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E commerce - investment is not easy

12/06/15 10:25
Failure of many big names showed ecommerce market may boom in the near future but does not mean the "pie", especially for local businesses. On the next 5/12, E-Commerce Department of the Ministry of Industry and Trade will host, in collaboration with the Association for Electronic Commerce Vietnam held on Friday Online shopping online. At this event, consumers will be engaged in the purchase of goods with many different forms of promotion, with the participation of over 800 businesses operating e-commerce.


The arrival of the first day Friday Online in Vietnam shows that the market of e-commerce has made good development. More than 10 years appeared in Vietnam, sales from this sector has grown. According to the E-Commerce, e-commerce market of Vietnam will have sales of approximately $ 1.3 billion in 2015, doubling in just three years (2012, Vietnam E-commerce sales estimated at $ 700 million).

 
Multiple acquisitions - mergers of large e-commerce businesses, the attention of some major corporations at home and abroad (South Korea, Japan, and Thailand) will be a prerequisite for e-commerce booming Vietnam in 2015 .
 
However, according to Mr. Nguyen Van Tuan, Director of eCommerce of vccorp Zamba, the market may boom in the near future but by no means easy to "eat", especially for local businesses .


2014 marked the emergence of a number of large enterprises in the field of e-commerce jumped, according to him, are potential businesses are financially strong plan to enter the field?
 
This is the e-commerce in Vietnam too well. The biggest names in the technology village Vietnam as VNG, FPT have certain steps in e-commerce. However, not every potential substantial financial success is possible. Even the reverse.
 
For example, the case of VNG has invested hundreds of billions to develop e-commerce, but still failed. The result is that they resell for FPT eCommerce segment with much lower price than the amount invested. Most recently a large enterprise also has a reputation in the market but to reverse time launch two or three times and still can not appear.
 
2015, e-commerce market with the boom promised money inflow from both domestic and foreign. However, not everyone wants to do e-commerce in Vietnam also, even for those enterprises with strong financial potential.
 
So apart from financial factors, businesses engaged in electronic commerce should also factor anymore, sir?
 
Vietnam wants to do e-commerce, human factor is very important. If people do not have the qualities, not knowing the market is very bust plan.
 
A number of projects to accelerate this process by engaging the senior personnel with experience in e-commerce in other places. However, the main problem lies in the orientation of the leaders. In the case of VNG, they applied the thinking of people making games and gaming business. Sector specific game is very fast capital recovery, after 6 months to 1 year may know her as gains or losses of business. Meanwhile, e-commerce, the need for long-term investment, from 3-5 years. So now investors have to be very patient.
 
Similarly, Vingroup do very well in the field of real estate, tourism, retail ... However, the key to that success goes to make when embarking on e-commerce field. Making e-commerce that enforce strict procedures, multistage testing to complete is both slow and medium disorders. People do commerce requires more rapid response. The adoption of the grant also requires faster, streamlined apparatus.
 
If talking about processes and apparatus, foreign firms would do well?
 
Some companies apply the whole process has been successful overseas to Vietnam. As Lazada is using Amazon's model and has earned certain signals. They have the process and thought as well in e-commerce. However, because the application process so that their original lack of it is the understanding of consumers Vietnam.
 
It may be psychological customers each region. For example in the south, consumers are extremely concerned about the quality of service, if not good, they will never come back. While the North is extremely sensitive to price. If prices increase, customers will react north quickly.
 
Another factor is the lack of user-Vietnam very loyal. This is a paradox of e-commerce sector. This sector requires long-term development, from 3-5 years but not loyal users. Foreign enterprises to invest in Vietnam next process must take these problems.
 
So according to him, one can become the "big powers" Vietnam E-commerce market in the future?
 
Despite some limitations mentioned above but foreign companies remain the most ominous. Their potential is very strong, they have done all the way and is continuously investing. If they constantly attack the market, it is difficult now in any country enough counterbalance.
 
Lazada addition, there are two other foreign units are also preparing to Vietnam. As Rakuten, the largest e-commerce companies in Vietnam Japan in the near future. Some businesses in Thailand, South Korea and Vietnam market as very attractive, and will invest in Vietnam, possibly through another business or self-realization.
 
Vietnam enterprises should do to prepare for the "wave" of this?
 
Only two ways. First is calling for investment from enterprises or other large funds. Need to prove ourselves as people know how to do but lack the financial resources.
 
In case you can not call for support resources, enterprises could only self. General direction that required entering niche markets, areas where large enterprises can not reach or scale too small for them.
 
E-commerce niche market of which he mentioned in particular here is what?
 
With us, there are so many niche markets. Try looking model Groupon (group purchasing). This model is characterized by very deep discounts, at least 30-40% in order to attract customers. However, there are some items can not be like deep discounts, as with electrical goods, the decline only 10 - 15%. Or with a number of items that the number is not large enough to make the right deal on how Muachung?
 
Currently, Muachung Plaza Muachung ongoing to resolve such cases. This new model will go on the market that Groupon did not reach the old style. That may be the market "last hour", which sells discounted goods sharply at the last minute. For example, you have prepared 500 restaurant buffet meals but encountered bad weather (rain), only 300 registered visitors, at risk of being dull to 200 capacity, then you can discount deeply at mealtimes This capacity for 200 to "salvage" again. Similarly, this model can be applied to many products, such as hotels, tour, movie tickets, ...
 
In addition, e-commerce businesses can invest in commodities with brand (brand). This market segment is small but has a higher profit margin than normal goods.
 
There is a rather strange trend in e-commerce market in Vietnam. It is specialized in sales of enterprise development went online stores offline system. According to him, why he tends to "reverse" of this?
 
It's not the trend "reverse" that is the direction of the world. Only thing in Vietnam, this ongoing trend stronger because demand "touching hands, saw firsthand" Vietnamese customers are very high. Especially in the field of fashion, consumers see online was satisfactory but still must go through the store look again before the purchase decision. Thus forcing e-commerce businesses also have offline stores for customers to see.
 
It will probably take several years before breaking down barriers in consumer sentiment in the country. That's when the items have brand, consumers are used to using so willing to trust buy without thinking twice about the quality.
 
 
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