Vn E- commerce
description
Transcript of Vn E- commerce
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 VietnamHCMC – 09.2014
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
• E-commerce is electronic market, electronic trade andelectronic services (defined by Intel)
• E-commerce is information technology, website andbusiness (defined by IBM)
• E-commerce is to accomplish commercial business byelectronic means (defined by HP)
Chapter 1 – Introduction – Presence
1. Definition
Creating a website
2. Presences of E-marketing (B2C)
Placing advertising and promotion
online
Creating or
participating in Web Communities
Using SMS
Offer the in-formation and other features (catalogues, shopping tips, promotion,..) to answer the customer questions, build closer customer relationship
Use online advertising to build their internet brand and attract visitors to their websites
Take advantages of C2C on the internet with the popularity of forums and
newsgroups
Reach customers directly
Chapter 1 – Introduction – Presence
Chapter 2 – Online – Smartphone
1. Development of online business in Vietnam
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 (Groupbuying)
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
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
Chapter 2 – Online – Smartphone
3. Consumer statistics
Shopping online by sexual
Male
Female59% 41%
Source VN E-commerce & Technology Department 2013
41
7
37
15
0
10
20
30
40
50
Officer Worker Student Other
Shopping online by job
Almost Internet users for shopping online are from 14-35 year olds
Chapter 2 – Online – Smartphone
3. Types of online business in Vietnam
0%
20%
40%
60%
80%
Exchange E-commerce
Retail onlinewebsite
Groupbuying
website
Socialnetwork
19%
61%51%
45%
Types of shopping online of citizens in 2013
Source VN E-commerce & Technology Department 2013
Chapter 2 – Online – Smartphone
4. Consumer statistics
10%
11%
12%
16%
19%
20%
20%
25%
32%
35%
62%
Trainning/Courses
Spa
Music/Video/DVD/Games
Hotel booking/Travel tours
Movie/ Music show tickets
Books
Foods
Air tickets
Hoausewares
Art objects
Clothes, shoes, cosmetic
Favourited goods on shopping online website
Source VN E-commerce & Technology Department 2013
Vietnam Mobile Phone Market Potential in 2014
Chapter 2 – Online – Smartphone
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
1. Development of Smartphone market in Vietnam
Chapter 2 – Online – Smartphone
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
Chapter 2 – Online – Smartphone
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
2. Types of Business via Smartphone in Vietnam
Mobile Internet user by ages
over 35
below 18
18-24
25-3433.68%
38.95%
11.58%
15.79%
(Source Admicro & Emarketer – Online Advertising Agency)
Chapter 2 – Online – Smartphone
2.2 Social Network Users
2. Types of Business via Smartphone in Vietnam
Chapter 2 – Online – Smartphone
2.2 Social Network UsersFacebook 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
2. Types of Business via Smartphone in Vietnam
Chapter 2 – Online – Smartphone
2.2 Social Network Users
2. Types of Business via Smartphone in Vietnam
• increased on Facebook from 3,000 fans to13,000 fans in 3 weeks.
• with small budget for the contest,stimulated Facebook members has used itslipstick products and shared their pictures.
Example:
“Show us your red lip”
Chapter 2 – Online – Smartphone
3. Using Apps- high consumer level
• The total budget that nationwide businesses invest into Mobile App is beingincreased 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 newapps
Trend of using app on Mobile Phone in Vietnam
2. Types of Business via Smartphone in Vietnam
(source Admicro)
Chapter 2 – Online – Smartphone
2. Types of Business via Smartphone in Vietnam3. Using Apps- high consumer level
Top 5 mobile apps Top 7 mobile shopping apps
Chapter 2 – Online – Smartphone
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.
2. Types of Business via Smartphone in Vietnam3. Using Apps- high consumer level
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
Chapter 2 – Online – Smartphone
Advertising on mobile apps
2. Types of Business via Smartphone in Vietnam3. Using Apps- high consumer level
Ford Vietnam is one of the pioneers in applyingmobile advertising to introduce the new FordRanger• Attracted hundreds of thousands of reviews
on the site (mobile version)• Be registered thousands of test drivers as
well as thousands of feedback, consultingservices for the product from potentialcustomers.
Other major brands such as Heineken, Tiger,Vietnam Airlines, VJA, Sony, Piaggio, Sanyo, VP,Vietinbank ... are investing for the mobileadvertising channel as well.
Chapter 2 – Online – Smartphone
Smart Phone Usage Statistics
3. Customer statistics
Chapter 2 – Online – Smartphone
3. Customer statistics
Chapter 2 – Online – Smartphone
4. Payment
• Beside the international payment cards, theother payment forms are very popular inVietnam: SMS, e-wallet, internet-banking,mobile-banking, and multi-cards.
• More than 7 telecommunication providersincluding Viettel, VinaPhone, MobilePhonehave provided mobile payment services
• Over 30 banks joined SmartLink allianceSeries of payment solution via mobile likeVinaPay, VnPay, PayNet ... with utilities thatsupport purchasing the goods, games,study online
Chapter 2 – Online – Smartphone
4. Payment
Cash onDelivery
E-banking Transfer Mobilecard
Paymentcard
74%
8%
41%
9% 11%
Types of payment for shopping online
Source VN E-commerce & Technology Department 2013
Chapter 2 – Online – Smartphone
5. SWOT ONLINE VIETNAM MARKET 2014
• 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
• 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
STRENGTHS WEAKNESSES
THREATSOPPORTUNITIES
Chapter 3
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
Conclusion
Thank you