?Multi-channel sale becomes inevitable trend of retailers

04-May-2018 Intellasia | Dien Dan Doanh Nghiep | 6:00 AM Print This Post

Multi-channel sales and management is an effective solution to expand sales channel, thereby increasing the ability to approach customers at maximum level, enhancing the competitiveness of businesses.

*Inevitable trend

In several recent years, e-commerce in Vietnam has developed strongly. Purchasing goods via several clicks has become very normal.

Along with the market penetration of many major e-commerce floors such as Tiki, Lazada, Shopee, Adayroi, etc. and the strong development of social network platforms and forums such as Facebook, Zalo, Instagram, Muare.vn, Nhattao.com, Lamchame.vn, etc. businesses have had a lot of “room” for their products to come close to customers.

The utilisation of these platforms is also considered as the lever to advertise products in the context that many families use the internet to sell products.

Nguyen Thanh Hung, Chair of Vietnam Communication Association (Vecom) said with the appearance of the internet and the development of technology, traditional retail has no longer maintained the unique position. Over the last few years, retail revenue via e-commerce has quickly increased and is forecasted to reach $10 billion in the next several years. Besides, multi-channel sales are becoming increasingly popular.

Vecom’s representative also said Vietnam’s e-commerce growth rate in 2017 reached more than 35 percent, and this growth rate can be maintained in 2018-2020.

“Businesses are shifting very quickly from offline to online sales, and many businesses have chosen multi-channel sale method. That trend forecasts the growth of retail revenue via e-commerce”, added Hung.

Nguyen Bach Diep, CEO of FPT Retail said “Currently, retail sector is having many changes in goods selling method, from traditional retail channel to modern retail and online, in order to serve increasingly diversified demand of consumers. Businesses have quickly applied tools to approach customers everywhere and every time, which will significantly increase sales effectiveness”.

Commenting about recent change of selling method in retail distribution, Tran Trong Tuyen, director of DKT Technology JSC said retail sector is changing very strongly in the global and right in Vietnam, the shift is also very fast.

Currently, purchasers use much different internet connection equipment such as smartphones, computers and even game playing machine to purchase goods. They can do shopping anywhere, on website, Facebook, Zalo, e-commerce floor or coming directly to shops. Therefore, the application of multi-channel sales platform on the basis of strong growth of e-commerce tools is forecasted to be the core method for retail businesses in the current vital competition.

*Difficult math

Fragmentation is the way that many small shops are still doing with multi-channel sales. They suppose that a little person who wants to save costs must strive to work as a giant. That often makes it difficult for stores to achieve breakthrough growth even when the number of operations increases but operational process does not change.

A store that sells both online and at the counter sees many steps in the business to spend resources such as importing goods, arranging goods, advertising, consulting, finalising orders, checking inventory, contacting shippers, examining payment, taking care of customers, reporting, managing, etc. For small shops, a person will have to be multi-functional by taking over all these tasks manually, multiplying by each channel. The more channels, the more complexity it is. They will be very difficult to have time, resources to focus on major tasks.

When selling on multi channels, every data from products, orders, customers, and inventory is usually completely independent on each channel.

Shop owner will start selling products many times on each different channel. Information about price, description, stock quantity will be separated, so any change must be manually done simultaneously.

Then, inventory management becomes a difficult math of multi-channel sales. Try to imagine, if a shop sells on five different channels at a time, they will have to go through each channel to check each order and manually subtract the total inventory. This will become confused, leading to the risk of missing orders, lacking professionalism, especially during peak time, promotions.

There were bad situations in which a shop used to be fined several millions of dong because of not having goods to deliver to customers just because they failed to update timely their inventory on an e-commerce floor. Or an online seller has just accepted the order for several minutes but the final product has just been sold at the shop right at that moment. The shop had to say sorry to customer because there was nothing left. Such bad experience for customer can be the reason why the shop loses customers forever.

Many online shoppers also said what they need now is a measure to manage the sales in the most concentrated way, recovering these weaknesses and helping them get more convenience in doing business and accessing customers. If continuing to do manual work, hiring more personnel to share the responsibility of each channel and then reporting and updating untimely, there will lead to wastes in costs and instability in personnel as well as unprofessionalism of shops.

 

Category: Business, Vietnam

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