- Your Consultant
- Green Growth
According to data recorded by the end of the first quarter of 2022, VinShop (a tech product of One Mount Group) is becoming the shopping platform on mobile applications for more than 100,000 traditional grocery stores in Vietnam.
Since the launch in October 2020, on average, more than 200 small merchants choose VinShop to upgrade as well as take advantage of technology and financial solutions every day to increase income.
|VinShop offers many technology tools and financial solutions to help grocery stores increase their income|
Besides a fast-paced coverage expansion, VinShop also posted a growth rate of 49 per cent each month with a monthly increase of 51 per cent in the average order value by small merchants.
VinShop also boasts 25,000 square metres of main warehouses and 10,000sq.m of satellite warehouses across 20 localities. With its transportation network, VinShop can transport over 1,000 tonnes of cargo. Grocery shop owners can order and receive different types of goods instead of only one product like the traditional distribution method.
In the second quarter of 2022, VinShop expands its footprint to seven new markets including Quang Ninh, Thanh Hoa, Nghe An, An Giang, Dong Thap, Tien Giang, and Vinh Long. After one month of venturing into new markets, VinShop has increased its coverage to over 5,000 grocery outlets and partnered with dozens of distributors to ensure inventories, warehouses, and transportation for each grocery outlet. In May, the revenue of seven markets recorded a growth rate of over 30 per cent compared with the previous month.
VinShop is not the only platform in the race to digitalise the traditional retail model. According to experts, VinShop’s advantage lies in its understanding of local customers, along with its solid technology and financial background. This helps VinShop increase the penetration of its digital grocery model to every corner.
Tech In Asia, Asia's leading consumer and technology site, once called VinShop the "Goliath giant" of the Vietnamese retail market. Meanwhile, Nikkei Asia assessed that VinShop is bringing about drastic changes to grocery stores to increase their income by up to VND10 million ($430) per month.
Despite its tremendous growth rate, VinShop has a lot of ample room to increase its impact on the first B2B2C (Business to Business to Consumers) model.
Firstly, Vietnam still has a large consumption market. The country's retail market is growing strongly with an estimated total revenue of $100 billion by 2025.
Nielsen statistics show that Vietnam currently has about 1.4 million grocery stores and more than 9,000 wet markets, accounting for 75 per cent the market share. These grocery stores and wet markets satisfy 85 per cent of people's consumption needs. About 88 per cent of FMCG products are still delivered to customers through this channel. This is the highest rate in the region, according to RedSeer Consulting.
“Grocery stores not only have a high level of awareness, but also proximity and accessibility to customers. Thus, the outlets are a potential touchpoint for VinShop to expand its business model,” said a representative of One Mount.
|Traditional grocers now have the same conveniences as modern supermarkets thanks to VinShop|
Second, about 61.3 million smartphones are in use in Vietnam. The country is among the top 10 countries with the highest number of smartphones, according to data from Statista in 2021. A young and tech-savvy population with the willingness to embrace digital transformation and update technology applications quickly makes it easier for VinShop to change customers' habits and behaviours.
“Combined with Vietnam's No. 1 loyalty platform, VinID, the B2B2C model from One Mount brings value and increases income for all stakeholders in the supply chain from manufacturers, suppliers, and distributors, grocers, to end-consumers,” said a representative of One Mount.
The digitalisation trend, as well as the prospective market, are important driving forces for VinShop to expand its reach. VinShop has a fantastic opportunity to alter the traditional retail model, optimise operations, and increase retail sales with the help of One Mount's technology and data, as well as financial solutions from strategic partner Techcombank.