VietNamNet Bridge – Traditional retailers at brick-and-mortar shops are investing to develop online sales, while online distributors are opening stores to boost traditional retail sales.

The Gioi Di Dong, the largest mobile phone distribution chain in Vietnam, once tried to stimulate demand for online shopping by offering lower prices for the products sold online. This prompted people to come to The Gioi Di Dong’s shops to see the products, and then go home and make orders online to enjoy lower prices.

The Gioi Di Dong later changed its sale policy. It offers the same prices for the products sold through thegioididong.com and at its shops. However, it has made heavy investment in the online sale network, allowing customers to place orders from smartphones and tablets.

Nguyen Duc Tai, general director of The Gioi Di Dong, said the distribution chain will continue investing in the online sale network, because this is the shopping tendency of the future.

The revenue from online retailing in Vietnam just accounts for 1-3 percent of the total retail revenue. The figure shows that Vietnamese e-commerce market is large and attractive.

Meanwhile, many businesses established as online retailers have tried to increase sale by opening real and online shops.

Lazada, for example, opened shops for cash-and-carry customers earlier this year in Da Nang City, planning the shops as centers for introducing products to customers and connecting people with online lazada.vn.

Muachung.vn some years ago also began opening real shops, where customers can buy products directly or buy deals to enjoy better prices.

Nguyen Van Tuan, a senior executive of VC Corp, the owner of Muachung.vn, noted that the shops which sell products directly to customers have helped double the number of customers. More and more Muachung.vn shops have opened in big cities.

Meanwhile, Peacesoft, the company which owns chodientu.vn, now tries to upgrade the online sale ecosystem. It now has chodientu.vn/ebay.vn (the online shops), Ngan Luong (the electronic payment instrument) and shipchung.vn (the e-commerce freight forwarding portal).

Analysts commented that retailers have made a wise move opening online shops or real shops, because this will help increase their presence in a fiercely competitive market.

A report on Vietnam’s e-commerce market showed that in 2013, the total revenue of the 116 online trading floors was VND323 billion, of which Chodientu.vn’s revenue accounted for 29 percent, Lazada 22 percent and Vat Gia 15 percent.

The total revenue of the 38 groupon websites was VND774 billion. Hotdeal led the market with the revenue accounting for 54 percent, followed by Muachung.vn 26 percent and Nhommua.vn 3 percent.

Thanh Lich