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E-commerce  and  Groupon-like with Magento Nguyen Vu Hung, HanoiLUG 2011/12/17 PHP Day 2011, Hanoi
Agenda 1. Self Introduction 2. Business Model 3. Revenue Model 4. Views of Sellers and Buyers 5. Groupon-likes in Vietnam ...
Self Introduction <ul><li>A FOSS activist
Offshore software development
System Adminnistrator
High Availability Engineer
2 years working with Magento
About to start a new business with Magento </li></ul>
<ul>GROUPON BUSINESS MODEL </ul><ul>Customer signs with Groupon </ul><ul>Deal reaches critical mass </ul><ul>Customers pay...
<ul>A BETTER  BUSINESS MODEL </ul><ul>Customer signs with Groupon </ul><ul>Deal reaches critical mass </ul><ul>Customers p...
No payment needed </li></ul>
<ul>NEW   REVENUE  MODEL </ul><ul>Customer signs with Groupon </ul><ul>Deal reaches critical mass </ul><ul>Customers pay G...
<ul>Business Model Keypoints </ul><ul><li>Free on submission for merchants
Pay for top posting
Social marketing
Printed/Mail/SMS based scout/discount </li><ul><li>Directly sent to user’s email </li><ul><li>OSOS takes no commission, ch...
Users’ feedback (non-biased) </li><ul><li>Feedback ranking, lottery for writing feedback (coupon?) </li></ul><li>Prefectur...
Service classification
Monthly discount/lottery
“ User-only price” </li></ul>
ECONOMIC CHARACTERISTICS Notable sources:  Plusses <ul><li>Brand
Economies of scale (‘winner takes most’) </li></ul>Negatives <ul><li>Lack of network effect
No technology barriers to entry
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Nguyen Vu Hung: E commerce and groupon-like with magento

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E-commerce and groupon-like (group like) with Magento.

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Nguyen Vu Hung: E commerce and groupon-like with magento

  1. 1. E-commerce and Groupon-like with Magento Nguyen Vu Hung, HanoiLUG 2011/12/17 PHP Day 2011, 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. Self Introduction <ul><li>A FOSS activist
  4. 4. Offshore software development
  5. 5. System Adminnistrator
  6. 6. High Availability Engineer
  7. 7. 2 years working with Magento
  8. 8. About to start a new business with Magento </li></ul>
  9. 9. <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>
  10. 10. <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
  11. 11. No payment needed </li></ul>
  12. 12. <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>
  13. 13. <ul>Business Model Keypoints </ul><ul><li>Free on submission for merchants
  14. 14. Pay for top posting
  15. 15. Social marketing
  16. 16. 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
  17. 17. Users’ feedback (non-biased) </li><ul><li>Feedback ranking, lottery for writing feedback (coupon?) </li></ul><li>Prefecture-based
  18. 18. Service classification
  19. 19. Monthly discount/lottery
  20. 20. “ User-only price” </li></ul>
  21. 21. ECONOMIC CHARACTERISTICS Notable sources: Plusses <ul><li>Brand
  22. 22. Economies of scale (‘winner takes most’) </li></ul>Negatives <ul><li>Lack of network effect
  23. 23. No technology barriers to entry
  24. 24. No switching cost for merchants and customers
  25. 25. Scaling is expensive (sales people on the ground)
  26. 26. High cost of customer acquisition </li></ul>http://techcrunch.com/2010/10/17/why-groupon-is-no-ebay/
  27. 27. <ul>Seller's views </ul><ul><li>Benefits (compared to Groupon) </li><ul><li>Online marketing cheaper than Groupon
  28. 28. Be able to manage its own customers
  29. 29. Mail marketing
  30. 30. Networking with its customers
  31. 31. 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>
  32. 32. <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>
  33. 33. Muachung: Backed up by a big media commany: VC CORP
  34. 34. Backed up by diadiem.com, and a PR commany in the group
  35. 35. Social network marketing
  36. 36. With phununet
  37. 37. Magento Main Features: Checkout Payment (Bảo Kim, Ngân Lượng) Customer Account Order Management Mobile Multi Store
  38. 41. The Problems with Groupon <ul><li>High Commission
  39. 42. Unstable
  40. 43. Can not secure customers
  41. 44. Not really effective PR </li></ul>
  42. 45. Related topics <ul><li>Marketing
  43. 46. Digital Marketing
  44. 47. Media Backup
  45. 48. Social networking (Facebook, Twitter) </li></ul>
  46. 49. Thank you Q&A Nguyen Vu Hung, HanoiLUG Email: [email_address] Twitter: @vuhung Facebook: vuhung16plus@gmail.com http://www.slideshare.net/vuhung16plus/
  47. 50. References <ul><li>http://www.magentovietnam.com/
  48. 51. http://www.sieumua.com/
  49. 52. http://www.magentocommerce.com/
  50. 53. “A study on Groupon.com” on Slideshare.net
  51. 54. “Groupon business model” on Slideshare.net </li></ul>
  52. 55. E-commerce and Groupon-like with Magento Nguyen Vu Hung, HanoiLUG 2011/12/17 PHP Day 2011, Hanoi

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