E commerce and groupon-like with magento

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E commerce and groupon-like with magento

  1. 1. E-commerce and Groupon-like with Magento Nguyen Vu Hung, HanoiLUG 2012/01/ AITI-APTECH, Hanoi
  2. 2. Agenda 1. Self Introduction 2. Business Model 3. Revenue Model 4. Views of Sellers and Buyers 5. Groupon-likes in Vietnam 6. Groupon-like with Magento 7. So, what are the problems 8. Related topics 8. A New Business Model 9. Q&A
  3. 3. Agenda (2) 1. Self Introduction 2. Business Model 3. Revenue Model 4. Views of Sellers and Buyers 5. Groupon-likes in Vietnam 6. Groupon-like with Magento 7. So, what are the problems 8. Related topics 8. A New Business Model 9. Q&A
  4. 4. Self Introduction <ul><li>A FOSS activist
  5. 5. Offshore software development
  6. 6. System Adminnistrator
  7. 7. High Availability Engineer
  8. 8. 2 years working with Magento
  9. 9. About to start a new business with Magento </li></ul>
  10. 10. <ul>GROUPON BUSINESS MODEL </ul><ul>Customer signs with Groupon </ul><ul>Deal reaches critical mass </ul><ul>Customers pay Groupon </ul><ul>Payments spread out in 3 installments over lifecycle of deal, leading Groupon with negative working capital </ul><ul>Notable sources: </ul><ul>Groupon pays merchant share </ul><ul>Merchant signs up </ul><ul>Customer redeems coupon at merchant </ul><ul>http://primitus.com/blog/whats-the-secret-success-of-groupon/ </ul><ul>Groupon features deal </ul>Overcharged <ul>Can not secure buyers </ul>
  11. 11. <ul>A BETTER BUSINESS MODEL </ul><ul>Customer signs with Groupon </ul><ul>Deal reaches critical mass </ul><ul>Customers pay Groupon </ul><ul>Payments spread out in 3 installments over lifecycle of deal, leading Groupon with negative working capital </ul><ul>Notable sources: </ul><ul>Groupon pays merchant share </ul><ul>Merchant signs up </ul><ul>Customer redeems coupon at merchant </ul><ul>http://primitus.com/blog/whats-the-secret-success-of-groupon/ </ul><ul>Groupon features deal </ul><ul><li>Customers show “coupon” at merchants to get discounted
  12. 12. No payment needed </li></ul>
  13. 13. <ul>NEW REVENUE MODEL </ul><ul>Customer signs with Groupon </ul><ul>Deal reaches critical mass </ul><ul>Customers pay Groupon </ul><ul>Payments spread out in 3 installments over lifecycle of deal, leading Groupon with negative working capital </ul><ul>Notable sources: </ul><ul>Groupon pays merchant share </ul><ul>Merchant signs up </ul><ul>Customer redeems coupon at merchant </ul><ul>http://primitus.com/blog/whats-the-secret-success-of-groupon/ </ul><ul>Groupon features deal </ul><ul>Revenue = Advertisment. </ul>
  14. 14. <ul>Business Model Keypoints </ul><ul><li>Free on submission for merchants
  15. 15. Pay for top posting
  16. 16. Social marketing
  17. 17. Printed/Mail/SMS based scout/discount </li><ul><li>Directly sent to user’s email </li><ul><li>OSOS takes no commission, cheaper for customers and merchants </li></ul></ul><li>Product Review
  18. 18. Users’ feedback (non-biased) </li><ul><li>Feedback ranking, lottery for writing feedback (coupon?) </li></ul><li>Prefecture-based
  19. 19. Service classification
  20. 20. Monthly discount/lottery
  21. 21. “ User-only price” </li></ul>
  22. 22. ECONOMIC CHARACTERISTICS Notable sources: Plusses <ul><li>Brand
  23. 23. Economies of scale (‘winner takes most’) </li></ul>Negatives <ul><li>Lack of network effect
  24. 24. No technology barriers to entry
