Vietnamese behemoth Vingroup has officially launched its B2B2C e-commerce platform VinShop through the company’s logistics unit One Mount Group, according to an announcement on Monday.
VinShop will procure goods directly from manufacturers and connect them to grocery store owners, helping the latter access good supply sources, benefit from transparent prices, and avail of attractive promotion schemes, the statement said. The service will serve and deliver 24X7.
Vingroup claims grocery store owners using the platform can increase their income up to 10 million dong every month (about $432), through sales, by displaying goods, participating in cohesive programmes, and product introduction programmes to end-users of VinID (a B2C platform).
In the future, VinShop plans to cooperate with the commercial lender Techcombank to launch financial solutions such as payments through easy installments, and preferential loans for grocery store owners.
“The launch of VinShop (B2B) in combination with VinID (B2C) has created a B2B2C chain for the first time in Vietnam with the large retail market accounting for more than 70 per cent of the potential market share of traditional grocery stores,” the company said in the announcement.
This move comes a year after Vingroup announced that its retail and agriculture units will merge with Masan Consumer Holdings — a subsidiary of Masan Group Corp.
Vingroup’s shares in the two units will be converted into shares of the new company formed after the merger. Masan Group will take control of the new entity with a 70 per cent stake, while Vingroup will own the rest.
One Mount Group was founded by Vingroup and its partners on September 26, 2019 and has charter capital of 3 trillion dong ($129 million). Vingroup holds 51.22 per cent of the logistic firm’s capital. One Mount Group focuses on B2C model that helps it sell products directly to final consumers.
In the B2B e-commerce space, Telio, which claims to be Vietnam’s first B2B e-commerce platform, had raised $25 million in a Series A round led by Tiger Global with participation from Sequoia India, GGV Capital, and RTP Global in December last year.
Revenue in Vietnam’s e-commerce space is projected to cross $6 billion with 45.6 million users in 2020, according to Statista.
Vietnam’s retail market is still dominated by traditional and fragmented trade channels. Small ‘mom-and-pop’ street shops account for over 60 per cent of FMCG sales in urban areas and over 90 per cent in rural Vietnam, according to Kantar.