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Q&Me is online market research provided by Asia Plus Inc. All about online shopping in Vietnam Vietnam EC Market Survey

Vietnam E-commerce Report 2016

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Page 1: Vietnam E-commerce Report 2016

Q&Me is online market research provided by Asia Plus Inc.

All about online shopping in Vietnam

Vietnam EC Market Survey

Page 2: Vietnam E-commerce Report 2016

Background

In launching a product to Vietnamese consumer market, we often face the issue of “ where to sell.” In Vietnam, traditional channel is dominant while the cultivation takes time.

On the other hand, the rapid growth of the Internet and mobile usage helps e-commerce to be established as new channel rapidly. This report illustrates all the details about Vietnamese EC market and its consumers’ behaviors.

Page 3: Vietnam E-commerce Report 2016

Contents

1. The Overview of Vietnamese EC Market

2. Purchasing Behaviors of EC Users in Vietnam.

3. Satisfaction Level of the Consumers and Remained Issues.

4. Facebook Shopping

5. Reference: data

Page 4: Vietnam E-commerce Report 2016

1. The Overview of Vietnam EC Market

Page 5: Vietnam E-commerce Report 2016

Market Size of VN EC and its Growth Rate

Market reached 4.07 billion (excluding C2C shopping demand of Facebook). The growth is double of the market of Japan

35% 37%

17% 15%

2014 2015

Growth Rate of EC Market

Vietnam

Japan

Sources: “Japanese Ministry of Economy, Trade and Industry” & “VECITA”

2.2

2.97

4.07

2013 2014 2015

EC-Market Size in Vietnam (billion USD)

Page 6: Vietnam E-commerce Report 2016

Market Size of Vietnam E-Commerce

Vietnamese market size is 1%+ or approximately 4% compared with US and Japanese market respectively. It accounts nearly 3% of total retail channels

341.7

106.6

4.1

USA Japan Vietnam

EC Market Size in 2015 (Billion USD)

7.3% 4.4% 2.8%

92.7% 95.6% 97.2%

USA Japan Vietnam

EC Market Share out of Total Retailing Sales(%)

EC Retail Non-EC Retail

Sources: “US Commerce Department,” “Japanese Ministry of Economy, Trade and Industry” & “Vietnam E-Commerce Report 2015”

Page 7: Vietnam E-commerce Report 2016

Major EC Sites in VN and Monthly Access

Hot Deal:(3.3M access/month)

Major shopping site that has extra-emphasis on service sector (travel/meals)

Tiki:(7.8M access/month)

Initially started with book-selling, this site has a wide range of books and e-books. Discounts on over 90% of all products.

Zalora:(1.1M access/month)

Shopping site that is specialized in fashion brands and popular particularly among young/female.

The Gioi Di Dong: (16M access/month)

Huge shopping site in Vietnam, specialized in electronics such as mobile phones and PC.

Mua Chung: (1.2M access/month)

Major shopping site that, like HotDeal, has extra-emphasis on service sector (travel/meals)

Sendo: (9.1Maccess/month)

Major shopping site, putting great efforts in fashion products and owning another small EC site called 123Mua.

Nhom Mua: (1.4M access/month)

Major shopping site that is filled up with fashion and service sector like meals.

Source: http://similarweb.com/

Lazada (24.4M

access/month) From Singapore, this major shopping site has a wide variety of products including luxurious ones. Only major site that has both English and Vietnamese.

Page 8: Vietnam E-commerce Report 2016

2. Purchasing Behaviors of EC Users in Vietnam.

Page 9: Vietnam E-commerce Report 2016

Research Background

• Number of Respondents: 500

• Male and Female, 18~39 Years Old.

• Places: Hanoi City and HCMC

• Conducted in July 2016

42%

16%

31%

10%

Age

18-24

25-29

30-34

35-39

49%

51%

Gender

Male

Female

46%

54%

Areas

Hanoi

HCMC

18%

35%

40%

4%

3%

Lower than 5,000,000 VND

5,000,001 VND - 10,000,000 VND

10,000,000 VND - 30,000,000 VND

30,000,001 VND - 70,000,000 VND

Higher than 70,000,000 VND

Household Income

Page 10: Vietnam E-commerce Report 2016

Usage Rates of EC and Facebook Shopping

Q. How often do you use online shopping? / Have you ever bought a product via Facebook?

33% 67%

Used EC Before?

67% of Vietnamese in a city have shopped on EC. Among these people, nearly half of them have experienced Facebook shopping, which shows the high popularity of Facebook and its wide usage almost for everything in Vietnam.

47%

53%

Yes No

Yes

No

Used Facebook Shopping Before?

Page 11: Vietnam E-commerce Report 2016

The Frequency of Online Shopping

Q. How often do you use online shopping? (Including Facebook)

50% of them shop online once a month or more. 23% are considered as heavy users who shop once a week or more often.

23%

27%

15%

7%

28%

25% 26%

9% 9%

32%

22%

27%

22%

4%

24%

once/week or more once/month once/2-3 months once/6 months less than once/6months

All 18-29 30-39

Page 12: Vietnam E-commerce Report 2016

Purchased Products on EC

Top 3 are fashion, IT/mobile phone and kitchen/home appliances. Among 20s and male, IT/mobile phones and sport goods are popular. Among 30s and female, fashion, cosmetics and kitchen products are popular.

