VinShop breathes fresh air into traditional retail market
As many as 40,000 mom-and-pop stores nationwide have been digitalised thanks to the VinShop mobile app developed by Vietnam’s biggest conglomerate Vingroup.
The Southeast Asian country is currently home to 1.4 million mom-and-pop shops and over 9,000 traditional markets, which serve 85% of the consumption demand of local people. However, their out-of-date business operation could affect consumers’ shopping experience as well as the market development.
VinShop, the first in Vietnam to employ the Business to Business to Consumer (B2B2C) model, addresses inefficiencies in the supply chain by offering thousands of traditional store owners a digital platform where they can order fast-moving consumer goods from suppliers and vendors.
Shop-keepers can use the app to manage their orders or make cashless payment through VinID Pay e-wallet. In the other words, VinShop helps turn brick-and-mortar shops into mini-markets without paying any operational cost.
Vingroup says its app will raise the income of small shops by VND10 million (US$432) a month on average by making their operations more efficient and cutting costs.
VinShop began building its retail network in July 2019, aiming to connect manufacturers and shops through the app, which includes purchase and distribution functions. If its business strategies go on the right track, hundreds of thousands of shops will go digitalised in 2021.
This solution is expected to improve the efficiency of the entire supply chain, and help overcome current weaknesses in the distribution of products from manufacturers to grocery stores, VinGroup said.
“VinShop benefits the whole market, from producers, retailers and consumers who have opportunities to buy high-quality products at low costs”, according to retail specialist Vu Vinh Phu.