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80% of shops report revenue growth in 2017
Van Ly
Wednesday,  Jan 17, 2018,19:00 (GMT+7)

80% of shops report revenue growth in 2017

Van Ly

HANOI – Average revenue of shops in Vietnam last year was VND1.3 billion each, and 80% of them recorded higher revenue than in the previous year, according to a survey of Sapo.

The survey was conducted with 1,000 shops among a total of some 10,000 using Sapo sales management software nationwide. The participating shops have one to three branches and seven employees per shop on average.

The survey showed that shops tended to combine offline and online sales, with 90% of them making use of online platforms to win more customers and expand business. Of nearly 80% of the shops that posted revenue growth last year, 44% recorded growth of over 10%.

Fashion, and mother/baby care products were the groups that posted the highest growth, at 92% and 83% respectively. Meanwhile, 60% of pharmacies saw their revenues unchanged or down last year.

The survey pointed to a correlation between revenue growth and marketing spending. 33% of shops with no increase or a decline in revenue said they did not spend on marketing, and 65% of shops said they spent less than VND20 million per month.

Around 62% of shops with monthly marketing cost of higher than VND20 million achieved revenue growth of over 30% against 2016.

Shops generating less than VND500 million in annual revenue each accounted for 30%, VND0.5-1 billion 32% and over VND1 billion 38%. A fashion shop earned some VND1.8 billion on average.

The five channels credited for good sales were physical shops with 87%, Facebook 80%, websites 53%, Zalo and Instagram 51%, and agent networks 49%.

Among the favorite marketing channels in Vietnam, Facebook took the lead with 87%, followed by physical shops with 70%, and online marketing like email marketing, online forums and YouTube with 51%.

As for payment methods, direct cash payment was most common, 41% of shops accepted payments by credit and debit cards, and e-wallets accounted for 18%.

The survey found offline and online sales channels were supporting each other. Well-performing shop owners were those understanding and making use of multiple sales channels, and knowing how to utilize technology to boost sales.

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