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Vietnam’s eCommerce
landscape and online
shopping behavior
Growth in eCommerce revenue of Indonesia, Vietnam, Thailand and Philippines 2015 – 2016 (USD)
Vietnam’s 2016 eCommerce
revenue was only slightly lower
than Indonesia’s despite having
a population almost three times
smaller.
In Southeast
Asia, Vietnam
is now the
second most
valuable
eCommerce
market
Source: Vietnam E-Commerce And Digital Economy Agency
Growth in eCommerce revenue (USD) and number of eCommerce sites in Vietnam
Source: Vietnam E-Commerce And Digital Economy Agency
By the end of 2016, there were
more than 13,500 eCommerce
websites based in Vietnam.
As revenue has
grown, so too
has the
number of
eCommerce
players in the
market.
In January 2018, JD.com – the direct competitor
of Alibaba in China – officially announced a US$44
million investment in Vietnam’s leading B2C
platform Tiki.vn.
Increasing their already heated battle for market
share in Southeast Asia, in March 2018, Alibaba
raised its total investment in Lazada Group to
US$4 billion, bringing in executives from Alibaba
to lead Lazada’s regional office here.
Asian investors are pouring in more money
to fuel the growth of Vietnam’s major
eCommerce players
In February 2018, an affiliate of private equity firm
Creador approved an investment of US$43.8
million in Thegioididong.com – Vietnam’s largest
mobile phone and electronic device retailer.
Products that are traditionally
sold in supermarkets or other
brick and mortar outlets can
now be found on multiple
eCommerce platforms
Traditional
supermarket
brands are
moving
toward an
eCommerce
future
Are consumers adapting to this shift?
But…
About the study
A L O O K A T T H E O N L I N E S H O P P I N G
H A B I T S O F V I E T N A M E S E C O N S U M E R S
752,057
ONLINE VIETNAMESE
COMMUNITY MEMBERS
1,945
SAMPLE ACHIEVED
Our research methodology
Online
interview
Mobile-first
survey
Trusted
sources
Data is weighted based on the online population in
2017
Source: Decision Lab online population
53%
47%
31%
16-24 y/o
28%
25-34 y/o
19%
35-44 y/o
22%
45+ y/o
Key findings
Who are the
shoppers?
Across the majority of categories, women are the
dominant shoppers
All purchases P3M Recall: Males vs. Females
n = 1081Q: Which of the following products/services that you purchased in the last 3 months?
Considering both offline and online purchases, women are more likely to have purchased more often than
men across all categories with the exception of electronic devices and alcoholic drinks.
Men are more likely to buy online than women
56%
23%
58% 59%
55%
69%
82%
49%
9%
49%
35% 37%
73%
68%
Clothing or footwear Cooking ingredients Beauty products Mobile phone Home appliances Short distance travel Long distance travel
Males Females
All online purchases P3M recall: Males vs. Females
n = 1081
Other categories are omitted due to insufficient sample size
Q: For the chosen products/services, did you purchase it online or in store?
Considering only purchases made online men are more likely than women to have done so. For brands
moving online, the challenge is to convert the dominant shopper from buying offline to online.
Pre-shopping research
A B R E A K D O W N O F T H E T Y P E O F
R E S E A R C H C O N D U C T E D B Y V I E T N A M E S E
S H O P P E R S P R I O R T O P U R C H A S E
Consumers want to be more informed before
buying
6% 6% 7% 7% 7% 8% 10% 13% 15% 17% 18% 20% 21% 23% 23%
28% 29% 31%
94% 94% 93% 93% 93% 92% 90% 87% 85% 83% 82% 80% 79% 77% 77%
72% 71% 69%
No research Research
n = 1945Q: For the chosen products/services, did you conduct pre-shopping research?
Product research is performed prior to purchase across every category in Vietnam
Product and service information is gathered both
on and offline
15% 19% 19% 19% 20% 20%
25% 27%
33%
37%
42% 42%
47% 48%
57% 57%
62% 65%
85% 82% 82% 81% 81% 80%
75% 73%
67%
63%
58% 58%
54% 53%
43% 43%
38% 35%
Primarily offline research Primarily online research
n = 1945Q: For the chosen products/services, was the research that you conducted primarily online of offline?
There is variation across categories in where the source of pre-shopping research is conducted. Online
research dominates for big ticket items like phones, appliances and travel, while for non-durables like food
and beverage, offline is the main source of research.
In some categories, the source of research
determines where the purchase is made.
