The age of eCommerce begins

16-Mar-2019 Intellasia | Thoi bao Ngan hang | 6:00 AM Print This Post

According to Simon Baptist, Asia Regional Executive director of Economist Intelligence Unit (UK), Vietnam is having an e-commerce boom in 2018 and in the coming years. The total revenue of e-commerce enterprises in Vietnam is equivalent to $2.26 billion per year, the following year increases from 25 percent to 30 percent compared to the previous year, making Vietnam ranked 6th among the world’s largest e-commerce markets, following China, the United States, Britain, Japan and Germany.

Looking back at 2018, the total number of buyers on e-commerce floors reached nearly 50 million and forecast for 2019, this number will increase by over 51 million, due to the increasing trend of mobile shopping, now accounts for 72 percent of orders. Currently, Vietnam has 50 million subscribers using smart phones; the proportion of people in the golden age suitable for online shopping is quite high. Therefore, e-commerce enterprises are competing fiercely to gain market share in Vietnam.

According to Zhang Yi Xing, general director of Lazada Vietnam, to proactively dominate the potential market like Vietnam, this company has invested in technology in Vietnam market more than 30 percent of the budget, for both B2B and B2C business models. Along with that, it also invested in warehouse system throughout Vietnam, applying free delivery policy to 10 provinces and cities nationwide. In addition, it also developed new forms of delivery (with electric bicycles with large containers, which helps reduce transportation costs and time).

Similarly, other big e-commerce names like Tiki and Shopee also increase service (fastest delivery, cheapest price) to become the leading e-commerce sites in Vietnam market. Shopee is chosen by consumers as a site with strengths in shopping for fashion, beauty and food; Mobile World is considered to be preeminent in the field of technology, electronics, consumer electronics; Sendo and Tiki have a plentiful amount of goods, reputable fast delivery services.

In the coming time, Vietnam is forecasted to be a potential e-commerce market, with an estimated scale of up to $10 billion in 2020. Therefore, foreign capital flows are still continuing to pour into the domestic e-commerce enterprises, creating constantly many markets fluctuation and change based on the main development platforms.

Accordingly, mobile shopping applications will be the most popular form of purchase, followed by shopping via social networks. Recognition of the Department of E-Commerce and Digital Economy (Ministry of Industry and Trade) showed that in 2018, the rate of purchase via Facebook reached 70 percent with more and more individuals participating in e-commerce through this platform.

Simon Baptist said that the most important factor in e-commerce competition in Vietnam today was price. The businesses had sources of goods in place; cheaper prices will be more beneficial. In particular, the current policies on e-commerce in Vietnam had been quite adequate, in which, businesses were allowed to be promoted, 100 percent discount applied throughout the market. From here, it would create more advantages for buyers, promoting rapidly market development.

 

Category: Business, Vietnam

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