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


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



Top 5 E-Commerce exchange Website in sales

vatgia.com

chodientu.vn

enbac.com

lazada.vn

ivivu.com

others


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



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



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


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

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


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)


2.2 Social Network Users



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



2.2 Social Network Users


• 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”


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


(source Admicro)


2. Types of Business via Smartphone in Vietnam3. Using Apps- high consumer level

Top 5 mobile apps Top 7 mobile shopping apps


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


Advertising on mobile apps


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.


Smart Phone Usage Statistics

3. Customer statistics


3. Customer statistics


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


4. Payment

Cash onDelivery

E-banking Transfer Mobilecard

Paymentcard

74%

8%

41%

9% 11%

Types of payment for shopping online



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

vn e- commerce

Marketing