If research is primarily offline…
8%
17%
9%
12%
92%
83%
91%
88%
Mobile phone Beauty products Home appliances Clothing or
footwear
Primarily Online Purchase Primarily Offline Purchase
If research is primarily online…
61% 63%
60%
67%
39% 37%
40%
33%
Mobile phone Beauty products Home appliances Clothing or
footwear
Primarily Online Purchase Primarily Offline Purchase
Q: For the chosen products/services, was the research that you conducted primarily online of offline?
Q: For the chosen products/services, did you purchase it online or in store?
The chart on the left reveals that
shoppers who conduct pre-
purchase research primarily online,
will also purchase offline, while the
chart on the right shows us that
those who primarily research
offline, will also mostly buy offline.
n = 1945
F&B purchases are primarily made in stores,
although pre-purchase research also happens
online
If research is primarily offline…
2% 2% 4% 3%
98% 98% 96% 97%
Meat/ seafood Veggies/fruits Alcoholic drinks Non-alcoholic
drinks
Primarily Online Purchase Primarily Offline Purchase
If research is primarily online…
19% 21%
36%
29%
81% 79%
64%
70%
Meat/ seafood Veggies/fruits Alcoholic drinks Non-alcoholic
drinks
Primarily Online Purchase Primarily Offline Purchase
Q: For the chosen products/services, was the research that you conducted primarily online of offline?
Q: For the chosen products/services, did you purchase it online or in store?
The chart on the left reveals that a
large proportion of those who
research online will then purchase
in stores, while the chart on the
right shows us that those who
prefer to research offline will also
almost exclusively buy offline.
n = 1945
The moment of online
purchase
A B R E A K D O W N O F H O W A N D F R O M
W H A T D E V I C E S H O P P E R S I N V I E T N A M
P U R C H A S E O N L I N E
Both laptops and smartphones are used to make online
purchases
Computers and smartphones are currently splitting the share of device used to purchase
online. Only 12% of online shoppers use other devices such as a tablet or smart TV.
Q: For the chosen products/services, which devices did you use when making an online purchase?
42%
COMPUTER
46%
SMARTPHONE
12%
OTHERS
n = 1081
The device used for online purchases varies
between category
Although a mobile device remains the primary means of booking short distance travel online
in Vietnam, the personal computer or laptop remains favored for hotels and long distance
travel. Other categories enjoy an equal split between the two.
Q: For the chosen products/services, which devices did you use when making an online purchase?
Primarily mobile
81%
18%
Short distance travel
Equal split
35% 33%
61% 59%
Ticket for long distance
travel
A hotel stay for leisure
purpose
Purchased on Mobile Purchased on Computer
Primarily computer
47% 46%
50%
42%
47% 48% 47% 47%
Clothing or
footwear
Beauty
products
Mobile
phone
Home
appliances
n = 1081
The online purchase gateway varies depending on
the device.
Purchase occurred on computer
43%
38%
31%
26%
39% 37%
32%
29%
Clothing and
footwear
Beauty products Mobile phones Home appliances
Facebook browser E-commerce website
Purchase occurred on mobile
43%
49%
37%
26%28%
23%
30% 32%
Clothing and
footwear
Beauty products Mobile phones Home appliances
Facebook app E-commerce apps
Q: For the chosen products/services, on which platform did you buy them?
Whenever a mobile device is
used to shop online in Vietnam,
Facebook is the most popular
gateway for purchase, especially
when shoppers are buying
clothes and beauty products.
Whenever the purchase is made
on a laptop or personal
computer, eCommerce
platforms take an equal share.
n = 1081
BRANDED RIDE-HAILING APPS:
71%
Of short distance travel purchases made
on a mobile device
FACTS
• Females are the dominant shoppers, but it’s harder
to find them shopping online than males
• Purchase of clothes, beauty products and electronics
device is likely to be online if the pre-shopping
research is online
• Purchase of F&B items occurs offline regardless
• Facebook app emerged as a popular stop for clothes
and beauty products shopping
FOOD FOR THOUGHT
• If my target consumers are Females, should I tap into
eCommerce?
• How can I catch my target consumers at the research
stage to retain top of mind?
• Is there any potential for F&B business to move
online?
• Should I move to Facebook instead of eCommerce
marketplace?
