2012 vietnamese internet users online buying and selling behaviour


Published on

Published in: Business

2012 vietnamese internet users online buying and selling behaviour

  1. 1. Vietnamese InternetUsers Online BuyingAnd Selling BehaviorResults of an online-surveyamong 2,495 internet users aged18 - 54Fieldwork: 20 July – 13 August , 2012 1
  2. 2. Conditions of Use and Copyright Readers are welcome to use the data contained in this report for their own purposes provided they acknowledge the source and both Acorn and Epinion as the authors.
  3. 3. Research Purpose and Methodology • Purpose: To understand Vietnamese internet users online buying and selling behaviour • Roles in the Joint Study: – Acorn – study & questionnaire design, charting, analysis and reporting – Epinion- programming, selection of respondents & online administration • Respondent selection criteria: – Existing members of Epinion’s online panel – Aged 18 to 54 – Quotas placed on age to be representative of Vietnam’s internet using population – Nationwide coverage • Methodology: Online survey via emailed invitation -July/Aug ‘12 • Length of interview: maximum 20 minutes • Sample size: n=2,495 • Data Analysis: Data post-weighted to reflect actual internet usage age ranges in Vietnam
  5. 5. Sample Profile (Online Respondents)Gender Age 38% 36% 26% Male 47% 53% Female 18-24 yo 25-34 yo 35-54 yoIncome /SES Education 2% Secondary school and A+ 13% 11% under A 29% High school B 33% 24% University - without 63% degree C 16% University - with degree F-D 10% Base: All respondents, n=2,495
  6. 6. Online UsersInternet UsageHow long have they been using How many hours per day dothe Internet? they spend online? More than 5 43% 6% hours 15% Less than 3 years 4 to 6 years 28% 3-5 hours 34% 7 to 9 years 21% 10 to 12 years 1- 2 hours 20% Over 12 years 30% Less than 1 2% hour Average internet Average internet use usage 8.5 years 5 hours per day Ref: How many years have you been accessing the internet? / How many hours do spend online each day? Base: All respondents, n=2,495
  8. 8. Online Window Shopping & Buying 0.3% 12% No 99.7% Yes 88% Ever Visited Online Shopping Sites Ever Bought Anything Online Everyday 72% More than 25 times 20% Once/week or more 22% 11-25 times 14% Once/month or more 3% 6-10 times 20%Once/3 months or more 2% 3-5 times 21% Less often 1% Less than 2 times 14% Visit frequency Purchase frequency Ref: How often do you visit online shopping sites and/or buy and sell sites/auction sites? / How many times have you bought something online? Base: All respondents, n=2,495
  9. 9. Online UsersBuyer Segments 8% 7% 8% 8% 4% 5% 3% 4% Never bought & dont 12% 11% intend to 14% 17% Never bought but might in future 36% Ever bought, just 1-2 40% 41% times 45% Moderate buyer (3-10) Heavy buyer (>10) 41% 37% 33% 26% TOTAL 18-24 yo 25-34 yo 35-54 yo Ref: How many times have you bought something online? / How likely are you to consider buying something online? Base: All respondents, n=2,495
  10. 10. Online UsersDevices Owned & Used to Access Shopping Sites 76% Device owned 63% 64% Device used to access shopping sites 47% 45% 37% 22% 16% 12% 8% Laptop PC at home Feature phone with Smart phone Tablet 3G/GPRS Ref: Which of the listed items you personally own / Which device do you use to access online shopping sites/buy and sell/auction sites? Base: All respondents, n=2,495
  11. 11. Types of Online Shopping Websites Individuals /small companies post new/used Site owner bulk buys goods and services items for sale online paying site owner to post from suppliers and resells them to ad. Payment and delivery settled directly consumers as redeemable coupons at between poster and buyer. discounted rates. Payment usually COD Classified Ads Sites Coupon sites Examples Example sites: - 5giay.vn - Muachung.com - Rongbay.com - Cungmua.com Vietnam’s Online - Muare.vn - 123mua.vn - Nhommua.com Shopping Website Types Proprietary online stores owned by one Similar to classified ad sites but for more company – normally bigger companies – serious small businesses to make mass often sell electronics. Promoting online sales. Payment may be via site or direct payment but can also be COD. to poster. Good delivered by poster. Online retail sites Commercial sites Eg Examples - Thegioididong.com - Vatgia.com - Fptshop.com - Aha.vn