Q. Please choose ALL the products you bought online in the last 12 months.

FashionIT / Mobile

phones

Kitchen /home

appliances

Food /beverages

Books/stationeries

CosmeticsSportgoods

TicketingSPA /Beautyservices

Supplement /

Functionalfoods

Music /Video

flower/plants

All 46% 39% 35% 22% 20% 20% 13% 9% 7% 6% 5% 3%

Male 41% 54% 32% 19% 17% 7% 18% 9% 1% 7% 6% 3%

Female 53% 22% 38% 26% 23% 34% 7% 9% 14% 6% 4% 3%

18-29 41% 41% 32% 20% 22% 21% 15% 6% 7% 5% 7% 2%

30-39 54% 37% 39% 26% 16% 17% 10% 12% 7% 9% 2% 4%

Page 13: Vietnam E-commerce Report 2016

Purchased Products on EC

Q. Please choose ALL the products you bought online in the last 12 months.

1.Fashion(46%)

2.IT/Mobile(39%)

3.Kitchen/Home App (34%)

4.Food/ Drinks (22%)

5.Books/Stationary(19%)

6.Cosmetics (19%)

41% 53% 52% 22% 32% 38%

19% 26% 17% 23% 7% 34%

Page 14: Vietnam E-commerce Report 2016

Popular Online Shopping Sites

Laza

da

Face

book

HOT

DEALTiki

Cho

Tot

Mua

chun

g

Nhó

m

mua

The

Gioi

Di

Dong

Send

o

Zalor

a

Vatgi

a

Nguy

en

Kim

Shop

ping

FPT

Shop

Shop

ee

Vient

hong

a

Othe

rs

Female 49% 46% 44% 30% 20% 27% 24% 15% 18% 17% 15% 7% 8% 6% 4% 2%

Male 59% 39% 22% 18% 24% 15% 18% 23% 19% 17% 15% 13% 11% 7% 7% 2%

All 54% 43% 34% 24% 22% 22% 21% 19% 18% 17% 15% 10% 9% 7% 5% 2%

Most Used 24% 22% 9% 9% 6% 5% 4% 4% 3% 3% 2% 2% 1% 2% 1% 2%

Most Recently shopped 24% 23% 7% 11% 5% 5% 4% 6% 5% 1% 3% 2% 1% 2% 1% 1%

Lazada is dominant in every area. HOTDEAL is popular among female for its beauty services. Facebook is ranked as the 2nd channel of shopping

Q. Please choose ALL the service you have used before/ Please choose the service you use the most often/most recently.

Page 15: Vietnam E-commerce Report 2016

Popular EC Sites (EC sites that were Used Before)

1.Lazada: 54%

2.Facebook: 48%

3.HotDeal: 34%

4.TIKI: 24% 5.Cho Tot:22%

6. Mua Chung: 22%

7.Nhom Mua:21%

8. The Gioi Di Dong: 19%

9. Sendo:16% 10.Zalora:17%

Lazada is very popular as an online shopping site although Facebook shopping is also popular.

Q. Please choose ALL the services you use for online shopping.

59% 49% 40% 56% 22% 44% 18% 30% 24% 20%

15% 27% 18% 24% 23% 15% 19% 18% 17% 17%

Page 16: Vietnam E-commerce Report 2016

Devices used for Online Shopping

Smartphone usage is almost as many as PC already . In terms of Smartphone, half shop on a browser and the other half shop with a mobile app.

52%

47%

40%

29%

9% 6%

31%

25% 23%

17%

2% 1%

Home PC Smartphone(browser)

Smartphone(app)

Office PC tablet (browser) tablet (app)

All Mostly used

Q. Which devices do you use for online shopping? & the most often?

Page 17: Vietnam E-commerce Report 2016

Major Shopping Apps

Lazada(B2C)

Dominantly popular shopping site in Vietnam. The moible app users get 50,000 VND at the time of app installment and more promotions afterwards.

Cho Tot(C2C)

Able to trade among individuals. Cars and houses are sold as well. Buyers contact the sellers through chatting, telephone, SMS and e-mail. Payment and delivery method is up to them.

iCheck(Shopping App)

One of the many barcode-reading-apps. This app tells you so much information about your products such as fake/real, harmful to health, shops that have the products etc.

Quà tặng Galaxy(Shopping App)

App that sends coupons to the users. Not only fashion and meals but also karaoke and dental treatment are on discount on this mobile app.

Number of Downloads is from Google Play in July 2017.

10M – 50M Download

1M – 5M Download

1M – 5M Download

1M – 5M Download

Page 18: Vietnam E-commerce Report 2016

Reasons for Using E-Commerce

“Order it anytime/anywhere” and “wide variety of products” are the top reasons. Now that the number of large retailers is limited in Vietnam, the product variety adds its attractiveness

Q. What are the reasons that you use online shopping in general? (users only

order itanytime

order itanywhere

widevariety ofproducts

No need tocarry bymyself

Strongpromotions

goodpricing

membership / point

programs

Mobilephonefriendly

Quickdeliverytiming

uniqueproducts

Goodcustomersupport

All 47% 41% 40% 35% 29% 27% 22% 19% 18% 15% 10%

Male 51% 41% 36% 38% 26% 27% 20% 16% 20% 16% 9%

Female 43% 41% 42% 32% 31% 26% 23% 21% 17% 14% 10%

18-29 45% 39% 38% 34% 31% 28% 24% 20% 19% 14% 11%

30-39 50% 44% 42% 35% 26% 24% 18% 17% 16% 16% 8%

Page 19: Vietnam E-commerce Report 2016

Reasons for Not Using E-Commerce

concerns onproductquality

securityconcern

high prices delivery costcomfortableto physically

shop

slowdelivery time

difficult toshop

lack ofspecialgoods

Notavailable in

my area

lack ofpaymentmethods

All 57% 25% 20% 17% 16% 11% 11% 6% 5% 3%

Male 55% 27% 22% 23% 27% 10% 10% 7% 7% 3%

Female 59% 24% 19% 14% 8% 12% 12% 5% 3% 2%

18-29 56% 30% 18% 13% 12% 14% 13% 3% 2% 4%

30-39 59% 17% 24% 26% 22% 6% 7% 11% 9% 0%

Q. Why do you not use EC? only non EC users

The biggest concerns of non-users is “product quality.” It is not rare that shoppers complain that the product looks different from a photo on the web, which could lead to the concerns of “Is the product right?”

