O2O model – challenges for retail businesses

Vietnam’s online retail growth is forecast to average nearly 30% between now and 2025. This explains why many retail brands are focusing on O2O . model (Online to Offline), attracting potential customers from online channels to your store. However, according to online solution consulting units, a lot of customer data is almost not used by businesses. Two online and offline channels cannot complement each other.

About 2 years ago, Mr. Van Anh (Phu Nhuan District, Ho Chi Minh City) often chooses goods on the website, then goes to the store to try the product directly and decide to buy.

“People can check for me where that model is, but let me come and see it in person. Because buying jewelry, watching online is just a reference, definitely have to come see it,” Mr. Nguyen Van Anh shared.

Vietnam’s online retail growth is forecasted to have an average growth rate of nearly 30% from now until 2025. (Illustration image – Photo: Investment Newspaper)

Kantar’s Vietnam Insight 2022 report also shows that online channels are experiencing remarkable growth in Vietnam, taking 9 years to gain 1% market share, but only 3 years from 2019 to increase by 4%. market share.

It is said that the appearance of O2O has contributed significantly to this result. However, according to online solution consulting units, a business can generate hundreds of millions of customer behavioral data every month on the online channel, but it is being wasted. Online and offline channels run separate advertising and sales programs.

“They are fragmented in terms of data, they need tools to aggregate data. The second is to provide a platform for sales and marketing teams to safely use customer data,” said Mr. Nguyen Minh Liem, CEO, founder of ByteTech, said.

Some retail chains all admit, customer data is a lot today, but to make the right and effective decisions from this resource is not simple. The most expensive investment is still a tool to clean data and make a reasonable decision to allocate marketing costs between online and offline.

The most difficult thing for businesses today is still the resources to be able to process customer data, including human resources and financial investment. Therefore, units with limited resources can still temporarily use the provided solutions to initially process data.

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