Karavan, C.P. Vietnam enter strategic partnership

May 25, 2023 - 10:00
HCM CITY — Karavan B2B E-commerce Platform and C.P. Vietnam Corporation have entered a strategic partnership to expand the latter’s product portfolio (ambient products, frozen and fresh foods) to general trade and Hotel-Restaurant-Catering/Cafe/Canteen (HORECA) segments in Viet Nam via Karavan’s centralised platform.

They officially held a ceremony to announce the partnership on May 16 in HCM City.

It marks long-term cooperation between the two as they embark on a journey to revolutionise the country’s retail industry, with Karavan’s superior and efficient supply chain technology and C.P.’s complete range of food products.

Karavan’s centralised platform connects brands directly to small- and medium-sized merchants in key cities like HCM City, Ha Noi and Da Nang, and nearby provinces.

Pawin Sriusvagool, founder & CEO of Karavan (fourth left), exchanges a handshake with Montri Suwanposri, president of C.P. Vietnam. — Photo courtesy of Karavan

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While B2B e-commerce is relatively new in Viet Nam, the sector offers abundant growth opportunities since the retail landscape in the country continues to be dominated by traditional (unorganised) channels such as local wet markets and mom-and-pop shops.

The supply chain is very fragmented with relatively low levels of digitisation.

Understanding the market needs and potential, Karavan has entered into a strategic partnership with C.P. Vietnam to deliver ambient products, frozen and fresh foods from C.P. Vietnam to the traditional trade and HORECA segments in the country.

Karavan’s aspiration is to digitise and streamline the traditional retail supply chain through its one-stop sourcing platform, connecting fast-moving consumer goods (FMCG) brands and food suppliers directly with SME businesses, including mom-and-pop shops, cafes, hotels, restaurants, and caterers.

The cooperation will in turn enable C.P. Vietnam to expand its customer base, tapping into Karavan’s ready-to-scale network of some 200,000 merchants nationwide.

Pawin Sriusvagool, founder and CEO of Karavan, said his company has a vision of becoming the top B2B marketplace platform in Viet Nam.

It wants to be a platform that connects FMCG brands and food suppliers with small business owners, he said.

“We aspire to empower our merchants with superior supply chain technology, allowing our customers to purchase products cheaper with faster and reliable services.”

In addition, its merchants could make payments digitally via QR codes and can use POS machines to improve operations.

Montri Suwanposri, president of C.P. Vietnam, said his company appreciated Karavan for leveraging the power of technology with its B2B e-commerce platform to help connect reputed brands directly with SME businesses, providing B2B e-commerce solutions.

“We believe in Karavan's ability and vision, and expect Karavan to accelerate C.P. Vietnam’s development of food distribution, support small and medium-sized enterprises, and take C.P. Vietnam’s processed foods closer to end-consumers.”

The collaboration between C.P. Vietnam and Karavan not only creates great synergistic values for both businesses, but also benefits small and medium enterprises and end-consumers, he said.

C.P. Vietnam, a subsidiary of the Charoen Pokphand Group founded in 1921 in Thailand, was established in 1988 as a fully integrated agro-industrial and food business.

Founded in 2021, Karavan strives to maximise value for small enterprises by providing a one-stop sourcing platform and empowering merchants with QR payments, point-of-sale systems, mobile top-up, financing, group buy programmes, and loyalty schemes.

It has achieved impressive growth in the past 12 months, partnering with major FMCG suppliers, and has grown 20 per cent month-on-month in gross merchandise value since establishment.