Oct 6: One Mount Group is ready to disrupt the retail industry?

*Note: Content from other sources is summarized in normal format, my original content is in italic

Last week, One Distribution (a part of One Mount Group-OMG) has launched Vinshop, a B2B product that helps mom-and-pop store owners to keep up with the digital age.

Impacts on store owners

1. Transparent price. The app will help store owner to access to clear and precise products’ pricing and promotion from distributors, eliminating any raising cost from intermediaries.
2. Better sales and inventory management. With collected data, Vinshop could suggest the retailers on the hot items and SKUs that they should imported for residents in their areas.
3. Access to all the service of OMG’s network: digital payment by VinID, financial services by Techcombank, diversified FMCG products from Masan.

Opportunities for OMG

If you do not know about OMG , read it here. Basically, VinShop is the first step of OMG to transform the retail and logistics industry

1. Reach 70% Vietnam’s retail revenue, which comes from General Trade (GT) channels. Masan and VinGroup will leverage their networks with distributors and brands to exploit this pie. They just operated in ecommerce (Adayroi) and MT channel (VinMart, VinMart+), the ambition to lead all the retail industry bring them here.
2. Reach 70% non-financial-inclusion customer in Vietnam. Techcombank is rushing to be the biggest bank in Vietnam and this is a chance for them to reach the group of customer that other banks cannot. In the short-term, they can start to offer store owners basic services such as short-term and long-term loans. SMEs lending is the place where Alibaba started and won the crown of the biggest tech financial institution in China right now.

Why Ecommerce players should care this?

It’s obvious that OMG will bring Ecommerce to their ecosystem with all the benefits of it. This is the case that Alibaba have done in China with Ling Shou Tong

1. Forwarded stage inventory: The system of distributors connecting with thousands of mom-and-pop stores can help shop ship packages to customer’s door quickly and cheaply – solving the problem of last-mile delivery in Ecommerce.
2. Local Omnichannel Retail: The app, and all the data and technology behind could help enable online and offline capacity in small town and villages with collected customer insights.
3. Low cost return management: Return cost is always a big cost in Ecommerce. Now all the mom-and-pop and convenient stores could act as a delivery and return-hub.

Source:

1. [Vietnamnet.vn] Vingroup ra mắt ứng dụng VinShop
2. [Alibaba Group Youtube] China’s Mom-and-Pop Stores Go High Tech for 11.11
3. [Accenture] Ling Shou Tong: Alibaba’s Next Innovative Disruptor?
4. [viettimes.vn] One Mount Group – “hòn núi cao” của 3 “cây” tỷ phú Việt?