In recent years, investors have shown a significant interest in Headless Commerce platforms and associated solutions, recognizing their pivotal role in shaping the future of online commerce.
Forbes reports that between 2020 and 2021 alone, more than $1.65 billion in funding was directed toward Headless technologies. In response to this evolving landscape, Shopify unveiled the Hydrogen solution in June 2021, designed to facilitate the development of headless Commerce storefronts.
The following article aims to provide a comprehensive understanding of Shopify Hydrogen, shedding light on both its pros and cons.
Shopify offers businesses the Hydrogen framework solution, originally based on React but now being developed with Remix, in conjunction with the global hosting solution known as Oxygen.
What is Shopify Hydrogen?
In the past, Shopify website developers utilized the platform’s templating language known as Liquid, which often faced performance limitations. Consequently, to ensure top-notch website performance for headless commerce, Shopify businesses require a specialized solution.
Typically, businesses implementing headless projects on Shopify Plus opt for the React framework over Liquid due to its superior technical aspects. Moreover, headless stores on Shopify Plus offer heightened flexibility, customization, and scalability compared to standard headless stores on Shopify.
Therefore, Shopify has introduced a solution that allows both Shopify Plus and standard Shopify businesses to build and advance the most optimized headless eCommerce websites possible. This led to the creation of the Hydrogen framework solution and Oxygen hosting.
Shopify Hydrogen is a React-based framework that empowers developers to craft distinctive and entirely customized frontend Shopify experiences. This framework encompasses all the essential structures, components, and pre-built tools necessary for developers to swiftly create headless stores and deliver personalized user experiences.
What is Shopify Oxygen?
Shopify Oxygen is a worldwide hosting solution designed to store custom content, like Hydrogen stores, directly within the Shopify platform. Previously, Shopify businesses seeking to develop Headless Commerce had to depend on third-party hosting providers (e.g., Netlify).
In contrast, Oxygen is supported by Shopify’s extensive global infrastructure, featuring over 100 server locations worldwide. Thanks to this, Hydrogen stores can seamlessly and directly integrate with Oxygen hosting through the Storefront API, eliminating the need for reliance on third-party providers.
Remix – The New Highlight of Shopify Hydrogen
In the first quarter of 2023, Shopify unveiled Hydrogen v2, highlighting the web development tool called Remix. This tool has earned recognition from developers as one of the top React frameworks, trailing only behind Next.js. Consequently, Shopify acquired Remix and designated it as the cornerstone of the Shopify Hydrogen solution.
The reason for this lies in the fact that Hydrogen v1 faced performance-related criticisms after some time in operation. The acquisition of Remix is a part of Shopify’s efforts to rectify these issues, leading to the emergence of Hydrogen v2.
While developers tend to favor Next.js over Remix due to its open structure, allowing for greater customization and offering a more favorable developer experience, it doesn’t guarantee output quality and website performance.
Conversely, Remix employs a closed structure that mandates developers to adhere to the framework’s template. This approach closely aligns with Shopify’s SaaS model, providing a web development framework and enforcing developers to follow specific principles during deployment.
This adherence ensures website performance and significantly enhances conversion rates. Therefore, Remix is the ideal solution chosen by Shopify to address the existing performance gaps in Hydrogen stores and enhance the eCommerce experience for customers.
Pros of Shopify Hydrogen
Developed based on React
Hydrogen represents Shopify’s investment in the development of Headless eCommerce. Therefore, it’s fair to classify any Shopify store using the Hydrogen framework and Oxygen hosting as a Headless Shopify store.
The launch of Shopify Hydrogen aims to assist businesses in building professional Headless eCommerce websites and providing customers with a seamless multi-channel experience.
Therefore, Shopify extends the capability to seamlessly integrate Hydrogen stores with various third-party applications and platforms like Klaviyo, Gorgias, and Rebuy (to enhance the customer experience), as well as Sanity, Contentful, and Builder.io (for Headless CMS implementation).
Numerous enterprises choose to implement Headless eCommerce because it grants them full control over the development of the frontend interface, free from the limitations of specific platforms. Shopify Hydrogen also empowers businesses to construct entirely personalized headless website interfaces and integrate essential features for expansion.
Cons of Shopify Hydrogen
Technical Skill Required
Hydrogen solution empowers businesses to leverage the potential of Headless eCommerce, but it’s predominantly a technically-driven endeavor without a user-friendly drag-and-drop interface for non-technical users to easily access and modify.
Hence, the development process necessitates the engagement of highly proficient developers with programming expertise and a specific comprehension of Hydrogen and Oxygen. In this scenario, businesses have two choices: establish an in-house team of developers or partner with an external specialized entity for swift deployment.
Limited CMS Integration.
Because it relies on the React framework, Hydrogen can assist developers in creating custom frontends, but the backend CMS functionality must be connected to enable the headless eCommerce website’s operation.
However, as of now, Hydrogen is limited to integrating with specific CMS platforms like Sanity, Contentful, and Builder.io, leaving businesses responsible for connecting with others independently.
Limited 3rd-party Integration
Much like CMS platforms, Hydrogen supports businesses in integrating with third-party provider applications, but it has rather limited options. Currently, there are only 13 available applications that businesses can incorporate into their Hydrogen store.
In the many years of implementing Headless eCommerce for numerous clients across various countries, SECOMM has noticed an increasing demand for creating Headless websites using the Shopify platform. Now, businesses have a choice: they can either leverage Shopify’s tech stack (Hydrogen and Oxygen) or build a custom stack tailored to their unique requirements.
This further solidifies Shopify as one of the most flexible eCommerce platforms today, leading the way towards the next generation of eCommerce experiences.
Contact us or call SECOMM’s hotline (02871089908) for a free consultation.
This article will highlight 10 notable eCommerce websites from around the world, spanning various industries, that have adopted BigCommerce for their operations.
Skullcandy opened its first store in 2015 in Park City, Utah, and it remains the company’s exclusive physical retail location in the United States due to its primary online sales strategy. Skullcandy is a technology brand known for crafting headphones and speakers with a youthful and modern style. Their eCommerce website is developed using the BigCommerce platform.
Aside from seasonal promotions, Skullcandy provides customers with diverse payment choices, including PayPal, VISA, MasterCard, and even a Buy Now, Pay Later option through Klarna.
BURROW is an online furniture brand that specializes in offering seasonal furniture and sofas with a minimalist, modern, and vibrant style. The company’s approach revolves around three key principles to deliver unique value to customers. First and foremost, they have built their eCommerce website on the BigCommerce platform, encouraging online shopping through enticing promotions, illustrative product videos, and free shipping. Secondly, their products are known for their custom designs, high durability, multifunctionality, compactness, portability, and versatility to fit into various spaces. Lastly, BURROW places a strong emphasis on building a community that connects customers from all around and enhancing brand awareness.
LARQ is renowned for its stylish and compact reusable water bottles, designed with sustainability in mind. These bottles are manufactured using advanced technologies like PureVis and NanoZero to ensure high water quality. LARQ’s bottles possess self-cleaning capabilities, utilizing UV-C LED lights to eliminate up to 99.99% of bacteria.
These exceptional features led to a significant $1 million investment from Shark Tank. LARQ has developed its eCommerce website using BigCommerce, complete with a dedicated Basq Magazine section where they share valuable insights on hydration with their customers.
The premium beauty brand, Molton Brown, hailing from the UK, has also used the BigCommerce platform to build their eCommerce website. Their product range, spanning fragrances, hand washes, essential oils, scented candles, and bath & body products, is entirely manufactured in the UK and is cruelty-free. Their product packaging is crafted from high-quality reusable glass, adhering to eco-friendly standards.
At present, the company exclusively offers online shopping services to customers in the US, Japan, and the majority of European regions. Molton Brown consistently introduces seasonal collections, special occasion sets, gender-specific product lines, and personalized gift recommendations, simplifying the shopping experience for their customers.
Tommie Copper is a brand that specializes in offering comfortable, lightweight fashion products designed to reduce pain and aid in functional recovery for both men and women. With a strong emphasis on expanding online sales, the company has invested significantly in its eCommerce website using the BigCommerce platform. They have also implemented various customer engagement programs to encourage more shopping. One notable initiative is the Customer Loyalty Program, featuring three tiers: Score, Performance, and Pro-Grade, with detailed and precise instructions on point accrual and redemption.
Saddleback Leather is a company specializing in handcrafted leather goods, and they develop their eCommerce website with BigCommerce. Their product range is extensive, encompassing items such as bags, backpacks, belts, and even intricately designed mouse pads. Visitors to their website are greeted with a distinct “Texan” design aesthetic and captivating narratives. Notably, customers can also become part of the Saddleback Club, granting them access to exclusive and appealing member-only offers.
Barron Designs stands as a top-tier brand specializing in the design and provision of premium interior and exterior products crafted from high-quality materials like wood, tiles, and stone. Their diverse product range includes wooden doors, stone fireplaces and chimneys, mailbox posts, engineered wood panels, and more. Barron Designs has developed its eCommerce website using the BigCommerce platform, offering a multitude of features to ensure the best shopping experience for customers.
When customers browse and click on their favorite products to view details, they can choose colors and select options such as fire resistance and UV protection before placing an order. The production and delivery times typically range from 2 to 4 weeks. For those interested in sampling a product, they can simply click on the option, and a complimentary mini-size sample will be sent to their doorstep. Furthermore, a discount coupon will be emailed to encourage customers to make a full-size purchase.
Industry: Interior and Exterior Interior Design & Construction
SugarBoo & Co is a well-known BigCommerce eCommerce website that offers a wide range of handmade products for personal and household use. It offers a diverse range of handmade products for both personal and household use, including items like notebooks, decorative pieces, ceramic dishes, baby toys, and more. To provide an excellent online shopping experience, the company offers multiple payment methods, including well-known options like ShopPay and AfterPay.
SugarBoo & Co’s blog section is filled with interesting content, regularly sharing tips on gift selection, the advantages of using ceramic products, home decorating ideas, and more. Plus, during special occasions and holidays, the website provides customers with a selection of discounted shopping suggestions.
Autograph Foliages is a prominent brand in the United States, specializing in landscaping solutions for both homes and commercial establishments. The company offers a diverse range of collections, including seasonal and holiday-themed foliage like Christmas decorations, catering to the needs of families and businesses. What sets Autograph Foliages apart is its enduring partnerships with major entities such as Walt Disney World, Universal Studio, Warner Bros, and Seaworld Parks & Entertainment, a testament to the superior quality of its foliage products.
Their website, developed on the BigCommerce platform, prominently displays new and seasonal products. To access the pricing details for specific items, customers must register an account on the website. They can also subscribe to receive weekly newsletters containing valuable tips on plant care, decoration, and more.
Established in 1999 and officially launched its products in 2000, Body Bliss specializes in a wide range of personal care items. With over two decades of development, the company has continually researched and refined its products to prioritize customer health, using gentle and environmentally friendly ingredients.
Body Bliss’s BigCommerce website follows a minimalist design, featuring well-organized product categories for easy customer navigation. The site also offers appealing incentives such as complimentary gifts and free shipping. Furthermore, the company uses Instagram to engage with customers and it is seamlessly integrated into the website to keep customers updated on the latest updates.
Established in 2009, BigCommerce is a user-friendly platform tailored for businesses of all sizes and technical expertise to start developing their own eCommerce websites. Over the years, BigCommerce has emerged as one of the most feature-rich platforms, encompassing all the essentials for website creation, search engine optimization, marketing, and more, all at a cost-effective implementation.
In addition, BigCommerce is known as a SaaS eCommerce solution, which means businesses subscribe on a monthly basis, and the platform takes care of hosting, maintenance, and system security matters.
BigCommerce Pricing Plans
BigCommerce provides three pricing plans tailored for small and medium-sized businesses (Standard, Plus, Pro), priced between $29 and $299 per month, each equipped with essential features. Moreover, the platform offers a customizable plan (Enterprise) for large businesses based on their deployment requirements.
The table below illustrates the cost variations among these four pricing plans and includes some relevant factors:
Despite several differences, all four packages share some common points:
No transaction fee
Unlimited bandwidth, products, file storage
Unlimited staff accounts
24/7 customer support
12 free themes
Included in all plans
Key features of BigCommerce, available in all four pricing plans, include:
Point of Sale (POS): Seamless integration of online and offline sales with POS systems like Vend, Square, Clover, and more.
Mobile-Responsive Design: Websites are designed to adapt and perform well on mobile devices.
BigCommerce Mobile App: Manage orders, track customer journeys, and monitor performance via the user-friendly BigCommerce mobile app, downloadable from the App Store or Google Play.
Single-Page Checkout: Simplify the payment process with a single-page checkout, reducing cart abandonment and boosting conversion rates.
Promotions and Discounts: Easily create and manage coupons, discounts, and gifts without the need for third-party integrations.
Built-In Blog: Improve SEO and engage customers with a built-in blog.
Product Ratings and Reviews: Gather customer feedback to enhance products and services.
Multi-Currency Support: Accept over 100 currencies and local payment methods.
Professional Reporting Tools: Access professional analytics and reporting tools for performance evaluation and adjustment.
Real-Time Shipping Quotes: Provide accurate shipping costs in real-time from various carriers.
Free Site-Wide HTTPS & SSL: Ensure website security with free HTTPS protocol, creating a safe shopping environment for customers.
The features available in the ‘Standard’ plan are consistent across all four pricing plans. However, there are some advanced features that are not included, and businesses may need to consider upgrading their plan to access these specific features. Here’s a breakdown:
In addition to the ‘Standard’ features, this plan offers:
Cart abandonment features.
Stored credit cards for future purchases.
Customer groups and segmentation for pricing, product recommendations, targeted promotions, and personalized experiences.
Top social & marketplace: Integration with top e-commerce platforms and social networks such as Amazon, Facebook, Instagram, etc.
The ‘Pro’ plan encompasses all ‘Standard’ and ‘Plus’ features, along with:
Google customer reviews for collecting and showcasing customer feedback on Google.
Advanced product filtering to enhance the shopping experience.
Custom SSL integration with third-party SSL services.
Designed for large-scale enterprises, this top-tier package includes all features from the previous packages and introduces several advanced capabilities:
Unlimited API calls, facilitating seamless data sharing between eCommerce websites and third-party applications without any limitations.
Priority support with personalized assistance, including dedicated API support.
Pros of BigCommerce
Ease of Use
BigCommerce, designed as a SaaS platform, boasts user-friendliness catering to both tech-savvy and non-technical users. It offers a wide range of themes to facilitate swift website development and provides an array of tools for executing promotional campaigns.
When compared to other SaaS platforms, BigCommerce stands out for its capacity to offer a comprehensive set of built-in features and tools across its pricing plans. This results in cost savings for businesses, reducing their reliance on third-party applications and plugins, which can often incur extra expenses. Moreover, these features have been fine-tuned to boost performance and streamline the eCommerce management process.
BigCommerce also provides its users with the BigCommerce mobile app, enhancing the convenience of managing, monitoring, and updating their eCommerce websites.
Reporting & Analytics
Unlike Shopify, which offers a range of reports and analytics based on the pricing plan chosen, BigCommerce provides professional-level reporting and analytics across all its solution packages. These encompass customer reports, sales reports, financial reports, marketing reports, and more. Moreover, for businesses in need of more extensive data capabilities, BigCommerce offers a wide app library for easy integration with third-party software
BigCommerce distinguishes itself from competitors by providing multi-store support across all of its pricing plans. This feature is especially advantageous for businesses that operate multiple stores or are active in various segments, such as B2B and B2C. With the Standard plan, a business can create up to 3 stores, while the Plus and Pro plans allow for 5 and 8 stores, respectively. In contrast, Shopify, a leading SaaS platform, offers multiple store capabilities exclusively through its Shopify Plus solution, which starts at a monthly cost of $2,000.
Using BigCommerce helps businesses save costs in various aspects such as hosting, maintenance, updates, and security. BigCommerce handles these tasks, eliminating the need for additional expenses. Regardless of the chosen pricing plan, BigCommerce doesn’t impose transaction fees, provides unlimited bandwidth and file storage without extra charges, and permits the creation of an unlimited number of staff accounts.
