Vietnam consumer product distribution still rely largely on the traditional channels. These family-oriented stores are the sales channel for many for the diaries, lifestyle products and so on. The channel management for these stores are largely based on the human-effort. However, we came to see the signs of the changes with the use of technology. This report covers the technology usages in these traditional channel distributions and analyze their potentialities and obstacles. This report was made on March, 2021.

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3. 51%
55%
62%
6%
9%
12%
10%
9%
4%
3%
2%
2%
1%
2%
1%
15%
14%
15%
8%
5%
1%
6%
2%
1%
2025 forecast
2019
2012
Street shops Wet market Speciality stores Direct stores Other GTs
Hyper / supermarket Mini stores Online Others
Vietnam has been the countries where the tradtional market (local
market, street shops) are dominant. These are going to be changed
as the modern trade channels and online shoppings replace these
channels
Source: Kantar worldpanel
Dominant traditional channels

4. '(&)*+),-($#)./$012,#)-1#).$(3/0-,
How GT owners purchase their inventories are still in a traditional way. They contact the suppliers
(distributors) when they need the inventories, or some companies send their sales personnel to the
major stores for the order taking.
Telephone / Messaging Sales personnel visit Market purchase
Sales personnel give a call or send
message to deliver the products
thay want. Some suppliers deliver
the products in hours
Sales personnel visit each store to
fill-in the inventories and arrange
their display corners. Sales
personnel are requested to visit 15-
20 shops a day
Small stores that has little support
buy the inventories at the central
market

5. *+)3%4%-25)3%,-$%6/-%(78)9:2;.5#)(<)=%7>1(.
Trend of DX also comes in Vietnam general store distributions. Vietnam general stores play a major
part of selling consumer goods, Sales personnel and distributors make visit to each stores one by
one to fill up the inventories. VinGroup provides VinShop to ease this process by providing the strong
monetary benefits to the general trade owners. Telio is also the service provider that aims at B2B2C
market.
Source: VinGroup IR
Promotions
A variety of promotions to purchase with
discount pricing
Convenience
One shop ordering of multiple products
from multiple brands
Quick delivery
Delivery the products next day, even
Saturdays / Sundays
Financing
Up to 70M VND financing with free interest
up to 40 days
VinShop benefits
VinShop achievement and target
Jan 2021 (7 month after launch)
55,000 stores
2025 target
350,000 stores

6. ?;.20-)(<)@A@)3%4%-25)3%,-$%6/-%(7
Some stores in urban areas started to use digital procument. They use both of traditional method
and digital method, choosing the ones with better pricing.
Store A
Store B
Store C
• HCM
• Years of experiences:
More than 10 years
• Monthy revenues:
400M VND (good
students demands)
• Food / Non-food: 70:30
• HCM
• Years of experiences: 4
years
• Monthy revenues: 25M
VND
• Food / Non-food: 80:20
• HCM
• Years of experiences: 3
years
• Monthy revenues: 50M
VND
• Food / Non-food: 70:30
Before
• Phone / Chat: 70%
• Sales visit: 30%
After
• Phone / Chat: 70%
• Sales visit: 25%
• App: 5% (Vinshop)
Before
• Phone / Chat: 80%
• Sales visit: 10%
• Market buy: 10%
After
• Phone / Chat: 10%
• Sales visit / Market: 10%
• App: 80% (VinShop, Telio)
Before
• Phone / Chat: 60%
• Sales visit: 40%
After
• Phone / Chat: 30%
• Sales visit: 40%
• App: 30% (Vinshop)
• Monthly usage: 20 M VND
• Order / 1 time: 2M VND
• Frequency: 1 – 2 per week
• Item per time: 2-3 products
• What to order: Milk, softdrink, detergent, floor
cleaning liquid, beer etc.
• Monthly usage: 8-12 M VND
• Order / 1 time: 1 - 2M VND
• Frequency: 1 - 2 per week
• Item per time: 2-3 products
• What to order: Instant noodle, softdrink, water,
milk, cooking oil, beer
• Monthly usage: 8-12 M VND
• Order / 1 time: 2M VND
• Frequency: 1 - 2 per week
• Item per time: 2-3 products
• What to order: Beer, softdrink
Who they are Impact of digital service What they purchase
Impact of B2B digital app owners

7. ?;.20-)(<)@A@)3%4%-25)3%,-$%6/-%(7
The store owners appreciate the better discounts of VinShop. Although it is digital procurement
process, still they prefer sales personnel pay visits to them often.
Store A
Store B
Store C
• HCM
• Years of experiences:
More than 10 years
• Monthy revenues:
400M VND (good
students demands)
• Food / Non-food: 70:30
• HCM
• Years of experiences: 4
years
• Monthy revenues: 25M
VND
• Food / Non-food: 80:20
• HCM
• Years of experiences: 3
years
• Monthy revenues: 50M
VND
• Food / Non-food: 70:30
• Happy with a variety of promotions that
give them the options buy the same
things at the lower pricing
Who they are Wish list items
• Now that their shops are big and many
suppliers visit, they feel unsatisfied with
the lack of visit from VinShop
• Also, some supplies deliver the goods
in hours, and VinShop delivery speed
does not looks attractive.
Satisifed items
• Her shop is not big and have less sales
personnel visit. Thus, VinShop helps to
ease the order process
• Generally happy with the service as it
has many promotions and delivery is
convenient
• She wishes that VinShop staff visit her
shop as the sales personnel of the
other suppliers
• VinShop gives the opportunities to
procure the items cheaper than the
trditional suppliers
• Overall satisfied, although she also
wishes that she could have more visits
from sales personnel.
Impact of B2B digital app owners

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A variety of promotions to
purchse with discount pricing
One shop ordering of multiple
products from multiple brands
Deliver the products next day,
even Saturdays / Sundays
Up to 70M VND financing with
free interest up to 40 days
The store owners find the
pricing on the app attractive.
Promotion pricing is cheaper
than buying offlie and itis the
biggest motivations to use the
app.
App is easy to use. However,
the store owners prefer the
verval communication with
the sellers. They also expect
the sales personnel or
support personnel to visit
frequently even for online
platform
There are cases that the
delivery does not meet the
commitment of the next day.
Also, they are familiar with
“hours deliery” from some
companies and do not feel
”next day delivery” is that
innovative
We have not met the cases
that this be offered yet.
Claim
Evaluation

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