Download - E commerce vietnam
in Vietnam
SNA Vietnam Ltd., E-commerce in Vietnam
2SNA Vietnam Ltd.,
About E-commerce in Vietnam
Technical Infrastructure E-commerce
Applications
Status of E-commerce in Vietnam
Mobile Shopping
Supporting Activities
DigitalGifting
SNA Vietnam Ltd., E-commerce in Vietnam
3SNA Vietnam Ltd,
About E-commerce in Vietnam
• Huge opportunity has not been exploited
• Forecast annual growth rate: 75%
• Rapid increase in internet penetration in population
from 30 million users (2011) to 37 million users (2016)
(forecast)
• People spend more time on the internet: from 43
minutes to 130 minutes (2008 to 2011)
• The chart shows the
forecast gross merchandise
value (2011 to 2015)
• Total value expected to
reach 2.8 billion dollars in
2015
( chart figures derived from PWC Feb
2013)
Booming in group buying sites (2010)- nhommua.com- hotdeal.vn- Muachung.vn- ……………..
SNA Vietnam Ltd., E-commerce in Vietnam
4SNA Vietnam Ltd,
About E-commerce in Vietnam
No distinguish
market leader in
C2C and B2C
• The market is fragment with no clear trend and leader
• Three main types of e-commerce business:
Market places
E-tailers
Online channel of those leading specialist retails
• None of those firms could reach 5% of the market
share
Market Places E-tailers Market specialist retails
Remarkable players in each sector
SNA Vietnam Ltd., E-commerce in Vietnam
5SNA Vietnam Ltd,
Technical Infrastructure
Payment Infrastructure
• Cash payment declined
• Non cash payment increase but total value is still low
• More banks implement Internet Banking
• Bank cards have became popular means of payment in
Vietnam
• Credit card utilization rate is still low
Payment cards structure2007 and 2012
Source: The State Bank of Vietnam Top 10 bank cards issuers up to 30-11-2011
SNA Vietnam Ltd., E-commerce in Vietnam
6SNA Vietnam Ltd,
Technical Infrastructure
Logistics Infrastructure
• Postal services have been growth rapidly since 2007
• Narrowing public postal network gradually, less convenience
for people to access postal services
• Top three leading companies occupy 53% of the market
revenue (78% in 2009)
• Smaller firms have their chances to sneak in the market
Market share in Revenue Number of postal offices
SNA Vietnam Ltd., E-commerce in Vietnam
7SNA Vietnam Ltd,
Technical Infrastructure
IT & Communication Infrastructure
• Strong growth in number of internet users
• Increase in internet usage frequency and length
• 84% access internet on desktop computer, 27% access via
phone
Growth of Internet users
SNA Vietnam Ltd., E-commerce in Vietnam
8SNA Vietnam Ltd,
E-commerce Applications in Communities
• Most frequent activity: information gathering
• Most popular activity: recreation activities
• E-commerce is not well-developed, online banking is still
weak
• Online activities different from age group, 15-24 years spend
more time on almost all activities.
SNA Vietnam Ltd., E-commerce in Vietnam
9SNA Vietnam Ltd,
E-commerce Applications in Communities
• About 40% of internet users in Vietnam tried online shopping/
auction
• Less than 10% use online banking
• People in the North, age group 25-34 shop online more
frequent
• Low trust in online business
SNA Vietnam Ltd., E-commerce in Vietnam
10SNA Vietnam Ltd,
Status of E-commerce in Vietnam
• Most popular model of e-commerce in Vietnam is e-shopping
site
• 54% of e-market place website has integrated online
payment
• There have been a significant increase in number of people
participate in online transaction.
SNA Vietnam Ltd., E-commerce in Vietnam
11SNA Vietnam Ltd,
Status of E-commerce in Vietnam
• E-marketplaces is occupied with the majority of online stores,
classified ads and buying group
• HR costs take the highest proportion in e-marketplaces
operation
SNA Vietnam Ltd., E-commerce in Vietnam
12SNA Vietnam Ltd,
Supporting Activities
• Changing in law and regulations to foster the secure of e-
commerce
• There are more tertiary institutions provide formal training
course for e-commerce. VCU and HUI are the pioneer in
training for e-commerce
• Increase in demand from companies for well-trained e-
commerce staff
• There have been a strong growth in demand for e-commerce
lecturers
SNA Vietnam Ltd., E-commerce in Vietnam
13SNA Vietnam Ltd,
Mobile Shopping
• Significant increase in accessing internet via hand phones
• Smartphone market grows 156% in the first 3 quarters of
2013 ( GfK – 2013)
• Tablet market also reach 233% compare to the same period
in 2012 (GfK -2013)
• Strong growth in mobile internet access devices foster the
growth of e-commerce ( mobile shopping)
• Lack of apps develop to support
online shopping via mobile phone.
