Digital transformation helps businesses selling non-essential goods cope better with the economic crisis caused by the Covid-19 pandemic. — VNA/VNS Photo
Businesses that already have a technological foundation or are quick to digitise can avoid management and other problems amid the turmoil caused by the Covid-19 pandemic, experts have said.
Unlike many other businesses in the consumer discretionary sector that have been severely hit, Phu Nhuan Jewelry Joint Stock Company (PNJ) has successfully pulled customers online through a live-stream solution and use of a chatbot on Facebook Messenger.
These help businesses personalise conversations with customers, respond to questions and introduce products just like they do during in-store consultation.
Phan Quoc Kiet, director of multi-channel sales at PNJ, said the digital assistant on Messenger has brought his firm positive business results.
In just one month, for instance, from September to October last year, PNJ recorded 17,000 conversations with customers and the successful transaction rate was 10 per cent.
In 2020, retail revenues grew by 10.2 per cent despite the overall bleak market situation.
Cao Thi Ngoc Dung, its chairwoman, said therefore, despite Covid’s effect on the economy, PNJ targeted revenues of more than VND21 trillion (US$910.09 million) and profits of VND1.23 trillion ($53.3 million) this year, up 20 per cent and 15 per cent from last year.
It plans to achieve this by improving its supply chain, quickly expanding its retail network, optimising all its stores, reducing costs, and improving the customer experience and market forecasts.
It also plans to invest further in technology.
"PNJ plans to open 40-45 more stores this year," Dung said.
At the company’s annual general meeting in April, shareholders approved targets and plans for 2021, including a private placement of 15 million shares at VND10,000 per share, equivalent to 6.6 per cent of its outstanding shares, to hike its charter capital from VND2.28 trillion ($98.6 million) to VND 2.43 trillion ($105.1 million).
The funds raised will be used to strengthen jewellery production capacity, improve technologies and designs, expand the store network, and speed up digital transformation.
According to a survey by auditing and service company Deloitte, 77 per cent of Vietnamese small and medium-sized enterprises surveyed said they had started using or increased the use of digital tools amid the epidemic.
In 2020 the total number of daily conversations between businesses and users on Messenger and Instagram increased by more than 40 per cent, it said.
Also in a recent study, Facebook indicated that 24 per cent of small and medium businesses operating on social networks are concerned about the possibility of a lack of customers during the pandemic, and so many increase their online presence by promoting information exchange with customers via messaging applications.— VNS