Reach out to us
4 4 F L O O R - B I T E X C O F I N A N C I A L T O W E R
2 H A I T R I E U , D I S T R I C T 1
H O C H I M I N H C I T Y , V I E T N A M
+ 8 4 2 8 3 9 1 5 1 9 1 9 | D E C I S I O N @ D E C I S I O N L A B . C O
W W W . D E C I S I O N L A B . C O

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Vietnam's e commerce landscape and online shopping behavior (brands let's prepare for tet holiday)

  • 1. Vietnam’s eCommerce landscape and online shopping behavior
  • 2. Growth in eCommerce revenue of Indonesia, Vietnam, Thailand and Philippines 2015 – 2016 (USD) Vietnam’s 2016 eCommerce revenue was only slightly lower than Indonesia’s despite having a population almost three times smaller. In Southeast Asia, Vietnam is now the second most valuable eCommerce market Source: Vietnam E-Commerce And Digital Economy Agency
  • 3. Growth in eCommerce revenue (USD) and number of eCommerce sites in Vietnam Source: Vietnam E-Commerce And Digital Economy Agency By the end of 2016, there were more than 13,500 eCommerce websites based in Vietnam. As revenue has grown, so too has the number of eCommerce players in the market.
  • 4. In January 2018, JD.com – the direct competitor of Alibaba in China – officially announced a US$44 million investment in Vietnam’s leading B2C platform Tiki.vn. Increasing their already heated battle for market share in Southeast Asia, in March 2018, Alibaba raised its total investment in Lazada Group to US$4 billion, bringing in executives from Alibaba to lead Lazada’s regional office here. Asian investors are pouring in more money to fuel the growth of Vietnam’s major eCommerce players In February 2018, an affiliate of private equity firm Creador approved an investment of US$43.8 million in Thegioididong.com – Vietnam’s largest mobile phone and electronic device retailer.
  • 5. Products that are traditionally sold in supermarkets or other brick and mortar outlets can now be found on multiple eCommerce platforms Traditional supermarket brands are moving toward an eCommerce future
  • 6. Are consumers adapting to this shift? But…
  • 7. About the study A L O O K A T T H E O N L I N E S H O P P I N G H A B I T S O F V I E T N A M E S E C O N S U M E R S
  • 8. 752,057 ONLINE VIETNAMESE COMMUNITY MEMBERS 1,945 SAMPLE ACHIEVED Our research methodology Online interview Mobile-first survey Trusted sources
  • 9. Data is weighted based on the online population in 2017 Source: Decision Lab online population 53% 47% 31% 16-24 y/o 28% 25-34 y/o 19% 35-44 y/o 22% 45+ y/o
  • 12. Across the majority of categories, women are the dominant shoppers All purchases P3M Recall: Males vs. Females n = 1081Q: Which of the following products/services that you purchased in the last 3 months? Considering both offline and online purchases, women are more likely to have purchased more often than men across all categories with the exception of electronic devices and alcoholic drinks.
  • 13. Men are more likely to buy online than women 56% 23% 58% 59% 55% 69% 82% 49% 9% 49% 35% 37% 73% 68% Clothing or footwear Cooking ingredients Beauty products Mobile phone Home appliances Short distance travel Long distance travel Males Females All online purchases P3M recall: Males vs. Females n = 1081 Other categories are omitted due to insufficient sample size Q: For the chosen products/services, did you purchase it online or in store? Considering only purchases made online men are more likely than women to have done so. For brands moving online, the challenge is to convert the dominant shopper from buying offline to online.
  • 14. Pre-shopping research A B R E A K D O W N O F T H E T Y P E O F R E S E A R C H C O N D U C T E D B Y V I E T N A M E S E S H O P P E R S P R I O R T O P U R C H A S E
  • 15. Consumers want to be more informed before buying 6% 6% 7% 7% 7% 8% 10% 13% 15% 17% 18% 20% 21% 23% 23% 28% 29% 31% 94% 94% 93% 93% 93% 92% 90% 87% 85% 83% 82% 80% 79% 77% 77% 72% 71% 69% No research Research n = 1945Q: For the chosen products/services, did you conduct pre-shopping research? Product research is performed prior to purchase across every category in Vietnam
  • 16. Product and service information is gathered both on and offline 15% 19% 19% 19% 20% 20% 25% 27% 33% 37% 42% 42% 47% 48% 57% 57% 62% 65% 85% 82% 82% 81% 81% 80% 75% 73% 67% 63% 58% 58% 54% 53% 43% 43% 38% 35% Primarily offline research Primarily online research n = 1945Q: For the chosen products/services, was the research that you conducted primarily online of offline? There is variation across categories in where the source of pre-shopping research is conducted. Online research dominates for big ticket items like phones, appliances and travel, while for non-durables like food and beverage, offline is the main source of research.
