U.S. e-commerce retailer Boxed and Japanese-invested Aeon Vietnam have signed a “definitive partnership” agreement to launch the former's end-to-end software and services platform in the Vietnamese market.
Accordingly, Boxed has begun deploying its Spresso technology platform, with an initial launch expected in the coming months, the American firm announced last Friday.
Jared Yaman, co-founder and COO of Boxed said, “This will be our first implementation that’s not in English, further demonstrating our ability to execute in international markets.”
Boxed’s proprietary software and services will be critical in supporting Aeon’s initiatives in developing its e-commerce and omnichannel capabilities throughout Vietnam, Yaman said.
In July, Boxed and Aeon had signed a memorandum of understanding to expand their partnership beyond Malaysia, reaching Vietnam first. The duo will continue to explore partnerships and opportunities throughout Southeast Asia, the U.S. e-commerce retailer and enabler said.
Japanese retail giant Aeon is speeding up its opening of malls and other stores in Vietnam. It plans a total of 25 malls in the country, more than triple its current number, seeking to tap a market of almost 100 million people who are getting used to modern retail channels including ominchannel.
The group operates six malls at present - two in Hanoi, one in Hai Phong city, two in Ho Chi Minh City, and one in nearby Binh Duong province. Some others are in the pipeline in large markets like Hai Phong, Thua Thien-Hue, Dong Nai, and Can Tho.
Omnichannel retail is an expansion of what was previously known as multichannel retailing. It optimizes multiple sales channels while bringing about a high level of integration.
Most urban Vietnamese consumers are already used to omnichannel purchasing, making this modern retailing method a clearer trend in the country, according to professional services firm Deloitte Vietnam.
In a report issued on October 5, Vu Duc Nguyen, head of consumer industry at the firm, said: “In the years ahead, Vietnam’s retail sector is expected to experience a rapid rebound. We believe that at least some of the new omnichannel habits will become permanent as consumers grow accustomed to the convenience that they offer.”
Vietnam’s wholesale e-commerce segment is also expected to experience a boom as the nation is currently the fastest growing business-to-business e-commerce market in Southeast Asia with a market value of $13.2 billion in 2020 and an expected compound annual growth rate of 43% through 2025, according to the report.