In addition, compared to Shopify, where businesses may incur significant costs to integrate third-party apps and utilities for enhanced functionality, BigCommerce includes essential features tailored to each plan. This integrated approach results in significantly more cost-efficient operations.
Cons of BigCommerce
High Platform Costs
When compared to other SaaS platforms like Shopify or Squarespace, the cost of using the BigCommerce platform seems relatively higher.
Plus, businesses must continue to pay this ongoing fee along with any charges for third-party services (if applicable) on a monthly basis, without ownership or control over the source code and system data.
On the other hand, open-source platforms such as Magento or OpenCart require businesses to make a one-time payment for both usage and service integration fees, granting them long-term ownership of the source code and system data.
Just like other SaaS eCommerce platforms in the market, BigCommerce retains ownership and control over the source code and data of the entire eCommerce website system.
In practical terms, this means that all of a business’s eCommerce data becomes closely tied to BigCommerce’s database. Therefore, if a business wishes to migrate to another platform in the future, it can only access CSV files containing a portion of its data.
Additionally, while it’s exceptionally rare, in the unlikely event that BigCommerce were to suddenly cease all operations, all data related to a business’s activities on this platform could potentially be lost.
Lack of theme
At the time of writing, BigCommerce provides users with a selection of 12 free themes and approximately 180 paid themes. This count is somewhat limited in comparison to other SaaS platforms like Wix or Squarespace.
The free themes come with modern and professional interfaces, suitable for businesses to start their eCommerce website journey. However, these themes are quite similar to each other, differing mainly in color schemes.
In reality, despite the claim of having 12 themes, users often discover only around 5-6 truly distinctive options.
The paid themes, on the other hand, come with a price tag ranging from $195 to $395, and some of them may have similar designs.
However, BigCommerce offers a significant advantage: all the free and paid themes are visually appealing and highly responsive. This means that these themes can automatically adapt their layouts to suit various screen sizes, including smartphones, tablets, desktop computers, and more.
Clover is a POS software developed by Clover Network Inc, aimed at offering an integrated solution for handling sales and payments for both small and medium-sized businesses. Clover provides POS solutions across various industries, including restaurants, services, retail, and more. Specifically, the costs associated with implementing Clover’s POS for retail SMEs are categorized into three primary packages:
Starter: $799 + $14.95 per month (One-time payment option available) or $60 per month (Monthly payment option) – This package includes an 8″ merchant-facing POS.
Standard: $1,799 + $49.95 per month (One-time payment option available) or $135 per month (Monthly payment option) – This package includes a 14″ merchant-facing POS
Advanced: $2,398 + $64.90 per month (One-time payment option available) or $185 per month (Monthly payment option) – This package includes a 14″ merchant-facing and a handheld POS.
Ease of Use: The Clover interface is intuitive and user-friendly, making it easy to navigate on the touchscreen and access system functions.
Customization: Users have the flexibility to tailor the interface and configure the system to meet their individual needs. This includes modifying screen layouts, customizing function buttons, and setting options to align with specific business operations.
Offline Support: Clover is equipped to function offline, a valuable feature in the event of an internet connection disruption. Transaction data is securely stored and automatically synchronized once connectivity is restored, ensuring uninterrupted business operations.
High Initial Costs: Clover carries a higher initial price tag compared to alternative POS solutions, particularly for businesses choosing the comprehensive payment package. This may pose a barrier for smaller businesses operating with limited financial resources.
Invoice Formatting Limitations: Clover has some limitations regarding invoice formatting and customization, which can pose challenges for businesses with specific requirements for invoice formats and content. For example, adding special liquor consumption taxes, collecting stamps on invoices for grocery stores, and so on.
Rely on the Clover Ecosystem: Clover POS functions optimally within the Clover ecosystem and may not seamlessly integrate with diverse management systems such as CRM, ERP, etc., offered by different brands.
KORONA POS is a retail system developed by KORONA, intended to assist in sales management, payments, and inventory control for small and medium-sized businesses.
Currently, KORONA POS offers a range of solution packages for businesses to select from:
Core: $59 per month – Suitable for small businesses or individuals managing a single store.
Advanced: $69 per month – Geared towards small and medium-sized businesses handling a single store and inventory tracking.
Plus: $89 per month – Ideal for small and medium-sized businesses managing multiple stores and keeping track of inventory.
Enterprise: Custom Quote – Tailored for medium-sized businesses with specific customization requirements.
User-Friendly Interface: KORONA POS boasts a straightforward and user-friendly interface, ensuring ease of use even for employees lacking prior experience with POS systems.
Regular Updates and Upgrades: KORONA POS offers frequent updates and improvements to enhance its features and resolve issues, all while ensuring uninterrupted daily business operations.
Cross-Platform Compatibility: KORONA POS is compatible with multiple platforms, including desktops, laptops, tablets, and smartphones. This flexibility enables sales staff to process transactions and manage sales from virtually any location.
Internet Required: KORONA POS relies on a continuous internet connection to operate. Disruptions in the network connection can lead to interruptions or even render transactions and management tasks impossible.
Vendor Risk: When businesses adopt KORONA POS, they become reliant on the vendor for system maintenance and upgrades. Any issues or service deviations from the vendor can have an impact on the business’s operations.
POS System Migration Challenges: If a business has been using a different POS system and intends to switch to KORONA POS, the transition process can be intricate and may require a significant investment of time, effort, and resources to migrate all data effectively.
KiotViet is a business management and retail point-of-sale system catering to retail stores and restaurants. KiotViet provides an array of sales management features and tools, encompassing payment processing, inventory control, customer management, order handling, delivery, reporting, and business analysis.
KiotViet offers three options for implementing their POS system:
Support: 200,000 VND per store per month – Ideal for small businesses, startups, or online retailers.
Professional: 270,000 VND per store per month – Tailored for professional business models.
Premium: 370,000 VND per store per month – Suited for businesses with multiple sales channels or a larger staff.
Ease of Use: KiotViet has a user-friendly interface with tailored support for Vietnamese users, eliminating the need for extensive technical expertise during setup and operation.
Seamless Integration: KiotViet offers flexible integration with various peripherals like printers, barcode scanners, payment devices, and other applications such as inventory management, HR management, and financial systems. This results in a comprehensive POS system for effective business management.
Efficient Inventory Management: KiotViet facilitates efficient inventory management, simplifying the process of updating product information and merchandise categories. Therefore, businesses can maintain control over inventory levels, monitor stock movements, and ensure on-time product availability.
License fee: KiotViet necessitates monthly or yearly license fee, which may pose challenges for small or recently formed businesses operating with limited funds.
Limited customization: While KiotViet provides some customization options, the capacity for complex customization to cater to individual business requirements may be limited.
Limitations in Niches Industries: KiotViet primarily targets retail and restaurant businesses, which implies that certain features or management procedures may not be well-suited or could be restricted for niche industries such as electronics, pets, agriculture, and others.
VNPAY-POS, an ‘All-in-one’ solution developed by VNPAY, consolidates numerous features into a single device to comprehensively fulfill a business’s sales and payment management requirements.
VNPAY currently extends two primary options to businesses and organization using VNPAY-POS:
Free service usage for businesses/organizations with payment fees exceeding 275,000 VND/month. For payments lower than this threshold, a flat fee of 275,000 VND/month/machine is applicable.
Device rental is available at an affordable rate of just 165,000 VND/month. Businesses/organization achieving payment volumes surpassing 30,000,000 VND/month/machine qualify for free device rental.
Diverse Payment Methods: VNPAY-POS allows businesses and individuals to accept payments from customers using a range of electronic payment methods, including e-wallets, bank cards, QR codes, and bank transfers.
Appealing Incentives and Comprehensive Support: In addition to its core features, the solution offers advanced functionalities like support for 0% installment plans, cross-selling services, quick and professional 24/7 registration assistance.
Optimized Sales and Business Management: A VNPAY SmartPOS device goes beyond payment processing, performing various tasks such as digital menu display, item selection, order placement, invoice printing, sales management, data extraction, and more. This streamlines operational costs for businesses.
Ongoing Costs: VNPAY POS may entail increasing monthly ongoing costs or transaction charges for payment processing, potentially straining businesses with limited financial resources.
Feature Limitations: In comparison to certain other POS systems, VNPAY-POS has limitations in its feature set, particularly in tailoring solutions to meet the specific needs of individual businesses.
Hardware Compatibility: VNPAY-POS mandates specific hardware prerequisites for operation, such as tablets or mobile devices supported by VNPAY. This could necessitate an initial investment for adopting VNPAY-POS.
POS365 is a cloud-based POS system developed by 365 Technology Corporation. POS365 provides a comprehensive solution for retail businesses, restaurants, cafes, and related industries.
Currently, POS365 offers three packages for businesses:
Basic: 1,650,000 VND for 12 months – Designed for businesses looking to experience the product.
Popular: 3,300,000 VND for 2 years with an additional 1-year free – Tailored for SMEs.
Lifetime: 6,600,000 VND for a lifetime – Intended for businesses already familiar with POS365.
Vietnamese business-friendly: POS365 has a modern interface that’s easy to navigate, with features thoughtfully tailored to Vietnamese business practices.
Diverse Features: POS365 offers a comprehensive set of sales and business management tools, encompassing inventory control, order processing, warehouse management, customer relations, staff oversight, and business reporting.
Multi-Branch Management: POS365 facilitates the management of multiple branches and sales points through a unified system, simplifying business expansion and operation oversight.
Limited customization: POS365 comes with certain limitations regarding customization and specific business requirements adjustments. This can pose challenges for businesses with unique needs or customization preferences.
Internet required: POS365 relies on a stable internet connection to function. If there’s an internet disruption, payment processing and business management may experience interruptions.
Limited security: Because POS365 is an online system, there’s a higher risk of cyberattacks or data breaches. Businesses need to implement appropriate security measures to safeguard customer information and business data.
In this article, SECOMM will delve into the top five widely favored POS software solutions by large corporations today, including Square, Lightspeed Retail, LS Retail, Heartland Retail, and Shopify POS.
Square Point of Sale
Square POS, developed by Square, is a highly favored POS system among many international large-scale enterprises due to its cost-free setup. However, Square applies fees for each transaction executed on the POS, amounting to 2.6% and 10 cents for every tap, dip, or swipe. For the ‘Buy Now, Pay Later’ payment scheme, the fees are 6% and 30 cents. Furthermore, Square provides a tailored POS package for businesses generating revenue exceeding $250,000.
Types of POS system: Tablet-based POS system, Mobile POS system, Cloud-based POS system.
It’s free: Square software is completely free to use, without any charges for setup or monthly licenses.
It’s User-Friendly: Square offers a straightforward and intuitive user interface, making it easy for users to quickly adapt to and utilize the system effectively.
It’s flexible: Square empowers businesses to execute sales transactions from virtually anywhere using mobile devices like smartphones or tablets. This flexibility enables businesses to reach and serve customers at any time and place.
Costs Increase with Each Transaction: Square applies transaction fees (2.6% + 10 cents) to every payment processed. While its fee structure is relatively competitive, businesses with substantial sales volumes may find these fees impacting their overall profitability.
Limited Hardware Compatibility: Typically, POS systems are designed to work seamlessly with hardware provided by Square. This means that businesses might encounter challenges when attempting to utilize hardware from alternative suppliers or integrate with existing brand-specific POS systems.
Feature Constraints: Square does have some feature limitations compared to other POS systems. For instance, functionalities like multi-store management, membership card integration, or compatibility with various other business management software may be limited.
Lightspeed Retail is a tailored POS solution crafted for businesses operating across diverse industries. It earns praise for its wide-ranging features, high level of customization, and its seamless integration capabilities with various applications and services.
Types of POS system: Tablet-based POS system, Mobile POS system, and Cloud-based POS system.
Multi-Industry: Lightspeed Retail is specifically crafted to cater to a wide array of industries, including retail, restaurants, coffee shops, spas, salons, and more. This versatility positions Lightspeed as a multifunctional solution across various sectors.
Integration and Scalability: Lightspeed seamlessly integrates with numerous other applications and services, encompassing inventory management systems, online ordering platforms, integration with online sales channels, and much more. This flexibility enables businesses to scale and tailor the system to meet their unique requirements.
Customer Support: Lightspeed earns accolades for its top-notch customer support, offering assistance through phone, email, and online channels. The friendly and professionally trained support team is adept at resolving a multitude of issues.
High Costs: Lightspeed is associated with a higher price point in comparison to several other available POS solutions in the market.
Complex Initial Setup: The initial setup and configuration of Lightspeed can prove intricate for users lacking prior tech experience. Accurate installation, coupled with appropriate configuration, is essential to guarantee stable operation.
Internet Required: As an online POS system, Lightspeed relies on a consistent internet connection for optimal performance. Any disruptions or instability in the internet connection can lead to transaction processing issues and hinder system access.
LS Retail stands as a top-tier provider of POS and ERP software grounded in the Microsoft Dynamics platform. It is meticulously tailored to oversee the entirety of business operations across diverse sectors, including retail, restaurants, hotels, pharmacies, and gas stations.
LS Retail extends three solution packages for businesses to select from:
LS Express: Priced at $99 per month, this solution caters to small-scale businesses.
LS Central: Offering a comprehensive POS and ERP solution for businesses (Development costs vary based on project complexity).
LS First: Strategically designed for large corporations, with a particular emphasis on the restaurant industry (Development costs vary based on project complexity).
Types of POS system: Tablet-based POS system, Mobile POS system, and Cloud-based POS system.
Holistic Management: LS Retail offers an integrated POS and ERP solution, facilitating the synchronization of business data and more efficient management across both systems.
Multi-Channel Sales: LS Retail supports a diverse array of sales channels, encompassing traditional brick-and-mortar stores, eCommerce websites, and mobile point-of-sale (mPOS) kiosks. This broadens business horizons, reaching a larger pool of potential customers.
Efficient Inventory Management: LS Retail delivers real-time inventory management algorithms, empowering businesses to govern stock levels, item locations, and optimize procurement processes. This results in reduced shortages and excess inventory, ultimately enhancing operational efficiency.
High Costs: As LS Retail is a comprehensive POS and ERP solution, both ownership and maintenance costs may be considerably high for businesses.
Technical Expertise Required: Implementing LS Retail mandates that your business’s workforce possesses specialized technical skills and undergoes dedicated training
Dependency on Microsoft Dynamics: LS Retail is built on the Microsoft Dynamics platform, meaning the implementation and enhancement of the LS Retail system hinge on the evolution of Microsoft Dynamics, influencing bug fixes and the incorporation of the latest updates to some degree.
Heartland Retail is a cloud-based point-of-sale (POS) platform tailor-made for retail businesses.
As of now, Heartland levies a fee of $89 per month per point of sale for their POS software. Furthermore, this platform provides payroll services starting at $89 per month for 1-5 employees and payment processing services with a cost of 2.6% per successful transaction, alongside 10 cents for each tap, dip, or swipe.
Type of POS system: Cloud-based POS system
User-Friendly Interface: Heartland Retail boasts a user-friendly and intuitive interface. Sales staff can easily navigate between functions, process payments, and engage with customers effortlessly.
Smart Reporting and Analysis: Heartland Retail offers sophisticated analytical tools and reporting capabilities, empowering businesses to gain a deeper insight into their performance and consumer trends.
Integration with Auxiliary Systems: Heartland Retail is equipped to seamlessly integrate with various auxiliary systems, including accounting, human resources management, and customer relationship management (CRM) systems. This integration facilitates the creation of a comprehensive information system, enhancing the efficiency of different departments within the organization.
Inefficient Customer Support: Numerous customer feedback reports cite limitations in customer support, with varying response times from Heartland Retail’s support team and inconsistent answers or solutions. This can pose difficulties for businesses requiring swift assistance or specific solutions.
Multi-Store Management Constraints: Heartland Retail lacks robust and flexible multi-store management features for companies operating beyond the U.S., as the company’s primary headquarters is exclusively located in the U.S.
Limited New Features and Updates: Heartland Retail doesn’t frequently introduce new features and updates, unlike some other POS systems. This limitation may hinder the adoption of the latest technologies and trends in the industry.