Page 20: Vietnam E-commerce Report 2016

Average Spending per Order

36% is less than 300,000VND (about 14USD), while 33% is between 300,001 and 500,000VND(about 14~24USD). Overall spending per order is relatively low.

Q. How much did you pay for that order?

36% 27%

49% 35% 36%

33%

34%

35% 43%

28%

10% 13%

8% 6%

13%

8% 9%

6% 7% 8%

5% 6%

4% 6% 4%

8% 12% 5% 4%

11%

All (614,000VND) Male(704,00VND) Female (549,000VND) Heavy User (540,000VND) Light User (656,000VND)

Less than 300,000 VND 300,001 - 500,000 VND 500,001 - 800,000 VND

800,001 - 1,000,000 VND 1,000,000 - 2,000,000 VND More than 2,000,000 VND

Page 21: Vietnam E-commerce Report 2016

Actions before Purchasing a Product

3%

2%

3%

6%

19%

20%

47%

Others

TV commercials orprograms

Window shopping(physical store)

Friend`s/Family`srecommendation

Social Network such asFacebook

Browing EC site

Net surfing

Product Recognition

4%

3%

9%

10%

14%

23%

39%

45%

61%

Others

Buy straight

Check product at physicalstores

Check pricing of the othercountries

Ask friends for advice

Check the pricing atphysical stores

Search product detail onweb

Product review check

Compare at other EC site

Actions Before Ordering

“Net surfing” is very common way to initially recognize a product. Price comparison at other EC sites is the next major step. Common user behaviors are compare the pricing at online (international / domestic) and even offline.

Q. What was the first reason for knowing the product you purchased? Q. Please choose if you have taken any of the following actions before purchasing the product.

Purchase

Page 22: Vietnam E-commerce Report 2016

Places where EC Users Order and Receive.

About 70% of EC users order and receive products at home. One-fourth of EC users order and receive products at an office. Although delivery place is decided during placing an order, it is very common that delivery staff will make a call in advance, to avoid unnecessary delivery loss.

Q. Where did you order the product from? & Where did you receive your product at?

HOME

OFFICE

HOME

OFFICE

66%

8%

74% 73%

19%

7%

26% 27%

Page 23: Vietnam E-commerce Report 2016

3. Satisfaction Level of the Consumers and Remained Issues.

Page 24: Vietnam E-commerce Report 2016

Satisfaction Level about EC-Sites

12%

52%

34%

1% 1%

Very satisfied

Satisfied

Average

Dissatisfied

Very dissatisfied

Two-third of EC users are either “satisfied” or “very satisfied” with EC sites that they are using.

Q. How much are you satisfied with this EC site?

Page 25: Vietnam E-commerce Report 2016

Reasons for Satisfaction with EC

“Product variety” is the top reason. Product variety is even more satisfactory among 30s who often purchase fashion and cosmetics. Also, price satisfaction is equally as high as large players are aggressive on promotions.

Q. What are the things you are satisfied with?

product variety price delivery speedpaymentmethod

promotion/discount

deliverylocationflexibility

customersupport

product quality

All 52% 45% 35% 32% 30% 22% 20% 15%

Male 53% 50% 29% 32% 26% 18% 16% 13%

Female 51% 39% 41% 31% 34% 26% 24% 19%

18-29 46% 45% 37% 30% 26% 21% 20% 15%

30-39 60% 45% 31% 34% 33% 23% 19% 16%

Page 26: Vietnam E-commerce Report 2016

Reasons for Dissatisfaction with EC

“Product quality” is the top reason. Common voices heard as “a product was different from picture.” Also, delivery cost is picked up as secondary, although major EC sites offer free-delivery from 100,000VND(5$). This implies the price sensitiveness of Vietnamese consumers

Q. What are the things you are satisfied with? (MA)

product quality delivery cost delivery speedcustomersupport

cancellationflexibility

pricepromotion/disco

untproduct variety

All 35% 22% 19% 11% 9% 8% 8% 6%

Male 34% 22% 22% 13% 8% 10% 6% 7%

Female 36% 22% 16% 9% 11% 6% 10% 4%

18-29 32% 23% 18% 9% 7% 11% 11% 5%

30-39 39% 20% 21% 13% 11% 5% 4% 7%

Page 27: Vietnam E-commerce Report 2016

Payment Methods

85% of EC users choose cash on delivery as a payment method.

On the other hand, heavy users use credit/debit cards and bank transfer more often, so consumer`s concern about purchasing may lead to cash on delivery.

Also, high usage rate of cash on delivery results in high order cancellation rate in Vietnam.

Q. How did you make a payment for that order? ※”Heavy User” is someone who shops on EC once in 2/3weeks or more. “Light User” is someone who shops on EC once/month or less.

85% 76%

90%

6%

10%

4% 8%

14% 5%

All Heavy User Light User

cash on delivery credit card/debit card bank transfer

Page 28: Vietnam E-commerce Report 2016

Credit Card Situation in Veitnam

Source: The State Bank of Vietnam

1.6

2.4

3.3

2012 2013 2014

Cumulative Number of Credit Card Issuance in Vietnam

(million)

The number of credit cards increases every year, and there are 3.3 million credit cards by the end of 2014. But this is only 1 in 30 people.

While credit card usage rate is very low, some businesses offer solutions to improving online payment process. Each business has a common strategy: cooperating with banks and credit card issuers and implementing online payment for EC users instead of those banks and credit card issuers. Hence, online payment service becomes better and easier, improves EC`s convenience and wipes out distrust towards the use credit cards.

