(Ho Chi Minh City, March 17, 2023) Thanks to its rapid growth, emerging modern infrastructure, and users’ readiness, Vietnam is considered a potential market for the food delivery industry compared to other countries in the region. At the Vietnam Food and Beverage Conference 2023, one of the main events in the annual Flavors Vietnam program organized by Vietcetera and MasterCard, Mr. Jinwoo Song - CEO of BAEMIN Vietnam shared his insights into the market landscape and the brand's strategy for sustainable development.
Vietnam’s food delivery market shows a potential growth
The latest report on the food delivery market in the top Southeast Asian markets by Momentum Works indicates that the total spending on food delivery services in these countries will reach $16.3 billion in 2022, up 5% after two years of explosive growth due to Covid-19. This growth is mainly driven by the food delivery markets in the region, including the Philippines (+$0.8 billion), Malaysia (+$0.6 billion), and Vietnam (+$0.3 billion). In the face of increasing pressure to make profits from investors, current and new food delivery apps are cutting down on promotions, while competing heavily on service quality and other unique services.
At the 2023 Food and Beverage Conference, Mr. Jinwoo Song, CEO of BAEMIN Vietnam, shared: "The growth of the food delivery market in Vietnam is no surprise when it meets the modern consumption trends of customers, focusing on convenience and time savings. Still, businesses are facing significant challenges, among which is shifting from attracting customers by promotions to achieving profitability for sustainable development."
BAEMIN Vietnam's CEO shared at the conference
The importance of establishing sustainable partnerships with merchant partners
Aside from making unique initiatives to maintain witty and distinctive brand image, Mr. Jinwoo Song emphasizes the crucial role of strengthening the solid relationship between the application and merchant partners. "To achieve sustainability in a fiercely competitive market like Vietnam, in addition to understanding the users’ desires and improving the livelihoods of rider partners, the cooperation with merchant partners needs to be invested in and carefully nurtured through various activities. Therefore, BAEMIN always aims to build a strong community among partners and help them enhance their long-term competitiveness and capabilities."
“The online food delivery market in Vietnam is thriving” - Mr. Jinwoo Song said
From the very first registration process, merchant partners will undergo a transparent, simple, and accessible five-step registration process. After that, BAEMIN continues to support partners in optimizing sales operations and increasing profits through initiatives such as the "BAEMIN Academy" - an online and offline training ecosystem. The latest activity of the "BAEMIN Academy" is the "Kitchen Know-It-All" livestream series - where BAEMIN helped partners gather the necessary knowledge and experience so they can operate smoothly. Not only limited to business activities, but BAEMIN also provides opportunities for partners to purchase eco-friendly packaging at discounted prices, keeping up with the green lifestyle of Vietnamese customers.
Internal training workshop for merchant partners
"The BAEMIN B2B Mall initiative, launched in February, was warmly received by merchant partners. This is an in-app store providing recycled packaging products at favorable prices. We will continue to invest in education and training programs to improve partners and users’ awareness towards sustainability." said Mr. Jinwoo.
Enhancing the relationship between merchant partners and consumers
Through online food delivery services, restaurant owners can also convey messages and care to customers in each order, thereby enhancing the customer experience even when they do not visit the restaurant. For example, BAEMIN encourages merchants to decorate attractive packaging through labels, stickers, and thank-you notes. Especially on special holidays such as Valentine's Day or International Women's Day, BAEMIN launched initiatives to stimulate curiosity and enrich customers' ordering experience through activities such as gifting thank-you cards, candies, and roses to random customers. These activities have been warmly welcomed by merchant partners, who have contributed additional gifts to connect with customers more meaningfully.
Merchant partners and BAEMIN giving flowers in surprise to users on March 8
Food delivery apps can help improve customer-restaurant relations
"At BAEMIN, we are always looking for opportunities and initiatives to connect stakeholders within our operating ecosystem, helping them understand each other better and thus forming closer relationships. In the future, BAEMIN will continue to leverage its strengths to offer more unique products and services, helping everyone lead happier and more convenient lifestyles every day" said Mr. Jinwoo Song.