- Green Growth
- Your Consultant
|24.1 per cent of omnichannel vendors reported a rise in earnings|
69 per cent of physical vendors, 76 per cent of restaurants and coffee shops, and 59 per cent of online vendors recorded a plunge in revenue or maintained the same earnings in 2019.
Despite the plentiful difficulties generated by COVID-19, 2020 still saw some encouraging signs such as 30 per cent of vendors recording a hike in sales against the year prior thanks to quickly shifting to omnichannel to adapt to market fluctuations.
As the health crisis keeps on unabated, the multi-sales channel has been emerging as an ideal option for business operations. Specifically, 24.1 per cent of omnichannel vendors reported a rise in earnings.
To better cope with the challenges, traditional vendors have accelerated online sales channels on social networking sites and e-commerce platforms. 24 per cent of them shifted entirely to online business, including 56 per cent who have managed to recover their performance with sales exceeding pre-COVID-19 figures.
In 2020, e-commerce was the most effective sales channel, rising from the fourth position in 2019. For advertisements, Facebook was No.1, as businesses poured large funds into Facebook Ads. Meanwhile, TikTok and Zalo ranked second and third, and advertising through e-commerce sites ranked last.
Moreover, the shift in sales channels and the downturn in revenue have affected expenses on advertising and other marketing activities. The sum occupied only 10 per cent of their revenue while the rate in 2019 was up to 20 per cent.
Social distancing in the early months of last year has transformed the shopping behaviours of most consumers. Pointedly, demand for online shopping has skyrocketed, resulting in a large need for co-operating with delivery service providers.
In 2020, the number of vendors working with delivery service partners occupied about 56 per cent of the total and 41 per cent said that delivery speed was the leading criteria to select delivery service providers.
Along with cash on delivery and bank transfer, QR code has been gathering popularity since the pandemic broke out, going from the sixth to the third place with 12.7 per cent of vendors utilising the payment method.
Sapo is a Vietnam-based company specialised in providing management and multi-sales channel platforms to more than 100,000 vendors and businesses across the country.