Page 29: Vietnam E-commerce Report 2016

About Order Cancellation

More than 30% of people have made cancellation. Although “product failure” is the biggest reason, this includes cases that a product was different from consumer`s intention. Also, a quite number of consumers have cancelled their orders due to their change-of-mind

36%

27%

22%

14%

13%

10%

7%

product failures

Change of mind

different from photo on web

Found betetr productbefore delivery

Late delivery

Found cheaper productbefore delivery

Others

Reasons for Cancellation

35%

63%

3%

Ever Cancelled an Order Before?

Yes No I tried but rejected

Q. Have you ever cancelled/returned the order? & Why did you cancel/return the product?

Page 30: Vietnam E-commerce Report 2016

Order Flow and Timing of Cancellation (Lazada)

1.Order

• Fill out the form online.

• Necessary info are e-mail address, telephone number, and payment method.

2.Confirmation

•E-mail confirmation is given right after placing an order.

•Get another confirmation via call or SMS.

•Automatic cancellation if not replied within 24 hours.

3. Delivery

• Within 48 hours after placing an order, tracking service will be available.

4. Final Confirmation & Delivery •Call on the day of delivery (Eng is not usually available)

•Delivered by a staff with special Lazada uniform and a motorbike.Lazada

•Change is not available sometimes

5. Product

• The product was nicely wrapped with air cap and a paper bag.(product was exactly same as the photo on the web.)

Because cash on delivery is the main payment method, users are able to reject the order until they have it. Hence, many confirmations are carried out to decrease the delivery operation loss.

Page 31: Vietnam E-commerce Report 2016

Major EC Sites` Cancellation Policies

While the cancellation conditions are not much different from other countries, it actually provokes many exceptional cases due to the bad penetration of the policy and operations.

Lazada:

•Cancellation is possible if you have an membership and cancel before delivery. •Returnable duration is within 7 or 14 days. Some products are returnable due to change of mind. •Returning process is either filling out an online form or going to the office directly. •Actual return is done by either Lazada`s pick up, shipping, or giving it to the office.

Hotdeal:

• Cancellation is possible if it`s within 7 days and if it’s the responsibility of a supplier. • Returning process is phone calling. • Actual cash back is charged to the user`s account for the next purchase.

Tiki:

• Cancellation is possible if you have an membership and cancel before delivery. • Cancellation is possible if it is within 30 days and if it’s the responsibility of a supplier. • Returning process is filling out an online form or phone calling. • Shipment by myself is the only returning option.

Mua Chung:

• Cancellation is possible if the payment is still incomplete. • Returning is possible if is the responsibility of a supplier. • Returning process is online chat or phone calling.

Page 32: Vietnam E-commerce Report 2016

4.Facebook Shopping

Page 33: Vietnam E-commerce Report 2016

Usage Rate of EC and Facebook Shopping

Q. How often do you use online shopping? / Have you ever bought a product via Facebook?

33% 67%

Used EC Before?

67% of Vietnamese in a city have shopped on EC before. Among these people, nearly half of them have experienced Facebook shopping. This tells that Facebook is an increasingly popular destination for online shopping.

47%

53%

Yes No

Yes

No

Used FB Shopping Before?

Page 34: Vietnam E-commerce Report 2016

Popular Facebook Shopping Sites

Chalets (Fashion)

Specialized in female fashion. Seemingly luxurious clothes at reasonable price. Bank transfer is the only available payment method. https://www.facebook.com/Chalets.Shop/?fref=ts

Hoi Thanh Li TP HCMC (C2C)

Facebook group to buy and sell among individuals in HCMC. Fashion and child products are major. Group confirmation is necessary to shop. https://https://www.facebook.com/groups/td.quyen90/

La Beaute (Cosmetics)

Specialized in cosmetics and skincare products. Distributed via Instagram as well. Card payment and bank transfer are available payment methods. https://www.facebook.com/labeaute15hangmam/?fref=ts

Kun Kuns Furniture (Furniture)

A wide range of unique furniture. Bank transfer is the only payment method, but cash on delivery is available in Hanoi city. https://www.facebook.com/shopkunkuns/?fref=ts

415,000 Likes

138,000 Likes

249,000 Likes

136,000 member

# of Like / Members are during the time of July 2016.

Page 35: Vietnam E-commerce Report 2016

Order Flow on Facebook Shopping(Chalets Shop)

1.Order

• Message via FB Messenger once you like a product on “Shop” page on Facebook.

• Check-out page does not exist.

2. Order via FB Messenger

• Because of no official form, we order via messenger or phone call.

• Details, address, phone number etc are told via chat.

• Response speed depends on each shop.

3. Payment(bank transfer

• Cash on delivery and bank transfer are major payment methods.(bank transfer is more popular due to high cancellation rate.)

• After payment, contact via Messenger or phone call.

4. Product

• Motorbike delivery is same, but a delivery staff with casual cloths came to deliver.

• Wrapping was rough with a normal plastic bag.

• Confirmation call is not given sometimes.

• A product is different from photo so eti es…

Ordering method and delivery process are different from normal e-commerce. Placing an order is done via Facebook Messenger or phone calling, and there is no effort of branding in a process of delivery.

Page 36: Vietnam E-commerce Report 2016

Differences between EC and Facebook Shopping

EC Facebook

Product Wide variety of products and categories. Specialized in one category of products. Stock is not very good either.

Order Method Online form on EC site. Ordering process depends on each site.

Manual method via FB Messenger or phone calling. In a case of FB Messenger, a reply may late or not even be given.

Customer Support Large-scale customer operation including phone calling, e-mail and online chatting.

The quality of customer support is variable due to its small-scale operation. Even the owner of the shop could give customer support.

