Retailers embrace revenue-boosting strategies
Retailers embrace revenue-boosting strategies
The future of retail in Vietnam is becoming increasingly digital, with businesses adopting omnichannel and livestreaming strategies to drive growth and revenue.
A survey of 15,000 retailers across the country, conducted by Sapo Technology and released in mid-January, identifies three prevailing trends reshaping the sector: omnichannel expansion, cashless transactions, and advanced technology integration. Of these, omnichannel retailing has emerged as a defining force.
According to the report, a third of surveyed retailers reported revenue growth in 2024, with the majority concentrated in Hanoi and Ho Chi Minh City. These businesses, typically small-scale operations with fewer than five employees, are generating monthly revenues exceeding $20,000, with fashion, home goods, and food emerging as the most profitable sectors.
Retailers embrace revenue-boosting strategies, Source: freepik.com |
Among them, more than 80 per cent have planned to expand their business onto online platforms, enhance sales through livestreaming, and leverage the power of social media channels such as TikTok and Facebook.
The survey also found that just over half of retailers experiencing revenue growth are adopting an omnichannel model, with most generating monthly revenues ranging from $8,000 to $40,000. “This indicates that an omnichannel strategy is a key factor in driving retail growth, reaching a broader customer base, and maximising revenue,” said the report.
According to Le Thi Dung, growth director at Sapo, succeeding in omnichannel retail isn’t just about appearing on multiple platforms, it’s about seamlessly integrating them.
“Retailers aren’t just selling across different channels, they’re syncing them to create seamless experiences that put the customer at the centre,” Dung said in the report. “By consolidating customer data, businesses can develop loyalty programmes, increase repeat purchases, and optimise revenue. Omnichannel management is no longer optional, it’s the future of retail.”
The outlook for 2025 is positive, with 59 per cent of businesses forecasting stronger performance, according to Sapo’s findings. Instead of scaling back, most are looking to broaden their sales channels, concentrating on social media, e-commerce platforms, and TikTok Shop.
Alongside this expansion, retailers are investing in digital tools such as electronic invoicing, customer relationship management software, and automated workforce management to boost productivity and cut operational costs. Additionally, livestreaming and social commerce are expected to maintain their explosive growth, particularly on platforms like TikTok, Facebook, and Instagram. This surge isn’t just about selling, it’s about reinventing the shopping experience.
According to Le Thi Nga, director of Sapo’s social commerce and shipping, livestreams that incorporate creative content and interactive mini-games can boost viewer engagement by as much as 35 per cent compared to traditional product showcases.
“When combined with fast and reliable delivery, businesses create a full-circle retail experience - one that strengthens customer loyalty and drives repeat purchases,” Nga noted in the report.
Beyond livestreaming, short-form video content and affiliate marketing are emerging as powerful tools to enhance brand credibility and boost conversion rates. Vietnamese brands that successfully leverage these tactics are seeing unprecedented sales figures.
APG ECO, a Vietnamese rice brand, is a prime example of this transformation. By tapping into TikTok’s content-driven sales model, the company achieved remarkable success in 2024. “We never expected to sell tens of tons of rice within just a few hours, but reality exceeded our expectations,” said a representative from the company at the Vietnam iContent Awards in Ho Chi Minh City last November.
Since joining TikTok Shop in March 2024, APG ECO has made a strong impression with its rapid growth. During the November sales season, despite setting high sales targets, APG ECO exceeded expectations with a 20 per cent higher sales volume than anticipated.
Meanwhile, M.O.I Cosmetics, a Vietnamese beauty brand, saw its total gross merchandise volume (GMV) surge by 500 per cent in the third quarter of 2024, a spike fuelled by TikTok’s GMV Max, a tool designed to optimise e-commerce performance through targeted content and real-time analytics.
“We don’t just livestream to showcase products; we create an immersive shopping experience,” M.O.I’s representative said in December, emphasising the combination of strategic livestreaming and cutting-edge technology as the future of retail, not only for beauty but across all consumer sectors.