Shopify POS is a POS solution designed by Shopify, catering to businesses utilizing their platform and seeking sales management software to effectively manage their business affairs. The usage cost for Shopify POS amounts to $89 per month per location, with a reduced rate of $79 per month per location for businesses opting for an annual subscription.
Ease of Use: Shopify POS boasts a straightforward and friendly admin interface, designed for quick staff adaptation, reducing training time, and minimizing data entry errors.
Seamless Integration with the Shopify Platform: It smoothly integrates with eCommerce websites built on the Shopify platform, enabling businesses to efficiently manage both physical and online stores from one centralized platform, resulting in time and resource savings.
Customization: Shopify POS enables businesses to customize the interface, product labels, invoices, and create brand introduction pages for brick-and-mortar stores, among other features.
Types of POS system: Tablet-based POS system, Mobile POS system, Cloud-based POS system
Exclusive to the Shopify System: Since this software is built by Shopify, it can only be integrated with this platform.
Complexity with Multiple Stores: While Shopify POS offers multi-store management capabilities, handling and configuring various stores can become intricate as the number of stores grows. Businesses must invest sufficient time in meticulous management, maintenance, and information updates for each individual store.
High Transaction Fees: When using Shopify POS, businesses are required to pay transaction fees (ranging from 2.4% to 2.6%) for each transaction. These fees can add up, especially for businesses with a large volume of transactions.
Above is a brief comparison of five POS software systems widely used by many large businesses to enhance the efficiency of their operations. Businesses need to consider various factors to select the most suitable POS system.
The aforementioned is a summary of 6 eCommerce ERP software options tailored for large-scale businesses, showcasing their unique features and respective strengths and weaknesses.
To gain a more comprehensive insight into ERPs and to select the ERP software that best suits your business requirements, contact SECOMM or call the SECOMM Hotline (02871089908) for a free consultation.
Odoo, also known as Odoo ERP and previously called OpenERP, is a versatile open-source business management software. It comes with complete integration and customization capabilities, catering to offer a comprehensive solution for overseeing diverse facets of eCommerce operations.
Among its noteworthy functionalities are sales and marketing management, customer relations, project oversight, manufacturing, inventory control, accounting, human resource administration, customer service handling, and a plethora of other applications. As a result, Odoo is adept at fulfilling the real-world business requirements of enterprises spanning all sizes and budget ranges, across many industries.
Odoo Versions & Editions
There are various editions of the Odoo software, with the most recent being Odoo 16; additionally, Odoo 17 is anticipated for release towards the end of 2023. With respect to version 16, the development team has incorporated numerous features and tools to bolster business efficiency, concurrently concentrating on refining a host of existing attributes. Odoo 16 stands as a source of pride, being the swiftest, most visually appealing, and intuitively designed version.
The Odoo management software is available in two primary editions that every business should thoroughly explore before implementation.
Odoo Community Edition (Free Version)
This version of Odoo is free for users to download and use. The Odoo Community edition offers a wide range of features and modules that support essential business operations such as sales management, marketing, customer relationship management, inventory management, accounting, and more.
Odoo Enterprise Edition (Paid Version)
The Odoo Enterprise edition is a premium, paid version with multiple editions tailored to businesses of all sizes. The Enterprise edition is designed to provide advanced features and modules that enhance operational workflows. The cost of the Odoo Enterprise edition is determined by five factors: the number of users, the number of utilized apps, hosting type, deployment services, and integration with third-party systems.
Pros of Odoo
Ease of use
The Odoo interface boasts a simple and intuitive design, with modules logically and systematically organized. As a result, new users will quickly become proficient without investing an excessive amount of time.
End-to-end Features and Modules
Odoo offers an expansive array of features and modules, spanning from fundamental to advanced, to address all requirements for effective business management and operations. These encompass tasks such as sales management, marketing, customer support, accounting, inventory control, and manufacturing.
As businesses embark on Odoo implementation, they can initially utilize the complimentary Community edition and subsequently migrate to the paid Enterprise edition, unlocking the full spectrum of capabilities, modules, services, and progressive enhancements.
Previously, businesses used to store information and data within individual department databases, leading to challenges in accessing and sharing information across departments. With Odoo, apart from providing the necessary modules for management and operations, it also aids businesses by integrating and storing data from all departments in a unified database, facilitating quicker and more convenient management and tracking.
Display Complete Data
Besides storage and integration, Odoo also holds the advantage of presenting comprehensive information. For instance, the ability to showcase detailed and complete data assists businesses in effectively managing product inventory levels on a daily or monthly basis, encompassing future shipments that have not yet been recorded.
Moreover, businesses can better control working capital by gaining insight into their inventory status. Furthermore, the availability of all information in a unified database fosters collaboration and streamlines the accomplishment of complex tasks. This results in improved workflow processes, enabling businesses to effortlessly monitor interdepartmental processes with efficiency.
It Can Be Customizable
Another benefit of Odoo software pertains to its customization potential. Odoo allows users to tailor the software to their requirements without the necessity of writing code. Thanks to its intuitive and user-friendly interface, individuals without extensive programming skills can also make adjustments.
Comparatively, the cost of utilizing Odoo is quite reasonable in comparison to other ERPs. For businesses with a single function requirement, there is no charge for using Odoo, allowing for long-term usage. However, when utilizing two or more functions, businesses receive a 15-day trial period, followed by a moderately priced subscription.
Costs escalate further if the customization and programming of additional modules are aligned with the business’s direction are required. If a business possesses an internal team to perform these tasks, the development costs can be avoided. In practice, businesses will need to seek support from specialized Odoo experts.
Cons of Odoo
Because of constrained resources and a vast user base, Odoo is unable to offer top-notch customer support to every client. Certain customers have found themselves dissatisfied as their concerns weren’t entirely resolved during their initial support interactions. Furthermore, the cost of Odoo training is quite substantial, rendering it unfeasible for small businesses to establish a specialized Odoo support team.
Complex Set-up Structure
Much like other present-day ERP software, Odoo’s structure can pose difficulties during the initial setup for businesses adopting it for the first time. This can result in a time-consuming and effort-intensive process of addressing setup-related issues
While Odoo provides numerous built-in functionalities, being a universal ERP solution for diverse business models worldwide means that adapting Odoo to a particular business type or a specific country requires customization.
Odoo does offer customization options, but for highly specific or complex customization requirements, it might necessitate developers with extensive technical expertise and experience. This could potentially lead to extra costs for customization and overall maintenance.
Performance & Scalability
Although Odoo can meet the deployment requirements for a variety of business scales, its performance, and scalability may raise considerations for larger enterprises with substantial transaction volumes. Hence, businesses should strategize their development and assess scalability aspects prior to choosing, ensuring effective operations.
With many years of eCommerce deployment and integration of various ERP systems for numerous global enterprises, SECOMM comprehends the challenges businesses face when implementing the Odoo ERP system.
Contact SECOMM or call the Hotline (02871089908) now to receive consultation on Odoo implementation.
It forces business owners to find ways to make their businesses stand out and connect with customers.
One of the effective approaches is to implement an Omnichannel eCommerce strategy. This is a marketing method aimed at providing a consistent customer experience across multiple channels. It may be confused with Multichannel eCommerce, where brands sell on various channels but provide different customer experiences on each channel. Although customers can shop on social media, eCommerce websites, physical stores, etc, their experience across these channels could not be seamless. There is also the Single-channel eCommerce model, where a brand only uses one channel for sales.
Retailers globally recognize the potential and impact of Omnichannel eCommerce on their business operations. According to Report Linker, the market for multi-channel retail platforms reached 5 billion USD in 2020 and is projected to reach 14.5 billion USD in 2027. Industry analysts and experts also emphasize that Omnichannel is the future of eCommerce and is a great way to attract customers and provide them with true value.
Tip 1: Understand the target audience & their shopping behavior
Tip number 1, regardless of any business strategy, you have to know who your target customers are and their shopping behavior. You can start by gathering relevant data about demographic information, purchase history, etc from various sources, including eCommerce websites, social media platforms, physical stores, etc. Then, you will analyze how they interact with the brand across different channels and create detailed buyer personas.
This helps identify effective approaches for each customer segment and tailor messages for each channel. For example, if a significant portion of your customers prefers shopping on mobile devices, you can optimize your suitable marketing campaigns alongside improving the website to attract more customers. Or, you can invest in developing mobile applications to enrich the customer shopping experience and drive conversions.
Tip 2: Map the customer journey
Tip number 2 is to map out the customer journey to visually understand the process that a potential customer goes through when interacting with your brand. It helps you clearly understand their needs, buying motivations, and so forth. When developing an Omnichannel eCommerce strategy, mapping the customer journey allows you to proactively provide personalized customer experiences across channels. It not only enhances cross-selling, and upselling but also improves customer intention and loyalty.
There are typically 5 stages in the customer journey: Awareness, Interest, Purchase, Retention, and Advocacy.
Here are the basic steps to create a customer journey map:
Set clear goals for the map
Identify buyer personas and define the target customers
Determine the stages and objectives for each stage
List out the touchpoints
Collect data and feedback
Identify areas that need to be improved
Tip 3: Develop a brand image & messaging
Another valuable tip is to develop a consistent brand message and image across channels. It requires you first to identify and understand the brand values, vision, and mission. For example, you can use consistent elements such as colors, fonts, etc, to help customers easily recognize your brand. Moreover, you need to train your staff on the brand message and image to ensure they understand and communicate the message properly across all channels.
This tip not only helps increase brand recognition and customer loyalty but also creates a seamless customer experience.
Tip 4: Engage customers on social media
Next, you can incorporate social media into your Omnichannel eCommerce strategy and focus on engaging with customers on social media platforms alongside other effective marketing channels. With over 3.6 billion social media users globally, building your brand presence in these places is no longer an option but an imperative measure to effectively connect your brand with customers.
Leveraging social media enables you to engage with customers by responding to inquiries and addressing concerns through messaging or interactions on the news feed in a friendly and approachable manner. In addition, social media provides you with great space to deliver brand messages and voices to customers in a quicker and more intimate way to enhance brand awareness. You can create your own ideas and content or collaborate with influencers.
To tightly integrate social media with other channels in the Omnichannel eCommerce strategy, you can, for example, encourage users to like, comment, and share posts to receive attractive discount codes for purchases on websites or physical stores.
Tip 5: Optimize the shopping experience
Tip number 5, for a seamless omnichannel experience, you need to ensure that customers can make purchases through any channel they interact with, such as eCommerce websites, marketplaces, social media platforms, and physical stores.
Additionally, to keep up with mobile commerce trends, you should optimize mobile-friendly and responsive websites as well as user-friendly mobile apps for easy navigation and usage.
Since Omnichannel eCommerce emphasizes consistent experiences across all channels, content and customer-related information such as login credentials, payment details, and shopping carts should be synchronized. This enables customers to move seamlessly between channels and devices while preserving the items in their shopping carts or without the need to spend time logging in or re-entering payment information. Moreover, you can leverage data analytics to personalize product recommendations for each customer, displaying relevant or complementary products based on their behavior and purchase history across channels to increase cross-selling and upselling opportunities.
Tip 6: Measure & analyze the outcome
Tip number 6 is measuring and analyzing the results of the strategy. During the implementation process, you can utilize data analysis tools such as Google Analytics, Google Tag Manager, Facebook Pixel, and others to check, track and analyze customers across all channels. It helps identify which channels generate the most traffic, level of engagement, and sales revenue, and identify areas for improvement. In addition, you can gather customer feedback to enhance and optimize your strategy. The work should be conducted to make appropriate adjustments and achieve desired results.
Contact SECOMM now for a consultation on building an Omnichannel eCommerce strategy.
The first step of the process is to establish the goals of the eCommerce Loyalty Program, which includes identifying the objectives (e.g. increasing customer retention rates, promoting repeat purchases, attracting new customers, increasing CLV). These objectives should align with the overall development strategy and business goals.
In addition, as a business, you need to clearly define the target audience of the Loyalty Program by analyzing the demographic and psychographic characteristics of those audiences to design a suitable program that meets their expectations.
You also can research the Loyalty Programs of competitors, analyze their strengths and weaknesses, and then create your own program to differentiate your business and provide unique value to customers.
Develop eCommerce Loyalty Program
Determine types of Loyalty Program
Currently, there are various types of eCommerce Loyalty Programs, but the most popular ones are point-based programs, tiered-based programs, and subscription-based programs.
Point-based Loyalty Programs
This allows customers to earn points for each purchase or specific action and redeem them for rewards once they have accumulated a certain number of points. You should pay attention to the value of the rewards customers will receive and the reasonable time to redeem them to make the programs attractive.
Tiered-based Loyalty Programs
This program encourages customers to strive for higher tiers to receive higher-value rewards and benefits. It will require customers to invest their time and money in shopping and engaging with your brand, meaning the more they spend, the more benefits they receive, and the higher their loyalty to your brand.
Subscription-based Loyalty Programs
This Loyalty Program requires customers to register as members and pay a monthly, quarterly, or annual fee, depending on the terms of each program. Because of that, customers are more likely to commit to engaging with the brand, which is higher than other types of programs. Typically, these programs will have a trial period for customers to decide whether or not to join, and this is also an opportunity for you to convince them that the value they will receive is worth every cent.
The choice of Loyalty Program type depends on the budget, resources, and overall strategy of your business.
Choose rewards meaningful to customers
After choosing the right type of eCommerce Loyalty Program, you will want to select rewards that are suitable for that program. For point-based Loyalty Programs, common rewards include:
Discounts on the next purchase;
The opportunity to join exclusive events
The latest product updates.
The SHEIN Bonus Point Program is a typical point-based Loyalty Program, where customers will earn 1 point for $1 spent. In addition, customers can also earn reward points by taking specific actions such as verifying their accounts, reviewing products, etc. When reaching the required number of points, customers can redeem them for discounts of up to 70%.
For the type of tiered Loyalty Program, the tiers will determine the equivalent benefits that customers will receive and require effort to maintain or upgrade. Therefore, rewards will be designed to reflect the brand’s characteristics and personalized for each customer at each specific tier. This makes the customer’s efforts worthwhile.
For example, Aldo Crew is a tiered Loyalty Program from the famous fashion brand – Aldo, with 3 main tiers: Crew, Plus, and VIP. The program offers customers attractive and personalized benefits such as special pricing, free birthday gifts, birthday discounts, 20% off handbags when purchasing shoes, exclusive privileges and surprises, and account sharing with friends.
Most membership programs are applied by leading and well-known businesses worldwide due to their credibility, product value, and high-quality service that make customers trust them to spend their money to sign up. The rewards of this type of program tend to be exclusive, only available at the brand and for registered members.
For example, customers who register for the Walmart+ membership program will receive benefits such as product discounts, shipping policies, gas service, and movie watching with Paramount+ that non-members cannot receive.
Depending on what Loyalty Program you choose, you will select rewards that are appropriate for both your customers and your business. However, you should consider the cost of each reward as well as the benefits it brings to the business before applying it to the program. Providing valuable rewards can not only increase customer retention and loyalty but also boost sales and increase the CLV.
Choose Loyalty Program Software
Next, you will need software to develop, and manage eCommerce Loyalty Programs, track customer activities, and distribute rewards. The choice will be based on some factors such as ease of use, integration with eCommerce websites, and the price of the software. There are some popular Loyalty Program software on the market today, including Smile.io, Loyalty Lion, Yotpo, S Loyalty, and so forth. These softwares can be easily integrated and work effectively with eCommerce platforms such as Magento, Shopify, WooCommerce, etc.
Design the program rules
The next step is to design the rules of the program. You need to ensure that the rules and conditions for participation are presented clearly, easy to understand, and easy to follow.
For example, the Sephora Beauty Insider program is based on a tiered system where customers earn one point for every dollar they spend, and the conditions for participation and advancement are clearly presented.
Again, with Walmart+ as an example, customers easily recognize the benefits they will receive for joining the program as a member, and the cost of $12.95/month after a 30-day trial as well.
In addition, the registration process should be easy to execute. Typically, brands will require customers to create an account on their website or fill out a registration form, or even simpler, just log in with Facebook to participate. These actions are quick and easy to execute.