Payment Method Cash on delivery, credit card and bank transfer Cash on delivery or bank transfer. Many FB shops require bank transfer. Credit card payment is nearly none.

Order Confirmation SMS and phone calling are often given as a confirmation after placing an order and before actual delivery.

Confirmation is entirely dependant on each FB shop.

Delivery: Staff Large EC sites do their branding through official uniforms and motorbikes with their own logos.

Most cases are external delivery company or a part-time delivery staff. Even staffs themselves could deliver their products.

Delivery: Wrapping Their own branded wraps and boxes. Normal plastic bags and boxes.

Delivery time 1~3days (Many ECs offer express delivery if additional cost is paid.)

1~3days. (Many shops have one storage place, so delivery duration depends on a place of storage place)

Page 37: Vietnam E-commerce Report 2016

Usage Rate of Facebook Shopping

8%

14%

8%

4%

17%

8%

10%

5% 5%

16%

9%

18%

12%

3%

19%

12%

10%

9%

4%

17%

4%

18%

6%

4%

17%

once/week andmore

Once / month once/2-3months

once/6 months less thanonce/6 months

The Frequency FB Shopping

All Male Female 18-29 30-39

Among EC users, nearly half of them have used Facebook shopping before. Usage rate among female is quite high(62%). The youth (18 – 29 years old) has higher frequency of shopping.

Q. Have you ever bought a product via Facebook? & How often do you shop via Facebook?

51% 43%

62%

52% 51%

49% 57%

38%

48% 49%

All Male Female 18-29 30-39

Used Facebook Shopping Before?

Have used Never used

Page 38: Vietnam E-commerce Report 2016

Reasons for Facebook Shopping

“Easy order” and “Price is cheaper/negotiable” are the major reasons. Usually pricing at Facebook stores are negotiable, which is picked up as the reason why some like shopping in the channel.

Q. What are the reasons for shopping on FB and not on EC sites? ※ Hea y user is so eo e ho shops o ce i ~ eeks or ore. Light user is so eo e ho shops o ce i a o th or less/

easy to orderprice is

negotiable/cheaperMore updated info

about productsfamiliar with a

supplierfast delivery

good customercare

flexible returnpolicy

All 42% 36% 29% 21% 17% 10% 7%

Male 45% 38% 28% 14% 19% 14% 8%

Female 40% 34% 29% 27% 14% 8% 7%

18-29 44% 38% 28% 19% 17% 11% 7%

30-39 40% 33% 29% 24% 15% 10% 8%

Heavy FB User 40% 42% 27% 23% 19% 17% 8%

Light FB User 43% 33% 30% 20% 15% 7% 7%

Page 39: Vietnam E-commerce Report 2016

Products Purchased via Facebook (Details)

56%

25% 24%

15% 13%

8% 5%

3% 3% 2% 2% 2% 2%

46%

20% 22%

39%

35%

13%

20%

7% 6% 9%

3% 5%

3%

Facebook

EC

“Fashion” is the number one product in both Facebook and EC, and cosmetics follows after fashion. On the other hand, IT/Mobile is not so popular.

Q. What products have you ever bought via Facebook? (MA)

Page 40: Vietnam E-commerce Report 2016

Products Purchased via Facebook

Q. What products have you ever bought via Facebook?

1.Fashion (56%)

2.Cosmetics (25%)

3.Food/ Drinks (24%)

4.IT/Mobile(15%)

5.Kitchen/Home App(12%)

6.Sport Goods (7%)

46% 63%

2% 31%

10%

38% 14% 33%

11% 14% 12% 4%

10%

Page 41: Vietnam E-commerce Report 2016

Features of Online Shopping Users

FB&EC Shopper • Female has a higher ratio.

• Main reasons for using EC are “order anytime/anywhere” and “wide range of products”

• Main reasons for using FB shopping are “price is cheaper/negotiable” and “easy order”

• Fashion is popular in both, but books/stationary is more popular in EC

31% FB Shopper

• Female has a higher ratio.

• Casual communication with a FB shop staff and easy updates about new products are the main reasons for shopping on Facebook.

• Main products are fashion & cosmetics.

8%

Non-EC Shopper

• Low income households.

• Concerns on product quality and security are the reasons for not shopping online

• Also, many voices are concerned with cost, so many of the non-EC shoppers do not shop that often.

31% EC Shopper

• Male has a higher ratio.

• “Membership” and “fast delivery” are attractive to these users.

• Kitchen/home appliances and IT/mobile phones are very popular.

30%

Page 42: Vietnam E-commerce Report 2016

The Summary of Vietnam EC Market

Fast growing market at a rate of 40% every year.

70% of urban residents use EC.

Half use Smartphone to order, fast transition to mobile.

Fashion for women IT products for men

Cash payment exceeds 80% of payment method.

Over 30% of users experienced in cancelling a product.

Facebook Shopping is very popular.

Huge concern with product quality.

