The gloom in traditional commerce and the strong rise of online shopping have forced cooperatives to go online and livestream to increase sales. However, cooperatives need support to be more professional, creative and competitive in the harsh and vibrant online market space.

Vương Ngọc Thảo, an agricultural and services cooperative in Lào Cai which sells specialities of the northern mountainous province, has closed a physical store because it cannot afford costs as visitors to store were few.

The cooperative’s director Vương Ngọc Thảo said that despite putting in a lot of effort and resources, the cooperative was forced to close the store because the number of visitors and buyers was very modest. Meanwhile, it is forecast that the economic situation will continue to remain difficult this year and consumers will continue to tighten spending.

Although direct sales at physical stores are struggling, the cooperative found a ray of light from multi-channel online sales which have helped it maintain production and jobs for 10 members and a number of seasonal workers.
Online sales also help specialities of Lào Cai reach consumers nationwide, she said.

Nguyễn Tri Sáu, chairman of Sáu Nhung, an agricultural production and trading cooperative in Kon Tum Province, said that online channels have helped his cooperative to develop its distribution network in all provinces and cities of Việt Nam and even extend to international markets.

The explosion of technology, the internet and logistics services in the 4.0 era make the online market increasingly vibrant, he said.

According to Nguyễn Minh Tiến, Director of the Trade Promotion Centre for Agriculture under the Ministry of Agriculture and Rural Development, e-commerce has developed strongly recently. Shopping and consumption trends are also changing towards modernity and increasing the use of technologies.

Besides improving product quality, cooperatives are starting to develop stories and short videos to attract online seekers and buyers, especially through livestreaming, which has helped boost sales significantly.

Figures of e-commerce data platform Metric showed that five e-commerce sites, including Tiki, Tik Tok, Shopee, Lazada and Sendo, reported a total revenue of more than VNĐ232 trillion in 2023, an increase of 53.4 per cent over 2022.  The 2024 revenue is forecast to increase by 35 per cent in 2024 to reach VNĐ310 trillion. Livestreaming and omni-channels will remain the major sources of revenue, Metric said.

Vũ Thị Lệ Thuỷ, director of 3T Farm Cooperative in Hoà Bình Province, said that her cooperative sold 3 tonnes of oranges per day thanks to livestreaming.

Creating videos or livestreams is an effective method for cooperatives to reach more customers.

Nguyễn Mạnh Tấn, marketing director of Haravan which provides Omni-channel solutions, said that videos and livestreams help improve authenticity and consolidate consumers’ trust. Videos also help convey traditional and cultural values in products and services. 

Vũ Vinh Phú, former Chairman of the Hà Nội Supermarket Association, said that many cooperative members are still not strong in technology and marketing.

Cooperatives need support to build teams specialising in producing videos and images to build a professional online presence as a long-term sales channel. 
 

Source:Viet Nam News