For example, in the Sephora Beauty Insider program, customers can click “join now”, fill out the form, and join the Insider tier. Or, if they already have an account, they need to log in to see their points balance and tier.
For the Aldo Crew program, customers need to fill out a registration form on the website or log in with their Facebook account to start.
In addition to ensuring the clarity and understandability of the program rules, you also want to ensure that the conditions set are appropriate for customers to quickly earn rewards and maintain the attractiveness of the program, while also bringing profits to the business.
For example, the Amazon Prime membership program offers customers a 30-day free trial and a range of pricing options. The most noteworthy are the monthly payment plan at $14.99/month and the annual payment plan at $139/year. The majority of customers are likely to choose the annual payment plan ($139) to save money, which is also Amazon’s intention as the profits they earn will be higher.
Implement eCommerce loyalty Program
Integrate the program to eCommerce website
To implement a Loyalty Program, you will need to integrate the program into your eCommerce website and display the point balance and rewards on the Shopping cart page.
Taking Sephora as an example again, the Profile page displays the customer’s current membership tier and current point balance.
Train the team
For the success of your eCommerce Loyalty Program, you have to educate your team about the program, including participation requirements, point accumulation methods, rewards, and more.
Moreover, you want to ensure that your team knows how to answer customer questions about the program and handle any arising issues. This activity should be done regularly along with the changing of your Loyalty Program to fit market trends.
By providing effective training, your team is able to promote and manage the program accordingly. This contributes to the success of your eCommerce Loyalty Program.
Launch & promote the program
When launching your Loyalty Program, you will want to make it popular so promotion is necessary. To do it effectively, you can prominently display the program on the Homepage and Navigation menu of your website. Also, you can promote the program on social media or use eye-catching graphics and compelling content for email marketing.
An Influencer marketing campaign is an effective way to increase the program’s awareness and engagement. Referral Marketing is also a commonly used marketing strategy in Loyalty Programs today, encouraging customers to refer new members to the program to expand the customer base.
Popular Loyalty Programs such as Sephora Beauty Insider, Amazon Prime, Walmart+, Aldo Crew, and eBay Plus all have referral programs. When someone signs up for the Loyalty Program through a referral link, both the referrer and the referee will receive a small bonus of $1-$10 or a discount on their next purchase.
Measure outcomes & keep customers engaged
You will need to track and measure the results of the Loyalty Program to ensure the objectives are achieved and make adjustments if necessary.
You can use KPIs like customer retention rate, repeat purchase rate, or average order value of members compared to non-members. Moreover, you can collect and analyze customer feedback and reviews on their satisfaction with the program to identify what to improve.
You also need to keep your customers engaged by regularly improving, updating, and promoting the program. At the same time, you should provide personalized rewards and experiences based on their interests and behavior to increase customer satisfaction and interaction.
In addition, you can consider building a community of members by providing online and offline events and special offers exclusively for program members. Again, Sephora does this well, they offer exclusive events for all Insider, VIB, and Rouge members in addition to other incredible experiences. This gradually creates a community of loyal Sephora customers who love beauty.
Retention isn’t about convincing customers who were going to leave to stick around. Instead, retention is about providing so much value to your existing customers that they never go anywhere else and become your strongest benefit.
Therefore, enhancing your customer experience through attractive Loyalty Programs is an effective way to increase customer retention and loyalty.
Contact SECOMM now for a free consultation on developing a comprehensive eCommerce Loyalty Program.
According to the latest data compiled by Statista, as of January 2023, the number of global smartphone users is 6.92B people, increasing by 4.2% annually. In Vietnam alone, this number is around 69 million users, whereas, in the US, Pew Research Center estimates that about three-fourths of Americans own a smartphone. These data demonstrate that smartphones have become common devices, and the demand for owning and using smartphones is significantly increasing.
In addition, the Internet has long ceased to be a high-end infrastructure for countries. Therefore, people today tend to prioritize using mobile devices like smartphones to browse the web.
Typically, Brands tend to establish a strong presence in areas with a wide pool of potential customers, so the emergence of Mobile Commerce quickly gained acceptance and became one of the key business strategies of many enterprises.
Moreover, the appearance of the Covid-19 pandemic in 2020 became a great boost for eCommerce in general and Mobile Commerce, in particular, to explode strongly.
During that period, the smartphone became the shopping companion of users as 79% of users used their smartphones or other mobile devices to shop online, as reported by OuterBox. Despite the eventual end of the pandemic, the Mobile Commerce growth trend is projected to continue as mCommerce retail sales hit $415 billion in 2022, and are predicted to reach $710 billion by 2025.
What is Mobile Commerce?
Mobile Commerce or Mobile eCommerce, abbreviated as m-commerce or mCommerce, is also known as Thương Mại Di Động in Vietnamese. This term was first coined and used by Kevin Duffey at the Global Mobile Commerce Forum in 1997, which means “providing direct eCommerce capabilities to consumers, anywhere, through wireless technology”.
Simply put, it is a business model in which all online monetary transactions are conducted on mobile devices such as shopping, banking, eWallet transactions, ride-hailing, food delivery, hotel reservations, etc.
mCommerce vs eCommerce
eCommerce or electronic commerce is a relatively broad concept that refers to the buying and selling of goods and services over the Internet. Meanwhile, Mobile Commerce is a branch of eCommerce or the mobile version of eCommerce, specifically referring to electronic commerce transactions carried out on mobile devices.
Furthermore, the eCommerce shopping experience depends heavily on desktops and websites, making it less mobile-friendly and inconvenient for customers. On the other hand, with Mobile Commerce, customers can easily bring their devices with them anywhere, allowing businesses to provide personalized shopping experiences that help customers make quick purchasing decisions.
Top Mobile Commerce Trends Are On The Rise
Thanks to the popularity of smartphones in every consumer’s life, related trends are on the rise such as mobile shopping, mobile payment, and social commerce.
Mobile Shopping Apps
Mobile shopping apps are becoming more and more popular and are the most prominent trend in mobile commerce. Many retail brands across various industries are investing in building and developing their own eCommerce apps such as the fashion industry, the cosmetic industry, and so forth. This not only helps businesses increase their conversion rates and sales but also makes the shopping experience easier and more convenient for customers, as they will be able to search for products and complete purchases right on the app.
In addition, the outbreak of the Covid pandemic and the establishment of social distancing measures in 2020 marked the beginning of the boom of shopping apps. As stated by the Mobile Shopping Report 2021, global usage of shopping apps increased by 40% in Q1 2021.
In the effort to develop sustainably amidst the pandemic crisis, the SHEIN app with nearly 15.5 million global users played a significant role in contributing to the company revenue of $9.81 billion in 2020.
The usefulness of smartphones not only lies in online shopping but also makes transactions and payments more convenient and easy during the peak period of the pandemic. In addition to Mobile Banking applications, users have a special preference for mobile wallet or eWallet applications.
In the Vietnamese market, when it comes to eWallets, people immediately think of MoMo. However, MoMo is not only known as a typical eWallet but also an incredible super application.
To date, MoMo has built a platform that provides about 400 different types of services in many fields such as consumer finance, insurance, money transfer, payment, entertainment, shopping, dining services, and charity donations, etc. The number of MoMo users has increased significantly in recent years, from 10 million users in 2019 to about 31 million users in 2022, and the company’s next target is at least 50 million users.
In addition to making their mobile shopping apps, selling on social media platforms is also one of the widely applied strategies. The popularity and large user base of social media are a solid foundation for the development of Social Commerce and a playground for merchants of all sizes. Social Commerce is a form of online selling through social media platforms like Instagram, Facebook, and TikTok.
Selling on social media will help brands reach the existing large user base and utilize influencers for their marketing campaigns.
For example, the vegan cosmetics brand Cocoon does this through TikTok Shop. Cocoon is known for its environmentally friendly and animal-testing-free products, and they opened a store on TikTok and collaborated with famous beauty vlogger Ha Linh, which brought them a lot of success. It not only boosted their sales but also reached nature-loving, animal-loving, and young customers on TikTok.
As mentioned, the global number of smartphone users is estimated to reach around 6.9 billion by 2023, which is a driving force for the development of Mobile Commerce. Anyone who owns a smartphone has the potential to become a customer. As a result, implementing Mobile Commerce will help businesses reach this enormous user base, nurture and generate conversions.
In addition, with the mobility of Mobile Commerce, smartphone users with internet access can shop anytime, anywhere, even on the go without being dependent on a fixed location. Especially when visiting a store to shop, instead of paying in cash or by card, customers can now pay through eWallets such as MoMo or VNPay, etc.
Offer Personalized Experience
Currently, businesses are very focused on personalized customer experience, which is particularly important in the Mobile Commerce world. A smartphone is a personal item that each person carries out personal activities throughout the day. Moreover, in the online shopping trend, customers highly value brands that provide them with a personalized experience because it demonstrates the brand’s concern for its customers. As a result, the more businesses focus on details and personalization in their messages and promotional programs, the better.
For Mobile Commerce, push notifications are an effective solution. Mobile Commerce apps help businesses track and collect user data including personal information, social media accounts, interests, current location, purchase history, viewed products, etc. After that, they can combine and analyze the data to send appropriate messages to the right target audience through push notifications.
Recent studies have shown the effectiveness of push notifications in connecting with customers and notifying them about new products and special incentives.
The open rate of push notifications is 90%.
This open rate is 50% higher than email marketing.
Up to 55%-60% of mobile app users agree to receive push notifications.
70% of them find push notifications useful.
52% of users search for related information and promotional programs after receiving and reading push notifications.
Push notifications are one of the strategies implemented to provide personalized shopping experiences and bring satisfaction to customers. The more satisfied customers are with their shopping experiences, the higher the likelihood that businesses will increase customer retention rates and maintain their loyalty.
Provide Omnichannel Shopping Experience
The demand for a personalized shopping experience is increasing among customers, as well as the need for a consistent shopping experience across multiple channels, from online to offline stores. According to a study by MasterCard, customers who have a multi-channel shopping experience with a specific retailer tend to spend 250% more than the average. The fashion brand Macy’s has stated that the value of multi-channel shoppers is 8 times higher than that of those who only shop on a single channel.
Moreover, smartphone users tend to use their devices while shopping in offline stores for various purposes, as Retail Dive‘s survey has listed in detail:
58% search for product information;
54% compare prices;
40% collect vouchers or coupons;
33% access the mobile app of the business;
22% scan QR codes.
Therefore, by implementing Mobile Commerce, businesses can provide customers with a multi-channel shopping experience.
Mobile Commerce is exploding thanks to the boost from the Covid pandemic. Even though the pandemic has passed, the impact of Mobile Commerce on the development of eCommerce businesses is still significant. If businesses plan to approach Mobile Commerce in 2023, it is a wise decision.
Contact SECOMM today to learn more about Mobile Commerce and the best solutions to get started.
One of the big challenges of physical stores is how to raise brand awareness among potential customers who are far from the store location. Using online-to-offline marketing strategies can increase the public’s awareness of a business’s brand. That way, businesses will be able to reach an influx of customers and boost their awareness of the brand and its products which then lead to higher sales volume and massive revenue.
Despite the rapid development of eCommerce, brick-and-mortar stores still maintain stable sales because many customers still prioritize visiting stores to shop. A recent study indicates 46% of responders said they preferred shopping at a brick-and-mortar store because they want to touch, feel and try the products physically before making purchases. Another interesting fact is customers are likely to spend more money while in the store.
For example, a man comes to a bookstore to buy a notebook, then he looks around and decides to buy some more pens. In case he buys the notebook online, he may only buy it. Thus, the O2O Commerce model is a good choice as businesses can not only use online channels to raise brand awareness but also overcome the limitations of offline channels to earn massive revenue.
Enhance Customer Experience
The incredible combination of online and offline channels makes the customer shopping experience more seamless and interesting. Online platforms enable consumers to contact brands easily and immediately. When they want to ask for a product’s details, they can send a message through Facebook Messenger or a chatbot on an eCommerce website and the supporting team will answer their questions instantly.
Based on the customer’s data, businesses can offer product recommendations via online channels or the next time customers visit physical stores. In another case, if businesses run ad campaigns, they can notify their customers via online channels, which will help them to reach a larger audience with their online ad campaigns instead of just informing customers when they walk into the store.
Common strategies in O2O Commerce
BOPIS (Buy Online Pick-Up In-Store)
BOPIS is not a brand-new way to shop but has been around for a while. Merchants that provide this service can attract online shoppers to visit their brick-and-mortar stores. This way, customers will browse the eCommerce website to search for products, buy them and get notifications when the products are ready to pick up in the physical store. It’s convenient for customers to select a specific time to come to check and get their orders at the store. Merchants gain benefits too with amazing cross-sell and up-sell opportunities.
Although BOPIS is great, it may not be every customer’s choice as not everyone likes to go to the store to pick up the products, instead people prefer home delivery rather than the in-store pick-up option. Sometimes, shopping at the store also causes many inconveniences, for example, finding a parking lot to go to the store in a densely populated area, picking up the goods, and returning to the car, seems time-consuming and annoying for busy people.
To solve this problem, merchants can self-deliver if the store location is close enough and convenient for the delivery process to be fast and efficient. Otherwise, collaborating with delivery companies like Giao Hang Nhanh, Giao Hang Tiet Kiem, and so forth, is a good choice when the business resources need to be increased.
Suppose a customer bought a product online but when receiving it, he realized it didn’t fit his demand. There was a store nearby, so he decided to return the product he bought there. But when he arrived, the staff there didn’t accept his return request because they had no clues of that purchase in the store’s system.
Therefore, he had to return his order to the carrier and wait a long time before receiving his refund. That will make consumers wonder whether they should keep shopping with that merchant next time. Thus, in-store return has become a fantastic offerable solution for customers to avoid the hassle of returning goods. This method simplifies the return process for shoppers and merchants because returns and refunds are processed simultaneously, which means better customer service and a much faster return to stock.
Loyalty Program is another great way to encourage customers to engage with the O2O shopping experience.
This is one of the popular types of loyalty programs. Every business can assign points to any items or user activities. While purchasing or joining any engaging program, customers will easily earn points afterward for later exchanging gift cards, vouchers, and even actual money which then encourages them to go back to spend more in order to get benefits from the gifts. As a result, reward points will boost sales and increase brand loyalty.
Gift Cards/Gift Voucher
Gift cards can be used not just as gifting options but also as a powerful tool to get customers to spend in their outlet. Customers can use gift cards immediately or save for later purchases, or even give it to relatives and friends. As a result, relatives and friends are likely to become potential customers of the brand soon.
How to implement O2O Commerce in business
The first thing to do is identify the main objectives. If businesses haven’t built their online presence, they should do it immediately due to the rise of online shopping. If businesses already have their online presence (eCommerce website, mobile app, marketplace), it’s important to adjust their O2O Commerce strategy to increase sales online, offline, or both. They should also consider using some measurable metrics to ensure these objectives are appropriate and achievable.
Next is working with a team to raise ideas for the O2O Commerce strategy. Here are a few suggestions:
Use performance analysis software to find out customer challenges in the purchasing process.
Use social media to connect the brand’s eCommerce store to its physical store.
Implement the BOPIS process.
Provide home delivery for some or all items for both online and in-store purchases.
Then use these data to decide which strategies to try.
Once deciding on strategies to deploy O2O Commerce, businesses will use collected data to measure the success of those strategies and make the next business decisions. Looking back on the initial objectives when evaluating and adjusting the O2O marketing and business strategy, then considering the additional objectives if the original ones have been achieved.
O2O Commerce solution at SECOMM
Founded in 2014, SECOMM is specialized in providing O2O Commerce solutions. Over the years, SECOMM owns a massive fortune of O2O commercial projects with major domestic and international customers such as, Annam Gourmet, Trentham Estate, etc.
In particular, SECOMM provides a variety of services to support businesses to improve their competitiveness and dominate the retail market in the digital age including Solution Consulting, Core-team Building, and O2O System Development, including:
eCommerce system: websites, mobile apps
Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM)
Product Information Management (PIM)
Customer Experience Management System
Analyzing and Tracking business data
Want to learn more about O2O Commerce as well as the best solutions to win the retail industry? Contact SECOMM now for a free consultation.
