How an enterprise is “immune” to Covid-19: Closing all stores and transferring it to e-commerce trading floor, reducing the apparatus of only 10 employees to earn 2 billion dong / month, growing by 30% despite the crisis

Tram Ho

The Covid-19 epidemic is like a harsh natural selection for every economy in the world. In Vietnam, only in the first 3 months, about 35,000 enterprises dissolved. VCCI also forecasts that if the epidemic continues, 50% of companies will not be able to stay.

The rate of businesses benefiting from the pandemic is extremely small, but it is not uncommon for cases to still grow well in the midst of crisis thanks to a flexible business model, adaptive and timely transition.

SME Shoptida, owned by owner Vu Minh Tra, who is also the founder at Babyhop and co-founder at Mopi – Flat Painting Workshop, is considered a typical example.

 Cách một DN “miễn nhiễm” với Covid-19: Đóng hết cửa hàng chuyển lên sàn TMĐT, thu gọn bộ máy chỉ 10 nhân viên thu về 2 tỷ đồng/tháng, tăng trưởng 30% mặc khủng hoảng - Ảnh 1.

Businessman Vu Minh Tra

Shoptida is a brand that provides products for printers, paper, barcode stamps, etc. specialized for e-commerce (E-commerce) as well as applications like KiotViet, Suno, Sapo, Quick, …

Mr. Minh Tra started his business in 2014. By 2018, this boss has developed many brands, has 2 warehouses in Hanoi and Saigon, operates a chain of 5 stores, with his own office. In the same period, wholesale and retail forms were simultaneously implemented.

Close all stores, transfer them to e-commerce floors

Sharing at the online seminar “Innovation Summit 2020 – The Charter & Innovative Solutions for Responding Enterprises under the Covid-19 era” held recently, Mr. Tra said he learned a lot from the e-commerce business model. in China and America.

After a visit to China to learn from experience, seeing that the e-commerce business people here have moved to a direct sales model from the factory, the CEO also made a bold decision.

He in turn closed the shops. By mid-2019, the last location in Hanoi stopped operating, although it still recorded revenue of several hundred million a month and was profitable.

At the same time, all were moved to a 500 m2 site, building both offices and warehouses there. Wholesale activities have been completely stopped, while the direct retailing from Facebook channels, advertising, … are minimized. The goal is to navigate all of the e-commerce platforms, from Shopee, Lazada to Tiki, Sendo.

 Cách một DN “miễn nhiễm” với Covid-19: Đóng hết cửa hàng chuyển lên sàn TMĐT, thu gọn bộ máy chỉ 10 nhân viên thu về 2 tỷ đồng/tháng, tăng trưởng 30% mặc khủng hoảng - Ảnh 2.

Shoptida’s shop on Shopee.

Sharing the reasons for this turning point, Mr. Tra said: “Not because of unprofitable shops, but because of my lean model, increasing scale, reducing costs. I try to hire. a very large warehouse, far from the center, reducing all costs, from office and store costs. Staff is also minimalist, only about 10 people. “

The CEO said that should make the most of favorable conditions from e-commerce exchanges. Example on Tiki: “I transport goods to Tiki’s warehouse twice a week, only need a manager to make a monthly turnover of about 600 million VND. The costs of customer care, exchange, shipping are all supported by e-commerce units. “

Conversion step F2C, D2C

According to Mr. Minh Tra, F2C (Factory to Customers) and D2C (Direct to customer) sales bring great advantages to businesses, especially in the current epidemic season because it helps reduce discount costs. paid to intermediaries, which account for about 30%. Since then, the cost has been reduced in proportion, boosting sales and also receiving more positive customer reviews.

Shifting to e-commerce also helps to cut down many other costs such as customer care, operation or transportation, return and exchange. Especially marketing budget.

“What I like most when moving sales from Facebook to e-commerce platforms is to eliminate the cost of Facebook Ads advertising. Currently, my advertising costs account for only 5% of sales.”

 Cách một DN “miễn nhiễm” với Covid-19: Đóng hết cửa hàng chuyển lên sàn TMĐT, thu gọn bộ máy chỉ 10 nhân viên thu về 2 tỷ đồng/tháng, tăng trưởng 30% mặc khủng hoảng - Ảnh 3.

Product cost structure (Screenshot).

In Shoptida’s product cost structure, the cost of goods accounted for 63%, showing that the price sold to customers is not too high. On the other hand, the budget for advertising is only 5%, the profit is about 15%. Tra said that this is a sustainable structure.

10 employees, 2 billion in revenue

At Shoptida, the CEO is the product maker, who is in charge of market analysis, finding new products and carrying out import procedures. Besides, there are 2 shop managers, working directly with E-commerce floor, 1 staff in advertising duties, 1 designer, 1 customer service manager and 1 accountant. Logistics activities have 3 people, in charge of arranging warehouses, packing goods, and bringing them to the post office.

 Cách một DN “miễn nhiễm” với Covid-19: Đóng hết cửa hàng chuyển lên sàn TMĐT, thu gọn bộ máy chỉ 10 nhân viên thu về 2 tỷ đồng/tháng, tăng trưởng 30% mặc khủng hoảng - Ảnh 4.

The personnel structure of Shoptida (Screenshot).

Mr. Tra confidently shared that even though he has only 10 employees, with a lean and effective model, the company still earns about VND 2-2.5 billion / month.

Not only that, when the Covid-19 epidemic caused many businesses to struggle, Shoptida’s revenue still grew steadily by 30%. All employees not only do not have to quit their jobs, they also receive a salary of one month each.

Revealing the principle of helping e-commerce enterprises “be immune” to Covid, Mr. Tra emphasized: “3 principles to do well on these platforms are: reasonable price, fast ship time and plenty of inventory. The task for all those who want to do long-term and sustainable e-commerce business is to increase scale and reduce costs. “

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Source : Genk