people will
increasingly prioritize health and embrace sports, nutrition, wellness services, and beauty care.
The bicycle industry will benefit from these trends.

I believe the bicycle industry has excellent long-term growth potential. The current challenges are
temporary and stem from the broader economic situation. In fact, we continue to grow by increasing
our reach through the franchise model and product placement in supermarkets.

Another noteworthy aspect is the shift of the global bicycle manufacturing industry to Vietnam.

When the US-China trade conflict erupted, major bicycle manufacturers began relocating their
operations to industrial parks in Binh Duong, including Giant and accessory brands. In my
assessment, Vietnam will be the world’s bicycle manufacturing hub in the next 4-5 years, creating
a wave of domestic bicycle