Expensive but still love multi-channel retail

“Yeah1 researched on the market when linking to developing multi-channel trade model? This is actually the trend (trend) that businesses (DN) run or do businesses really understand their customers are targeting.” ? “. That is the most impressive question at the 2021 Annual General Meeting of Shareholders of Yeah1 Group JSC (hereinafter referred to as Yeah1) recently.

Big ambition

It is not without reason that shareholders ask this question to the management of enterprises, because in 2020, Yeah1 has a loss of 180 billion dong and has not earned any profit from the omnichannel commercial segment, but it is spent more. 30 million USD (for investment in developing Giga1 ecosystem).

Mr. Nguyen Anh Nhuong Tong, Chairman of the Yeah1 Board of Directors, affirmed that it is not about following the trend but the problem of how to solve the selling stage for manufacturers, especially small manufacturers. “When we talk to businesses working together to build this ecosystem, we realize that the manufacturing market is divided into 2 groups. One group that has already succeeded, then thrives and grows forever, and one group does not emerge.” Yeah1, with experience in the advertising market, will understand user psychology, know what stories to tell for businesses to sell “- Yeah1 Chairman explained for your risk-taking strategy in the face of pressure to ensure the interests of shareholders and the safety of the company.

For nearly 2 months now, a consumer goods and cosmetics supermarket of investor P.G (Hong Kong) has begun to be arranged to wait for its official launch this May in a prime location in District 1 (HCMC), after officially launching in Hong Kong, Taiwan and Malaysia.

With this ecosystem, a co-branded coffee shop is going to operate in the form of investors and partners sharing premises and profits. However, these are just the offline sales channels that help create trust for customers, satisfy the needs to come to the place, touch in person, check quality … The central sales channel is mainly directed by PG Group. Online shopping through mobile applications with high quality products and competitive prices, including home decoration products, home appliances, travel goods, health – beauty, fashion … And yet, According to the reporter, this investor’s ambition is to build an integrated ecosystem between online – offline retail and multi-level business through interaction with friends. Accordingly, users can make friends and invite more friends, introduce products, form associations – groups … to enjoy the benefits attached.

It is unclear when this ecosystem is officially launched, the effect of reaching consumers will come but in the near future, investors have to spend a lot of effort as well as money to build an ecosystem, work with each brand to choose quality products … to realize ambition.

Expensive but still love multi-channel retail

Enterprises increasingly focus on diversifying sales channels, in which promoting the online segment even though it has not yet brought much profit. Photo: HOANG Trieu

Channel of the future

In the manufacturing sector, many businesses also began to pay more attention to multi-channel trade, although most admitted that online channels have hardly benefited. Mr. Phan Van Dung, Deputy General Director of Vietnam Animal Technology Joint Stock Company (Vissan), said that the e-commerce segment has been implemented by enterprises since the beginning of 2020 but has not yet developed strongly. In 2021, Vissan promotes online sales through hotline 19001960 and Vissanmart.com website as well as through partners such as Sendo, Grab, Now, Foody with a variety of products, many promotions, free delivery. The goal of online sales channel growth of this enterprise in 2021 is 20%, towards this channel sales will account for 20%-30% of total sales.

Responding to shareholders at the 2021 annual shareholder meeting taking place at the end of April, the leader of Vietnam Dairy Products Joint Stock Company (Vinamilk) also said that the e-commerce segment has been focused by Vinamilk for many years but the value of the Contribution is not large. The reason is that Vietnamese people have a “motorcycle culture” and want to shop at anywhere and convenient. However, businesses still have a strategy to use the store system to support online delivery.

Brand expert Lai Tien Manh assessed that omnichannel retail is an inevitable trend of the retail market in the context of complicated epidemics and strong development of technology. Even the multi-channel concept not only stops at online and offline sales, but also integrates many other technology applications. “Although this is a trend, many businesses are interested and started to apply technology in sales stages, but not all businesses can succeed. The biggest requirement of this method is the ability to adapt. Using technology, resistance to loss … because in the first stage, it is impossible to expect profit from online channel while this is an expensive investment channel, but if it can pass, businesses will dominate the retail channel of the future. “- analyzed Mr. Lai Tien Manh.

According to Ms. Dang Thuy Ha (Customer Manager, Nielsen’s Consumer Research Division), consumers’ buying journey is no longer a straight line, but through many channels with many touch points, combined between direct online and direct. So, like it or not, the combination of these two sales channels will be the exit for retail businesses.

Not intimidating traditional channels

Data from the Ministry of Industry and Trade shows that revenue from e-commerce in 2020 only accounts for 5.5% of the total retail sales of consumer goods and services nationwide. The survey from Kantar Worldpanel also showed that e-commerce channel, although impressive growth of 91%, only accounts for 2.3% market share for the whole FMCG (FMCG) industry. The reason is that consumers still prefer to experience real products with their senses such as touching, manipulating, observing … Customers often only shop online with small value products or products they have consumed before. Therefore, maintaining many sales channels in parallel is essential for businesses to reach a stable and long-term customer base.

Phuong Nhung – Ngoc Anh

Source: nld.com.vn – Translated by fintel.vn

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