VinShop is hoping to become a successful store connection platform in Vietnam, as it adopts similar business strategy as Tokopedia in Indonesia.
Tokopedia has a valuation of US$7 billion in 2020 making it the 3rd largest unicorn in Asia just behind Grab and Gojek. Tokopedia was developed as a shopping platform where any business could easily arrange and sell its products. Its business model is similar to China’s Alibaba as it combines shop with encyclopedia.
Tokopedia’s success in Indonesia inspired One Mount Group to develop its VinShop platform. One year after its launch, VinShop has connected more than 100,000 traditional grocery stores. However, this figure is still modest compared to the market potential.
According to Nielsen, Vietnam has 1.4 million grocery stores in operation. Kantar Worldpanel highlighted that traditional retail channels, including markets and grocery stores, still command 85% of grocery retail sales in Vietnam. This old retail model in Vietnam, just like in Indonesia, retains unique selling points like convenience, low cost and close relationship with customers.
Nevertheless, VinShop has helped 10,000 Vietnamese grocers become real professional business by using technology and financial solutions from this digital platform. Data from VinShop showed that the platform has covered up to 80% of the core market in Hanoi and HCMC.
VinShop’s unlimited products from suppliers, transparent pricing and more than 100 promotions each month have benefited many small businesses.
