E-commerce: A fierce competition in the domestic market
An exciting year of Vietnam's e-commerce industry has passed, with a forecast of retail sales (B2C) of about 6 billion US dollars. However, it is worth noting that the expansion of foreign enterprises in the domestic market, along with the difficult steps of domestic enterprises.
No longer in a struggle like every year, the group of retail e-commerce businesses, following the model of foreign marketplaces (Marketplace) is increasingly dominating the group of domestic businesses by creating barriers to spending. Very expensive fees.
Year-end shopping season is an opportunity for competitive e-commerce companies to attract foreign users and business groups to effectively take advantage of this time to show their financial potential. As always, Lazada Vietnam, an enterprise invested by Alibaba, is the unit to activate the year-end shopping season. With the goal of 5 times the revenue compared to the normal day, Lazada Vietnam brings 150,000 promotion items from 9-11-11. After that, the company continued to organize the event entitled "Online shopping revolution" on 12-12. This is Lazada's biggest discount year with many promotions, discounts, all orders are delivered for free on this day.
Shopee, a big rival of Lazada from Singapore, also launched a campaign called Super Sale to compete with Lazada's shopping revolution. From December 12 to 14, at Shopee, there are hundreds of products with Flash Sale discounts, along with additional discounts for bank card owners, from 10 to 20% of order value. Meanwhile, fashion retailer Zalora also launched the Online Fever program across Southeast Asia. After Zalora Vietnam was acquired by Central Group (Thailand), this unit continues to implement this discount program for four days from 12 to 15 December. The focus of the event is December 12 with thousands of discounted fashion and accessories.
Not to be outdone, two domestic enterprises, Adayroi.vn and Tiki.vn, also chose 12-12 for their big discount event. Adayroi's promotion lasts from 12 to 14 December, in addition to high discounted items, there is also a 25% cashback program for online payment orders.
In Tiki, promotions last from December 12 to December 15.
To prepare for the busiest shopping season of the year, Lazada Vietnam has put four new order processing centers into operation to minimize the "congestion" of orders as in previous years. But the special point of this year is the first time, Lazada Vietnam offers a 50% discount program for sellers on this platform. The program also did not publish a time limit to stop applying.
The move to support delivery and discount discount of Lazada Vietnam is to deal with the growth of Vietnam Shopee. Although new to the market for only two years, Vietnam Shopee is experiencing impressive growth with many policies to support sellers and buyers. For example, for buyers, this unit supports free delivery, no collection of household fees. As for the seller, besides not charging, Vietnam Shopee also offers training programs on sales skills, customer care ... for free. "We do not have a plan to stop supporting sellers and buyers in the near future," said Tran Tuan Anh, Director of the finance and operation section of Shopee Vietnam.
Previously, Shopee Vietnam was C2C platform (customers with customers), now they have opened Shopee Mall service to attract brand-name businesses. Promotion season at the end of 2017, Vietnam Shopee participates with more than 100,000 products, expected to increase five times sales compared to normal days.
The advantage of "players" has large capital
It can be said that Vietnam's e-commerce market is strongly affected by foreign enterprises in the capital market. In the SWOT business analysis model, there is a factor that challenges the entry into the industry, but the race for market between Lazada Vietnam and Shopee Vietnam is creating a big barrier for domestic enterprises. .
Accordingly, if Lazada Vietnam creates a barrier with huge investment costs in advertising campaigns to attract users, Vietnam Shopee will spend a lot of money to support delivery and collection services. Although both businesses did not disclose the amount of investment in both advertising and delivery sectors in Vietnam, experts in the e-commerce industry could estimate.
According to the report that Sea, the parent company of Shopee, said in the first three months of this year, Shopee averages 30,000 orders a day in Vietnam. For every order Shopee Vietnam supports VND 50,000 for delivery and VND 30,000 for collection fees. Not all orders are eligible to be supported by Shopee, but only 50% of the above orders are qualified, Shopee's support costs have reached tens of billions of dong per day.
Thus, in order to be competitive and survive, domestic enterprises need the support from foreign investors, but the cost barriers created by Shopee Vietnam and Lazada Vietnam also make many investors must falter.
Since receiving nearly VND400 billion of VNG's investment in 2016, Tiki.vn has invested heavily in infrastructure, warehousing and human resources. Some sources say the unit is in talks with Amazon.com (USA) or JD.com (China), which is most likely JD.com. These are the two units that Tiki.vn's operating model is closest to.
Except Adayroi, which is still a strategic project of Vingroup and Sendo.vn, still cared for by FPT, the existence of other domestic e-commerce floors is also precarious due to the dominance of foreign groups.
Similarly, niche markets such as agricultural products and specialties of Sandacsan.com (Viettel) or Badasan.com.vn (VNPost) are also difficult to make a mark on the market without breaking the above barriers.
The "key" comes to success
At the seminar "E-commerce solutions - For businesses to be more successful" organized by the Trade Promotion Department of the Ministry of Industry and Trade on December 12 in Hanoi, the speakers gave data showing Vietnam Nam is considered one of the fastest growing e-commerce countries in the world, at 35% per year (2.5 times higher than Japan).
According to the Department of E-Commerce and Digital Economy (Ministry of Industry and Trade), if small and medium enterprises spend more than 30% of their budget on technology, it is likely that revenue will increase 9 times compared to enterprises with less than 10 %
Citing current trends, Ms. Lai Viet Anh, Deputy Director of the Department of E-Commerce and Information Technology, under the Ministry of Industry and Trade, said that one of the "keys" to export growth during the public era. The current technology is e-commerce.
Viet Anh said many micro businesses have effectively utilized Facebook and e-commerce to sell goods to many countries, helping them reduce intermediaries and reduce costs, thereby bringing goods. Direct chemistry to consumers and achieve the highest profit.
If small and medium enterprises spend more than 30% of their technology budget, it is likely that revenue will increase 9 times compared to enterprises spending less than 10%.
Statistics on Alibaba floor showed that 10 million small and medium enterprises worldwide participated and about 70% found opportunities on this floor, while Facebook has 50 million businesses participating. Since then, Ms. Viet Anh said that small and medium enterprises have an advantage over large enterprises in reorganizing their business model based on information technology foundation. There are many support packages on the market to help businesses optimize their business strategies.
Data from the E-Commerce and Digital Economy also showed that 55% of businesses said that revenue from B2B online sales increased more than 10% in 2016 and 22% of businesses have more. 40% of customers choose to order online.
Statistics on Alibaba, which is 10 million small and medium enterprises worldwide, about 70% found opportunities on this floor, while Facebook has 50 million participating businesses. Since then, Ms. Tiếng Việt được biết mà một small và Medium Enterprises có một đối số lớn hơn trong cơ sở dữ liệu này Có nhiều gói được hỗ trợ trên chế độ ứng dụng cơ sở dữ liệu nội bộ.
Data from the E-Commerce and Digital Economy also shows that 55% of businesses said that from B2B online sales increased more than 10% in 2016 and 22% of businesses have more. 40% of customers choose to order online.