WEBINAR: E-COMMERCE IN VIETNAM - OPPORTUNITIES FOR UK INVESTORS AND TRADERS. Date: 07 th October 2015 Ho Chi Minh City, Vietnam

Transcription

1 WEBINAR: E-COMMERCE IN VIETNAM - OPPORTUNITIES FOR UK INVESTORS AND TRADERS Date: 07 th October 2015 Ho Chi Minh City, Vietnam

2 Ricardo Glenn New Busines Director, Kantar Media Vietnam & Cambodia

3 MASTER THE MOMENTUM OF MEDIA An overview of Vietnam online market and media trends Vietnam

4 Over the next few years Geeks in Marketing will become one of the most disruptive force in a discipline that traditionally was driven by big creative personalities 2006 Michael Fassnacht President FCB Chicago VietnamWorks indicates that out of nearly 7,000 jobs for experienced marketing positions, 4,000 mentioned they need digital skills. 4

5 The Changing Consumer

6 New Pope, Benedict XVI New Pope, Fracis 6

7 The Changing Consumer More connected More opportunities to interact

8 HOURS PER DAY 5 Overall viewing has steadily increased Based on constant 48 countries 4 3h48 3h51 3h52 3h52 3h54 3h52 3h37 3h40 3h40 3h40 3h41 3h Source: Eurodata Daily tv viewing by individuals

9 Vietnam Average TV watching time Total Vietnam 4+ 2:53 2:52 YA 2:22 2:24 VTV 3 VTV 1 HTV 7 Source: Kantar Media Vietnam Daily tv viewing by individuals Hanoi 4+ 2:52 2:59 YA 2:17 2:17 HCM 4+ 2:53 2:58 YA 2:23 2:33

10 Media Industry Revenues 600,000 US $ Millions Interaction 500, , , ,000 40,716 49,418 28,023 29,008 1,297 1,242 63,787 60, ,191 99,659 26,240 25,612 54,312 26,272 1,154 49,702 85,973 24,278 63,776 27,705 1,245 48,784 85,836 25, ,070 86,940 75,193 29,673 31,691 32,928 1,299 1,372 1,339 48,299 47,150 45,735 75,733 79,433 83,460 27,013 27,023 26, ,479 34,162 1,402 45,062 73,527 27, ,245 35,581 1,519 44,833 71,832 28,746 Outdoor Cinema Magazines Newspapers 100, , , , , , , , , ,884 Radio TV f 2015f Source: Group M This Year, Next Year July 2014 Interactive includes internet display, search, mobile. f= forecast

11 Media Industry Revenues Vietnam 1,800 1,600 US Millions$ Radio Newspaper 1,400 1, Magazine TV 1, , , Source: Kantar Media Vietnam

12 Media investment would and should be allocated differently 40% to 45% growth vs % < 90% >

13 Smartpho ne TV (15%) (36%) Vietnam consumes just under 8 hours of screen media daily Computer (34%) Tablet (15%) Millward Brown

14 Media Consumption Last week 28%/41% 98%/95% 92% 18%/23% 16%/8% 33%/42% 13%/6% MHS Sourvey 2012 vs. 2014

15 banners Source: Kantar Media 51,000 advertisers Growth 45% 220,000 campaigns Industry Aviation % % Food & Beverage % % Pharmaceuticals 51.94% 13.60% Real Estates % % Automobiles 49.08% 33.81% FMCG 66.42% 43.04% Source: Admicro 15

16 1,872

17 Online and e-commerce trends in Vietnam Ho Chi Minh City October, 2015

18 2015 Zalora Vietnam. All rights reserved. Jose Finch Country Managing Director, ZALORA Vietnam

19 01 ABOUT ZALORA VIETNAM 02 THE POTENTIAL OF E-COMMERCE IN VIETNAM 2015 Zalora Vietnam. All rights reserved. 03 CHARACTERISTICS OF THE ONLINE CUSTOMER 19

20 01 ABOUT ZALORA VIETNAM 2015 Zalora Vietnam. All rights reserved.

