Vn E- commerce
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- 1. SURVEY CURRENT SITUATION OF E-COMMERCE BUSINESS IN VIETNAM& OPPORTUNITY FOR LOCK&LOCK ONLINE BUSINESS By Sale Management Team and R&D Team – Lock&Lock Vietnam HCMC – 09.2014
- 2. Table of content CHAPTER 1: GENERAL INFORMATION ABOUT E-COMMERCE CHAPTER 2: CURRENT SITUATION OF E-COMMERCE BUSINESS IN VIETNAM AND OPPORTUNITY FOR LOCK&LOCK ONLINE BUSINESS CHAPTER 3: VALUATION FOR ESTABLISHING LOCK&LOCK ONLINE/MOBILE BUSINESS
- 3. Chapter 1 – Introduction – Presence 1. Definition • E-commerce is electronic market, electronic trade and electronic services (defined by Intel) • E-commerce is information technology, website and business (defined by IBM) • E-commerce is to accomplish commercial business by electronic means (defined by HP)
- 4. Chapter 1 – Introduction – Presence 2. Presences of E-marketing (B2C) Creating a website Offer the in-formation and other features (catalogues, shopping tips, promotion,..) to answer the customer questions, build closer customer relationship Placing advertising and promotion online Use online advertising to build their internet brand and attract visitors to their websites Creating or participating in Web Communities Using SMS Take advantages of C2C on the internet with the popularity of forums and newsgroups Reach customers directly
- 5. Chapter 2 – Online – Smartphone 1. Development of online business in Vietnam
- 6. Chapter 2 – Online – Smartphone 2. Types of online business in Vietnam Exchange E- commerce Classified website, sale forum Promote product/service information then making offline transactions 5giay.vn, muare.vn, vatgia.com, enbac.com Online Retail Retail website Choose items & types of payment such as COD, online transfer or Cash Money on Office solo.vn, tiki.vn, lazada.vn, zalora.vn, zap.vn, vinabook.com123.vn Discount E-commerce (Group buying) Promotion, discount website More people to buy one product for the purpose of selling large number of product or advertising new brand muachung.vn, nhommua.com, hotdeal.vn Online Auction Auction website To promote the product to the user through sweep and reverse auctions daugia321.vn, vbid.vn Localize E-commerce Websites serve the needs within a specific geographic region, COD is main payment chonmon.vn/, eat.vn, hungrypanda.vn
- 7. Chapter 2 – Online – Smartphone 2. Types of online business in Vietnam Top 5 E-Commerce exchange Website in sales vatgia.com chodientu.vn enbac.com lazada.vn ivivu.com others
- 8. Chapter 2 – Online – Smartphone 3. Consumer statistics Shopping online by sexual Male Female 59% 41% 41 Shopping online by job 7 50 40 30 20 10 Source VN E-commerce & Technology Department 2013 37 15 0 Officer Worker Student Other Almost Internet users for shopping online are from 14-35 year olds
- 9. Chapter 2 – Online – Smartphone 3. Types of online business in Vietnam 80% 60% 40% 20% 0% Types of shopping online of citizens in 2013 Exchange E-commerce Retail online website Group buying website Social network 19% 61% 51% 45% Source VN E-commerce & Technology Department 2013
- 10. Chapter 2 – Online – Smartphone 4. Consumer statistics Favourited goods on shopping online website 25% 20% 20% 16% 12% 11% 10% 19% 35% 32% 62% Clothes, shoes, cosmetic Art objects Hoausewares Air tickets Foods Books Movie/ Music show tickets Hotel booking/Travel tours Music/Video/DVD/Games Spa Trainning/Courses Source VN E-commerce & Technology Department 2013
- 11. Chapter 2 – Online – Smartphone Vietnam Mobile Phone Market Potential in 2014 It is expected that in 2014, Vietnam will sell 17.22 million smart phones; including 14.2 million equal to 82% are belong to new users. . Top 10 countries globally in consuming smart phone The 3rd of South East Asia in percentage of new smart phone users
- 12. Chapter 2 – Online – Smartphone 1. Development of Smartphone market in Vietnam Within 2 years, the number of devices has grown almost 4 folds. So has grown rapidly apps (Over the top applications – OTT) and smartphone online business market The demand of enhancing social status The demand of having high - class goods through discount, promotion and convenient payment The increase of smartphone sales as well as business via smartphone source Mwork Corp
- 13. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 2.1 Mobile internet using • Men are more interested in mobile internet (68%) than women (32%) • The time-frame to use the mobile internet most is from 11h-13h and 19h-22h • Large majority internet users in Vietnam are youth and young adults Mobile Internet user by ages over 35 below 18 18-24 33.68% 25-34 38.95% 11.58% 15.79% (Source Admicro & Emarketer – Online Advertising Agency)
- 14. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 2.2 Social Network Users
- 15. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 2.2 Social Network Users Facebook ranked 5th amongs top 15 web properties in April 2013 with 11.8 million total unique visitors. Meanwhile, Google and Yahoo came in first and second, with 15.5 million and 13.1 million unique visitors respectively
- 16. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 2.2 Social Network Users • increased on Facebook from 3,000 fans to 13,000 fans in 3 weeks. • with small budget for the contest, stimulated Facebook members has used its lipstick products and shared their pictures. Example: “Show us your red lip”
- 17. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 3. Using Apps- high consumer level • The total budget that nationwide businesses invest into Mobile App is being increased 150%/month, and will rapidly increase in the future • Vietnamese users have higher app consumption than US users • Browsing the app store is the most common method for users to find out new apps Trend of using app on Mobile Phone in Vietnam (source Admicro)
- 18. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 3. Using Apps- high consumer level Top 5 mobile apps Top 7 mobile shopping apps
- 19. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 3. Using Apps- high consumer level Advertising on mobile apps OTT (over-the top) providers on mobile devices such as Vibers, Zalo, Talk...are considered great successful brands in attracting customers by applying mobile advertising. The first and No. 1 chat app in the market. More than 8M users Favorite by Korean biz fans and young smart phone users with many casual games Chinese popular chat app with 396M users Vietnamese chat app by giant internet company VNG 10M users Favorite by young smart phone users with cool stickers and good brand awareness. Chatting app with lots of fun features aims to combine all the strengths of other apps into itself
- 20. Chapter 2 – Online – Smartphone 2. Types of Business via Smartphone in Vietnam 3. Using Apps- high consumer level Advertising on mobile apps Ford Vietnam is one of the pioneers in applying mobile advertising to introduce the new Ford Ranger • Attracted hundreds of thousands of reviews on the site (mobile version) • Be registered thousands of test drivers as well as thousands of feedback, consulting services for the product from potential customers. Other major brands such as Heineken, Tiger, Vietnam Airlines, VJA, Sony, Piaggio, Sanyo, VP, Vietinbank ... are investing for the mobile advertising channel as well.