  12. 12. Examples of Key Websites by Shopping Site Type Coupon sites Classified Ads Commercial Online retail sites sites sites 51deal.vn 123mua.com aha.vn fptshop.com.vn cucre.vn 5giay.vn vatgia.com thegioididong.com cungmua.com chodientu.vn cungmuasam.net ebay.vn hotdeal.vn enbac.com khuyenmaivang.com muaban.net muachung.vn muaban24h.com.vn nhommua.com muare.vn vndoan.com raovat.vn rongbay.com
  13. 13. Online UsersType Of Shopping Websites Visited Most Often 79% 82% 76% 80% 77% 18-24 yo 75% 75% 75% 25-34 yo 35-54 yo 46% 52% Total 46% 43% 28% 29% 29% 25% Coupon site Classified Commercial site Online retailer site Muachung.com 5giay.vn Thegioididong.com Vatgia.comEXAMPLES >>Hotdeal.vn Rongbay.com Fptshop.com Aha.vn Ref: Which of the following sites have you visited in the past month please tick all those you have visited? Base: All respondents, n=2,495
  14. 14. Online ShoppingMost Popular Shopping Website Types & Conversion Rates Visited 79% 76% Purchased 65% 46% 29% 28% 13% 11% Coupon site Classified Commercial site Online retailer siteConversionrates (%) 82% 38% 28% 39% Ref: Which are the following shopping/buy & sell/auction sites you visit the most often? / Which of these sites did you make your last three purchases from? Base: All respondents, n=2,495
  15. 15. Online ShoppingItem Categories Bought Online# of items 6 Bought 70% 5 Median # times 60% 5 61% 50% 4 40% 42% 3 37% 3 3 3 3 30% 3 32% 31% 26% 24% 24% 24% 2 2 2 20% 2 23% 22% 21% 2 2 2 2 2 2 16% 16% 14% 10% 1 12% 1 0% 0 -10% Ref: What categories of products have you ever bought online / Please indicate the number of times you have bought items in each category online . Base: Online Buyers, n=2,197
  16. 16. Online ShoppingCategories Less Suited to be Sold Online Bought 61% Not Appropriate to be sold 42% 37% 32%32% 31% 29% 26% 24% 24% 23% 24% 24% 23% 21% 22% 20% 18% 16% 16%16% 15% 14% 12% 12% 10% 10% 9% 8% 5% 4% 4% Ref: What categories of products have you ever bought online / Which products categories are NOT APPROPRIATE to be sold online in your opinion? Base: Online Buyers, n=2,197
  17. 17. Online ShoppingMethod of Order Placement for Online Purchases Telephone vs Direct Online Order Placement Share of total orders 31% 96% 69% 71% Has placed order directly online Ordered directly online Has placed order via telephone Placed order via phone (after search) Ref: How many of the purchases you have ever made online were: a) directly ordered online and b) ordered via a telephone hotline (for direct delivery) after an online search? Base: Online Buyers, n=2,197
  18. 18. Online ShoppingAverage Spend for Last Purchase & Payment Mode 367,000 VND Mean spend (last purchase) 400,000 750,000 400,000 4% 10% Cash on delivery 750,000 Debit card online 3% 4% Credit card online 750,000 2% Third party online 400,000 Online bank transfer Check/cash sent first 77% Ref: How much did you spend on your last online purchase? When buying something online, how do you pay most often? - MEDIAN Base: Online Buyers, n=2,197
  19. 19. Online ShoppingSatisfaction Compared to Face-to-Face Shopping Somewhat 29% 37% Much 22% 9% 3% Better than face to face About the same as face to face Worse than face to face instore shopping instore shopping instore shopping Ref: How satisfied are you with the experience of shopping online compared with normal. Base: Online Buyers, n=2,197
  20. 20. Online ShoppingFuture Intention to Keep Buying Online 7% 7% 67% 64% Negative Positive Intention to buy online again Recommendation to others Ref: How likely are you to shop online again? / Would you recommend shopping online to your friends and relatives? Base: Online Buyers, n=2,197
  21. 21. Online Window ShoppersBarriers to Buying Online for Non-Shoppers 100% n=2,495 Yes No 99.7% 12% 9%0.3% 99.7% 88% 12% 25% 75% n=2,487 n=291 n=218Ever visited online Ever bought Ever wanted to buy Shopping sites something but didn’t Reason for Not Buying the Item Seen Online & Desired (that could afford) Price -more expensive than in the shops 40% Prefer to see and touch 32% Quality/appropriateness - not sure it was fit for purpose 30% Availability - didnt have the type I wanted 25% Fear- Afraid my payment details will be hacked 14% Payment - I had no way to make payment 12% Delivery - Slow delivery, its quicker to buy it myself 6% Delivery - I fear the goods will not be delivered after paid 3% Ref: Did you ever see anything at online shopping sites/auction/buy & sell sites that you wanted to buy and had enough money to afford? / Why did you not buy the item(s) - what were the reasons? Base: All respondents, n=2,495