Page 43: Vietnam E-commerce Report 2016

Reference: data

Page 44: Vietnam E-commerce Report 2016

1) Frequency of Online Shopping

7%

9% 9% 9% 10%

5%

20%

31%

6%

10% 9%

8%

6% 6%

21%

35%

7%

9% 9%

12%

16%

3%

18%

26%

several

times/week

once/week once/2-3 weeks once/month once/2-3 months once/6 months less than once/6

months

I have never

used online

shopping

All 18-29 30-39

Q. How often do you use online shopping? (including facebook)

Page 45: Vietnam E-commerce Report 2016

2) Reasons for Shopping Online

order itanytime

order itanywhere

a widevariety ofproducts

No need tocarry bymyself

Strongpromotions

goodpricing

Goodmembershi

p / pointprograms

Mobilephonefriendly

Quickdeliverytiming

Handles aunique

products

Goodcustomersupport

Others

All 47% 41% 40% 35% 29% 27% 22% 19% 18% 15% 10% 3%

Male 51% 41% 36% 38% 26% 27% 20% 16% 20% 16% 9% 3%

Female 43% 41% 42% 32% 31% 26% 23% 21% 17% 14% 10% 3%

18-29 45% 39% 38% 34% 31% 28% 24% 20% 19% 14% 11% 3%

30-39 50% 44% 42% 35% 26% 24% 18% 17% 16% 16% 8% 3%

PC User 47% 39% 42% 33% 33% 29% 20% 16% 20% 16% 9% 2%

Mobile User 48% 44% 37% 36% 24% 25% 23% 22% 17% 14% 11% 2%

Heavy User 48% 47% 45% 37% 35% 34% 29% 24% 25% 17% 13% 1%

Light User 47% 37% 37% 33% 25% 22% 17% 16% 14% 14% 8% 4%

Q. What are the reasons for using online shopping in general? (MA)

Page 46: Vietnam E-commerce Report 2016

3) Reasons for Not shopping Online

concernson product

quality

concernson security

high pricesconcerns

on deliverycost

comfortable to shop

at realshops

slowdelivery

time

difficult touse theservice

lack ofpremium

goods

Notavailable in

my area

lack ofpaymentmethod

Others

All 57% 25% 20% 17% 16% 11% 11% 6% 5% 3% 4%

Male 55% 27% 22% 23% 27% 10% 10% 7% 7% 3% 8%

Female 59% 24% 19% 14% 8% 12% 12% 5% 3% 2% 1%

18-29 56% 30% 18% 13% 12% 14% 13% 3% 2% 4% 4%

30-39 59% 17% 24% 26% 22% 6% 7% 11% 9% 0% 4%

Q. What do you Not use online shopping? (MA)

Page 47: Vietnam E-commerce Report 2016

4) Usage Rate of each Shopping Site

Q. Please choose ALL the shopping sites you have used before.

LazadaFaceboo

kHotDeal Tiki Cho Tot

Muachung

Nhómmua

The GioiDi Dong

Sendo Zalora Vatgia

NguyenKim

Shopping

FPTShop

ShopeeVienthon

gaOthers

All 54% 43% 34% 24% 22% 22% 21% 19% 18% 17% 15% 10% 9% 7% 5% 2%

Male 59% 39% 22% 18% 24% 15% 18% 23% 19% 17% 15% 13% 11% 7% 7% 2%

Female 49% 46% 44% 30% 20% 27% 24% 15% 18% 17% 15% 7% 8% 6% 4% 2%

18-29 42% 39% 25% 23% 19% 15% 15.0% 15% 13.0% 10% 17% 7% 11% 4% 6% 1%

30-39 59% 41% 39% 23% 21% 26% 24.0% 20% 21.0% 23% 10% 12% 6% 9% 4% 2%

Page 48: Vietnam E-commerce Report 2016

5) The Most Frequently Used Shopping Site.

LazadaFaceboo

kTiki HotDeal Cho Tot

Muachung

The GioiDi Dong

Nhómmua

Zalora Sendo Vatgia

NguyenKim

Shopping

ShopeeVienthon

gaFPTShop

Others

All 24% 22% 9% 9% 6% 5% 4% 4% 3% 3% 2% 2% 2% 1% 1% 2%

Male 29% 23% 7% 2% 7% 3% 5% 2% 5% 6% 2% 3% 2% 2% 2% 2%

Female 21% 21% 11% 15% 5% 7% 4% 5% 2% 1% 3% 2% 2% 1% 0% 2%

18-29 20% 19% 9% 9% 5% 3% 3% 4% 2% 4% 2% 2% 1% 0% 1% 3%

30-39 26% 23% 7% 7% 6% 7% 5% 3% 4% 2% 2% 2% 2% 2% 0% 2%

Q. Which service do you use the most often?

Page 49: Vietnam E-commerce Report 2016

6) The Most Recently Used Shopping Site

LazadaFaceboo

kTiki HotDeal

The GioiDi Dong

Muachung

Sendo Cho TotNhómmua

Vatgia

NguyenKim

Shopping

Shopee ZaloraVienthon

gaFPTShop

Others

All 24% 23% 11% 7% 6% 5% 5% 5% 4% 3% 2% 2% 1% 1% 1% 1%

Male 29% 24% 6% 2% 7% 3% 9% 7% 2% 3% 2% 1% 2% 2% 2% 1%

Female 20% 22% 15% 11% 5% 7% 2% 4% 5% 2% 2% 2% 0% 1% 0% 2%

18-29 17% 19% 11% 6% 5% 5% 7% 5% 5% 1% 1% 1% 1% 0% 1% 1%

30-39 28% 23% 9% 6% 6% 5% 2% 4% 2% 4% 3% 2% 1% 2% 1% 2%

Q. Which service did you use for your most recent order?

Page 50: Vietnam E-commerce Report 2016

7) Devices to Shop

HomePC

Smartphone

(browser)

Smartphone

(app)

OfficePC

tabletdevice

(browser)

tabletdevice(app)

All 31.10% 25.30% 22.70% 16.90% 2.30% 0.90%

Male 11% 36% 23% 29% 1% 1%

Female 24% 26% 28% 16% 4% 1%

18~29 8% 38% 26% 27% 1% 0%

30~39 28% 23% 25% 17% 3% 2%

Devices to Shop the MOST OFTEN

HomePC

Smartphone

(browser)

Smartphone

(app)

OfficePC

tabletdevice

(browser)

tabletdevice(app)