  • 17. In some categories, the source of research determines where the purchase is made. If research is primarily offline… 8% 17% 9% 12% 92% 83% 91% 88% Mobile phone Beauty products Home appliances Clothing or footwear Primarily Online Purchase Primarily Offline Purchase If research is primarily online… 61% 63% 60% 67% 39% 37% 40% 33% Mobile phone Beauty products Home appliances Clothing or footwear Primarily Online Purchase Primarily Offline Purchase Q: For the chosen products/services, was the research that you conducted primarily online of offline? Q: For the chosen products/services, did you purchase it online or in store? The chart on the left reveals that shoppers who conduct pre- purchase research primarily online, will also purchase offline, while the chart on the right shows us that those who primarily research offline, will also mostly buy offline. n = 1945
  • 18. F&B purchases are primarily made in stores, although pre-purchase research also happens online If research is primarily offline… 2% 2% 4% 3% 98% 98% 96% 97% Meat/ seafood Veggies/fruits Alcoholic drinks Non-alcoholic drinks Primarily Online Purchase Primarily Offline Purchase If research is primarily online… 19% 21% 36% 29% 81% 79% 64% 70% Meat/ seafood Veggies/fruits Alcoholic drinks Non-alcoholic drinks Primarily Online Purchase Primarily Offline Purchase Q: For the chosen products/services, was the research that you conducted primarily online of offline? Q: For the chosen products/services, did you purchase it online or in store? The chart on the left reveals that a large proportion of those who research online will then purchase in stores, while the chart on the right shows us that those who prefer to research offline will also almost exclusively buy offline. n = 1945
  • 19. The moment of online purchase A B R E A K D O W N O F H O W A N D F R O M W H A T D E V I C E S H O P P E R S I N V I E T N A M P U R C H A S E O N L I N E
  • 20. Both laptops and smartphones are used to make online purchases Computers and smartphones are currently splitting the share of device used to purchase online. Only 12% of online shoppers use other devices such as a tablet or smart TV. Q: For the chosen products/services, which devices did you use when making an online purchase? 42% COMPUTER 46% SMARTPHONE 12% OTHERS n = 1081
  • 21. The device used for online purchases varies between category Although a mobile device remains the primary means of booking short distance travel online in Vietnam, the personal computer or laptop remains favored for hotels and long distance travel. Other categories enjoy an equal split between the two. Q: For the chosen products/services, which devices did you use when making an online purchase? Primarily mobile 81% 18% Short distance travel Equal split 35% 33% 61% 59% Ticket for long distance travel A hotel stay for leisure purpose Purchased on Mobile Purchased on Computer Primarily computer 47% 46% 50% 42% 47% 48% 47% 47% Clothing or footwear Beauty products Mobile phone Home appliances n = 1081
  • 22. The online purchase gateway varies depending on the device. Purchase occurred on computer 43% 38% 31% 26% 39% 37% 32% 29% Clothing and footwear Beauty products Mobile phones Home appliances Facebook browser E-commerce website Purchase occurred on mobile 43% 49% 37% 26%28% 23% 30% 32% Clothing and footwear Beauty products Mobile phones Home appliances Facebook app E-commerce apps Q: For the chosen products/services, on which platform did you buy them? Whenever a mobile device is used to shop online in Vietnam, Facebook is the most popular gateway for purchase, especially when shoppers are buying clothes and beauty products. Whenever the purchase is made on a laptop or personal computer, eCommerce platforms take an equal share. n = 1081
  • 23. BRANDED RIDE-HAILING APPS: 71% Of short distance travel purchases made on a mobile device
  • 24. FACTS • Females are the dominant shoppers, but it’s harder to find them shopping online than males • Purchase of clothes, beauty products and electronics device is likely to be online if the pre-shopping research is online • Purchase of F&B items occurs offline regardless • Facebook app emerged as a popular stop for clothes and beauty products shopping FOOD FOR THOUGHT • If my target consumers are Females, should I tap into eCommerce? • How can I catch my target consumers at the research stage to retain top of mind? • Is there any potential for F&B business to move online? • Should I move to Facebook instead of eCommerce marketplace?
  • 25. Reach out to us 4 4 F L O O R - B I T E X C O F I N A N C I A L T O W E R 2 H A I T R I E U , D I S T R I C T 1 H O C H I M I N H C I T Y , V I E T N A M + 8 4 2 8 3 9 1 5 1 9 1 9 | D E C I S I O N @ D E C I S I O N L A B . C O W W W . D E C I S I O N L A B . C O