The probability of selling to an existing customer is 60%-70%, whereas, the probability of getting a prospective customer to buy products from you for the first time is only 5% to 20%.
65% of sales come from existing customers.
Compared to new and prospective customers, existing customers are 50% more likely to try out new products.
80% of future profits will come from just 20% of your existing customers.
Loyal customers spend an average of 31% more than new customers.
32% of executives worldwide said customer retention is their top priority.
Increasing customer retention by even 2% has the same impact on profitability as cutting costs by 10%.
75% of loyal customers will recommend the brand to friends and family.
Existing customers are the best customers and the most valuable asset of an eCommerce business. These customers contribute greatly to the business profit and help businesses save time and money to acquire new customers.
What affects Customer Loyalty?
89% of eCommerce businesses around the world agree that the customer shopping experience affects customer retention. A high customer retention rate indicates that customers are happy and satisfied which leads to increased loyalty and repeated purchases.
Retaining customers plays an important role in eCommerce businesses because the cost of attracting new customers is five times higher than maintaining existing ones. Moreover, increasing customer retention by even 5% can increase business profits by up to 95%. This is because satisfied customers are likely to refer the brand to others.
Therefore, businesses need to focus their time, money, and energy on enriching the customer experience, persuading them to come back to shop more often, and recommending the brand to friends and family.
Among the various strategies for maintaining customer loyalty, Loyalty Program is one of the most effective factors for eCommerce success.
What is an eCommerce Loyalty Program?
A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the service of a business associated with the program. Simply put, eCommerce businesses build loyalty programs to reward customers for their purchases and engagement for a long time.
The reward can be any free product, discount code, or special offer to represent the appreciation of the business for its customers, who tend to spend more because of the benefits they receive when participating in loyalty programs.
According to Yotpo, nearly 68% of customers said they would be willing to join the loyalty program and special incentives motivates them to buy more products.
Loyalty programs not only enrich the shopping experience and keep customers engaged with the brand but also from a business perspective, the benefits they bring to eCommerce businesses exceed the initial expectation.
The Benefits of Using eCommerce Loyalty Programs
Increase Customer Retention
The development of eCommerce helps customers shop more conveniently. That means their expectations for the shopping experience are higher. Today’s customers make their purchasing decisions not only based on price but also other factors such as service experience or emotional connection with the brand, etc.
According to HuffPost, 66% of customers tend to switch brands for shopping if the service is not good enough. Loyalty programs help enhance the shopping experience. The more shopping satisfaction, the more customer retention and loyalty.
Increase Customer Lifetime Value
Customer Lifetime Value or CLV is a key metric that indicates the total revenue an eCommerce business can reasonably expect from a single customer account throughout the business relationship. Most business owners will always find ways to increase the CLV index in order to maximize their profit.
According to Harvard Business Review, the cost of acquiring a new customer is more expensive, ranging from 5 to 25 times, compared to retaining an existing customer. As a result, high lifetime value customers become priceless assets for a business, as their purchases will not require acquisition costs. In other words, a business doesn’t have to incur acquisition costs for loyal customers.
On the other hand, the business has to spend acquisition costs to convince potential customers to buy its products. Thus, even if a new customer spends the same amount on a product as an existing customer, it may not bring in equivalent profits because of acquisition costs.
Encourage Brand Advocates
In most cases, existing customers are also the most incredible advocates. When customers are satisfied with the shopping experience, they are more likely to share it with their family, friends, or colleagues, and the business will gain more potential customers naturally.
Compared to brand messages, recommendations from existing customers are even more effective. According to Nielsen, 77% of consumers trust recommendations from people they know more than any other source. As a result, before making a purchase, they will seek advice from people they trust. Plus, 64% of marketing experts believe that word-of-mouth marketing is one of the most effective forms of marketing.
With the development of the Internet and social media platforms, recommendations from existing customers come in various ways, including posts, comments on social media or review videos, etc. This helps reduce acquisition costs so that every eCommerce business needs to focus on enhancing their existing customer shopping experience and new customers will end up rolling in for free.
Types of eCommerce Loyalty Programs
Point-based Loyalty Programs
This is one of the most popular eCommerce loyalty programs since it is easy to set up and manage. By joining this type of program, customers can earn reward points after each purchase. They can then redeem their accumulated points for rewards such as gifts, discount codes, and other special offers. They also can earn reward points in many other ways besides making purchases, such as sharing product pages on social media, writing product reviews, completing surveys, filling out personal profiles, and so forth.
Although this type of program is relatively simple to implement, businesses still need to ensure that the points customers earn have enough value to encourage them to continue shopping. Plus, the time it takes to redeem points for rewards should be short enough because if customers have to wait for several months or even years to redeem points for a valuable reward, the attractiveness of the points-based program will decrease.
SHEIN, a popular fashion brand founded in 2008, has created a great SHEIN Bonus Point Program reward system on its mobile app. This program allows customers to earn points by registering an account, making purchases, reviewing products, and participating in special online events held by the brand.
Each activity equals a specific reward point. Then, customers can use their reward points to receive discounts ranging from 15% to 25%, and even up to 70% for their next purchase. Additionally, reward points can also be used to exchange vouchers or other special offers when customers participate in SHEIN events or play games on the mobile app.
Tier-based Loyalty Programs
Another popular loyalty program is the tiered-based one. It encourages customers to strive to move up higher tiers to receive more valuable benefits and rewards. The more customers spend on shopping, the more benefits they receive.
This program helps to foster customer loyalty to the brand. To maintain or move up in rank, customers have invested a lot of time and money, and they will not easily give up the huge benefits they are receiving to participate in another brand’s loyalty program.
The famous shoe brand Aldo, with over 1,000 stores in 65 countries, focused on 3 main markets – the US, the UK, and Canada – when building their loyalty program. Known as Aldo Crew, the program offers customers three levels of membership: Crew, Plus, and VIP. All customers are initially enrolled as Crew level members. To advance to the Plus or VIP levels, customers must spend between $150-299/month for the Plus level and over $300/month for the VIP level. Depending on the level, each customer receives corresponding rewards, and VIP-level customers receive all the special perks offered by the Aldo Crew program.
Subscription-based Loyalty Programs
eCommerce loyalty programs are very attractive because, from the customer’s perspective, they get benefits for free. However, in reality, customers have to make a purchase or perform a specific action to earn those “free” benefits.
Many world-renowned brands have created incentive programs based on subscriptions to provide incredible services and charge customers for participation. Amazon Prime, eBay Plus, and Walmart+ are some examples.
To participate and receive truly valuable benefits, customers are required to pay a fee. Since customers have to pay a fee, their commitment to engaging with the brand is also higher than in other loyalty programs. Also, because businesses charge customers when they register as members, this loyalty program type usually has a trial period for businesses to convince customers that the benefits they receive are worth the money they spend.
In 2020, the famous American retail chain Walmart launched a subscription-based loyalty program called Walmart+. The program is integrated into the Walmart app and offers many special benefits to customers both in-store and online, including:
Free delivery and same-day pickup
Free delivery with no minimum order value
The same prices for products purchased online and in-store
Scheduling delivery options
10-cent discount on gasoline at over 14,000 Walmart branches
Scan-and-go checkout option
Special member-only deals and promotions during holidays and events, etc.
To join the program and enjoy these benefits, customers have to sign up and pay a specific membership fee of $12.95/month or $98/year. Customers can try the program for 30 days before committing to a membership.
The loyalty program strategy plays an important role in customer experience which leads to their loyalty to the brand. The success of SHEIN, Aldo, and Walmart has become an inspiration for other eCommerce businesses to jump into the game.
To learn more and develop the best loyalty program strategy, contact SECOMM now for a free consultation.
By the end of 2022, TikTok was reported to reach 1B users globally, becoming the fastest-growing social platform ever. Having a large user base amid the rise of online shopping is an advantage, which contributes to TikTok’s ongoing transition into a Social Commerce platform.
Recently, the social media platform has added a new buying and selling feature called TikTok Shop. It is a new solution for businesses of all sizes to boost customer engagement, brand awareness, and sales.
What makes TikTok special?
The content of TikTok consists of vertically arranged videos that are compatible with smartphones and users only need to swipe up to watch a series of videos that are only a few seconds to one minute long. Creating content on TikTok is also easy and simple, users only need to upload the original video and add a few effects, then they will have an interesting and fun short video. With over 1 billion videos viewed on TikTok every day, it has opened up marketing opportunities for many brands.
The majority of TikTok users are Millennials and GenZ, and it now expands to even younger users. They are a driving force behind the increasing expectation of digital experiences. Over 55% of GenZ in Vietnam are using TikTok, in the US, 62% of people between the ages of 10 – 29 are using this social network. The attention span of Millennials is about 12 seconds and for GenZ it’s around 8 seconds. Therefore, TikTok’s short-length videos are particularly popular with these generations because of their easily consumable content.
When compared to Reels (a feature of Instagram) and Short (a feature of Youtube), TikTok even has the upper hand. As The Graygency has noted, the monthly user base of IG Reels is in the lead with 2 billion users, followed by Youtube Shorts with 1.5 billion, and finally TikTok with 1.2 billion. The Reels feature was launched in 2020 and immediately became popular due to Facebook and Instagram’s enormous existing user base. The same is true for Youtube Shorts.
Meanwhile, TikTok was launched in 2016 but has reached 1 billion users in just 5 years. For Instagram and Youtube, this number took 8 years. A new player like TikTok when compared to the 2 major social platforms with a not-so-significant difference in user base, makes TikTok incredibly special. Plus, when considering other criteria like Engagement Rate, Female Users, Male Users, etc, TikTok even has higher rates than IG Reels and Youtube Shorts.
Another thing that makes TikTok special lies in its algorithm. When opening the app, users will see the “For You” page where TikTok displays videos that users may be interested in and immediately capture their attention. However, these videos don’t come from creators or brands that the user is already following but from the users’ interactivities on the videos, which is completely different from other social media platforms.
The “For You” page is the most successful feature of the app as it creates content every second specifically tailored to each user’s personal preferences. These successes have led to a new step for the social platform – TikTok Shop
“TikTok Shopping is a suite of solutions, features, and advertising tools that give businesses the opportunity to capture the full power of TikTok’s influence on purchase decisions”
Simply put, TikTok Shop is a new feature that allows TikTok users to buy products right on the app. Also, it provides businesses a way to display, promote and sell their products to a huge user base on TikTok.
After setting up the TikTok Shop feature, a dedicated shopping tab will appear on the brand’s profile. That way, customers can browse through and purchase within the TikTok app or be transferred to the brand’s eCommerce website for checkout.
TikTok Shop Live
Besides the TikTok Shop feature, TikTok Shop Live is also a great resource to take advantage of. Brands can integrate their products from TikTok Shop into their live stream to encourage customers to interact with the brand and whenever they see a product they like, they can buy it during the live shopping stream.
50% of TikTok users have bought something after watching TikTok Live;
Users on TikTok are 50% more interested in branded Live content than non-TikTok users;
1 in 5 users watch TikTok Live and of that group 62% watch it every day
TikTok users are two times more likely (compared to non-TikTok users) to say the live stream is the most trustworthy to use when shopping.
Ha Linh, a female beauty vlogger in Vietnam, is widely recognized by everyone in the Vietnamese beauty community for her genuine product review videos. She fearlessly provides critical feedback on any brand, and her reputation precedes her. Recently, Ha Linh held her first live stream on TikTok, which incredibly got 11 million hearts and 80K views. To everyone’s surprise, within an hour, all the products from the three factories of the brands she collaborated with were sold out. This case highlights the effectiveness of influencer marketing campaigns in conjunction with TikTok Live Shopping for brands targeting young customer demographics.
Why brands need to embrace TikTok Shop?
Keep up with Social Commerce
According to research, 87% of customers make their purchasing decisions through information provided on social media, 90% discover brands through social media, and the average spent per day on social media is over 2 hours. This is a new great boost for Social Commerce globally. In 2022, global Social Commerce sales reached $992B and are estimated to exceed $3 trillion in 2026.
With a massive user base of over 1 billion, TikTok has the potential to become the leading platform in global Social Commerce, and the TikTok Shop feature has been launched to achieve that goal. TikTok Shop is currently available in Europe, North America, and 7 Asian markets, including Vietnam.
The short videos on TikTok are already very appealing, and when combined with cleverly integrated advertising content, they can attract users’ attention. This not only entertains and engages users, but also motivates them to make purchases from the advertised shoppable content. According to data compiled by TikTok, 67% of users have purchased after watching a video even if they didn’t intend to do so beforehand.
Thus, TikTok has created an infinite loop of shoppertainment that combines shopping and entertainment within the app. As TikTok prioritizes user-generated content and 83% of its users have created videos on the platform, after purchasing, they are more likely to share their experience with other people on the app. This ultimately creates an endless loop of shopping, discovery, consideration, purchasing, reviewing, and engaging that repeats itself.
Reach out to a large user base on TikTok
The majority of TikTok users are in the age range of 18-34. According to Statista, as of January 2023:
Bên cạnh đó, những danh mục nội dung phổ biến nhất trên TikTok bao gồm giải trí, thể thao/fitness, nấu ăn, mỹ phẩm, thời trang,…
Do đó, nếu các doanh nghiệp đang kinh doanh trong những lĩnh vực này và hướng đến phân khúc khách hàng trẻ tuổi thì xây dựng hiện diện nhanh chóng trên nền tảng TikTok và tận dụng tính năng TikTok Shop là điều cấp thiết phải triển khai, như cách mà Kylie Cosmetics đã làm.
Moreover, the most popular content categories on TikTok include entertainment, sports/fitness, cooking, cosmetics, fashion, etc. Therefore, for businesses operating in these fields and targeting younger customer segments, building a quick presence on TikTok and leveraging the TikTok Shop feature is crucial to implement, as Kylie Cosmetics has done.
As soon as TikTok Shop was launched in the US market, Kylie Cosmetics was one of the first brands to get involved. To date, the brand’s TikTok account has over 3.5 million followers. Kylie Jenner once explained: “I built my business on social media; it’s where my fans go first to look for what’s new from Kylie Cosmetics. I have so much fun creating TikTok videos, and I love sharing posts of my fans using the products. That’s why I’m excited for Kylie Cosmetics to be one of the first to let customers shop directly on our TikTok!”.
Take advantage of TikTok Influencer Marketing
If Influencer Marketing plays a crucial role in the brand’s success on other social platforms, TikTok is no exception. This strategy is primarily used to increase brand awareness, run promotional campaigns, and boost sales. TikTok is a place for creative and engaging short videos, so TikTok users have a special love and interest in creators with their unique style and creativity that attracts users’ attention.
TikTok Influencer Marketing is where business brands and personal brands are closely linked. Thus, some experts advise that in order to successfully implement TikTok Influencer Marketing, businesses should let their partners freely create promotional content as long as it meets ethical and cultural standards. This is because if TikTok videos are too focused on advertising, it will make users or potential customers “turn away”.
Walmart, the American retail chain, recently sponsored a dance challenge called “SavingsShuffle”, which required players to show how to save money while shopping at Walmart with their creative fun dance moves, and then post the recorded video on TikTok. Six influencers were chosen to promote this campaign, including Trinity, AdamW, Sam Hurley, Bdash, Kidrl, and Ajani.
Selling on TikTok VS eCommerce Marketplace
eCommerce marketplace: Brands and merchants have to rely heavily on the policies of eCommerce marketplaces, prices, products must be competitive, storefronts must be high-rated, etc.
TikTok: This is a fair playing field for all brands and merchants. By creating attractive content and cleverly incorporating promotional elements, they can increase sales and their followers. However, participating in the high-level sales race on TikTok requires brands and merchants to invest more in creativity.
With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM understands the difficulties and challenges of implementing eCommerce. Talk to our expert to get free advice on eCommerce implementation.
You can simply use ChatGPT by visiting OpenAI’s website to create an account. Once you’ve logged into your OpenAI account, on the ChatGPT side of the website, you need to read through and accept ChatGPT terms. Then, you can start your conversation with it by asking questions.
Because it is still in the research and feedback-collection stage, it is free to use. But as of February 1, 2023, the OpenAI company launched a new version of ChatGPT Plus in the US for $20/month, while keeping the free version.