• Lack of security in transaction
SNA Vietnam Ltd., E-commerce in Vietnam
14SNA Vietnam Ltd,
Mobile Shopping
• Vietnamese firms are still hesitate to involve in e-commerce
• The group thinking still affect firm in making decision to
involve online business.
• E-commerce in Vietnam is picking up the trend to grow, but it
is still remain infant industry.
• Local government has put effort in developing e-commerce,
minimize fraud cases and nurturing the trust from business
and communities.
• It has been said that Vietnam is the promise land for foreign
investor in e-commerce.
Key to success
- Proper arrangement for payment method and delivery means
must adapt to local conditions, plus relevant planning and
investment for online structure.
SNA Vietnam Ltd., E-commerce in Vietnam
15SNA Vietnam Ltd,
Digital Gifting
Digital Gifting Medium
s
Mobile
SMS
AppsOthers
Social Networ
k website
s
Customer’s problem Business’s problem
- Production cost- Storage security- Wide coverage- High operating
costs- Difficult in
tracking customer’s behaviors
- Card storage- Difficult redemption- Difficult in gifting
ideas- Accessibility to gift- Low personalization- Timely problem in
purchasing gift
Business and Customer’s problem with traditional gift card
SNA Vietnam Ltd., E-commerce in Vietnam
16SNA Vietnam Ltd,
Digital Gifting Information – Digital Gifting Mediums in Vietnam
Facebook Zingme Twitter0
10
20
30
40
50
60
70
8071.4 %
59.9 %
9.5 %
Social Web Users in Vietnam – Top 3 ranking
Users
Main Applications
- Social connections - Entertainment- Gifting focus around songs, items in apps, and games integrated on the website- Digital gift items sent through social network website is very limited
(* Note: Application in gift giving term)
SNA Vietnam Ltd., E-commerce in Vietnam
17SNA Vietnam Ltd,
Digital Gifting Information – Digital Gifting Mediums in Vietnam
Main Applications- Common items sent through SMS: discount voucher codes, top-up card codes- Other items: songs, movie code, flight tickets- Other usage: gift can be sent through hand-phones applications (OTT, email,
websites…etc.)
(* Note: Application in gift giving term)
SNA Vietnam Ltd., E-commerce in Vietnam
18SNA Vietnam Ltd,
Digital Gifting Information – Digital Gifting Mediums in Vietnam
Viber
Zalo
Kakaotalk
Line
Others
0 1 2 3 4 5 6 7 8 9
8 million users
5 million users
Over 4 mil-lion users
4 million users
1.5 million users
OTT User in Vietnam
Main Applications- Most of OTT apps are used for messaging, sending picture, call, personal page- Only KakaoTalk and Line have been developed beyond the normal OTT apps- KakaoTalk and Line have are quite similar, can be used to send discounted
vouchers by companies.
(* Note: Application in gift giving term)
Source: Newspapers (Tienphong, Techinasia, ICTnews,…)
SNA Vietnam Ltd., E-commerce in Vietnam
19SNA Vietnam Ltd,
Digital Gifting Developing E-commerce and Digital Gift
Opportunities
Fast develop internet infrastructure
Laptops and smartphones are
more affordable than ever.
Growing awareness of online
shopping
Supporting Laws and Regulations
to foster e-commerce
Increase in number of business
aware the important of E-
commerce
The market is still not well-
developed
SNA Vietnam Ltd., E-commerce in Vietnam
20SNA Vietnam Ltd,
Digital Gifting Developing E-commerce and Digital Gift
Threats
Security concern for online transactions
Product/service quality is the main concern of
customers
Vietnam is still a cash economy
Credibility of online business is still low
Sellers discrimination to customers who use gift /
discount vouchers is currently the big problem