Pocket Guide for Vietnam Mobile Market


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Pocket Guide for Vietnam Mobile Market

  1. 1. Or how to chase Vietnam mobile user Hanoi, August 2013
  2. 2. Pocket guide for Vietnam mobile market researched by APPOTA o Information in this report is quoted and complied from various sources. o Comments are from editors’ assessment. o We are welcome feedbacks and comments from you. Contact us: biz@appota.com Many thanks and Best Regards! Please view in fullscreen mode for better exprerience Pocket guide for Vietnam mobile market 2
  3. 3.  Mobile is a booming industry in Vietnam  State of this second highest growth rate in smartphone market  8 things you need to know to enter Vietnamese market  Finding your Vietnam partners HIGHLIGHT 3
  4. 4. How do you think about Vietnam ? 4
  5. 5. Yes! But also The second place in the top increasing rate smartphone market in the world 5
  6. 6. WELCOME TO VIETNAM The most potential mobile market in SEA 6
  8. 8. Netizen: 31,000,000 Mobile netizen: 34,000,000 Mobile phones subscribers : 146,000,000 Internet phone: 18,000,000 3G subscribers : 19,300,000 iOS & Android phones: 13,000,000 Telecom (mobilephone) service ARPU: $ 4.1 89,000,000 Population 29,000,0000 Urban 31,000,000 from 15 - 35 years old $1,300 GDP per capita 51% male, 49% female GENERAL INFO 8
  9. 9. Hight-competitive telecom market 41% 31% 18% 10% Vietttel Vina Mobi Others 4/5 networks belong to Government. 96% market share is taken by the big 3: Viettel, Mobifone, Vinaphone. Both Mobifone & Vinaphone belong to VNPT Corporation. Viettel is the number 1 for users quantity but Mobifone has the highest ARPU and large proportion of users in big urban. 2 telcos had been disappeared, 3 telcos had been suspended the permission from 2010. As the result of the war of telcos, the mobile price is very cheap & the revenue traditional service who takes at least 50 %. 84% users with pre-paid plan. So, Operators have to maintain or increase ARPU by introducing more new value-added services & take more from carrier billing fee = $ 2.4 For unlimited 3G service = $ 0.1 For 1 minutes calling service = $ 0.01 1 message MOBILE LANDSCAPE 9
  10. 10. 0 5 10 15 20 25 30 35 40 45 SMS Scratch card Internet banking Virtual cash Fee % Online payment wait for booming When e-commerce is booming in Vietnam (from $300 million in 2011 to an estimated $2.5 billion by the end of 2015), the online payments market has been slow due to the popularity of COD (cash-on-delivery). While young people are more willing to spend money online, they do not have much purchasing power yet and the older generation is not willing to do so. Despite these barriers, there are more and more service providers emerging in Vietnam which may slowly change the trend by giving consumers a good reason to pay online. More convenient, co-existent with cash & good discount are 3 big points that online payment attracts more users. 57M ATM cards 64% penetration 3.6M credit cards 4% penetration 8M virtual cash accounts 9% penetration Transaction fee of online payment MOBILE LANDSCAPE 10
  11. 11. The rising of Android phone iPhone is the symbol for smartphones in Vietnam during 2009-2011 and remain the 1st position on market. Apple products are always honor and a symbol of luxury, stylish. Only when the low-end Android line configuration was good and cheap alternative series phone java phones Until now, the iPhone is still the leading smartphone brands with approximately 40% market share, Android with 30 brands go second for 60% is led by Samsung, LG, Q-Mobile, HKphone. The level of pay is higher than iPhone users who use Android but the situation is improving a lot, some multi-platform product sales Android recently overtook iOS users. It is expected that Android has a very high growth rate in the third division being: high, intermediate, low, and will account for about 80% market share in 2 years MOBILE LANDSCAPE 11
  12. 12. Mobile advertising - the rising star Digital advertising (including mobile advertising) reached only 5% of advertising budget in Vietnam in 2012 (1 Billion USD) but mobile advertising is growing fast in 2013. On average, mobile web users in Vietnam consume 4.5 hours of media daily, of which 35% represent mobile devices, mobile advertising is now a trending for mobile service also FMCG. SMS is the first type of mobile advertising & now the most popular with million messages delivered to customers each & every day. Ads CTR rate is very high, appropriate 0,1% -0,5%. Price of CPC 2,000 – 4,000 VND , price of CPM from 8,000 – 40,000 VND. Advertising Rates are generally higher compared to the world in the traditional form. The discount rate is about 30% if you buy a large quantity from Vietnamese partners MOBILE LANDSCAPE Type Average Price CPC 800 – 4,000 VND = 0.04 - 0.2 USD CPM 8,000 - 45,000 VND = 0.4 - 2.1 USD CPI 10,000 – 20,000 VND = 0.5 - 1 USD ECPI 15,000 – 30,000 VND = 0.7 – 1.4 USD CPA From 40,000 VND = From 1.9 USD CTR 0.02-0.05% Conversion rate ~ 3% Site Cate 24h.com.vn Press AppStore.Vn Marketplace Baomoi.com Press Dantri.com.vn Press Soha.vn Portal VnExpress.net Press Vietnamnet.vn Press Zing.vn Portal Top site by traffic (alphabetical order) Average Price for Mobile ads 12
  13. 13. Fast growing market The smartphone increased 50% last year while the revenue from online mobile game had an explosive growth. Now, we have 15.000+ apps for smartphone, 100+ online mobile games in the market. The revenue is about 70 million USD for the both online & offline mobile game. The falling of high-class smartphone price will propel the growth in near future. The eco-system for business has established many years ago could help foreign developers to entering this market. Telecom revenue VAS revenue Online game revenue MOBILE LANDSCAPE Online game mobile Next year 13