How does ChatGPT work?
ChatGPT runs in a language modeling architecture called Generative Pre-training Transformer (GPT), specifically GPT-3. This type of AI model is trained on vast amounts of information from the Internet, including websites, books, articles, and so forth.
It is fine-tuned using reinforcement learning. Meaning that ChatGPT “learns” from information found on the Internet as well as the user input. Due to Reinforcement Learning from Human Feedback (RLHF), ChatGPT is unique.
RLHF enables human AI trainers to build conversation models in which humans act as both users and AI assistants, according to OpenAI. That helps ChatGPT learn new information rapidly and grow more intelligent.
The key differences between ChatGPT and Search Engines
ChatGPT is a language model to generate conversation with the end users, whereas Search Engines index web pages on the Internet to help users find what they desire. ChatGPT can understand and respond to input information quickly. But, it does not search on the Internet for the information, instead, it uses the training data to generate a response.
Another difference is that ChatGPT’s information update speed is still slower than that of search engines. Some search engines like Google can access the latest information but ChatGPT can only access data up to September 2021. Thus if you ask ChatGPT who is Miss Vietnam 2022, it would not be able to answer while Google could give you an immediate answer in just 0.6 seconds.
5 ways for using ChatGPT in eCommerce
Using ChatGPT helps increase revenue and enhance eCommerce business operational effectiveness. Here are 5 great ways to use ChatGPT in eCommerce.
Create product description
Because an eCommerce website has different product categories, writing a unique description for each product takes a lot of time and resources. ChatGPT can be used to automatically generate compelling product descriptions. This can save time and effort for business owners while still providing customers with high-quality information about the products. Moreover, this language model can create SEO-optimized descriptions that improve product visuality.
For example, a fashion retail brand has launched a new sportswear collection. ChatGPT will generate descriptions focused on moisture-wicking, comfortable fit, and the full range of motion and flexibility. It not only informs customers about the technical aspect of the product but also encourages them to shop with compelling and persuasive words.
Create product recommendations
ChatGPT còn được các doanh nghiệp thương mại điện tử sử dụng trong việc đưa ra đề xuất cá nhân hoá sản phẩm. Bằng cách sử dụng dữ liệu khách hàng và lịch sử duyệt web, ChatGPT có thể đưa ra các đề xuất sản phẩm phù hợp cho từng khách hàng cụ thể.
Ví dụ: Gần đây có một khách hàng tên Mỹ đã mua một chiếc áo thun thể thao tại cửa hàng, doanh nghiệp có thể sử dụng ChatGPT để đưa ra đề xuất sản phẩm tương tự mà khách hàng này có thể quan tâm. Từ việc gợi ý sản phẩm phù hợp và cá nhân hoá có thể giúp tăng mức độ tương tác và doanh số bán hàng.
Generate social media content
Another way to use ChatGPT is to generate engaging social media content.
For example, a company can use ChatGPT to generate promotional posts on social media platforms to introduce features and benefits of products engagingly and excitingly. Posts can include a caption, image, or video to highlight the advantages of that product. By leveraging the power of ChatGPT, businesses can promote their products and reach new customers on social networking sites effectively.
Generate email marketing campaigns
Running email marketing campaigns enables eCommerce businesses to build relationships with their customers, advertise their products and boost sales. By sending personalized ideal emails to customers and prospective customers, businesses can earn customer loyalty and encourage repeat purchases.
ChatGPT can be used in your email marketing campaigns targeting specific customer segments to achieve the desired results.
Example: Jennifer is a regular customer of a sports fashion company. Now the company launches eco-friendly sneakers with a minimalist design. The company uses ChatGPT to compose content for email marketing campaigns to introduce Jennifer to new products and ideal incentives for loyal customers.
Enhance customer service
eCommerce business owners can use ChatGPT to handle customer requests in a personalized way. It could be responding to inquiries about order status, product availability, shipping fee, or return concerns. By providing ChatGPT demographic information such as age, gender, and interest, it will immediately generate text for a specific customer in a specific case. That helps increase customer engagement and conversion rate. Businesses will free up time and workload for the team to focus on more important tasks.
For example, if a customer named Jennifer asks for a return process, ChatGPT can generate a response with detailed information including requirements and time for return.
The downsides of using ChatGPTin eCommerce
Like every AI-powered tool, ChatGPT has its downsides when used in eCommerce.
Firstly, although ChatGPT helps generate content for marketing campaigns quickly and automatically, it still can’t compete with the original writing by humans. If people depend too much on ChatGPT, their writing will become robotic and clunky which might affect their marketing campaigns the most.
In addition, as mentioned above, ChatGPT is trained by reinforced learning. This leaves room for issues since the information ChatGPT “learned” might not be accurate, hence generating wrong answers for users.
Last but not least, businesses should use ChatGPT with caution. They might want to clarify the information given by ChatGPT carefully before using or publishing their content, which could harm the businesses’ reputation when incorrect or misleading information is used.
Every business owner today can use the five most effective ways to use ChatGPT in eCommerce to stand out from the crowd. Yet, it’s not easy to use it properly and make it an important factor of eCommerce business without being dependent.
According to Bankmycell, the number of smartphone users worldwide in 2022 is 6.648 billion, equivalent to 83.07% of the world population owning a smartphone.
Moreover, it is predicted that this number will increase to 7,516 billion by 2026. In addition, the percentage of global users participating in online shopping in 2022 accounts for 58.4%.
In Vietnam alone, interesting figures are listed in the Vietnam eCommerce White Book in 2022:
88% of people’s means of accessing the Internet are mobile phones, while this rate will only reach 57% in 2021.
The percentage of Internet users participating in online shopping is 74.8%.
91% of the electronic means commonly used to order online are mobile phones.
Among online shopping channels, 47% of users make purchases through mobile shopping applications.
In upcoming years, the percentage of global people and Vietnamese people as well who own mobile devices and use them for online shopping is high and predicted to increase significantly.
Social commerce refers to the method through which companies advertise and sell goods and services online using social networking sites like Facebook, Instagram, TikTok, Youtube, Zalo, etc. In other words, this type of business combines eCommerce and social media.
The impact of social networks has grown significantly in recent years. Over 59% of the world’s population uses social media, it is not surprising that this percentage will continue to rise.
While in the past businesses used social media to raise brand awareness and draw in new customers, today eCommerce businesses boost sales by offering goods and services to clients online via social media.
As a result, it’s incredibly handy for customers to interact, exchange information, and search and shop online all in one location.
According to Statista, global social commerce sales will reach $992 billion in 2022 and are projected to reach nearly $3 trillion by 2026.
Thanks to the development of social networks, social commerce has had a strong acceleration and has become a magnet for brands to come to approach and analyze a large number of potential customers, and achieve marketing and sales goals.
As a result, failing to prioritize social commerce in enterprises’ marketing strategies in 2023 is probably to lead to a significant loss of competitive advantages in the eCommerce market.
Today, businesses have a lot of choices to build an eCommerce website, but basically, the structure of a website will include the following main parts:
Frontend: Everything the user sees and interacts with when accessing the website including the interface, content, and functions,… is received from the backend.
Backend: All the active parts of the website or app that are not visible to the user such as the database system, design tools, management tools, and custom functions.
For websites using a traditional structure, the frontend and backend will be operated on the same platform and from there will be closely connected with each other. Therefore, any changes on the website will be edited in two parts at the same time. However, with Headless Commerce, the backend and frontend will be decoupled from each other and operate independently on two separate systems.
The benefits of deploying Headless Commerce:
Increase the page load speed
Multi-channel sales support
By using the Headless structure, Nike has become a brand with a much larger market share than Adidas – a formidable competitor of Nike.
Moreover, Nike’s website recorded more than 60 million pageviews in just 1 month. In addition, the proportion of direct purchases without intermediaries also increased significantly.
From Nike’s Case Study, one of the practical alternatives for companies looking to encourage eCommerce sales growth is Headless Commerce.
Shoppertainment is a form of shopping combined with entertainment that is used as a marketing strategy to encourage customer engagement with brands and consequently increase shopping demand. Moreover, it is used and takes over most of the online commerce in the era of digital transformation, when eCommerce is positioned at the forefront of contemporary business trends.
Some common practices of Shoppertainment trends:
These three practices all focus on entertainment and interaction. Then, the emotional element is aroused, leading to a series of unwise and unplanned shopping decisions. From a business perspective, this is beneficial for brands. TikTok‘s recent research proves it:
In Southeast Asia, 82% of consumers purchase goods from companies they hardly ever use.
55% of consumers have made unplanned purchases.
After watching videos on TikTok, 89% of consumers made unplanned purchases.
Half of TikTok users confess to finding new brands or products while using the app.
One in three customers desires to purchase and is satisfied with it.
One in three customers wants to add fun and entertainment to shopping.
The growth of the Shoppertainment trend in recent years demonstrates the extreme demand for social interaction and connection following the period of Covid’s life.
Shoppertainment is the solution that businesses seek. This is a way to make the most of the customer’s biggest weakness – emotions.
When feelings of euphoria and joy are elicited during the shopping process, customers engage more, and purchase more unplanned products, conversion rates are higher, and sales follow.
Artificial intelligence now has a significant impact on eCommerce businesses in providing solutions to optimize the online shopping experience of customers.
The following statistics demonstrate the incredible influence of AI on the eCommerce market and businesses operating in this field:
The AI-powered eCommerce market is estimated to reach 16.8 billion USD by 2030 (InsightAce Analytics).
In the retail eCommerce market, the value of AI is predicted to increase from $1.7 million in 2021 to $36.4 million in 2030 (Precedence Research).
78% of brands have used AI for eCommerce websites (Oracle)
Chatbot’s market value is predicted to reach 3.99 billion USD by 2030 (Grandview Research).
It is predicted that eCommerce transactions made through Chatbots will reach 112 billion USD in 2023 (Business Solution).
The cost of using AI Chatbots for customer care is 30% lower than hiring personnel to do this (Business Solution).
79% of eCommerce business owners admit that combining AI with marketing and sales helps increase the company’s revenue (McKinsey).
54% of businesses in France think that AI is good for analyzing eCommerce data (Statista).
70% of eCommerce business leaders in Europe and North America think that AI technology can help optimize customer experience personalization (Statista).
37% of users who click on an AI-driven eCommerce recommendation on their first visit to a website, return the next day (Investp).
Currently, there are two applications of AI technology that are commonly used in eCommerce:
For eCommerce businesses, Chatbots will be like salespeople who can interact directly with customers 24/7. This helps businesses narrow the distance in terms of geography and time zones, helping the sales and customer services process to take place effectively without interruption.
Personalized Advertising Campaigns
By collecting customer data, AI can create tailored content and recommendations for each specific customer. To improve marketing campaigns and personalize the customer experience, AI can also predict purchasing behavior based on a user’s browsing and search history, when the data is legally available.
VR (Virtual Reality) is a modern technology that brings users into a simulated but still very realistic space with only 3D glasses (virtual reality glasses). The virtual world that the user sees is actually set up and controlled by a highly configurable computer system.
AR (Augmented Reality) is a new technology enhanced from VR technology. This technology has the potential to erase the boundary between the real world and the virtual 3D model. That is, users will experience virtual models in real space through smartphones or computers.
With a clear plan and the appropriate approach, Lazada has been in front of the augmented reality trend for a number of years and developed a certain competitive advantage in luring both consumers and sellers.
In particular, the VTO (Virtual Try On) function on Lazada includes a wealth of features to assist customers in freely selecting and trying goods like eyeshadow, eyeliner, foundation, and cushions whenever and wherever they like.
Since its launch, LazMall brand partners in the cosmetics sector have experienced tremendous success with the VTO function, which has helped to boost conversion rates by 3.1x and average order values by up to 11%.
The rapid growth of social networks and eCommerce has given marketing efforts a fresh and original breeze thanks to KOL/KOC. Although KOL and KOC have long existed in some form, they have truly taken off in recent years.
KOL – Key opinion leader, also known as an “influencer”, is an individual or organization with expert product knowledge and influence in their field or industry.
KOC – Key Opinion Consumers are “the most influential consumers in the market”. Their job is to test products and services and make comments and reviews.
KOL will suit mid- to high-end brands, while KOC will suit mid-range brands. If KOL is used to select brand ambassadors, holiday season ambassadors, or product launch campaigns, KOC is used to boost sales in a short time or direct customers to websites or eCommerce platforms.
Some famous KOLs in Vietnam: Helly Tong, Giang Oi, Dino Vu, Co em Trendy, Chau Bui, Khanh Vy, Khoai Lang Thang,…
Some famous KOCs in Vietnam: Ha Linh, Call Me Duy, 1m88, Ong Giao Review, Chau Muoi, Hoang Viet, Pu Met 7,…
BOPIS – Buy Online Pick-up In Store is one of the shopping trends that promise to explode in 2023. Customers won’t have to be concerned about shipping costs, extended delivery times, or the risk of receiving unexpected goods when using BOPIS.
Businesses all around the world are pushing up their BOPIS implementation to meet customer expectations when merging online buying with in-person pickup. This is the ideal approach to boost store visits and close the gap between the offline and online buying experiences.
According to GlobeNewswire, the global BOPIS market is projected to reach $703 billion by 2027 with an estimated CARG of 19.3% between 2021-2027.
In addition, the following BOPIS trend statistics can help businesses consider implementing in 2023:
In the last 6 months of 2022, 67% of US consumers use BOPIS.
49% of BOPIS consumers admit to buying more products while in store to pick up their items.
65% of customers choose BOPIS to avoid shipping costs.
The BOPIS model also aids businesses in cutting expenses, expediting deliveries, boosting demand for retail goods, and lowering the risk of product returns.
User Generated Content, also known as UGC, includes text, photos, video and reviews. Because people are becoming less and less engaged in the brand’s message over the past ten years, UGC has grown in importance.
According to a recent Salesforce survey, 53% of Millennials think user-generated content (UGC) influences their shopping decisions, and 92% of consumers prefer content created by friends and family over that created by brands. The reason for the above numbers is trust.
Therefore, user-generated content (UGC), such as photos, videos, and customer evaluations, is trustworthy social proof and aids in the development of a company’s reputation.
In a nutshell, businesses must quickly adapt to evolving eCommerce and digital technology trends in order to avoid falling behind and being driven out of the market. By reading 10 eCommerce trends that stated and analyzed above, businesses will have an overview to be ready for the new journey.
With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.
The online revenue of the wine market reached more than 261 billion USD in 2022 and is expected to grow at 10.51% annually from 2022 to 2025.
According to IWSR, the global wine eCommerce market value will reach $42 billion by 2024.
An estimated 1.6% of the total liquor market revenue in 2023 will be generated from online sales.
The average annual growth rate of wine eCommerce in the US is around 20%.
Key drivers of wine eCommerce growth
In the midst of the global pandemic-related crises, the wine business, like many others, saw a breakthrough in the speed of online purchasing.
When the pandemic breakout occurred, 44% of American consumers placed their first-ever online wine and liquor orders.
The year 2020 saw a 42% increase in wine eCommerce as a result. Online wine sales increased from just $1 billion in 2018 to $6 billion by 2021.
Young wine consumer
In the US, according to Avalara, Millennials and the legal drinking age population are steadily increasing.
By 2023, the Millennial generation is estimated to account for nearly 45% of the LDA (Legal Drinking Age) population under the age of 80. By 2030, this number is projected to be 54%.
In Vietnam, Millennials (25–38 years old) and Gen Z (18–24 years old), often known as MillennialZ, currently make up 47% of the population or about 45 million people who are of drinking age. The population structure of the MillennialZ generation is expected to keep growing.
The primary factors influencing the growth of the eCommerce sector as well as the digital economy of Vietnam will also be the young people’s awareness of and keeping up with new trends in digital technology compared to previous generations.
iShop Changi Wines
The Duty Free Shop Group (DFS) and Changi Airport Group (CAG) collaborated on the iShop Changi Wines eCommerce online project, which offers world-renowned and premium wines and spirits with exclusive discounts to visitors to Changi Airport, particularly those who are CAG members.
