Omnichannel a definite preference in retail
The retail industry is experiencing many changes as the economy recovers, most notably the growth of the omnichannel model.
In its Retail Industry Report in Vietnam, entitled “The Omnichannel Model Takes Off” and released on October 5, Deloitte Vietnam points out a number of transformational trends in Vietnam’s retail industry in the post-pandemic period.
Most Vietnamese consumers in urban areas are already accustomed to multiple channels such as traditional shops, websites, third-party exchange platforms, and delivery applications, the report noted. Hit by Covid-19, the grocery segment, the non-grocery segment, and other retail models have undergone significant changes.
Specifically, in the non-grocery segment, the group of electrical goods and equipment, household, and gardening still account for a large proportion of total sales. The health and beauty segment has continuously posted high growth rates over the past five years, rising from VND158.9 billion ($6.7 million) in 2016 to VND261.94 billion ($110 million) in 2021.
In the grocery segment, traditional grocery retailers continue to hold the majority of market share. However, this dominance eroded during the pandemic as many traditional grocery retailers suspended operations.
As a result, consumers who normally buy from these retailers shifted their consumption to other grocery retail channels, such as convenience stores, supermarkets, and hypermarkets. In particular, during the pandemic, many convenience store chains rapidly developed and appeared on many channels, including food delivery platforms.
Reflecting on the transformation in the retail industry, Mr. Vu Duc Nguyen, Deputy General Director in charge of consumer goods at Deloitte Vietnam, said that with forecasts of a quick recovery in the retail industry, consumption habits associated with the omnichannel model will become long-term trends as consumers become accustomed to the benefits.
“Two trends will continue to develop in the near future and have far-reaching effects on the retail market: the use of e-wallets and cashless payments, and e-commerce in the B2B wholesale sector,” he said.
