Vietnamese "New Retail" model
(HO CHI MINH CITY, Vietnam, May 23, 2019 PRNewswire=연합뉴스) Vietnam is the fastest growing economy in Southeast Asia. However, many businesses have not availed of this development to grow and continue to remain traditional small and local operations. Seedcom, a new retail group in Vietnam, is determined to change this landscape and bridge the gap between the two to bring local businesses to the next level.
According to Deloitte's report on Vietnam retail landscape released in February, the country has a relatively young population with 40 percent aged below 24 and this group of young consumers spend more time shopping on their digital devices than making purchases at stores. The audit firm also pointed out that the average annual spending for an online shopper in Vietnam was USD$250 last year, close to double the figure recorded in 2017. Ranked sixth in the world in terms of revenue, Deloitte predicts that Vietnam's e-commerce sector will further expand with online business-to-consumer sales hitting USD10 billion by 2020, accounting for five percent of the country's total sales.
To help companies adapt to the changing market environment, Seedcom, a retail management company that backs and inspires fast-growing, potential businesses by applying technology and best practices in their operations, has introduced the "New Retail" model.
This model helps Vietnamese SMEs manage their businesses in a more efficient and affordable way via a new retail platform which involves customers omnichannel engagement, inventory management and chain management with delivery and payment services throughout the country.
Seedcom is currently the only Vietnamese company utilising this "New Retail" model and its businesses have recorded a growth of revenues ranging from 400 to 670 percent within four years' time.
"Seedcom was established after I left Mobile World Group and sold all my shares (4.96%) in 2014. That was when I decided to build up a new company, using my experience at Mobile World Group which made me realise the importance of technology. I learned that it is the key for any business to expand and at the same time, data showed that Vietnam businesses were running on hundreds of thousands of business models but none of them were enough in helping these companies grow. So I was trying my best to come up with a solution that utilises new technology that can maximise profit and optimises operational costs. That inspired me to found Seedcom which means sowing new "seeds" into the current retail environment, to create a new retail business model," said Dinh Anh Huan, Founder of Seedcom.
Under the Seedcom umbrella, there are nine brand names with The Coffee House being the most well-known name. It is the second biggest coffee chain in Vietnam with more than 140 stores. The coffeehouse sold over 10 million cups of coffee last year and it is the only firm in the industry offering a delivery app. TenRen's Tea, meanwhile, is another food and beverage company under the group. Apart from food and beverage, Seedcom has also invested in the food distribution sector through Cau Dat Farm and King Food Market.
JUNO, meanwhile, is Seedcom's biggest footprint in fashion. Being Vietnam's number one women's shoe chain with 94 stores,it served more than two million customers in 2018 and there are more than 2.3 million visits to their website each month. Eva De Eva and Hnoss are Seedcom's other two names in footprint in fashion while Scommerce is the intergrated logistic solution. Haravan, on the other hand, is Seedcom's technology segment that provides a one-stop platform to help businesses enhance their reach and service.
According to Mr Huan, Seedcom's goal this year is to further help businesses enhance their reach and improve customer experience with artificial intelligence in its "New Retail" model.
The Coffee House customers to book a table before arriving. At the same time, Haravan will also introduce a new service next month called Hara Ads. This is an advertising platform using AI technology (Artificial Intelligence) to help businesses advertise their product or service on multiple websites including popular social media outlets, for example, Facebook and Google.
"We understand that many businesses in Vietnam do not have the resources to advertise on all websites and social channel by themselves. Therefore, we are providing them with a convenient option to increase their brand awareness and to increase their reach of targeted customers, said Mr Huan.
CEO of Seedcom - Mr. Dinh Anh Huan
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