  22. 22. Non-ShoppersLikelihood to Buy Online in the Future 14% 8% Very likely 16% Somewhat likely Might of might not 20% Somewhat unlikely Very unlikely 43% Ref: How likely are you to consider buying something online in the future? Base: Internet users who window shop but have never bought anything online & who never visit online shopping sites, n=298
  23. 23. Non-ShoppersAttitudes to Shopping Online Making payments for goods bought from the internet is dangerous 76% 4% Buying things online saves time over buying things face to face 66% 11% I generally trust people & companies selling things online 65% 16% I would buy things online if there was a safe payment & delivery system 63% 17% You can get the same quality at a cheaper price on the internet 60% 19% Just about any service or product can be sold over the internet 54% 32% There are safe ways to pay for things over the internet 50% 31% I do not ever see myself buying anything over the internet 46% 32% The internet is a good place for finding out about products & window… 43% 31% The internet is a great source for finding out about new products 41% 32% In the future, all Vietnamese with internet access will buy things online 40% 38%You can be reasonably sure that goods will be delivered after bought online 40% 34% Negative statement Agree Disagree Ref: How much do you agree or disagree with each of the following statements? Base: Internet users who window shop but have never bought anything online & who never visit online shopping sites, n=298
  25. 25. Online Selling BehaviorIncidence and Top Categories Sold Ever Sold Online 66% Product Types Sold (%) Yes 37 Sold No 34% 33 Only Second hand items 28 17 16 14 11 11 34% 6 6 6 n=849 4 5 4 5 5 4 2 3 2 3 2 3 2 2 1 2 1 Ref: Have you ever SOLD anything over the internet, either via an auction site or your own website? / What kind of products have you sold online? Base: All respondents, n=2,495; Online sellers, n=849
  26. 26. Online Selling BehaviorType of Goods Sold NEW BOTH 2nd HAND 33% 30% 37% Ref: Was the item(s) you sold new or second-hand/used? Base: Online sellers, n=849
  27. 27. Online Buying and Selling BehaviorMost Popular Categories Sold 53% Bought 37% Sold 32% 28% 27% 23% 21% 21% 21% 20% 19% 18% 13% 14% 14% 13% 11% 9% 5% 4% 4% 2% 1% 2% 1% 1% 1% 2% 1% 1% 0% 0% Ref: What categories of products have you ever bought online? What kind of products have you sold online? Base: All respondents, n=2,495
  28. 28. Online Selling BehaviorType Of Websites Used by Sellers 79% 76% 65% Visited Purchased 46% Sold 29% 28% 21% 13% 11% 8% Coupon site Classified Commercial site Online retailer site Ref: Which are the following shopping/buy & sell/auction sites you visit the most often? / Which of these sites did you make your last three purchases from? Base: All respondents, n=2,495
  29. 29. Online Selling Behavior 100% n=2,495 Ever Sold Online Satisfaction with result 34%; n=849 Satisfied 61% 34% Future online selling likelihood Dissatisfied 17% Likely 57% 66% 66%; n=1,646 Unlikely 18% Yes No Top 3 Barriers to Taking Up Internet Selling Sourcing the product to sell 46% Advertising/promoting the item to the audience 42% Deciding what to sell 42% Establishing and controlling the payment system 40% Ensuring the delivery of product 26% Trusting the buyer 22% Setting the price 21% Handling tax implications and accounting 17% Ref: How satisfied were you with the result of selling online? / How likely are you to try to sell something online in the future? / From this list what would be the top three most barriers that you believe you would face in conducting or setting-up online sales? Base: All respondents, n=2,495; Never sellers n=1,646
