Vietnamese conglomerate Vingroup has launched a B2B app called VinShop, connecting traditional mom-and-pop type retail businesses to suppliers.
VinShop allows grocery store owners to get hundreds of products from suppliers in one order within a day. The app is also connected to VinID, creating Vietnam’s first B2B2C channel.
The app has already been installed by more than 20,000 traditional grocery stores in Hanoi and Ho Chi Minh City and Vingroup aims to reach 300,000 VinShop users by 2022.
Vingroup sees huge potential in the current retail landscape, which spans more than 9000 traditional markets and 1.4 million small grocery stores with US$10 billion in annual sales.
“This solution is expected to improve the efficiency of the entire supply chain, helping overcome the current weaknesses in the distribution of products from manufacturers to grocery stores,” the company said.
By using VinShop, grocery store owners are estimated to be able to add more than US$432 to their current monthly income.
“The cooperation between VinShop and VinID is expected to revolutionise the traditional retail channel, which accounts for more than 80 per cent of the market share, while reducing the retail price by up to 10 per cent”, said Truong Quynh Phuong, business director at One Mount Group.