Retail companies diversify, shift to multi-channel sales
Retail companies diversify, shift to multi-channel sales
Changes in shopping trends are forcing retail companies to shift to different modes of sale for optimal consumer service.
MWG expects to have 300 supermini Dien May Xanh stores by the end of this year
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The latest survey by the market research company Nielsen shows that the number of Vietnamese consumers shopping online has increased by 25 percent, while the number of buyers through traditional channels such as supermarkets, markets and general stores grew seven, three and six percent, respectively. Online shopping attracts consumers for its convenience and promotional prices. Meanwhile, data compiled by the consulting company Kantar shows increased online shopping by all groups of consumers, including those above the age of 50 and rural residents.
Dang Thuy Ha, Nielsen Vietnam’s Director for the Northern Region, said that a growing number of consumers seeking higher quality lives have chosen online shopping to save time.
In the context of the Covid-19 pandemic, consumers now attach greater importance to convenience and safety rather than to entertainment during shopping as they did in the past. This has heavily affected traditional retailers, forcing them to change their sales approach, along with opening new branches and shops.
In fact, many domestic retailers have promoted multi-channel sales to serve both online and offline buyers. Consumers can go directly to shops to see the products but order online. They can also learn about product price and design through websites/apps of retail units but buy directly at their shops.
For example, grocery shopping service providers of the Vinmart supermarket chain can be connected with consumers through smart phones, apps and websites. The gioi di dong (Mobile World) has also launched its grocery shopping service, helping consumers buy even fresh food. FPT Retail has introduced an e-commerce-based multi-channel sales strategy to promote sales through cooperation with mobile phone brands that are strong in distribution via electronic channels; cooperation with other retailers to provide lists of new products; or cooperation with the leading cross-border e-commerce platform Fado.
To serve consumer convenience, retail companies have opened new convenience stores instead of supermarkets or hypermarkets, promoting sales in suburban areas or seeking revenue from new business fields. The Mobile World Investment Corporation (MWG) recently put into operation a supermini Dien May Xanh (green electronics) network and expects to have 300 stores of this kind by the end of this year, targeting annual sales of VND500 billion.
| According to the Ministry of Industry and Trade, in the first 10 months of 2020, total retail sales of goods and revenue from consumer services reached VND4,123 trillion, up 1.3 percent compared with the same period last year. Retail sales of goods reached VND3,263.4 trillion, accounting for 79.1 percent of the total and up 5.4 percent. |