All 52% 47% 40% 29% 9% 6%

Male 57% 48% 48% 21% 9% 9%

Female 46% 46% 32% 38% 10% 4%

18-29 57% 47% 44% 19% 7% 4%

30-39 44% 48% 35% 42% 11% 9%

Devices to Shop in General

Q. Please choose ALL the devices you used. & the most often.

Page 51: Vietnam E-commerce Report 2016

8) Kinds of Products bought on EC

FashionIT / Mobile

phones

Kitchen /home

appliances

Food andbeverages

Books/stationeries

CosmeticsSportgoods

TicketingSPA /

Beautyservices

Supplement /

Functionalfoods

Music /Video

(Blu-ray,DVD)

flower/plants

Others

All 46% 39% 35% 22% 20% 20% 13% 9% 7% 6% 5% 3% 3%

Male 41% 54% 32% 19% 17% 7% 18% 9% 1% 7% 6% 3% 2%

Female 53% 22% 38% 26% 23% 34% 7% 9% 14% 6% 4% 3% 4%

18-29 41% 41% 32% 20% 22% 21% 15% 6% 7% 5% 7% 2% 2%

30-39 54% 37% 39% 26% 16% 17% 10% 12% 7% 9% 2% 4% 5%

PC User 47% 38% 36% 22% 23% 18% 10% 8% 4% 7% 5% 3% 4%

Mobile User 47% 41% 34% 23% 17% 21% 15% 10% 10% 6% 5% 3% 2%

Heavy User 51% 42% 42% 32% 31% 29% 16% 11% 14% 13% 6% 5% 0%

Light User 43% 37% 31% 17% 13% 14% 11% 8% 3% 3% 4% 2% 5%

Q. Please choose ALL the products you have purchased before.

Page 52: Vietnam E-commerce Report 2016

9) Initial Recognition of a Product bought on EC

From internetsurfing(browsin

g)

