E-commerce a positive for retail sector
Despite the impact of the COVID-19 pandemic, the retail market in Việt Nam in the first quarter of this year still recorded positive results from e-commerce, online shopping and delivery services.
The General Statistics Office of Việt Nam reported that turnover in the first quarter of food and beverage, and hotel and tourism services decreased by 9.6 per cent and 27.8 per cent, respectively.
Data from CBRE Việt Nam also showed the number of visitors to shopping centres decreased by about 80 per cent in both HCM City and Hà Nội because of the pandemic.
But although direct shopping revenue dropped, e-commerce and online shopping helped save many retail businesses, the research firm said.
CBRE also reported a strong competition between veteran e-commerce platforms and new players at the end of last month.
During the pandemic, Tiki reached a record of 4,000 orders per minute, SpeedL and Saigon Co.op also soared in the online sales segment.
Ride-hailing platform Grab also quickly launched its GrabMart service to serve the online shopping needs of customers at home.
Võ Thị Phương Mai, deputy director and head of retail services of CBRE Việt Nam, said the COVID-19 pandemic had negatively impacted direct visitor traffic but creating many opportunities for small and medium-sized models such as convenience stores, pharmacies and especially e-commerce.
E-commerce was a bright and transforming point, which supports physical stores during the pandemic, she added.
Multi-channel sales would be more flexible and may even outperform the post-COVID-19 period.
AT Kearney also listed the Vietnamese retail market among the world’s most exciting group.
There are many figures and development trends making domestic and foreign retailers realise the attractiveness and great opportunities in the country.
Việt Nam’s economic growth is among the highest in the region. The size of the country’s population is nearly 100 million people, with a young population group and the increasing income.
The rapid urbanisation process creates new shopping and consumption trends, especially in modern shopping spaces.
Under the pressure of the pandemic, many businesses in the retail industry rushed to adapt.
Being a traditional retail giant established in 1996, Saigon Co.op is a typical adaptation when moving to multi-channel sales in recent years such as television retail, applying Scan & Go, and e-wallet MoMo.
“After diversifying the retail category, we are aiming for omnichannel sales,” said Nguyễn Anh Đức, newly appointed general director of Saigon Co.op in Forbes magazine recently. — VNS