21 ZALORA GROUP IS PART OF THE NEWLY FORMED GLOBAL FASHION GROUP (GFG) 2015 Zalora Vietnam. All rights reserved. 21

22 CARRYING MOST RELEVANT BRANDS FOR OUR TARGET CUSTOMER +700 LOCAL & INTERNATIONAL BRANDS RELEVANT FOR OUR TARGET CUSTOMER; MORE BRANDS TO COME 2015 Zalora Vietnam. All rights reserved. >60k RELEVANT PRODUCTS ACROSS ALL CATEGORIES WHICH IS CONTINUOUSLY OPTIMISED 22 22

23 SIGNIFICANT MARKETING REACH IN VIETNAM Website 300,000+ visits per day 9,000,000+ visitors per month Mobile App download: 700, Zalora Vietnam. All rights reserved. Social Media 6,000,000+ subscribers Facebook + Instagram 23

24 THE POTENTIAL 02 OF E-COMMERCE IN VIETNAM 2015 Zalora Vietnam. All rights reserved.

25 INTERNET USERS ARE GROWING AT 9% p.a. IN VIETNAM Growth Potential Growth Potential 28m 43m +55% 17m 21m +5% 22m 36m +38% 4m 4m 0% 2015 Zalora Vietnam. All rights reserved. 11m 21m +247% Total 205m Internet users in SEA countries. Source: Euromonitor; The World Bank; IDC Research 36m 80m +131% 25

26 INTERNET PENETRATION GROWTH IS DRIVEN BY SMARTPHONES Mobile phones shipped. Vietnam Dumb phones Smartphones % 2015 Zalora Vietnam. All rights reserved % Source: IDC 26

27 DISPOSABLE INCOME EXPECTED TO GROW AT 9% Disposable Income per capita (USD) 1,082 14% 1,416 9% 2, Zalora Vietnam. All rights reserved. Source: Economist Intelligence Unit E 27

28 E-COMMERCE PENETRATION EXPECTED TO ACCELERATE E-commerce penetration of total retail market 16% % 12% 8% x2 8.7% 2015 Zalora Vietnam. All rights reserved. 4% 0% Source: Euromonitor 3.9% 2.3% 0.3% 0.7% 0.8% 1.4% VN TH SG US 28

29 CHARACTERISTICS 03 OF ONLINE CUSTOMERS 2015 Zalora Vietnam. All rights reserved.

30 A YOUNG AND PROFESSIONAL CUSTOMER ~60% Female 70% are between years old 2015 Zalora Vietnam. All rights reserved. 70% repeat purchase 50-60% do online shopping through a mobile device 30 30

31 ONLINE CUSTOMERS BEHAVIOUR IS DIFFERENT 2015 Zalora Vietnam. All rights reserved. From Everywhere At Everytime By all means 31

32 40% OF CUSTOMERS ARE OUTSIDE LARGE METROPOLIES ~ 40% e-commerce buyers are from the rest of the country 2015 Zalora Vietnam. All rights reserved. ~60% e-commerce buyers are from HCMC and Hanoi 32

33 ONLINE CUSTOMERS BUY DURING OFFICE HOURS AND FROM HOME E-commerce sales per hour on weekdays Offline Online 2015 Zalora Vietnam. All rights reserved. 8am 12pm 1pm 7pm 12am 33

34 ECOMMERCE HELPS OFFLINE RETAILERS TO FURTHER EXPAND Retailers who do business online benefit from better brand awareness, access to a wider market and pick up custom from + retailers who are not on the web About 95% of sales of women s dresses 2015 Zalora Vietnam. All rights reserved. Offline Offline + Online online were in addition to spending in physical stores Source: Online Sales Complement Offline, Deloitte; 34

35 MOBILE ECOMMERCE IS GROWING RAPIDLY SHARE OF TRAFFICBY PLATFORM Mobile 2015 Zalora Vietnam. All rights reserved. 70% 60% 60% 60% 57% 43% 40% Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 35

36 ECOMMERCE STILL HAS MANY CHALLENGES Lack of trust of customers Slow mobile network Lack of ecommerce knowledge of suppliers 2015 Zalora Vietnam. All rights reserved. Bureaucracy Undeveloped and expensive transport infrastructure Internet connection with the rest of the world Lack of ecommerce knowledge of suppliers Payment systems 36

37 2015 Zalora Vietnam. All rights reserved. 37

38 Wai Kit Ho Executive Director British Business Group in Vietnam

39 Running in Malaysia, Thailand, Vietnam and the Philippines. In Vietnam: BBGV in partnership with UKTI to deliver the campaign receiving 15,000 funded by UK Government. from 29 Oct 2015 till mid of Jan 2016 a competition run in stores in Hanoi and Ho Chi Minh City. Activities to amplify the campaign Launching event Shoppers have chances to win the Grand prize of a return Emirates ticket to London & 5 night-stay at Intercontinental London Park Lane. UK participating brands: ZALORA is key media partner Book event High class event Bond is GREAT Closing event Local media, TV channel and influencers

40 Thank you for joining our webinar Contact us UK Trade & Investment T: +44 (0) E: W: BBGV Business Centre Follow us on Find out more Future Webinars Business Opportunities Contact See the full range of BC services