According to Statista, the e-commerce market value in Southeast Asia has increased 24 times in the past 6 years, from 5 billion USD in 2015 to 120 billion USD in 2021; and is expected to reach 234 billion USD in 2025. Vietnam’s retail e-commerce market is forecasted to grow by 300%, from 13 billion USD in 2021 to 39 billion USD in 2025.
Lazada’s report in 2021 said that 58% of Vietnamese consumers think that they will continue to shop for groceries on e-commerce platforms because of the convenience and this habit will remain with 53% admitting that shopping online Onlineization has become a part of their lives.
Besides, Vietnamese consumers are also willing to spend more online. The data shows that the percentage of online consumers shopping over 5 million VND in 2020 increased significantly compared to 2019. This e-commerce platform also recorded the highest value of an order up to 300 million VND and 50 respectively. million dong on LazMall – genuine booth system in 2021.
Although the data is very positive about the retail e-commerce industry, compared to China, this rate in Vietnam is still quite low. This phenomenon was once explained by Mobile World President Nguyen Duc Tai in the Shark Tank Forum 2021 program.”Why is online sales in some countries like China “overriding” traditional sales (offline) while Vietnam is not?This is a question that Mr. Tai often receives.
Mr. Tai said that the essence of the story is not simple. The Mobile World President shared a story in 2010, when The Gioi Di Dong opened a store on Cong Hoa Street, a retailer in Guangzhou province, China came to visit. After they returned home, immediately led 40 people to study Mobile World. This made Mr. Tai feel strange and it was not until he went to China to visit that he realized the problem of this retailer.
“One of my shops is 100m2 sell 1000 phones a month, their shop is 300m2 sell 700 phones a month. I said he was ‘death for sure, because rent over revenue is 20-25%. He did so, Samsung sold him to him for twice as much profit to pay. Meanwhile, my rent on sales is just under 2%“, shared Mr. Tai.
With the ratio of rental cost to revenue of Mobile World of less than 2%, Mr. Tai guarantees that the logistics costs are cheaper than the current e-commerce business units. Mr. Tai cited the fact that Bach Hoa Xanh also does e-commerce and logistics costs to be able to deliver a bag of goods to customers, accounting for somewhere around 10% of revenue.
“With a game where one man spends 2% on space rent and another man spends on DC, logistics, and promotions, this game has no end. Only when someone takes blood out of your e-commerce friends will they die suddenly. And many of you have had blood drawn in the middle and ‘go’ a lot. This is a game to create a fierce habit. But habit it is one thing, until the day you fail to commit to being effective against the offline he. Now running such a grandiose store, (rental cost) Mobile World is under 8% of sales. Do you believe that e-commerce men deliver goods to customers’ homes and the cost is less than 8%? Guaranteed it’s the dream number of these men”, the President of Mobile World affirmed as firmly as a nail.
In fact, try to compare the cost of renting a store of The Gioi Di Dong with the revenue of FPT Retail over the years.
According to the notes to FPT Retail’s consolidated financial statements for the year 2016-2021, the company’s store rental and repair costs are around VND208-658 billion. Compared with net revenue, the cost of leasing space of FPT Retail ranges from 1.9%-3.2%.
Meanwhile, for the e-commerce industry, logistics is still a relatively large cost. In a reply to the Laborer newspaper, a representative of Tiki said that logistics in Vietnam is not really effective. For example, with an order worth 10 VND, logistics costs can be up to 2.5 VND (equivalent to about 25%). Therefore, this unit believes that to make logistics in e-commerce more effective, it is necessary not only to apply technology but also to build and develop warehouses, thereby cutting intermediate layers, speeding up goods handling time, Cut the cost.
at Blogtuan.info – Source: genk.vn – Read the original article here