Digitalization on tea field: The era of livestream ‘hype’ sales is over

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Digitalization on tea field: transparancy in managing production unit codes

Farmers and agricultural cooperatives have extensively adopted livestream selling on e-commerce platforms, which has become an inevitable trend. This distribution channel is ideal for cooperatives with limited experience in market connectivity, as it provides a substantial customer base without the need for significant logistics concerns.

"In the past, I had to request that my family members purchase Thai Nguyen tea and transport it by bus, and then arrange to retrieve it from the station," shared Pham Thanh Tung, a tea ethusiast residing in Hanoi. However, with the advent of e-commerce platforms, tea cooperatives are now able to sell their products and deliver them directly to my doorstep within a few days. This is a highly expedient process.

The end of sales booms driven by livestreams

Nevertheless, the Thai Nguyen tea brand's unique identity and the need to distinguish itself in the face of the overwhelming saturation of livestreaming have become a pressing concern for cooperative leaders with significant aspirations.

Nguyen Thi Binh, Director of Thien Phuc Agricultural and Herbal Cooperative in Dong Hy District, Thai Nguyen, observed that a simulcast could consistently generate sales three to four years ago. However, livestream interactions on e-commerce platforms are currently experiencing difficulty in reaching a wider audience. A substantial investment in visuals, scripts, and interactions is now necessary for effective livestream selling. To allure consumers, cooperatives may generate streams that extend throughout the day.

Thien Phuc Cooperative is also creating digital content to engage its followers on social media platforms, in addition to livestreaming. Technical expertise in video production, image editing, and professional graphics is indispensable for creating captivating and well-crafted digital content, such as infographics, photo series, and videos. "This may not be a difficult task for businesses; however, resource-limited cooperatives may find it difficult to hire an individual for this position at a monthly salary of 10 to 20 million VND," Binh stated.

Digital divides, digital human resources, and environmental factors are the primary factors contributing to unsustainability in e-commerce, as per the Vietnam E-commerce Association (VECOM). Hanoi, Ho Chi Minh City, and the other 61 provinces face a significant disparity in the development of e-commerce, and the quality personnel that universities produce is inadequate to satisfy the current needs.

Thus, Binh promotes policies from a variety of government levels to assist cooperatives in recruiting youthful, experienced workers for the production of digital content.

Developing digital content to strengthen relationships

Many farmers and agricultural cooperatives in Thai Nguyen province aspire to close deals while sitting at home. Although it is challenging, the La Bang Tea Cooperative in Dai Tu District has proven that it is feasible by investing intellectual energy and recruiting devoted talent.

Nguyen Thi Hai, the Chairwoman of the Board of Directors at La Bang Tea Cooperative, has established and expanded the local traditional tea brand. Hai concluded, "In the context of advancing information technology and comprehensive digital transformation, it is highly advantageous for farmers and cooperatives to exhibit their products on e-commerce platforms," after promoting her brand at forums and trade exhibitions from Asia to Europe. We advertise all of our tea products, which include more than 30 varieties, on platforms such as Voso, Lazada, and TikTok.

La Bang Tea Cooperative has established a livestream sales team that promotes and actively sells products on social media and e-commerce platforms daily to achieve high levels of effectiveness. Their tea transactions have increased by 15-20% since they joined these platforms.

Hai maintains that livestreaming demands a solid foundation of digital content. In addition to establishing a brand for the cooperative, this content also attracts a consistent audience.