VinShop will become a distribution channel for small traditional grocery stores, which accounts for 75% of the retail market share in Vietnam.
Recently on the Android and iOS app stores suddenly appeared a software called VinShop, developed by Vingroup Joint Stock Company. This unit is also the owner of a variety of software such as VinID, VinFast POS, VinFast E-Scooter,
The main interface of VinShop is red and white, characteristic of Vingroup’s brands.
According to the description on the Google Play Store, VinShop is an application belonging to the One Mount Group for grocery store owners and partners.
Through VinShop, grocery store owners can order good prices with guaranteed quality goods from well-known brands and suppliers.
VinID’s partners will also optimize the efficiency of their booth management on the VinShop application and pay via e-wallet VinID Pay.
To date, VinShop has more than 10,000 downloads on the Google Play Store app store.
The mystery of the factor behind VinShop
Notably, according to the writer Vingroup is the founding shareholder of One Mount Group, with capital contribution up to 1,560 billion dong, accounting for 51% of equity.
The remaining two shareholders are Ngac Van Luong and Nguyen Minh Hong with the ownership ratios of 0.06% (equivalent to 1.8 billion dong of contributed capital) and 0.98% (equivalent to 30 billion dong).
In addition, this enterprise also leaves open 145.5 million shares to be offered for sale, which is also the right to contribute capital of new shareholders. Up to the present time, there is no information about which individual or organization will buy back the above shares.
The total charter capital of One Mount Group as registered is 3,047 billion dong.
One Mount Group was established in September 2019, headquartered in Time City urban area, Vinh Tuy ward, Hai Ba Trung district, Hanoi city. The legal representative at that time was Ms. Nguyen Mai Hoa, born in 1969.
However, by November 2019, the position of Chairman of the Board of Directors cum legal representative was changed from Ms. Hoa to Mr. Ho Anh Ngoc, brother of Mr. Ho Hung Anh – Chairman of Techcombank.
The main business of One Mount Group is Brokerage agency, auction of goods. In addition, this enterprise also registered to do business in areas such as: Freight transportation by railway, road, inland waterway, warehouse and storage of goods,
After a little while, One Mount Group quickly recruited Mr. Nguyen Tran Thi, co-founder and former CEO of Express Delivery Service (GHN). Mr. Thi has many years of experience working in logistics and supply chain.
According to the Vietnam Finance Society, in September last year, the Board of Directors of One Mount Group had a meeting at an event in the US.
During this event, One Mount Group was introduced as a company founded by three large private enterprises in Vietnam, including Vingroup, Masan and Techcombank.
What is Vingroup going to do with VinShop?
As described in the application, the VinShop software is responsible for connecting and distributing goods between grocery store owners with Vingroup’s partners and suppliers.
Through this service, small traditional grocery store owners can import goods at wholesale prices directly from their suppliers.
With VinShop, it is likely that Vingroup is pursuing a wholesale electronic model (B2B) after selling Vincommerce retail to Masan at the end of last year and closing its e-commerce site Adayroi.
Retail e-commerce is an unfamiliar model in Vietnam, with hundreds of businesses crowded in a shirt, market share is too small, racing in the race to burn money has not ended to win customers.
But wholesale e-commerce is a relatively new field. This market is quite wide and there is almost no footprint of any big man. Currently, there are 5 wholesale e-commerce floors operating in Vietnam, including: Wholesale Market, Circulation, Wholesale Web, Alitaobao and Chinese Imports.
On the other hand, according to data from the Ministry of Industry and Trade, currently traditional business models such as groceries and traditional markets still account for 75% of the retail market share.
Notably, in the process of withdrawing from the retail segment, Vingroup has also classified the VinID and Adayroi ecosystems as a trade-service group, under the direct management of One Mount Group.
Source: vietnambiz.vn – Translated by fintel.vn