  14. 14. High consumer level Vietnamese users have a higher app consumption than US users. Games are the most favorite mobile content. The pornography content is very hot with java phone but not with smartphones 10% 7% 9% 10% 16% 35% 14% App consumer Over 30 21-30 16-20 10-15 6-10 1-5 None 10% 7% 30% 10% 16% 14% 13% App consumer Over 30 21-30 16-20 10-15 6-10 1-5 None US Vietnam How many apps you downloaded the last 30 days APP BEHAVIOR 14
  15. 15. User is really active Browsing the app store is the most common method for users to find out new apps. 42% of users use the recommendations from friends and families to find new apps. Android users are more likely to look up reviews for apps on mobile websites. 0 5 10 15 20 25 30 35 40 45 50 Appstores Search engine Social network Friend recommend PC ads Mobile ads Others Android iOS % How Vietnamese users discover the new app? APP BEHAVIOR 15
  16. 16. War of OTTs app The first & No.1 chat app in market. More than 3.5M users Favorite by Korean-biz fans & young smartphone users with many casual games Favorite by young smartphone users with cool sticker & good brand awareness Vietnamese chat app by giant internet company VNG. Promoting by a lot of Vietnamese celebrities The war off OTTs began in late of 2012 with the media covering of Line, Kakao talk & Zalo. These 3 apps have paid million $ to become the No.1 in the market. Line & Kakao & Zalo has lauched their own GMO as Line Pop, Kakao Tiny Pang. In near future, these app will become the important channel to promote a GMO. APP BEHAVIOR 16
  17. 17. GMO – the new ocean Since the slowdown of the PC gaming market, along with the development of smartphone market, GMO does a boom quickly. With over 100 products in Vietnam market and will be around 150 products in the end of 2013. Not only publisher specializing in mobile game as MeCorp or TeaMobi, all the giants were involved in the market. Currently, the top game sales are still gamble game but in near future, the rate will be changed rapidly. The competition is becoming more intense, but GMO is still a new market and with many potential users. The fee for releashing a GMO is much smaller than a PC game, so many publishers could join the market. Users also prefer the popular game on the PC platform, especially classic games such as MU Online, JX Online, Gunbound, TS Online, WarFlow… The average ARPU ~ $ 2 / month. Most of the game has a life cycle ~ 6 months Fun facts about Vietnamese gamer Hard trainer: GMO & PC games gamer is similar, the ability to draft a world champion (lots of world game servers was occupied between the top position by Vietnamese). Girl posing: Gamers like posing as a girl in game, so they could receive many helps from other players. PK ( player kill) the weakers: Gamers often like PK the weaker to show their strengths. Complains: Gamers always complain about the game, the publisher & they threat to leave but no, they still playing game & joining in all events. APP BEHAVIOR 17
  19. 19. In other markets, iTunes and Google Play usually takes majority market share and bringing products to market first is fairly simple. However, in Vietnam market it is more complicated, depending on the period time by 60-90% iOS users jailbreak their devices and use regularly supply application resource other than iTunes. For Android users, although Google Play is still the main channel to search for and download applications, the users also have many different options with the dozens of downloading stores and the internet communities provide file setting in free way. The complexity and fragmentation of the smartphone market in Vietnam bring many difficulties but also create opportunities for developers. When downloading stores has cooperation policies which are flexible, they are ready to deliver your product to each user by different ways of advertising that can not be done with iTunes and Google Play. IntroductionVIETNAM MARKET ENTRY 19
  20. 20. Challenges in publishing app in Vietnam Store Publisher VIETNAM MARKET ENTRY Payment provider Advertiser Community 20
  21. 21. Freemium is a hot trending iAP app gain 10X more than PPD app, especially on Android. Paid app are easily pirated. Like many other markets, Vietnam application market for smartphone is not favored for paying to download the application. According to statistics published in 06/2012 of Appota, only 3-5% of the revenue from our applications by distributing the application from PPD and this ratio tends to decrease.  We strongly recommend you freemium model also a small game. FOR DEVELOPER 21
  22. 22. Integrate full payment tool Beside the international payment card, the other payment forms are very popular in Vietnam: SMS, scratch card, e-wallet, internet banking, multi card. As the most common form but SMS has the highest fee level (50-70% value), other forms have fee level ranges from 5-15% of the value. Currently, many products tend to collect money in the other form than SMS to ensure the profitability of the developers but SMS still is your form of payment which you should be had due to the flexibility and popularity of its.  We strongly recommend you to use SMS for small transaction, scratch card for big transaction. Use at least 2 gateways to ensure that your products run probably. FOR DEVELOPER 22
