Vietnam E-Commerce report 2017
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The survey found that online shopping in Vietnam is growing rapidly, increasing 49% annually from 2013 to 2015. Two-thirds of respondents had purchased a product online, with fashion being the most popular purchase category. While satisfaction levels were moderate, delivery speed and product quality were areas cited as needing improvement compared to a year ago. The rise of social commerce through Facebook was also noted, with 66% having made a purchase on Facebook before. Overall the online shopping market in Vietnam is expected to reach $10 billion by 2020 with continued innovation in payments and logistics.
Vietnam E-Commerce report 2017
- 1. Vietnam EC market 2017 Asia Plus Inc.
- 2. Respondent profile (N=966) Gender Male, 50% Female, 50% 18-22, 33% 23-29, 33% 30-39, 33% Age HCM, 50%Hanoi, 50% CityGender The survey is to understand the online shopping lifestyle of urban population
- 3. Vietnam EC Market Overview
- 4. Market is growing more rapidly than the retail Sources: VECITA 2.2 2.97 4.07 2013 2014 2015 Vietnam online market
- 5. Market is growing more rapidly than the retail Sources: VECITA 2.2 2.97 4.07 2013 2014 2015 Vietnam online market 2015: 4.07B USD 2020: 10B USD 49% growth annually
- 6. Consumer behaviors on online shopping
- 7. Online shopping usage Yes, 67% No, 33% Q. Have you ever bought a product via Facebook? (N=805) More people in use of online shopping Yes, 83% No, 17% 2016 2017
- 8. Online shopping frequency 17%=Frequent buyer. Female and rich shops online more Total Male Female 18-22 23-29 30-39 HHI Rich HHI Middle HHI Low Never / Rarely 36% 43% 29% 41% 33% 33% 25% 33% 46% Once / several month 20% 20% 21% 22% 21% 17% 15% 23% 19% Once - A few times / month 27% 22% 31% 23% 28% 29% 30% 29% 22% Weekly and more 17% 16% 19% 14% 18% 20% 30% 15% 13% 17% 16% 19% 14% 18% 20% 30% 15% 13% 27% 22% 31% 23% 28% 29% 30% 29% 22% 20% 20% 21% 22% 21% 17% 15% 23% 19% Q. How often do you use online shopping? (including facebook) (N=966), Rich=20M and more, Middle=7.5-20M, Low=7.5M and less
- 9. Why / Why not online shopping? 40% 47% 27% 41% 35% 58% 54% 51% 51% 43% Product variety Order anytime Good pricing Order anywhere Logistic easiness Reason to shop (N=805) 2016 2017 Pricing is the main reason make people using online shopping more compare with 2016. 57% 16% 25% 11% 17% 49% 29% 22% 11% 10% Concerns on quality Prefers real shops Security concerns Slow delivery Delivery cost Reasons not to shop (N=161) 2016 2017
- 10. Device to shop online 47% 52% 40% 29% 53% 52% 52% 41% Smartphone (browser) Home PC Smartphone (app) Office PC 2016 2017 Smartphone on the increase Q. Which devices do you use for online shopping? / Are there any devices that you came to use more often in last 12 month for online shopping? (N=805)
- 11. What to buy on online shopping Fashio n IT / Mobile phones Cosmet ics Food and bevera ges Books/ station aries Kitchen applian ces Ticketin g Consu mer Electro nics Sport goods Supple ment / Functio nal foods SPA / Beauty service s Music / Video Flower/ plants Ever bought 2017 73% 36% 33% 33% 28% 29% 22% 15% 22% 15% 9% 3% 4% Buy most 2017 43% 15% 10% 9% 8% 5% 3% 2% 2% 1% 0% 0% 0% Increase on fashion and cosmetics and food / beverages Q. Please choose ALL the products that you have bought/buy the most online in the last 12 months. (N=805)
- 12. Purchased Products on EC 1. Fashion (73%) 2. IT/Mobile phones (36%) 3. Cosmetics (33%)65%81% 57%18% 13%51% 25%40% 23%35% 24%32%
- 13. Popular EC site Increase on fashion and cosmetics and food / beverages Q. Please choose ALL the products that you have bought/buy the most online in the last 12 months. (N=805) 84% 51% 42% 39% 38% 33% 33% 28% 24% 18% 15% 15% 10% 59% 42% 16% 8% 14% 3% 4% 2% 6% 1% 0% 1% 0% 0% 3% Used before Use the most
- 14. Popular online shops (shops that comes up with each category) Fashion Beauty care Food IT / Electronics No.1 No.2 No.3 No.4 All: 52% / M: 59% / F: 47% All: 14% / M: 9% / F: 19% All: 9% / M: 9% / F: 10% All: 9% / M: 8% / F: 10% All: 34% / M: 44% / F: 27% All: 11% / M: 12% / F: 11% All: 6% / M: 6% / F: 7% All: 5% / M: 6% / F: 5% All: 22% / M: 28% / F: 18% All: 15% / M: 14% / F: 16% All: 8% / M: 5% / F: 10% All: 5% / M: 4% / F: 6% All: 38% / M: 42% / F: 35% All: 19% / M: 16% / F: 21% All: 8% / M: 7% / F: 9% All: 7% / M: 7% / F: 8%
- 15. Ref: Popular online shops 18% 30% 19% 10% Fashion Beaty Care Food & Beverages IT / Electronics Those who named individual stores Popularity are not only for the major shops. Many small shops get the heart of online shoppers
- 16. Places where EC Users Order and Receive. More than 1/3 of the orders are from / to the office 60% 37% 3% Where to deliver from My house My office Others Q. Where did you order the product from? & Where did you receive your product at? 59% 38% 3% Where to receive products My house My office Others
- 17. 54% 36% 31% 22% 10% 6% Internet surfing of non-EC site Social network Internet surfing of EC site Others' post on social Friend's/Family's recommendation Find product at retail stores How recognized? How do they buy
