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E commerce vietnam

Sep 13, 2014

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Page 1: E commerce vietnam

in Vietnam

Page 2: E commerce 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

Page 3: E commerce vietnam

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- ……………..

Page 4: E commerce vietnam

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

Page 5: E commerce vietnam

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

Page 6: E commerce vietnam

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

Page 7: E commerce vietnam

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

Page 8: E commerce vietnam

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.

Page 9: E commerce vietnam

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

Page 10: E commerce vietnam

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.

Page 11: E commerce vietnam

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

Page 12: E commerce vietnam

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

Page 13: E commerce vietnam

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

Page 14: E commerce vietnam

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.

Page 15: E commerce vietnam

SNA Vietnam Ltd., E-commerce in Vietnam

15SNA Vietnam Ltd,

Digital Gifting

Digital Gifting Medium

s

Mobile

SMS

Email

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

Page 16: E commerce vietnam

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)

Page 17: E commerce vietnam

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)

Page 18: E commerce vietnam

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,…)

Page 19: E commerce vietnam

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

Page 20: E commerce vietnam

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