1. Tai Tran & Duy Doan
Updated Version
23.2.2012

2. WHERE WE ARE NOW

3. Economic
crisis
Declining
Supporting
buying
frameworks
power
Macro-
economic
factors
Positive
Technology
banking
trends
response
Investments

4. Market overview
Click to buy
Click to pay
Market size
• Vietnam Group buying 2011: VND 750b (*)
• e-Commerce excluding Group buying:
• e-Payment:
(*) Source: dealcuatui.com

5. Market Size
• Normally e-commerce market size is measured using
Gross Merchandise Value
• However it is currently almost impossible to measure
GMV in Vietnam
– 43 million bank cards as at 2011, but mostly for withdrawing
cash
– Underutilized e-payment despite functional products e.g.
NganLuong, SohaPay, OnePay, BaoKim, Smartlink, VNBC,
Banknetvn
– C2C e-commerce sites are used for information listing (think
Alibaba 2001)
– Transactions are NOT done on site
– Current revenue model of e-commerce site: store rental
• E-Payment: can measure transaction value (of course)

6. Merchant demographics
Electronics
Product B2C Technology gadgets
category Household items
Physical books
Apparels
C2C
Cosmetics
Payment
Demand Store services Branding
Delivery
Account manager
Partner care
Incentives
Pricing

7. Buyer demographics
• Segments
1. Geeks
2. Dealers Professionals
3. Teen?
4. Professionals
5. Mass Social Disposable
• Demand network user income
– Trust
– Buyer protection
Payment
• Customer care readiness
7

8. Limitations
• Business model
– Been doing C2C for 6 years but C2C can't solve the problem of trust
– Cannot go mass
– Back to B2C
• Risk management
– Customer care
– Buyer & seller protection
– Communication crisis
– Standardized process & best practice
• Haven't automated many processes
– Speed of services
– Cost fixing
• Value chain
– Cannot procure directly from wholesaler
– Need to go through retailer which adds cost on top
• Identity?
• Human resources

9. New
entry:
high
Supplier Buyer
bargain Competition: bargain
power: moderate power:
high high
Alternatives for sales & distribution Alternatives for purchasing goods
Substitute:
high

10. E-commerce site Owner Model Description
(not including
Groupon clones)
http://vatgia.com Vatgia JSC C2C, price comparison
http://nhanh.vn Vatgia JSC B2C
http://chodientu.vn PeaceSoft JSC C2C
http://solo.vn VCCorp B2C Discount e-tailer
http://enbac.com VCCorp C2C
http://rongbay.com VCCorp Classifieds
http://muare.vn VCCorp Classifieds forum
http://5giay.vn The Gioi So Classifieds forum
http://vinabook.com MekongCom B2C Books & CDs
http://tiki.vn Tiki JSC B2C Discount books e-
tailer, apparels
http://nguyenkim.com Nguyen Kim JSC B2C Online channel of
brick-and-mortar
retail chain
http://dienmay.com The Gioi Dien Tu B2C Retail chain with
online offering
http://golmart.vn

11. Upcoming Owner Model Description
e-commerce sites
http://chon.vn B2C Backed by Vinatex.
Likely deals with
wholesalers
http://nava.vn NCT Hybrid
http://hula.vn
http://qua102.com B2C Online gift shop
http://anhshop.com B2C Boutique gift shop
http://muaban.net Classified
http://websieuthi.vn VTG B2B2C Unique offering:
lottery
Topup & Metro
groceries

12. Case Study
• Trust system
• Payment solution
– Connect many banks
– Support non-bank customers
– Merchant network development
– Strategy: micro-payments (contrast: MobiVi')
– Digital content payment, free interbank transfer
• Marketing
– Promotions, discounts, gifts, post-purchase care
– Communication, public newsletter
• Strategic partnership
– Cross-border transactions
– Cross-border payment
• Other services: bidding, ad network
• Willing to collaborate with Internet partners

13. WHERE WE ARE GOING

14. 2012 Trends
Categories:
Lever Groupon's • Consumer electrics
B2C
momentum (market potential)
• Apparels (high margin)
Logistics
Foreign entrants
development

15. A winner will not have emerged in 2012
• Ongoing competition
• Big-4 established positions
• Complementary relationship
• A long-term game with customers and against other
channels

16. Industries potentials
Market potential (VND trillion)
140
120
100
80
60
40
20
0
Electronics Tech gadgets Mobile phones Apparels & Physical books
cosmetics

17. Market potential
e- e-Payment
Commerce $2.4b
$2b
(*) comparables method

18. Thank you!
Tai Tran Duy Doan
http://taitran.vn http://www.facebook.co
m/doanduy

19. APPENDICES

20. Retailers Internet firms Startups
$$$$$ $$$ $?
Stores, sales, delivery, brand Tech teams, sales, customer Almost no sales team
care, delivery
Cash Warehouses No warehouse
Warehouses Dependent on suppliers Dependent on suppliers
Availability of goods Inventory or listing only
Experienced in retail Experienced in Internet, e- Normally experienced in
Limited experience with Commerce, community Internet
Internet
Limited in Internet product Good Internet products Smart products
Focus on sales Sales, e-Payment, ad Niché market
Connection with suppliers, Connection with strategic Personal relationship
banks partners and other Internet
products

21. Reference
• VN's retail sales hit US $78 billion in 2010
http://news.gov.vn/Home/VNs-retail-sales-hit-US-78-billion-
in-2010/20111/9774.vgp
• Thị trường điện máy $6.6b http://chungta.vn/tin-tuc/kinh-
doanh/2011/11/nam-2012-fpt-trading-se-phan-phoi-hang-
dien-tu-gia-dung/
• Doanh thu FPT Trading khoảng 17 nghìn tỷ
http://www.xuanthanhsc.vn/home/Tin-tuc/Chuyen-muc,Tin-
tuc,Tin-trong-nuoc/Tap-doan-FPT-6-thang-dau-nam-lai-1204-
ty-dong/
• Doanh thu dienmay dự kiến khoảng 6 nghìn tỷ
http://www.vnbrand.net/Phong-su-thuong-hieu/mo-hinh-
cong-ty-the-gioi-di-dong-6000-ti-doanh-thu.html
• Tiềm năng TMĐT 2 tỷ
http://www.pcworld.com.vn/articles/tin-tuc/tin-trong-
nuoc/2010/04/1218882/hon-8-ty-dong-giao-dich-qua-ebay-
vn/

22. Bibliography
• Groupon http://www.taitran.vn/tag/groupon/
• E-Payment http://www.taitran.vn/tag/e-payment/
• Amazon http://www.taitran.vn/tag/amazon/