- 18. 54% 36% 31% 22% 10% 6% Internet surfing of non-EC site Social network Internet surfing of EC site Others' post on social Friend's/Family's recommendation Find product at retail stores How recognized? How do they buy 74% 60% 47% 26% 25% 12% Check the pricing of other stores Check reviews Search web for product detail Check retail store pricing Ask friends for opinions Check the pricing of other countries Actions Before Ordering
- 19. How do they buy 74% 60% 47% 26% 25% 12% Check the pricing of other stores Check reviews Search web for product detail Check retail store pricing Ask friends for opinions Check the pricing of other countries Actions Before Ordering 3% 9% 30% 29% 28% Actions after ordering Always Often Sometimes Rarely Never Good experience makes them share it
- 20. The rise of social commerce
- 21. Usage Rate of online shopping and Facebook Shopping Yes, 66% No / Others, 34% Q. Have you ever bought a product via Facebook? (N=805) Using online shopping Using Facebook shopping 66% have purchased items over Facebook (Increase from 47% of 2016) Yes, 83% No, 17%
- 22. What to buy on social commerce 73% 36% 33% 33% 28% 29% 22% 15% 22% 15% 9% 3% 4% 68% 15% 28% 20% 11% 13% 6% 5% 7% 5% 5% 0% 2% Online shopping Social commerce Fashion are the dominant, followed by the cosmetics Q. Please choose ALL the products that you have bought/buy the most online in the last 12 months. (N=805)
- 23. Why social commerce? 67% 38% 37% 24% 22% 13% 12% 1% Easy to order More advertisements/information available Price is negotiable/cheaper Fast delivery I am more familiar with the supplier Flexible return policy Good customer care Others Easiness to order + Product exposures Q. What are the reasons for shopping on FB and not on EC sites? (N=538)
- 24. Social commerce info source 60% 50% 36% 20% 8% 7% 0% Facebook advertisement From other posts Friend/Family From their website Recommendations/links from other sites From their physical shops Others Advertisement on FB are most influential Q. How did you know this Facebook store? (N=538)
- 25. EC vs Facebook 44% 45% 62% 35% 26% 45% 46% 30% 54% 51% 11% 10% 8% 11% 22% Better price Fast delivery Fun shopping Good customer care Product quality Facebook EC I am not sure Social commerce – Fun shopping Q. Which one do you think is more applicable to the following keyword? (N=538) Image of online shopping / social commerce
- 27. Satisfaction / dissatisfaction in online shopping 33% 51% 14% Satisfaction level Very dissatisfied Dissatisfied Very satisfied Satisfied Average Product variety (60%) Price (62%) Delivery speed (45%) Product quality (44%) Delivery cost (33%) Delivery speed (18%)
- 28. Online shopping improvement (vs a year ago) 60% 34% 37% 29% 18% 24% 33% 31% 31% 27% Easy to find Delivery speed Price Customer support Product quality Better Much better Q. Please choose what is applicable to you compared with a year ago, about online shopping? (N=606) Product quality is the lowest
- 29. Payment methods Cash on delivery as dominant payment method 88% 6% 5%1% Cash on delivery Credit card/debit card Bank transfer E-wallet (ex: momo, ngan luong, bao kim) Post office transfer Q. How did you make a payment for that order? (N=805)
- 30. Order Cancellation High cancellation result in the profitability issues for EC operators 36% 62% 2% Cancel experiences Yes No I tried to cancel but could not Q. Have you ever cancelled/returned the order in last 12 month? / What are the reasons for that? (N=805) 33% 29% 28% 18% 12% 10% 27% 36% 22% 13% 14% 10% Change of mind Issues with product Actual different from photo Late delivery Found alternative products Found cheaper channel Cancel reasons 2017 2016
- 31. Future online shopping market in Vietnam 1. Payment innovation 2. Logistic improvement 3. Operation improvement (staff knowledge) 1. Profit improvement opportunities for service providers 2. More online business opportunities for SMEs 3. Online shopping penetration in rural area 10B USD online shopping market in 2020 Required innovations Impact Expected results
- 32. Q&Me – About Online Market Research Services
- 33. Our Solution Survey is conducted via mobile phone and the data is processed real-time 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
- 34. Our Advantage: Direct Panel Management Our strength is 16-39 years old and urban areas. This is where most biz customers would like to research. 280,000 members as of Aug, 2017 0% 1% 18% 31% 22% 14% 7% 3% 3% 1% Age 19% 18% 6% 4%3%3% 47% HCM Hanoi Can Tho Da Nang Hai Phong Dong Nhai Others 56% 44% Male Female Gender City
- 35. Our Advantage: Direct Panel Management Our strength is 16-39 years old and urban areas. This is where most biz customers would like to research. 280,000 members as of Aug, 2017 Married Status Household income Smartphone ownership Single, 72% Married , 25% Others, 3% 26% 24% 14% 15% 9% 5% 3% 4% < 5M VND 5 - 7.5M VND 7.5 - 10M VND 10 - 15M VND 15 - 20M VND 20M-30M 30-40M <40M 27% 25% 18% 8% 8% 6% 15% 18% Apple Samsung Nokia LG Asus Sony Others Do not own
- 36. Contact Us URL: http://www.qandme.net Contact: info@qandme.net Q&Me is operated by Asia Plus Inc. Asia Plus Inc. Floor 1 25/7A Nguyen Binh Khiem str., Ben Nghe ward, District 1, HCMC, Vietnam Tel. +84 839 100 043