Omnichannel activity boosts overall 2022 retail performance
Omnichannel activity boosts overall 2022 retail performance
Vietnam’s retail sector closed 2022 with a boom in omnichannel sales.
According to the General Statistics Office, the retail industry last year saw a sharp increase of 10.15 per cent compared to 2021, while total retail sales of consumer goods and services in 2022 rose by 15 per cent compared to 2019.
A survey of 15,000 sellers by management platform Sapo showed that the general situation in 2022 in terms of recovery was mixed. Even though 42 per cent of sellers recorded a revenue drop compared to 2021, the percentage of sellers with revenue growth accounted for 37.7 per cent, in which the number of sellers with growth of over 30 per cent in revenues held 6.36 per cent.
Areas that recorded the highest growth were in fashion/accessories, cosmetics, grocery supermarkets, and toys. Methods to stimulate purchasing power included promotional programmes (65.6 per cent), loyalty programmes (22.6 per cent), and various after-sale customer care methods (10.7 per cent).
According to the report, omnichannel sales were on the rise in 2022, and are expected to explode in 2023. More than half of sellers reported to be doing business on at least two channels, while businesses who only sell in stores accounted for 23.7 per cent, and those who only sell online occupied 17.4 per cent.
Omnichannel sellers show a clear revenue advantage, with growth of 68 per cent. This number is significantly higher than that for online sellers (only 16.9 per cent) and in-store sellers (15.07 per cent).
Hanoi’s Department of Industry and Trade has specifically directed stores and supermarkets to diversify their distribution channels to meet the exploding demand over the Lunar New Year period.
Aside from traditional channels, the city is mobilising about 600 essential goods supply points, including e-commerce platforms and sales via phone and websites, to help consumers gain easy access. The department estimated that shopping demand will continue to increase by 2-3 times this week compared to normal days.
“We predict that the purchasing power this year at supermarkets will increase by 10-20 per cent compared to 2022,”said Nguyen Van Ngoc, director of MM Mega Market Thang Long. “Realising this need, we had Lunar New Year products on display four weeks before the holiday began, on various channels including websites and Facebook pages.”
Similarly, BRG Mart, WinMart, and AEON are all embracing online sales on social media besides their brick-and-mortar supermarkets. To stimulate consumer demand, festive products with diverse designs and prices are sold along with accompanying gifts or incentives such as discounts along with free shipping.
“Since the end of September, BRG Mart has been working with retailers for large supply to lock in our output,” Nguyen Thuy Duong, deputy general director of BRG Retail said. “Stable goods accounted for 32 per cent of the total number of goods for Lunar New Year, with various points of sale, to make sure we meet the demands.”
According to the Sapo survey, among online sales channels, e-commerce platforms are the most popular with almost half of sellers, followed by social networks and websites. TikTok Shop, a new channel in 2022, currently accounts for only 1.24 per cent of the number of sellers, but is projected to be a top trend in 2023.
However, when evaluating the overall effectiveness of sales channels, in-store sales are still most popular. Next in line are social networks and e-commerce platforms.
