Nikkei, Deal Street Asia: VinShop is on the right track when targeting the fertile market
According to Nikkei, the establishment of VinShop helps grocery stores to increase revenue and compete with modern convenience store systems. Also page DealStreetAsia specializing in investment said: This is a potential business model in a very "fertile" retail market like Vietnam.

According to experts, traditional retail models such as grocery stores will "live well" when they know how to adapt in the new technology age.

In fact, not only in Vietnam, grocery stores are a popular model in Southeast Asia. According to recent research from consulting firms Bain & Company and Facebook, total grocery spending in Southeast Asia is about $ 350 billion, and online groceries now make up a small portion of that total, but are currently tends to become popular.

Nikkei quoted from Deloitte's report: “Consumers in deep alley, suburban areas… still keep the habit of going to the grocery store to shop. This is a convenient model and has its own market, which is hard to replace ”.

The new launched VinShop application of One Mount Group has created a new link in the technology era. Through VinShop, small traditional grocery store owners can import goods at wholesale prices directly from their suppliers under the B2B model.

 VinShop is expected to help improve the efficiency of the entire supply chain, overcoming the current weakness in the retail industry in distributing products to grocery stores. Nikkei stated that putting groceries on VinShop application is a new solution in Vietnam, promoting consumption during and after the epidemic.

Also according to the study, Southeast Asian consumers are buying online more, of which 43% of respondents said they now tend to buy more groceries. About 62% of consumers report social media, short videos and text messages as their favorite online channels to discover new brands and products.

E-wallets have also seen skyrocketing growth. 22% of consumers revealed it as their preferred payment method, compared with 14% in 2019.

The e-Conomy SEA 2019 report by Google and Temasek said that Vietnam is the second fastest growing economy in Southeast Asia, after Indonesia. With e-commerce in general, this market is expected to expand by 43% during 2015-2025.

Jixun Foo, managing partner at GGV Capital said on The Next Billion Podcast, because Vietnam's e-commerce market is quite small compared to India and Indonesia, deepening and being flexible with transformation models will bring more value to the entire retail ecosystem in Vietnam. One thing that India and Vietnam have in common is that the delivery cost and the cost of connecting to the end users are still very high, so the B2B2C model is a flexible and potential option.