  25. 25. No switching cost for merchants and customers
  26. 26. Scaling is expensive (sales people on the ground)
  27. 27. High cost of customer acquisition </li></ul>http://techcrunch.com/2010/10/17/why-groupon-is-no-ebay/
  28. 28. <ul>Seller's views </ul><ul><li>Benefits (compared to Groupon) </li><ul><li>Online marketing cheaper than Groupon
  29. 29. Be able to manage its own customers
  30. 30. Mail marketing
  31. 31. Networking with its customers
  32. 32. Easy to scale (using existing users) </li></ul></ul><ul><li>Groupon </li></ul><ul><ul><li>Merchants pay commission on posting </li></ul></ul><ul><li>New Business Model </li></ul><ul><ul><li>Merchants pay advertisement: top-posting, banner </li></ul></ul>
  33. 33. <ul>MERCHANT PERSPECTIVE ON CUSTOMER INTERACTION </ul><ul>Notable sources: </ul><ul>Merchant </ul><ul>http://gigaom.com/2010/09/29/hey-groupon-its-time-for-a-localsocial-roll-up/ </ul><ul>Get customer to follow on </ul><ul>Offer on </ul><ul>Like it on </ul><ul>Advertise on </ul><ul>Ad. </ul><ul>Get +1 </ul><ul>Ad. </ul>
  34. 34. Muachung: Backed up by a big media commany: VC CORP
  35. 35. Backed up by diadiem.com, and a PR commany in the group
  36. 36. Social network marketing
  37. 37. With phununet
  38. 38. Magento Main Features: Checkout Payment (Bảo Kim, Ngân Lượng) Customer Account Order Management Mobile Multi Store
  39. 42. The Problems with Groupon <ul><li>High Commission
  40. 43. Unstable
  41. 44. Can not secure customers
  42. 45. Not really effective PR </li></ul>
  43. 46. Related topics <ul><li>Traditional Marketing (Newspaper, TV)
  44. 47. Digital Marketing
  45. 48. Media Backup
  46. 49. Social networking (Facebook, Twitter) </li><ul><li>Exponential growth </li></ul><li>Customer Behavior (Buyers') </li><ul><li>As cheap as it can be </li></ul></ul>
  47. 50. Xu Hướng Công Nghệ <ul><li>Mobile
  48. 51. Tablet
  49. 52. Cloud
  50. 53. Ảo hóa
  51. 54. iOS/Android
  52. 55. HTML5 </li></ul>
  53. 56. Định Hướng Nghề Nghiệp <ul><li>Kỹ năng </li><ul><li>Kỹ thuật
  54. 57. Phi kỹ thuật </li></ul></ul>
  55. 58. Lựa Chọn Ngôn Ngữ <ul><li>C#
  56. 59. Java
  57. 60. PHP
  58. 61. C++
  59. 62. Ruby, Python
  60. 63. Bash?
  61. 64. COBOL </li></ul>
  62. 65. Xu Hướng Mở <ul><li>Free and Open Source Software </li><ul><li>Google: FOSS business model </li></ul><li>Xã hội hóa nội dung </li><ul><li>Wikipedia
  63. 66. OpenStreetmap
  64. 67. OCR with Captcha-like </li></ul></ul>
  65. 68. Cồng Đồng Mã Mở Việt Nam <ul><li>Cộng đồng </li><ul><li>Lugs </li><ul><li>Vietlug, HanoiLug, SaigonLug, Ubuntu-VN </li></ul><li>VFOSSA
  66. 69. Java, Agile, Scrum </li></ul><li>Doanh nghiệp </li><ul><li>Customize, deploy: Netnam
  67. 70. Integration: iWay
  68. 71. Development: NukeViet </li></ul></ul>
  69. 72. Các Vấn Đề Khác <ul><li>SNS
  70. 73. Digital marketing
  71. 74. Bảo mật
  72. 75. Tối ưu hóa
  73. 76. High Availability </li></ul>
  74. 77. Thank you Q&A Nguyen Vu Hung, HanoiLUG Email: [email_address] Twitter: @vuhung Facebook: vuhung16plus@gmail.com http://slidesha.re/sdKrfJ
  75. 78. References <ul><li>http://www.magentovietnam.com/
  76. 79. http://www.sieumua.com/
  77. 80. http://www.magentocommerce.com/
  78. 81. “A study on Groupon.com” on Slideshare.net
  79. 82. “Groupon business model” on Slideshare.net </li></ul>
  80. 83. E-commerce and Groupon-like with Magento Nguyen Vu Hung, HanoiLUG 2011/12/17 PHP Day 2011, Hanoi

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