What are the retail trends in 2024?

Multi-channel sales play a key role in a difficult economic context

Sapo Vietnam has just announced information from a survey of 15,000 retailers nationwide on business results in 2023 and business trends in 2024 in the retail market segment.

According to the survey results, the revenue of retailers nationwide in 2023 decreased significantly when up to 60.99% of surveyed units said that their revenue decreased compared to 2022. Notably, 28.5% of retailers had a revenue decrease of over 30% compared to 2022. This also led to a tendency for store owners to cut staff and a significant increase in the model of stores without employees (store owners operate themselves).

More than 60% of 15,000 retailers surveyed nationwide said they expect a decrease in revenue in 2023 compared to 2022.

The decline in revenue is also reflected in marketing activities. Sellers focus on optimizing costs, most of whom are only willing to spend less than 10% of revenue on marketing. Marketing through celebrities and influencers (KOLs, Influencers) still receives a lot of reservations from businesses in the retail industry. Meanwhile, creating promotional and discount programs is still the most effective way to boost revenue, accounting for 41.12% of the revenue boosting methods preferred by sellers.

The bright spot of the retail industry in 2023 is the shift to a more sustainable business model. Some sellers have shifted from the Individual model (not registered business) to the Sole Proprietorship or Company model (down from 35% in 2022 to 29% in 2023).

In addition, the group of sellers with average revenue in 2023 at 500 million - 1 billion and over 2 billion increased by 3% compared to 2022. Billiards emerged in 2023 as a highlight business model when this model was invested in the direction of entertainment complexes, creating programs to closely connect with young customers, creating creative and trendy content.

In the context of many economic difficulties in 2023, the trend of expanding multi-channel sales is still clearly evident. 55.4% of sellers are doing business on at least two channels - in stores and some online channels. E-commerce platforms continue to be the most used online sales channel in the retail industry. A special highlight in 2023 is that sellers tend to expand the TikTok Shop channel (the proportion of sellers selling mainly on the TikTok channel accounts for 5.9%, a slight increase compared to 2022).

Multi-channel sales are identified as a "salvation" in the context of a volatile economy, with erratic fluctuations in rental prices in major cities, tightening of regulations on major e-commerce platforms, and changes in algorithms on social networks - affecting the marketing and product offering process of the Retail industry.

In addition, some trends related to retail activities in 2023 can be mentioned such as transportation activities are moving towards speed and mobility; the trend of cashless payments continues to increase rapidly, survey results show that up to 43.8% of sellers are accepting payment methods via bank transfer, of which 15.33% of sellers transfer money via VietQR code scanning....

3 retail and payment trends predicted to lead retail trends in 2024

3 Key Retail Trends for 2024

Up to 75% of sellers are optimistic and expect the retail market to recover and grow in 2024.

Many retailers said they plan to expand their sales channels on online platforms, most commonly expanding to social networks (Facebook, Zalo); followed by e-commerce platforms; and TikTok Shop. In the FnB industry, restaurant and cafe owners mostly choose to diversify their business products (40.9%); the most chosen sales channel to expand is social networks (33.3%).

There are 3 trends predicted to lead the retail industry in 2024, as proposed by Sapo Vietnam from a survey of 15,000 retailers.

Firstly, expanding sales channels, bringing products to various business platforms, and leveraging the power of online sales channels. In particular, retailers will focus on effectively exploiting the domestic market with more than 100 million people thanks to the promotion of trade promotion programs, promoting e-commerce and activities to stimulate domestic consumption.

Second, Shoppertainment & Edutainment is an indispensable trend in the retail industry. Shopping integrated with entertainment experiences, creating digital content of an educational nature will go hand in hand with product marketing. Consumers increasingly need to consider shopping as an entertainment activity, sellers not only convince customers to spend money thanks to product functionality, but also rely on creative, attractive and engaging marketing forms. On the other hand, product marketing content increasingly needs to increase the intellectual content, be educational in nature and provide useful information to consumers.

Third, QR code payments will increasingly account for a high proportion of cashless payments. Technology companies like Sapo will work closely with the retail sector of commercial banks and financial institutions to keep up with market payment trends, providing comprehensive support solutions for sellers and buyers.

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