The iShop Changi Wines website is cutting-edge and exquisitely styled, showcasing the distinctive qualities of the wine industry as well as the aesthetics from page layout, color, font text, logo, and banner, all of which are guaranteed to optimize the purchasing experience while also, and this is crucial, emphasizing the identity and brand-development elements for both CAG and DFS.
Due to the fact that this is a project of well-known companies, the iShop Changi Wines website has consistently received a lot of traffic, averaging approximately 592 thousand views each month since its introduction.
Therefore, to combat the unexpected surge in traffic and orders during the busiest shopping seasons of the year, the eCommerce system must be continually enhanced and optimized.
The fact that major corporations CAG and DFS both started and developed successful wine eCommerce websites shows the enormous potential of this industry now and in the future.
Previously, the business scope of wine businesses was quite limited, but now that limit has been broken thanks to the dominance of the Internet and the rise of eCommerce.
Moreover, the government’s assistance in lowering legal restrictions has given wine producers the assurance to confidently market their goods to a significant number of potential buyers in several nations across the world.
The Warehouse, established in 2001, is renowned as a top supplier of wines and spirits in Vietnam, offering more than 16 different varieties of wine from numerous nations.
In addition, along with Annam Gourmet Market, Yves Rocher, and Flormar, this is another well-known retail brand of the Nam Group. Before being formally put on the market, products at The Warehouse are consistently inspected and carefully chosen to fulfill quality criteria.
The company has so far increased the reach of its distribution network across the nation, including Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, Hoi An, Quang Ninh, and Phu Quoc.
The Warehouse achieved its objective of serving the wine market with B2B and B2C business models by utilizing the Magento platform.
This implies that the business will broaden the retail channel to include private customers in addition to distributing wines to restaurants, hotels, resorts, pubs, and lounges.
A series of symbols, logos, and banners created especially to fit the characteristics of the wine industry are combined with Bordeaux red to create a website interface that is focused on UI/UX perfection.
The Warehouse is flexible, secure, and has quick ordering, payment, and delivery options. Therefore, customers can place orders through phone, mobile app, or eCommerce website.
Customers can then pick up their purchases from the store or, in major cities like HCM, Hanoi, and Da Nang, the company will deliver them quickly within 2 to 3 hours. In other places, conventional courier delivery takes 2 to 5 days.
The Warehouse has been successful in raising brand recognition, expanding its customer base, and increasing both offline and online sales as a result of the timely growth of its business model and digital transformation
Long-standing Australian company Trentham Estate Winery, founded in 1988, focuses on the manufacture and distribution of wine.
After many years in business, the company is well regarded for its creativity in the wine-making process, which resulted in a variety of wines with different delicious flavors. Also, the brand has received hundreds of medals, titles, and other industry awards.
In the beginning, the business created and ran a WordPress website system for branding purposes.
Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.
In the beginning, the business created and ran a WordPress website system for branding purposes. Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.
That is what led to the creation of the website trenthamestate.com.au, which has a modern interface while still accurately capturing the distinctive features of the wine industry.
Similar to The Warehouse, Trentham Estate likewise creates an eCommerce website based on the Magento platform with a variety of features that satisfies eCommerce requirements and wine industry specifics.
Therefore, businesses can access and serve a wide range of large customer files not only in Australia and internationally thanks to effective marketing and branding strategies, towards a sustainable business model along with the changes of the digital age.
It would be hard to believe that an industry as sensitive as wine could be traded online so easily and efficiently. In that efficiency and convenience, there is a great contribution of the trend of eCommerce and the comprehensive National Digital Transformation program that is committed to supporting by the Government. This is an extremely appropriate time for wine businesses to confidently deploy eCommerce because of the support from the Government and the push from the market.
However, planning to implementation are two completely different categories. Businesses are required to have a practical strategy and technical assistance from highly skilled firms to hasten the success journey and help advance the National Digital Transformation goal.
SECOMM has many years of expertise in effectively executing eCommerce for numerous customers in various countries. We specialize in offering free consultation services with qualified eCommerce implementation solutions.
Contact us right away for free counsel and assistance.
Additionally, it is not surprising that consumers like shoppertainment. Although this combination is not novel, it promises to set the consumption trend in the years to come as eCommerce takes center stage.
The demand for online shopping will be higher there, and expectations for the best shopping experience—including both online shopping and fascinating experiences will also be higher.
Retail businesses around the world have seen a significant rise in sales during the outbreak by combining online shopping with live streams, entertainment videos, and video games to create real-time digital interactions with customers.
For instance, Taobao Live, which Alibaba introduced in 2016, saw a 150% surge in sales in 2020 when the epidemic first appeared in China.
“Shoppertainment is now a basic expectation. You really have to leverage engaging tools so the shopper gets to learn about the product, its superiority, and has fun along the way,” notes Alex Vogler, senior director and head of marketing, eBusiness, Procter & Gamble (P&G) Asia, Middle East, and Africa.
The Covid-19 pandemic has had a significant negative impact on the human psyche, causing issues including depression and anxiety. On the other hand, a portion of the populace said that the social connections they were unable to have prior to the epidemic significantly improved their psychological well-being.
People need to connect with the community and others like them more than just for amusement. Brands have therefore concentrated on improving the consumer experience by transforming personal experiences into shared ones that bring communities together.
As an example, consider the hashtag #TikTokMadeMeBuyIt. Through the TikTok platform, users can easily and amusingly share their shopping experiences, resulting in videos going viral and receiving more than 4.5 billion views.
Shoppertainment will result in emotional and impulsive purchasing decisions since it emphasizes entertainment and connection. According to a recent TikTok research:
In Southeast Asia, 82% of consumers purchase goods from companies they hardly ever use.
55% of consumers have made unplanned purchases.
After watching videos on TikTok, 89% of consumers made unplanned purchases.
Half of TikTok users confess to finding new brands or products while using the app.
One in three customers desires to purchase and is satisfied with it.
One in three customers wants to add fun and entertainment to shopping.
The studies mentioned above demonstrated the enormous influence that social networks and online shopping trends have on consumer decisions.
Because of this, Vietnamese retail companies have prioritized shoppertainment in their marketing plans.
Customers demand a more social and engaging online shopping experience, as well as the ability to connect and converse with one another while buying, which is the reason for any of this.
Best Shoppertainment practices
In recent years, both buyers and sellers in the Asia-Pacific (APAC) area have grown accustomed to live selling. Live selling is less common in the US and Europe than it is in APAC, but businesses there are nonetheless keeping an eye on this trend.
For instance, AliExpress initially introduced the live selling feature in France in May 2020, and since then, more than 3,000 live programs have been launched, with the involvement of more than 100 vendors.
The combination of sales, interaction, and entertainment makes this one of the top social selling strategies. Customers can interact with vendors directly, view actual product photos, and make decisions by pushing their shopping emotions.
Plus, the engaging social interactions that take place throughout live streaming help retailers make an impact on customers, resulting in a high return rate.
Due to the growth of the Shoppertainment trend and the effectiveness of live streaming in generating sales through social networks, eCommerce marketplaces have started to put more of an emphasis on investing in producing engaging entertainment material for users on their apps, particularly through live streaming.
The customer buying experience is improved by several well-known live stream channels, like TaobaoLive, LazLive, Shopee Live, TikiLive, etc.
These companies have the resources to develop this feature for themselves, but lower-budgeted companies can still try the live-selling concept by integrating Facebook or YouTube live stream with an eCommerce website.
Live-streaming videos will be effectively replaced by shoppable videos. One of the joys of using this type of video is that companies may produce videos in their own distinctive styles that quickly introduce customers to their products, explain how they operate, and demonstrate how to use them. These videos can be attached to an eCommerce website. Users can always click the product link in this kind of short video to find out extra details or to make a purchase. The short-form video has overtaken popular platforms like TikTok, Instagram Reels, and Youtube Shorts as the go-to method for branding, cultivating customer trust, and influencing purchasing decisions.
83% of people, according to Nielsen study, prefer watching videos of advertisements to GIFs or text. Short-form videos have gained popularity as a result of global digital transformation and consumer preference, and many brands now opt to use those as part of their video marketing strategies due to their useful advantages, which include the following:
Simplify the customer journey
Increase customer engagement
Improve the conversion rates
Get a boost in sales
Create brand loyalty
Build a better customer experience
Gamification or Gamification Marketing is the skillful incorporation of a video game’s mechanics into promotional operations in a unique and impressive method to meet marketing objectives.
Gamification’s primary advantage, similar to live selling, is engagement, which keeps people on the site, drives conversions, and boosts sales.
Users are actually more likely to return for more shopping if a business can convince them that engaging with it is an interesting experience rather than a transaction.
A study by Bazaar Voice demonstrates the impact of gamification on businesses’ marketing strategies as follows:
70% of shoppers want gaming elements incorporated into online shopping.
But only 42% of shoppers enjoy gaming in-store.
For instance, take Bajaj Finserv’s Indian financial company’s Gamification Marketing campaign. The game was created by this firm to encourage people to use its travel loan services.
Users will complete tasks and respond to questions about their preferred travel destinations. Customers adored the campaign, and it immediately trended on Twitter with more than 75 million impressions.
Thus demonstrating Bajaj Finserv’s efforts to develop engaging experiences and provide them to customers in line with its marketing strategy. Brands attract more potential customers, enjoy the better engagement, and increase conversions as a result of the viral impact.
Shoppertainment has been around for a while, but it wasn’t until Covid-19’s effect that this trend truly took off. Businesses should take advantage of this trend to improve the online shopping experience for customers and increase sales in the era of eCommerce.
Due to the growing demands of customers for a better shopping experience and the ongoing changes in the market, achieving this goal is difficult and labor-intensive. As a result, companies must work with expert agencies to plan the proper eCommerce deployment from the start.
With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.
According to data from Mordor Intelligence, the digital transformation age is shining in practically “every nook” of the global economy, confirming that this is not a “soon to fade” trend but rather a new and sustainable development orientation following the pandemic crisis.
The estimated value of the global market for digital transformation is $998.99 billion in 2022 and is expected to reach $2744.68 billion by 2026. The compound annual growth is 17.42%.
Global spending on digital transformation is expected to reach $1.6 trillion by the end of 2022 and surpass $3.4 trillion by 2026.
Over 90% of global businesses, both large and small, are adopting digital initiatives.
97% of business executives say the COVID-19 pandemic has spurred digital transformation efforts.
95% of startups have a digital business plan compared to 87% of traditional, established companies.
According to statistics, currently, only 13% of jobs do not require digital skills, and 33% are jobs that require proficiency and advanced digital skills.
In Vietnam alone, the government has established a National Digital Transformation Program for 2025, with a vision to 2030, with particular targets to shorten the distance with other countries around the world, including:
80% of online public services at level 4 are performed on mobile devices.
90% of work records at ministerial and provincial levels are online while 80 percent of work records at the district level and 60 percent of work records at the commune level are processed online.
All national databases including those for population, land, business registration, finance, and insurance are online and connected, with shared data on a government reporting information system.
50% of banking operations by customers are to be fully online.
50% of the population has a digital checking account.
70% of customer transactions are made through digital channels.
50% of decisions on lending, small and consumer loans of individual customers made digitally and are automated.
The digital economy accounts for 20% of GDP.
The rate of the digital economy in each industry, and each field accounts for at least 10%, and labor productivity increases by at least 7%.
Vietnam is among the top 50 leading countries in information technology, the top 30 countries in innovation, and the top 50 countries on the competitiveness index.
Fiber optic network infrastructure covers 80% of households and 100% of communes.
Universalize 4G/5G mobile networks and use smartphones in remote areas.
The percentage of the population with electronic payment accounts is over 50%
Why is Digital Transformation important?
The fact that the goals are stated in great detail in the national digital transformation program with a focus on 2030 demonstrates how seriously the Vietnamese government takes the significance of digital transformation for the prosperous growth of the nation.
Think about the global Industrial Revolution 4.0 wave that is currently in motion. With the aid of connection provided by the Internet of Things (IoT), real-time data access, and the introduction of cyber-physical systems, the Industrial Revolution 4.0, also known as Industry 4.0, primarily focuses on advancing modern digital technology to an entirely new level.
Every Government, organization, corporation, and individual throughout the world must transform its business model, and the manner of working from non-digital to digital operation, in order to keep up with this current technology and immerse itself in the Industry 4.0 wave. The name of this procedure is “digital transformation”.
Vietnam, despite having a minor economy compared to other countries, is a crucial part of the massive Industrial Revolution 4.0 that is currently underway. Vietnam must therefore undergo a digital transformation in order to compete.
The goal will be challenging to accomplish if just businesses execute digital transformation because the capital and costs are quite high; therefore, businesses require assistance from the government budget and outside finance.
On the other hand, even with a massive budget, it can be challenging for businesses to implement effective digital transformation if the government does not go digital, but continues to run in the old manner, handles administrative procedures slowly, lacks direction, and supports businesses clearly and methodically.
Furthermore, without the support of the people, the National Digital Transformation process to catch up with the global Industry 4.0 wave will be impossible. However, the public needs the government to inform, direct, and inspire digital transformation.
Also, businesses must create useful digital transformation strategies that both before and after implementation considerably raise people’s quality of life.
Vietnam must structure three main areas of digital transformation: the government, businesses, and people, or in other words, the digital government, digital economy, and digital society, if national digital transformation is the outcome it seeks to achieve in order to gradually join the Industrial Revolution 4.0.
These three crucial overlapping and interdependent relationships make up the National Digital Transformation.
The current state of Vietnam’s National Digital Transformation
Throughout the earlier years, Vinasa reports that in 2019, 40.6% of organizations and businesses confirmed that they have resources available for digital transformation and that 23.6% of them are putting it into practice. However, 30.7% of them are uncertain of what to do despite doing some research, and 38% are unsure of where to begin.
Due to the Prime Minister’s approval of the “National Digital Transformation Program to 2025, with a vision to 2030” and the abrupt change brought on by the impact of the global pandemic, Digital Transformation is now regarded as the process’ starting year. This makes it a top priority to maintain Vietnam’s economy.
The government and Vietnamese enterprises have been able to promote awareness of the importance and urgency of digital transformation in order to help the country overcome the obstacle thanks to the economic crisis brought on by the effects of the Covid-19 outbreak.
According to the UN, Vietnam’s digital government statistics are better than the average for the area. Vietnam specifically saw a rise of 2 places in 2020, moving up to rank 86th out of 193 UN member states globally and 6th out of 11 Southeast Asian nations.
The establishment of the National Digital Transformation Committee and the decision to appoint October 10 of each year as National Digital Transformation Day in accordance with the National Digital Transformation policy for a better life for the people are two additional significant events that will forever be remembered in Vietnam in the years 2021 and 2022.
As a result, leaders and people are more conscious of the significance, function, and advantages of digital transformation, and there are coordinated actions throughout the entire system, from the government to the general populace.
According to data from the Ministry of Information and Communications, the databases that Vietnam has built up to the second quarter of 2022 include:
Citizen data: Approximately 78 million data including birth registration, marriage registration, death registration,…
Social insurance data: Over 17 million records.
Vaccination data: Over 133 million records.
Data of officials and employees: Over 570,000 records.
Citizen ID card with the chip: Nearly 72 million records.
Additionally, the percentage of qualified online public services offered to individuals and enterprises has surpassed 97.3%; the percentage of these services that produce dossiers has gotten to 67.8% and the percentage of administrative procedures handled online has gotten to 43.2%.
Moreover, the economic sector has seen some very good improvements as a result of digital transformation. The Ministry of Information and Communications predicts that by the first quarter of 2022, the value of Vietnam’s digital economy will be 53 billion USD and that there would be 500 more newly founded digital technology businesses than there were at the same point in 2021.
The number of monthly users on Vietnamese mobile digital platforms climbed by more than 100 million compared to the same period in 2021, and the percentage of the digital economy in GDP increased to 10.41% in the first half of the year from 9.6% in the end of 2021.
3 key factors make National Digital Transformation successful
Based on specific analysis and data on the situation of National Digital Transformation in Vietnam, it is clear that there are 3 main pillars that lay the foundation for the success of the National Digital Transformation process: Digital Government, Digital Economy, and Digital Society.
