However, after 10 years, this concern did not become a reality. In fact, 80% of the domestic retail market share still belongs to traditional retail channels, especially the 1.5 million grocery stores nationwide.
Business case from the desire for Vietnamese goods to “take root”
In the past 4-5 years, many large enterprises have invested heavily in the digital transformation of the Vietnamese retail industry. However, this has not had an impact on individual businesses, grocery store owners – especially those who are relatively old, not close to and familiar with the digital transformation trend. The reason is that manufacturers and brands face difficulties in terms of resources to implement digital transformation in the retail industry, as well as the fact that separate implementation makes the efficiency still limited. Recognizing this difficulty,Finviet Technology Joint Stock Company has built the ECO technology platform (ECO Platform) to connect the supply chain from brands to retail outlets and to end consumers (with the M2C model). The ECO technology platform was born with the aim of providing comprehensive solutions, making technology become closer and more practical for even those groups that are always considered to be the most distant from digital transformation.
Mr. Huynh Trong Than, CEO of Finviet, said that in the Vietnamese retail market with a total value of 220 billion USD, there are currently about 80% of brands distributing goods through indirect channels, meaning that they cannot interact directly or access data. online sales to retail outlets and end consumers. About 1.5 million traditional retail outlets mentioned above do not have access to consistent prices, direct promotion programs from brands.
The question is how to connect directly with grocery stores, which is the retail channel with the fastest and widest coverage, is always a headache for brands. With the ECO technology platform, the above problem is completely solved. The intermediaries that cause unnecessary expensive costs are all eliminated when brands, distributors and grocery store owners use the ECO technology platform.
When connecting through the ECO technology platform, manufacturers and brands have important data they need about customers and market reactions in real time. Real-time and reliable data from the market is constantly updated through a network connecting hundreds of thousands of retail outlets and thousands of distributors nationwide. Based on this data, manufacturers and brands can quickly make the most appropriate adjustments to the tastes of target customer groups. This used to be an “impossible mission” with traditional goods distribution models.
In fact, many big brands have been and are catching up with the digitization trend of the retail industry and applying the ECO platform for traditional distribution channels such as Tho Phat (KIDO), Huong Thuy, Nutricare… Finviet has a full ecosystem of applications that support businesses in digital transformation quickly such as ECO Point of Sale, ECO DMS, ECO Delivery, ECO PG, ECO Consumers….
It is expected that in the near future, many other large corporations in the consumer goods manufacturing industry will use the ECO technology platform to digitize their supply chains, especially for traditional retail channels.
Fintech solutions complete the ECO technology platform
With the market context mentioned above, it is clear that there is a need for a diverse technology ecosystem platform, which is specialized and reliable to help accelerate the digitization process of the retail industry, especially traditional retail channels, along with the application of supporting and promoting Fintech services in this ecosystem.
Finviet is currently one of the Vietnamese Fintech companies licensed by the State Bank as an Intermediary Payment (E-wallet, Payment Gateway, Collection and Payment). And it is a technology company with a complete ecosystem, including both a supply chain platform and Fintech. Fintech solutions contribute to completing the set of digital transformation tools for the retail industry, such as ECO Pay with: E-wallet, payment gateway, QR Code, POS, …. In addition, Finviet also provides financial solution packages for retail outlets such as business capital loans to solve the working capital problem for grocery stores and agents.
Mr. Huynh Trong Than, CEO of Finviet, affirmed that the retail market is in great need of a complete technology ecosystem to help promote in-depth digital transformation for the industry. Finviet, with its available technology platform, is ready to accompany manufacturers, brands, and strategic partners to carry out the mission of digitizing the industry.
With the unique M2C (From Manufacturer to Consumer) & B2B2C Fintech business model, the focus is on retail outlets/Merchants located throughout the country. From there, Finviet builds and provides a diverse and in-depth technology ecosystem platform, creating clear benefits for all participants: from manufacturers, brands, service providers, banks, to chain systems, retail outlets, end users. Connectivity, increasing stickiness and creating practical value for all parties involved on the technology platform is the criterion of Finviet.