  31. 31. Executive SummaryOnline Shopping Incidence and Behaviour• Virtually all (99.7%) internet users have visited a shopping site online and 72% do so everyday• Two-thirds of Vietnamese online shoppers access shopping sites online and 45% do so on a desktop PC – only 22% use their smartphone and just 8% use a tablet• A staggering 88% have ever bought something online, with 20% claiming more than 25 purchases to date and a median of 8.75 purchases• Most have bought things through coupon sites (65%) and classified ad sites (29%), with 13% buying through commercial sites and 11% through online retailer sites• Even among the 12% who have never bought anything online, 4% do not rule out the possibility that they will – nor are never-shoppers more prevalent among the older age groups, indeed older respondents (35-54 years) appear to contain more heavy buyers than younger age groups• Most commonly bought items are fashion (61%), house appliances (42%), food and beverages (37%), mobile devices (37%) and cosmetics (31%). Least likely to have been purchased online are phone apps and software (12%).• Average (median) spend on last item purchased was approx. VND 367,000 (US$ 17.6), though 8% said they spent over 5 million VND (US$ 240)
  32. 32. Executive SummaryOnline Shopping Incidence and Behaviour• But given poor access to credit and low bank usage in Vietnam, cash on delivery dominates e-commerce in Vietnam - three quarters of last purchases were by cash on delivery to home and only 5% made by credit or debit card• Vietnamese on-line buyers feel comfortable buying online - with a plurality (38%) believing that online shopping is better than face-to-face shopping, while just 25% feel it is worse and two-thirds saying they will buy online again in future• They also believe most items can be sold online – though electronic devices and mobile devices are thought to be least appropriate to be bought online, while few people reject buying travel services and tickets onlineNon-buyers• Among never buyers, around 75% have window-shopped online and wanted to buy something that they could afford, but did not buy it, with 40% citing the higher price online than in the shops as the major disincentive, followed by the need to touch and feel the objects (32%)• Trust appears to remain a barrier among those who have never bought online. Three-quarters agree that making payments remains dangerous and less than half (40%) agree that you can be reasonably sure of delivery if you buy something over the internet.
  33. 33. Executive Summary• Over half also appear to enjoy the shopping experience and finding out about new products the old fashioned wayOnline Selling Incidence• While 88% have ever bought online, just 34% have ever sold anything online –with the incidence of selling new and used goods being roughly equal• Nevertheless, interest in selling online is high even among those who have never done so – with over half (57%) saying they will likely sell something online in future• However, potential sellers are put off from selling online primarily by not knowing where to source merchandise (46%), or what to sell (42%), or how to advertise/promote the product online (42%) or establishing a payment system (40%)• The most common items sold online are mobile devices (13% of all respondents have sold these online), fashion items (9%) and electronic devices (3%) and these are mostly sold over classified sites (21%)
  34. 34. Executive SummaryConclusions• Persons who join internet panels are self-selected and hence can be expected to be more active online than the average internet user. But even accounting for this, this survey indicates that internet commerce is here to stay in Vietnam and can only be expected to grow.• Vietnamese netizens feel comfortable online and a surprising number have bought (88%) and sold (34%) online already.• However, online commerce in Vietnam has adopted a peculiarly Vietnamese flavor in accordance with the state of financial development. Three quarters of transactions are completed using cash on delivery whereby a delivery man rides the ubiquitous motorcycle to your door to deliver your order. Credit and debit cards are so rare that only 5% of last transactions were paid in this way.• Trust in payment systems, and doubts about whether goods will be delivered also remain as significant barriers to online commerce in the minds of never buyers – even though two-thirds agree that online purchases save time, and possibly money over face to face shopping.• But as confidence in the banking and payments systems improves, these barriers are also likely to slowly dissolve and internet commerce can only thrive and grow.
  35. 35. FOR MORE INFORMATION CONTACT: Acorn VietnamContact : Pham Tran Nghia Contact: Bill PritchardEmail : pham.tran.nghia@epinion.vn Email: william@acorn.com.vnTel: +84 905 025 752 Tel: +84-8-3823-3007