In order to increase operational efficiency and develop new operating models and alter the way services are offered using digital technology and data, a government must transition all of its operations to a digital environment. This allows enterprises to take part in the service delivery process. In other words, this is how the government is becoming digital.
Vietnamese citizens have been instructed in the past to finish the registration processes necessary to access the Citizen Identity Card with a chip, which is gradually replacing the previous ID card. This serves as one illustration of how well the digital government is progressing in Vietnam.
The process of processing dossiers and issuing ID Cards in the early stages is not really effective because the National Database on Civil is still under construction and staff training on how to use digital technology and digitize paper data on the data system is still limited. However, the procedure for issuing chip-based ID cards in addition to the cost is public and transparent.
As a result, when people arrive at the location where the chip-based ID card is made, processing will go more quickly if their information is already in the National Database; otherwise, they will need to provide more birth certificates and household registration information and will have to wait a long time for staff to check, enter data, and complete related procedures.
After that, the chip-based ID card will be sent to the registered address by post, but for the above reason, this process also takes quite a while.
The Public Service Portal of the Ministry of Public Security, however, is currently supported by the government and simply requires people to visit the location to capture pictures and fingerprints.
This demonstrates the government’s prompt responsiveness in streamlining business procedures while also saving time for both citizens and employees. This is evidence of the Government’s ongoing attempts to modernize itself digitally.
In addition, on the CCCD chip, more than 14 information fields of citizens are stored: (1) CCCD number; (2) Full name, other names; (3) Date of birth, month, and year; (4) Gender; (5) Nationality; (6) Ethnicity; (7) Religion; (8) Hometown; (9) Place of permanent residence registration; (10) Identification characteristics; (11) Date of issue; (12) Expiration date;
(13) Full name of parent, spouse; (14) issued 9-digit ID card number; (15) Portrait photos; (16) Features of fingerprint extraction and selection of two index fingers; backup for iris images, and other information.
Moreover, a chip-based ID card can replace important papers such as Identity Cards, Health Insurance (HI), Social Insurance (Social Insurance), Birth Certificate, Marriage Certificate, and Household Registration Books….
It is clear that switching from conventional ID cards to chip-based ID cards has several advantages for both the general public and the government. People’s personal information is highly secure, preventing the creation of fake documents.
Also, ID cards with chips make paperwork and transactions straightforward because many pieces of crucial information are combined onto a single card, saving time and preventing the scenario where someone forgets to bring the necessary paperwork and causing the processing of documents to be interrupted.
The government made a wise choice by implementing chip-based ID cards.
The government can save, control, and check information about a specific individual quickly and efficiently with the use of chip-based ID cards and the National Database, helping to effectively control the situation of local security and order as well as national security.
Also, this helps free up labor for government employees who deal with people, handle paperwork, and maintain correctness, speed, and synchronization.
The second factor that makes the success of the National Digital Transformation process is the Digital Economy.
Digital Economy is an economy that maintains and develops constantly based on modern digital technology. The digital economy is also known as the Internet Economy, the New Economy, or the Web Economy. This particular economy is made up of electronic transactions over the internet.
According to the definition from the Vietnam Private Economic Forum, the digital economy is all economic activities based on digital platforms. Digital economy development is the use of digital technology and data to create a new model of cooperation and business, in line with the development trend of modern technology.
Therefore, everyone would immediately think of eCommerce when discussing the digital economy or the most prominent business model of the trend of digital transformation, and the strong push that this industry provides for high-volume industries catches the trend of digital transformation.
Few people anticipate that the conventional market model, which has become ingrained in Vietnamese culture, would soon be replaced by the market model 4.0, which accepts cashless payments. In several of Hai Phong’s traditional markets, this novel method of buying and selling was introduced for the first time, to the delight of the locals.
The Viettel Money application of Viettel Military Telecom Group, a pioneer in the digital transformation of market 4.0 models in 63 provinces/cities, enables all small businesses and individuals to purchase and sell things at the market by scanning QR codes or transferring money via phone number.
Moreover, cashless payment makes it easier for customers to shop at the market without worrying about issues like carrying change or budgeting extra cash for purchases. Also, many shopkeepers in the market are afraid of this issue pretty much.
Previously, if customers paid in cash with a denomination that was too big, shopkeepers would have to run everywhere to change money, causing time-consuming for both parties and other customers waiting to be served, the issue is now solved with just one smartphone.
Following the success of Hai Phong’s 4.0 market model, many other localities have also implemented this model and received positive feedback signals from the people such as Da Nang, Quang Ninh, Thai Nguyen, Lang Son, etc.
The market 4.0 model has spread to every nook and cranny of the nation’s small trading places, including farmers’ markets, grocery stores, sidewalk shops, amusement parks, parking lots, and more.
The digital transformation trend has quickly extended to places where it was previously impossible, helping to advance the digital economy and achieve the objective of a comprehensive national digital transformation.
Finally, the term “digital society” refers to all human activities in a broad sense. Digital technology, which is based on the exponential growth of information and data, is the primary driver behind digital society.
It transforms all facets of social structure, from the government and business to the individual. In a limited sense, “digital society” refers to both digital citizenship and digital culture.
From this perspective, the three pillars of a digital nation are the digital society, the digital government, and the digital economy.
Teachers, parents, and students all adore the eLearning model, which is developing into a popular teaching and learning trend, especially in light of the recent pandemic and widespread implementation of social distancing policies.
Students can access lessons at any time, studying at home, using simply an electronic device with an Internet connection. As a result, teachings can be discussed and interacted with by professors and students without them having to actually meet.
This model also supports student doing teamwork well because it is not time- or space-constrained, saving on travel expenses in addition to using many other helpful resources.
However, for eLearning to really replace traditional teaching and learning methods, it takes a lot of effort from both the Government, the school system, and the student’s parents.
In fact, eLearning is only a small part of the digital society effort besides many other important aspects of society that need to be digitally transformed to make life more convenient for people.
National Digital Transformation has become one of Vietnam’s top goals and this is also a rare project that has received special attention from the highest levels of leadership and international support. Since then, Vietnam has had a full foundation to hope to realize the goal of becoming a digital country from now to 2030.
The development of a digital society, economy, and government, in particular, is a necessary and sufficient condition for a successful national digital transformation.
In fact, every citizen, from intellectuals to regular citizens, is gradually demonstrating a certain understanding in their own way about the digital transformation and awareness that the country is in a transition period to match the general development trend of the times.
This is in addition to the efforts of businesses and the support from the government.
Especially for businesses, digital transformation is an imperative remedy to withstands to withstand the tsunami of eradication brought on by the pandemic’s rapid shift in new business patterns.
Following Covid-19, business digital transformation flowed slowly, gently, and steadily, assisting the economy’s continued rotation.
The first step of the digital transformation journey for businesses is to start implementing eCommerce.
With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.
In the past pandemic years, the global economy has witnessed a sudden decline in sales in many industries, including the cosmetics industry.
People are compelled to reduce their social interactions while social distancing mechanisms are in effect.
At this time, people’s psychology will be more concerned with keeping an eye on and caring for themselves. Due to the unpredictable changes of the pandemic, there has been a sharp rise in the need for skincare, hair care, and body care products to enhance spiritual life.
Due to restrictions on leaving the house, online shopping at the time had become not only a need but also an urgent method of purchasing in place of in-person purchases. That serves as a springboard for eCommerce to take off and spur significant growth in other industries like fashion, grocery, wine, and even cosmetics.
These two elements highlight the enormous potential of this “cake,” assisting several cosmetic companies in realizing and swiftly implementing eCommerce for both sustainable development and market revolution.
Scale up the business
Using eCommerce as a solution will allow the cosmetics industry to shift from offline to online (O2O) business models rather than allowing their businesses to “get lost” in the crisis of the global pandemic.
Additionally, if businesses still do not have a competent eCommerce website to introduce and sell products to customers who love to shop online in the age of digital transformation, they will quickly lose many potential customers to rivals.
This is especially true for a highly competitive industry like cosmetics, but several firms, including Hasaki, LixiBox, Watsons, Guardian, etc., have embraced the trend early and are now the market leaders in cosmetic eCommerce.
Furthermore, early eCommerce development will also provide benefits that will make marketing efforts more successful, broadening the economic opportunities for businesses.
Enhance customer’s shopping experience
Businesses must consider customers’ purchasing experiences when launching eCommerce websites, and not just for the cosmetic industry.
Thanks to the use of contemporary technologies, which are quite popular in the cosmetics industry, the purchasing procedure will be swift, and effective, and bring customers satisfaction when they choose to buy cosmetics online.
For example, a 360-degree intuitive vision, virtual reality (VR), or augmented reality (AR) technology (AR).
eCommerce enables businesses to quickly and effortlessly tailor the experience for customers by gathering, evaluating, and synthesizing the consumption behavior of each target group. Typically, this is done with the capabilities listed below: Products have seen, similar product recommendations, etc.
eCommerce provides clients with a seamless experience in addition to an intuitive one across a variety of channels, including social networks (Facebook, Instagram, Tiktok, Zalo, etc.), eCommerce platforms (Shopee, Lazada, Tiki, Sendo, etc.), eCommerce websites, mobile apps, etc.
Best cosmetics eCommerce sites that really stand out
One of the most successful cosmetic brands that has a significant global media impact is Kylie Cosmetics. When it comes to Kylie Cosmetics, it’s tough not to give Kylie Jenner credit.
She’s the youngest female millionaire in the US and has been hailed as a business genius by prominent publications like Forbes due to her success in the saturated cosmetics industry.
When Kylie Cosmetics was founded in 2015, it generated an astonishing $ 420 million in revenue in its first 18 months. It is predicted that by 2022, net sales will have reached $ 1 billion.
The sensible business strategy, in addition to the founder’s reputation, focuses on utilizing the “gold mine” of eCommerce and launching social media marketing campaigns, which are the factors that contribute to that respectable revenue block.
As a result, the company used Shopify, a platform that specializes in creating websites for the top online retailers in North America, to develop its eCommerce website.
With pink and white as its primary colors, the website’s design is incredibly clean and uncomplicated. The layout of the website centers on showcasing the company’s products.
Also, this is a part of Kylie Cosmetics’ business strategy, which includes releasing collections of cosmetic products like lipsticks, eyeshadow, and eyebrow pencils with limited design and manufacturing to appeal to customers’ FOMO (Fear of Missing Out).
It is not surprising that Kylie’s new collections or cosmetics Cosmetics are continually “sold out” every time it is published because this is thought to be a very intelligent strategy of Kylie Cosmetics, completely different from other well-known cosmetic firms.
The business also utilizes social media platforms that are hugely popular in the US, like Instagram, Youtube, and Snapchat, to create content to market brands and products and engage with a huge audience across three platforms before driving traffic to the eCommerce website and generating conversions.
The company’s inventiveness and innovation are also on display in offline events that draw customers to free product samples. Here, the company wins over even customers who have reservations about the product’s quality, which greatly increases sales.
Since Kylie Cosmetics established its first traditional cosmetic retail store in 2018, customers may now purchase cosmetics from this cult brand at Ulta Beauty locations around the US.
Indeed, Kylie Cosmetics started off quite shrewdly and went on to tremendous success by keeping up with market changes by building an online business model at first, that is, selling through an eCommerce website and relying primarily on social media for promotion.
Since entering the Vietnamese market in 2011, Guardian has grown to be a very well-known and recognizable brand among consumers of cosmetics. This brand is a part of the Dairy Farm Group, a company that manufactures and distributes health and beauty products in Asia.
Since its start, Guardian has made ongoing improvements to encourage millions of followers to lead healthy lifestyles and offer a trustworthy, high-quality purchasing experience at the finest rates and services.
With a system of more than 100 outlets “encompassing everywhere,” this retail chain is delighted to be a place to shop for cosmetics “for everyone” who can “purchase everything” and simply select appropriate items.
A clever business strategy and significant investment in successful marketing efforts are the only explanations needed to understand Guardian’s success.
When first entering the Vietnamese market, Guardian specifically pushed to quickly expand its business chain, focusing on cities with high purchasing power, with 80% of stores located in Ho Chi Minh City, the rest in Hanoi and some other major cities such as Da Nang, Can Tho, Bien Hoa, and Vung Tau.
Because at the time, online channels were not really well-known and powerful enough for this business to keep an eye on.
As a result, the company successfully raises the level of brand recognition with extensive coverage from the Guardian orange white wave, taking into account the characteristics of the cosmetics and beauty care industry, which require customers to have a direct point of contact, learn from, and test. By 2019, the company began its journey toward digital transformation by combining offline and online (O2O) business models in parallel, and simultaneously, deploying Omnichannel.
It is even more critical for Guardian to immediately implement potential sales channels like marketplaces, applications, fast delivery services like GrabMart, and eCommerce website operate side by side with a chain of 105 retail outlets in strategic locations due to the pandemic’s dual effects, which include changing market trends and altering consumer buying habits.
The orange and white colors and quick page loads make the Guardian website’s design stunning. Additionally, Guardian offers enticing incentives in the shipping policy, such as free fast delivery within 4 hours with orders from 349,000 VND, to encourage online shoppers.
The company’s unique product catalog, which is prominently shown on Guardian’s eCommerce website and features items like shampoos, shower gels, and hand sanitizers, is another standout.
The foundation for helping Guardian dominate the cosmetic retail market and leave a lasting impact on customers is a deliberate investment in developing a multi-channel ecosystem.
Modernity and growth come with invisible pressures that have an impact on everyone’s life as people struggle to keep up with the “standards” of the times.
However, that does not result in a drop in the demand for beauty and self-care, on the contrary, it is always rising, with a diversity of sufficient options to match customer expectations.
Vietnamese women are among the most beautiful in Asia, but, due to the responsibilities of work pressure and family, they occasionally neglect to care for and love themselves.
Because of this, Hasaki Beauty & Clinic was established with the desire to become a reliable beauty and spiritual care destination for Vietnamese women.
The Hasaki store system, which was introduced in 2016 and now has 76 locations across 29 Vietnamese provinces and cities, has steadily established itself as one of the top retail chains for real cosmetics. Hasaki is dedicated to offering real cosmetics at discounted pricing, living up to its motto of “True Quality – True Value”.
Along with system expansion, Hasaki also works on creating an eCommerce website with features appropriate for the cosmetics industry and always enhancing and upgrading the system to provide customers with the greatest online shopping experience.
The Magento platform was used to build the website, and the interface is attractive with green serving as the primary color tone for the entire eCommerce website and app system. Customers can check current promotions and conveniently look up order details when accessing the Hasaki website.
Additionally, the “handbook” section at Hasaki has a wealth of knowledge on cosmetics and skin care tips that each customer may learn and arm themselves with before making a purchase decision. Since then, the process of beauty restoration is safe and effective.
Similar to Guardian, Hasaki encourages people to order online with NowFree 2h and take advantage of free shipping rules.
As a result, Hasaki will provide free delivery to customers within two hours of receiving orders of 90,000 VND in 29 provinces and cities where the company has locations, including on Saturday and Sunday. Customers will benefit from free national shipping on orders that are at least 249,000 VND.
Therefore, Hasaki has sparked a “green craze” among many beauty fans and is now gradually competing with the country’s top cosmetics brands thanks to its quick recognition of market trends and broad perspective with an efficient marketing mix strategy.
It is clear that the growth of the furniture market has been hastened by the speed at which eCommerce is developing.
Today, numerous local and international cosmetics companies participate in and offer the greatest shopping experiences to customers through the effective implementation of an eCommerce website, including Kylie Cosmetics (USA), Guardian, and Hasaki (Vietnam).
From there, companies may quickly connect with a wider pool of Internet users and generate conversions through efficient marketing strategies.
However, business leaders need to carefully and comprehensively take into account the growing customer expectations and rapidly shifting market trends, not to mention specifically describe a systematic and precise business strategy for taking the most advantageous actions in the short and long term.
Completing that difficult task will take a lot of time and resources. As a result, many cosmetics companies opt for a more straightforward approach to the issue, enlisting the assistance of a highly qualified and dependable unit.
SECOMM has many years of expertise in effectively executing eCommerce for numerous customers in various countries. We specialize in offering free consultation services with qualified eCommerce implementation solutions.
Contact us right away for free counsel and assistance.