Vietnam e-Commerce 2012 updated


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Vietnam e-Commerce 2012 updated

  1. 1. Tai Tran & Duy Doan Updated Version 23.2.2012
  3. 3. Economic crisis Declining Supporting buyingframeworks power Macro- economic factors PositiveTechnology banking trends response Investments
  4. 4. Market overview Click to buy Click to pay Market size • Vietnam Group buying 2011: VND 750b (*) • e-Commerce excluding Group buying: • e-Payment:(*) Source:
  5. 5. Market Size• Normally e-commerce market size is measured using Gross Merchandise Value• However it is currently almost impossible to measure GMV in Vietnam – 43 million bank cards as at 2011, but mostly for withdrawing cash – Underutilized e-payment despite functional products e.g. NganLuong, SohaPay, OnePay, BaoKim, Smartlink, VNBC, Banknetvn – C2C e-commerce sites are used for information listing (think Alibaba 2001) – Transactions are NOT done on site – Current revenue model of e-commerce site: store rental• E-Payment: can measure transaction value (of course)
  6. 6. Merchant demographics ElectronicsProduct B2C Technology gadgetscategory Household items Physical books Apparels C2C Cosmetics PaymentDemand Store services Branding Delivery Account manager Partner care Incentives Pricing
  7. 7. Buyer demographics• Segments 1. Geeks 2. Dealers Professionals 3. Teen? 4. Professionals 5. Mass Social Disposable• Demand network user income – Trust – Buyer protection Payment• Customer care readiness 7
  8. 8. Limitations• Business model – Been doing C2C for 6 years but C2C cant solve the problem of trust – Cannot go mass – Back to B2C• Risk management – Customer care – Buyer & seller protection – Communication crisis – Standardized process & best practice• Havent automated many processes – Speed of services – Cost fixing• Value chain – Cannot procure directly from wholesaler – Need to go through retailer which adds cost on top• Identity?• Human resources
  9. 9. New entry: high Supplier Buyer bargain Competition: bargain power: moderate power: high highAlternatives for sales & distribution Alternatives for purchasing goods Substitute: high
  10. 10. E-commerce site Owner Model Description(not includingGroupon clones) Vatgia JSC C2C, price comparison Vatgia JSC B2C PeaceSoft JSC C2C VCCorp B2C Discount e-tailer VCCorp C2C VCCorp Classifieds VCCorp Classifieds forum The Gioi So Classifieds forum MekongCom B2C Books & CDs Tiki JSC B2C Discount books e- tailer, apparels Nguyen Kim JSC B2C Online channel of brick-and-mortar retail chain The Gioi Dien Tu B2C Retail chain with online offering
  11. 11. Upcoming Owner Model Descriptione-commerce sites B2C Backed by Vinatex. Likely deals with wholesalers NCT Hybridhttp://hula.vn B2C Online gift shop B2C Boutique gift shop Classified VTG B2B2C Unique offering: lottery Topup & Metro groceries
  12. 12. Case Study• Trust system• Payment solution – Connect many banks – Support non-bank customers – Merchant network development – Strategy: micro-payments (contrast: MobiVi) – Digital content payment, free interbank transfer• Marketing – Promotions, discounts, gifts, post-purchase care – Communication, public newsletter• Strategic partnership – Cross-border transactions – Cross-border payment• Other services: bidding, ad network• Willing to collaborate with Internet partners
  14. 14. 2012 Trends Categories:Lever Groupons • Consumer electrics B2C momentum (market potential) • Apparels (high margin) Logistics Foreign entrants development
  15. 15. A winner will not have emerged in 2012• Ongoing competition• Big-4 established positions• Complementary relationship• A long-term game with customers and against other channels
  16. 16. Industries potentials Market potential (VND trillion)140120100 80 60 40 20 0 Electronics Tech gadgets Mobile phones Apparels & Physical books cosmetics
  17. 17. Market potential e- e-Payment Commerce $2.4b $2b(*) comparables method
  18. 18. Thank you!Tai Tran Duy Doan m/doanduy
  19. 19. APPENDICES
  20. 20. Retailers Internet firms Startups$$$$$ $$$ $?Stores, sales, delivery, brand Tech teams, sales, customer Almost no sales team care, deliveryCash Warehouses No warehouseWarehouses Dependent on suppliers Dependent on suppliersAvailability of goods Inventory or listing onlyExperienced in retail Experienced in Internet, e- Normally experienced inLimited experience with Commerce, community InternetInternetLimited in Internet product Good Internet products Smart productsFocus on sales Sales, e-Payment, ad Niché marketConnection with suppliers, Connection with strategic Personal relationshipbanks partners and other Internet products
  21. 21. Reference• VNs retail sales hit US $78 billion in 2010 in-2010/20111/9774.vgp• Thị trường điện máy $6.6b doanh/2011/11/nam-2012-fpt-trading-se-phan-phoi-hang- dien-tu-gia-dung/• Doanh thu FPT Trading khoảng 17 nghìn tỷ,Tin- tuc,Tin-trong-nuoc/Tap-doan-FPT-6-thang-dau-nam-lai-1204- ty-dong/• Doanh thu dienmay dự kiến khoảng 6 nghìn tỷ cong-ty-the-gioi-di-dong-6000-ti-doanh-thu.html• Tiềm năng TMĐT 2 tỷ nuoc/2010/04/1218882/hon-8-ty-dong-giao-dich-qua-ebay- vn/
  22. 22. Bibliography• Groupon• E-Payment• Amazon