  23. 23. Social network integration is important Facebook is still the largest social network and most frequently used, although other social networks have many users, but the cohesion between members sporadic. So your application when released in Vietnam just add Facebook API is enough. Building community for players (fanpage, forums) need to do immediately in the process of preparing the eye. Chat to exchange information about game is a popular habit, it's best to create a user community to exchange, which will help you to easily control the information later.  We strongly recommend you to integrate Facebook to app & ennable open ID. FOR DEVELOPER 23
  24. 24. Need for localization Localization is the most essential with games have a lot of scripts. Although the majority of gamers can use English in basic way, playing games with this language or even Vietnamese button caused great sympathy. It does not take too much time and cost is cheap.  We strongly recommend you to re-script your game & add some specific contents for Vietnamese users. Ordinary Emoticon Hot girl Vietnam Emoticon FOR DEVELOPER 24
  25. 25. Right distribution channel The distribution channel fragmentation makes the delivery one applications/ games in Vietnam market is more complex, but also create opportunities for developers when they have chance to promote to users from the download stores that you can not accomplish on iTunes or Google Play. AppStore.Vn is now the largest community, with over 8.4 million users in which is more than 3.5 million active users every month, which was considered the largest download app store for iOS and the second largest for Android in Vietnam.  We strongly recommend you to focus on 3rd marketplaces like AppStoreVn, Vimarket… FOR PUBLISHER 25
  26. 26. Vietnam is not China Influenced by Chinese culture, because of many historical reasons, however, the modern culture of Vietnam suffers from many other streams, especially the United States. Unable to apply the rules, content from China to Vietnam users. Plese remind that, the “taste” of Vietnamese users are not similar to Chinese players or American players  We strongly recommend you ask an expert about the differences between Vietnamese culture & Chinese culture, make market research as deep as you can. FOR PUBLISHER 26
  27. 27. Corporate with wap network The small wap-site system is an important advertising channel for low-level machines which run Android, these are users who still keep habit from using java in previous time. There are thousand wap-sites with simple content who attract milion users every day.You could contact with some wapmaster networks to push your promotion to all of their users.  We strongly recommend you to try corporate with many wap-networks if your products can run on low-end device. FOR PUBLISHER 27
  28. 28. Try CPA advertising Ads via SMS is very popular with the game of gambling form, online games. However, this method likely causes the feeling from customers and suffered the restriction from the government. CPM remains the second preferred form with domestic enterprises while foreign companies prefer eCPI and CPA. However, forms of CPA is relatively new and the local partners almost have not supported yet. Some partners support the CPA : Golden Sun, Appota…  We strongly recommend you to try CPA model for easier tracking & measuring the result. CPC CPM CPI CPA FOR ADVERTISER 28
  29. 29. FINDING PARTNER 29
  30. 30. Joining the start-up community is an easy way to finding market info & getting new partners. Some common communities are: Mobile Day, Mobile Monday, bar camp, start-up weekend. Check carefully with the payment gateway about the time you could receive all the money. The co-publishing & re-publishing are very popular, so you should help your partner to make multiple version of your product. Partner GuideVIETNAM PARTNER 30
  31. 31. Publisher Partner Appota – The first smartphone content delivery, the exclusive partner of AppStoreVn. Appota in charged of full pack service for games/apps publish in Vietnam. Kichhoat & Mwork are 2 companies who have wap-network with million java low-end users. VTC Online: One of the top game publisher on PC, VTC started their mobile game business from 2009. Soha game: From VCCorp - a very big internet company in Vietnam. Sohagme has a big community from VCC’s e-commerce & entertainment site. VIETNAM PARTNER 31
  32. 32. Advertising Partner Dentsu – Worldwide advertising agency, one of the first international company who tries mobile marketing in Vietnam. Goldsun Focus Media: a member of Goldsun Group who dominates the out-door ads. This company has a big inventory of smartphone users from prestige online press like Tuoitre, Thanhnien. VseV: International company who has a lot of inventory from free Android app in Vietnam. InMobi : Top mobile advertiser in the world. VIETNAM PARTNER 32
  33. 33. Media Partner Action.vn – Exclusive ICT news from Vietnam. Action is also a consultant for whom want to join the market Topica education: The company who brings the “founder institute” programme in Vietnam IDG venture: Biggest venture-funds in Vietnam who has a large porfolio from hundred company in tech-industry AiTi Aptech : One of the best education centre for mobile industry, also an professional organizer for severals events as Mobile Monday, Mobile day… VIETNAM PARTNER 33
  34. 34. Please email us at: biz@appota.com to get full version Feel free to leave your comments and feedbacks in this post Deliver Mobile Content Fastest & Most effective 34
  35. 35. THANK YOU International research group Hanoi, Aug 2013