Digital transformation-A key to success for retailers

Amidst the acceleration of digital transformation in the country and globally, digital solutions are increasingly proving to be a key to success for retailers in Vietnam.

On December 21, Bach Hoa Xanh, a unit of Mobile World Co., Ltd. – a Vietnam-based company that is active in the retail sales industry – and the most popular digital wallet in Vietnam MoMo announced their strategic partnership to increase the customer experience and promote cashless payments in the modern retail industry.

In early December, Saigon Co.op and VNPAY also signed a cooperation agreement to promote cashless payments and digital transformation within the retail industry.

These are among a series of similar moves to promote cashless payments in line with the government’s cashless payment development plan for 2021-2025.

Powerful retailers in Vietnam like Co.opmart and Co.opXtra are focusing more on online channels by introducing promotional programmes and diversifying product portfolios for online customers.

According to a study released by Visa in June, Vietnamese consumers have quickly welcomed a number of digital payment methods and changed their payment habits.

The Vietnam E-commerce Association said that the e-commerce market was valued at $16 billion last year and is expected to increase further in 2022.

At the virtual media briefing with Vietnamese journalists about digital applications in the retail industry on December 21, Christanto Suryadarma, Southeast Asia sales vice president of Zebra Technologies Asia-Pacific said, “Small- and medium-sized enterprises and retailers in Vietnam need to invest in digital solutions. Whether applications are built on the web or on mobile apps, the right technology can not only capture orders but also make sure that the inventory management is really up-to-date and accurate.”

Globally, shopper interactions across self-serve solutions continue to rise with nearly half of shoppers citing they have used self-checkouts and almost 40 per cent using cashless payment methods. This trend is stated in Zebra Technologies Corporation’s findings from its 15th Annual Global Shopper Study which was released on December 21.

A similar trend is observed in APAC, whereby self-checkouts are used by 47 per cent of shoppers and 46 per cent of those surveyed opt for cashless payment methods.

The survey was conducted between June and July, collecting feedback from more than 4,000 retail decision-makers, retail associates, and shoppers around the world, including APAC respondents. According to the study, shoppers are ready for technological advancements, with about 80 per cent expecting retailers to have the latest technology.

Consumers also continue to rely on their smartphones during shopping trips. This year’s usage indicates price sensitivity as over half of those surveyed check for sales, special offers, or coupons (51 per cent globally, 48 per cent in APAC), aligning with a strong majority of shoppers (68 per cent globally, 67 per cent in APAC) being concerned about having to reduce their spending to make ends meet.

“Shoppers do not necessarily evaluate retail channels. Rather, they view it as one shopping experience however they shop,” said George Pepes, APAC Vertical Solutions lead for Retail and Healthcare at Zebra Technologies.

“With e-commerce as today’s normal, channels have converged and it is essential for retailers to ensure a seamless experience across their offline and online platforms. More importantly, they need to empower retail associates with the right technology to better perform their tasks as the retail sector heads into the future of fulfilment,” he concluded.

Vietnam Investment Review