Thang used these slides to present at APEC SME O2O FORUM 2017 at Sheraton Hotel in Vietnam In cooperation with top e-commerce platforms such as eBay, Amazon and Alibaba, this project aims to advance and facilitate MSMEs’ access to global markets through O2O business models and best practices, and be the catalyst and facilitator paving the way for a new era of growth by making trading across borders faster, cheaper and easier for MSMEs in the APEC region. The next-step of this O2O Initiative is the project on “Enhancing SME Digital Competitiveness and Resilience towards Quality Growth”. This capacity building project, to be implemented in 2017, will establish an APEC SME O2O Expert Network and publish a comprehensive APEC SME Digital Competitiveness and Resilience Guidebook. One Summit and two capacity building fora will be organized in Chinese Taipei, Malaysia and Viet Nam in 2017.

1. O2O Business:
Opportunities and Challenges of
Modernizing SMEs Going Global
Cong-Thang HUYNH
Co Founder and CEO of VicGo
APEC SME O2O FORUM 2017 1

2. 2
• Vietnam overview
• Traditional SMEs
• Tech startup
• World trend
• Opportunities
• Challenges
• Solutions
CONTENT

3. V I E T N A M O V E R V I E W
GNI per capita – 6,050 PPP dollars
Gross domestic product – 202.6 billion USD
3
Source: World Bank (2016)
Population – 92,7 million people
Internet users – 35.5% of the population
Gross national income – 561 billion PPP dollars
GDP growth rate – 6.2% annual change
GDP per capita – 2,185.69 USD

4. 70%
Total: 612,000 4
Source: chinhphu.vn (20th April, 2017)
Number of Enterprise
in Vietnam
SME Others
70%

5. T R A D I T I O N A L S M E s
5
• Traditional chanel: wet market, wholesaler
• Lack of knowledge of digital marketing and
branding
• Little exposure in exhibition
• Only focusing on product without
checking the international standard
• Lack of technology application
Dried dragon fruit

6. T E C H S T A R T U P
6
• Too many functions that don’t solve
customers’ problems
• Struggles with sales
• Plenty of time to educate customer
• Entry barrier

7. W O R L D T R E N D
7

8. W O R L D T R E N D
8

9. 9Source: Blueskyeto

10. 10

11. 11

12. H O W D O S H O P P E R S E N D U P I N
A P H Y S I C A L S T O R E ?
12
„ Online product research and price comparisons often lead shoppers into
physical stores
„ Common paths to in-store purchases:
Browse
products
Compare
prices
Make a
purchase
Customer
support
§ In-store: 64%
§ Computer: 64%
§ Mobile phone: 23%
§ Tablet: 16%
§ Computer: 59%
§ In-store: 56%
§ Mobile phone: 22%
§ Tablet: 16%
In-store: 100% § In-store: 58%
§ Computer: 29%
§ Mobile phone: 12%
§ Tablet: 7%
Source: Euromonitor

13. H O W D O S H O P P E R S E N D U P
B U Y I N G O N L I N E ?
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„ Online shoppers stay digital throughout the shopping process
„ Common paths to online purchases
Source: Euromonitor
Browse products Compare prices
Make a
purchase
Customer
support
§ Computer: 92%
§ In-store: 35%
§ Mobile phone: 28%
§ Tablet: 21%
§ Computer: 88%
§ In-store: 29%
§ Mobile phone: 27%
§ Tablet: 21%
Computer: 100% § Computer: 60%
§ In-store: 31%
§ Mobile phone: 18%
§ Tablet: 12%

14. O P P O R T U N I T I E S
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• Engaging the customers
• E-store/ physical store integration
• Warehouse integration

15. C H A L L E N G E S
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• Loss in offline stores’ profit
• Extra workload with special care
• Conflicts between different sale teams
• Time needed to educate customer

16. S O L U T I O N F O R S M E s
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• Smart collaborations between offline and online
• Exploiting the technology to analyse customer behaviour
• Personalization
• Content

17. THANK YOU
Cong-Thang HUYNH
Co-Founder and CEO of VicGo
APEC SME O2O FORUM 2017
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