From windowshopping onthe EC site

Social Networksuch as

Facebook

Friend`s/Family`s

recommendation

From windowshopping at thephysical store

From TVcommercials or

programs

Frommagazines/boo

ks

Ads set upoutside

(billboards etc)From radio Others

All 47% 20% 19% 6% 3% 2% 1% 1% 0% 0%

Male 56% 14% 16% 8% 3% 2% 1% 1% 0% 0%

Female 38% 28% 23% 3% 3% 2% 1% 1% 1% 1%

18-29 52% 16% 19% 4% 2% 3% 2% 1% 1% 1%

30-39 43% 25% 20% 8% 3% 1% 0% 1% 0% 0%

PC User 49% 24% 17% 5% 3% 0% 1% 1% 0% 1%

Mobile User 46% 17% 22% 7% 2% 3% 2% 0% 1% 0%

Heavy User 42% 26% 15% 5% 7% 2% 2% 0% 1% 0%

Light User 51% 17% 22% 6% 0% 2% 1% 1% 0% 1%

Q. What was the first reason for knowing the product you purchased?

Page 53: Vietnam E-commerce Report 2016

10) Actions before Purchasing a Product

Check the pricingof the same

product at otheronline shops

Checked the reviewof the product

Searched theproducts on theweb to see more

detail

Check the pricingof the same

product at the store

Asked friends /colleagues aboutthe reputations of

the product

Check the pricingof the same

product in the othercountry

Checked theproduct at a

physical store

All 61% 45% 39% 23% 14% 10% 9%

Male 63% 42% 40% 27% 12% 8% 12%

Female 60% 49% 37% 18% 17% 12% 7%

18-29 62% 47% 36% 23% 15% 10% 12%

30-39 61% 43% 43% 23% 14% 10% 6%

PC User 67% 46% 39% 22% 16% 12% 10%

Mobile User 56% 45% 38% 23% 13% 9% 9%

Heavy User 61% 46% 38% 29% 15% 14% 11%

Light User 62% 44% 39% 19% 14% 7% 8%

Q. Please choose if you have taken any of the following actions before purchasing the product.

Page 54: Vietnam E-commerce Report 2016

11) Average Spending per Order

Less than 300,000VND

300,001 - 500,000VND

500,001 - 800,000VND

800,001 - 1,000,000VND

1,000,000 -2,000,000 VND

More than2,000,000 VND

All 35% 32% 10% 7% 5% 8%

Male 26% 32% 12% 9% 6% 12%

Female 45% 32% 8% 6% 4% 4%

18-29 36% 34% 8% 7% 5% 7%

30-39 33% 31% 12% 8% 3% 10%

PC User 44% 32% 7% 6% 5% 4%

Mobile User 26% 32% 13% 9% 5% 12%

Heavy User 34% 42% 6% 6% 6% 4%

Light User 35% 27% 12% 8% 4% 11%

Q. How much did you pay for that order?

Page 55: Vietnam E-commerce Report 2016

12) Satisfaction Level of an EC Site

Very satisfied satisfied soso dissatisfied Very dissatisfied

All 12% 52% 34% 1% 1%

Male 13% 53% 32% 2% 0%

Female 11% 51% 37% 1% 1%

18-29 13% 51% 34% 2% 1%

30-39 10% 54% 35% 1% 1%

PC User 12% 53% 35% 1% 0%

Mobile User 13% 51% 35% 2% 1%

Heavy User 15% 61% 22% 2% 1%

Light User 10% 47% 42% 1% 1%

Q. How much are you satisfied with EC?

Page 56: Vietnam E-commerce Report 2016

13) Reasons for Satisfaction

productvariety

pricedeliveryspeed

paymentmethod

promotion/discoun

t

deliverylocationflexibility

customersupport

productquality

mobilesupport

membership/ pointprograms

cancellation

flexibility

24 hourorder

flexibility

deliverycost

Others

All 52% 45% 35% 32% 30% 22% 20% 15% 14% 13% 10% 10% 7% 1%

Male 53% 50% 29% 32% 26% 18% 16% 13% 15% 14% 10% 8% 6% 1%

Female 51% 39% 41% 31% 34% 26% 24% 19% 13% 11% 11% 12% 9% 1%

18-29 46% 45% 37% 30% 26% 21% 20% 15% 12% 13% 7% 8% 8% 1%

30-39 60% 45% 31% 34% 33% 23% 19% 16% 16% 12% 14% 12% 6% 2%

PC User 55% 42% 35% 35% 33% 22% 16% 16% 9% 13% 13% 10% 9% 1%

Mobile User 51% 48% 35% 29% 27% 22% 23% 15% 19% 13% 7% 10% 6% 1%

Heavy User 51% 47% 46% 39% 33% 22% 26% 22% 14% 16% 17% 14% 10% 0%

Light User 53% 43% 28% 27% 28% 22% 16% 12% 14% 11% 6% 7% 6% 2%

Q. What are the things you are satisfied with this EC site? (MA)

Page 57: Vietnam E-commerce Report 2016

14) Reasons for Dissatisfaction

productquality

deliverycost

deliveryspeed

customersupport

cancellation

flexibilityprice

promotion/discoun

t

productvariety

membership/ pointprograms

paymentmethod

mobilesupport

deliverylocationflexibility

24 hourorder

flexibilityOthers

All 35% 22% 19% 11% 9% 8% 8% 6% 6% 5% 4% 3% 3% 3%

Male 34% 22% 22% 13% 8% 10% 6% 7% 2% 4% 3% 2% 2% 5%

Female 36% 22% 16% 9% 11% 6% 10% 4% 10% 6% 4% 3% 4% 1%

18-29 32% 23% 18% 9% 7% 11% 11% 5% 5% 5% 4% 2% 2% 3%

30-39 39% 20% 21% 13% 11% 5% 4% 7% 6% 5% 3% 3% 3% 3%

PC User 35% 23% 20% 15% 6% 10% 6% 5% 6% 4% 5% 5% 1% 2%

Mobile User 35% 21% 19% 7% 13% 6% 10% 7% 6% 6% 2% 1% 5% 3%

Heavy User 31% 30% 18% 13% 13% 6% 3% 6% 7% 5% 5% 2% 2% 1%

Light User 37% 17% 20% 10% 7% 10% 10% 6% 5% 5% 3% 3% 3% 5%

Q. What are the things you are satisfied with? (MA)

Page 58: Vietnam E-commerce Report 2016

15) Frequency of Facebook Shopping

several times/week once/week once/2-3 weeks once/month once/2-3 months once/6 monthsless than once/6

monthsNever used

All 3% 5% 8% 6% 8% 4% 17% 49%

Male 3% 5% 5% 5% 5% 5% 16% 57%

Female 3% 6% 11% 7% 12% 3% 19% 38%

18-29 4% 8% 6% 4% 9% 4% 17% 48%

30-39 3% 1% 10% 8% 6% 4% 17% 49%

Q. Have you ever bought a product via Facebook? & How often do you shop via Facebook?

Page 59: Vietnam E-commerce Report 2016

16) Kinds of Products bought on Facebook

FashionCosmetic

s

Food andbeverage

s

IT /Mobilephones

Kitchen /home

appliances

Sportgoods

Books/stationeries

SPA /Beauty

services

Supplement /

Functionalfoods

Ticketingflower/pla

ntsMusic /Video

Others

All 56% 25% 24% 15% 13% 8% 5% 3% 3% 2% 2% 2% 2%

Male 46% 10% 14% 31% 11% 12% 3% 0% 4% 1% 1% 1% 1%

Female 63% 38% 33% 2% 14% 4% 7% 6% 2% 3% 3% 2% 2%

18-29 53% 26% 20% 17% 10% 9% 2% 4% 2% 3% 2% 3% 2%

30-39 58% 24% 31% 13% 17% 7% 8% 1% 4% 1% 3% 0% 1%

Heavy FB User 50% 27% 37% 17% 14% 12% 2% 8% 2% 2% 2% 6% 0%

Light FB User 58% 24% 19% 14% 13% 6% 6% 1% 4% 3% 3% 0% 3%

Q. What products have you ever bought via Facebook? (MA)

Page 60: Vietnam E-commerce Report 2016

17) Reasons for Facebook Shopping

easy to orderprice is

negotiable/cheaper

updatedinformation

about products

more familiarwith the supplier

fast deliverygood customer

careflexible return

policyOthers

All 42% 36% 29% 21% 17% 10% 7% 2%

Male 45% 38% 28% 14% 19% 14% 8% 0%

Female 40% 34% 29% 27% 14% 8% 7% 4%

18-29 44% 38% 28% 19% 17% 11% 7% 0%

30-39 40% 33% 29% 24% 15% 10% 8% 6%

Heavy FB User 40% 42% 27% 23% 19% 17% 8% 2%

Light FB User 43% 33% 30% 20% 15% 7% 7% 3%

Q. What are the reasons for shopping on FB and not on EC sites? (MA)

Page 61: Vietnam E-commerce Report 2016

Q&Me – About Online Market Research Services

Page 62: Vietnam E-commerce Report 2016

Who we are (1) – What is Q&Me

Q&Me is the online market research services in Vietnam. Due to our online utilization and direct panels, we offer the researches in days with

1/3 of the traditional research company cost.

Affordable Quick High quality Takes 24 - 48 hours for most surveys, proving

real-time analysis

Superb real-time analysis for flexible and accurate data collection

1/3 of the competitor pricing

Page 63: Vietnam E-commerce Report 2016

Contact Us

URL: http://www.qandme.net

Contact: [email protected]

Q&Me is operated by Asia Plus Inc.

Asia Plus Inc.

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Tel. +84 839 100 043

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