- 21. Chapter 2 – Online – Smartphone 3. Customer statistics Smart Phone Usage Statistics
- 22. Chapter 2 – Online – Smartphone 3. Customer statistics
- 23. Chapter 2 – Online – Smartphone 4. Payment • Beside the international payment cards, the other payment forms are very popular in Vietnam: SMS, e-wallet, internet-banking, mobile-banking, and multi-cards. • More than 7 telecommunication providers including Viettel, VinaPhone, MobilePhone have provided mobile payment services • Over 30 banks joined SmartLink alliance Series of payment solution via mobile like VinaPay, VnPay, PayNet ... with utilities that support purchasing the goods, games, study online
- 24. Chapter 2 – Online – Smartphone 4. Payment Types of payment for shopping online Cash on Delivery E-banking Transfer Mobile card Payment card 74% 8% 41% 9% 11% Source VN E-commerce & Technology Department 2013
- 25. Chapter 2 – Online – Smartphone 5. SWOT ONLINE VIETNAM MARKET 2014 STRENGTHS WEAKNESSES • E-commerce provides an open trading environment, lower cost, less dominated by the size of the business • Cheap workforce • Legal system of e-commerce in Vietnam has been completed (the Electronic Transactions Act (2005) and the Law on Information Technology (2006). • Shipping and delivery services are limited • Most of business website is promoted the company's image and introduce products and services not being developed for e-commerce • Technology infrastructure is developing OPPORTUNITIES THREATS • Many Vietnamese people use Internet for shopping online • Online payment system development • Government policy • Customer habit for paying by cash • The challenges of business in developing policies and strategies • The challenges of technology limitation
- 26. Chapter 3 Conclusion In the context of the on-going global economic downturn, the limitations of traditional retail infrastructure offer many opportunities for e-commerce to develop The Vietnam E-Commerce Association (VECOM) predicts that the Vietnamese e-commerce market will continue to grow at an annual rate 40 percent in the coming years E-commerce is the wave of the future specially for conducting commercial transactions in Vietnam, a potential market
- 27. Thank you
Notes de l'éditeur
- E-commerce refers to various online commercial trade activities focusing on commodity exchanges by electronic means, computer network by the companies, enterprises, factories, customers (Qin, China, 2009)
- This is the first step to conduct e-marketing, marketers must design an attractive and useful site to create the value and excitement to get the customers to visit the site, stay around and come back often. The company must update constantly the website to keep them current, fresh and exciting in combination with the traditional advertising and other offline market-ing to attract more visitors. The most basic type of website is corporate websites which are designed to offer the in-formation and other features to answer the customer questions, build closer customer rela-tionship, customer goodwill and supplement other sales channels, not to sell the products directly. The corporate websites also provide entertainment features to attract and keep the visitors as well as provide opportunities for customers to ask questions and make comments or evaluation through email before leaving the website. Another type website is marketing websites which engage consumers in an interaction that will help the consumers moving closer to direct purchase or other marketing outcome in-cluding catalogues, shopping tips, promotion features such as coupons, sales events and contests. The websites also allow the customers to schedule the shipments, request package pickup, and track their package in transit (Kotler and Armstrong, 2006). The companies can use online advertising to build their internet brand and attract visitors to their websites Online advertising includes banners, ticker ads, interstitials, skyscraper and other forms (Kotler and Armstrong, 2005). Content sponsorships is one of the form of internet promotion, the companies can gain name exposure on the internet by sponsoring special content on various websites where they can offer relevant information or services to the customers. The companies also can create microsites which are limited areas on the website managed and paid by another company. Viral marketing is a version of word of mouth marketing which involves creat-ing an email message or other marketing events that the customers will want to pass it to their friends. This is an idea to get your customers to do your marketing for you. Online marketing serves a useful purpose, a supplement to other marketing efforts and play an increasingly important role in the marketing mixes of many advertisers (Kotler and Armstrong, 2006) Creating or participating in Web Communities Web Communities are the commercially sponsored websites which take advantages of C2C on the internet with the popularity of forums and newsgroups. Such communities are attractive to advertisers to draw the consumers with a common interests and well-defined demographics. 1.4.4 Using Email As one of the important marketing tools, many companies use to reach their customers. In order to compete in this email environment, the companies are designing enriched email messages which are animated, interactive and personalized messages with audio and video. On the other hand, the companies also have to be careful not to send the customers un-wanted email to promote their products. Doing so will cause the resentment to the custom-ers who are already overloaded with spam email or junk email (Kotler and Armstrong, 2005)