Vietnamese internet users online buying and selling behaviour pptx

• Purpose: To understand Vietnamese internet users online buying and selling behaviour • Roles in the Joint Study: – Acorn – study & questionnaire design, charting, analysis and reporti

Vietnamese Internet

Users Online Buying

And Selling Behavior

Conditions of Use and Copyright

Readers are welcome to use the data contained in this report for their own purposes provided they acknowledge the source and both Acorn and Epinion

as the authors

• Purpose: To understand Vietnamese internet users online buying and selling behaviour

• Roles in the Joint Study:

– Acorn – study & questionnaire design, charting, analysis and reporting

– Epinion- programming, selection of respondents & online administration

• Respondent selection criteria:

– Aged 18 to 54

– Quotas placed on age to be representative of Vietnam’s internet using population

• Methodology: Online survey via emailed invitation -July/Aug ‘12

• Length of interview: maximum 20 minutes

• Sample size: n=2,495

• Data Analysis: Data post-weighted to reflect actual internet usage

age ranges in Vietnam

Research Purpose and Methodology

OVERVIEW OF SAMPLED

RESPONDENTS

University - with degree

Sample Profile (Online Respondents)

More than 5 hours

How many hours per day do they spend online?

Ref: How many years have you been accessing the internet? / How many hours do spend online each day?

Base: All respondents, n=2,495

ONLINE SHOPPING BEHAVIOR

Online Window Shopping & Buying

Visit frequency Purchase frequency

Ref: How often do you visit online shopping sites and/or buy and sell sites/auction sites? / How many times have you bought something online?

Base: All respondents, n=2,495

Ref: How many times have you bought something online? / How likely are you

to consider buying something online?

Base: All respondents, n=2,495

Laptop PC at home Feature phone with

3G/GPRS Smart phone Tablet

Device owned Device used to access shopping sites

Ref: Which of the listed items you personally own / Which device do you use

to access online shopping sites/buy and sell/auction sites?

Base: All respondents, n=2,495

Types of Online Shopping Websites

Eg

- Thegioididong.com

- Fptshop.com

Proprietary online stores owned by one

company – normally bigger companies –

often sell electronics Promoting online

payment but can also be COD

Example sites:

- Muachung.com

- Cungmua.com

- Nhommua.com

Site owner bulk buys goods and services

from suppliers and resells them to

consumers as redeemable coupons at

discounted rates Payment usually COD

to poster Good delivered by poster

Classified Ads Sites Coupon sites

Examples of Key Websites by Shopping Site Type

Coupon sites Classified Ads

51deal.vn 123mua.com aha.vn fptshop.com.vn

cucre.vn 5giay.vn vatgia.com thegioididong.com cungmua.com chodientu.vn

5giay.vn Rongbay.com

Thegioididong.com Fptshop.com

Vatgia.com Aha.vn

Ref: Which are the following shopping/buy & sell/auction sites you visit the most often? / Which of these sites did you make your last three purchases from?

Base: All respondents, n=2,495

Conversion

# of items

Online Shopping

Categories Less Suited to be Sold Online

Ref: What categories of products have you ever bought online / Which products categories are NOT APPROPRIATE to be sold online in your opinion?

Base: Online Buyers, n=2,197

Online Shopping

Method of Order Placement for Online Purchases

96%

71%

Telephone vs Direct Online Order Placement

Has placed order directly online Has placed order via telephone

69%

31%

Share of total orders

Ordered directly online Placed order via phone (after search)

Ref: How many of the purchases you have ever made online were: a) directly ordered online and b) ordered via a telephone hotline (for direct delivery) after

an online search?

Base: Online Buyers, n=2,197

Debit card online

Credit card online

Third party online

Online bank transfer

Check/cash sent first

367,000 VND Mean spend (last purchase)

Ref: How much did you spend on your last online purchase?

When buying something online, how do you pay most often? - MEDIAN Base: Online Buyers, n=2,197

Better than face to face

instore shopping About the same as face to face instore shopping Worse than face to face instore shopping

Somewhat Much

Ref: How satisfied are you with the experience of shopping online compared with normal

Base: Online Buyers, n=2,197

Ref: How likely are you to shop online again? / Would you recommend shopping online to your friends and relatives?

Base: Online Buyers, n=2,197

Prefer to see and touch Price -more expensive than in the shops

Online Window Shoppers

Barriers to Buying Online for Non-Shoppers

Base: All respondents, n=2,495

Ref: How likely are you to consider buying something online in the future?

Base: Internet users who window shop but have never bought anything online &

who never visit online shopping sites, n=298

You can be reasonably sure that goods will be delivered after bought online

In the future, all Vietnamese with internet access will buy things online

The internet is a great source for finding out about new products

The internet is a good place for finding out about products & window …

I do not ever see myself buying anything over the internet There are safe ways to pay for things over the internet Just about any service or product can be sold over the internet You can get the same quality at a cheaper price on the internet

I would buy things online if there was a safe payment & delivery system

I generally trust people & companies selling things online Buying things online saves time over buying things face to face Making payments for goods bought from the internet is dangerous

Agree Disagree

Non-Shoppers

Attitudes to Shopping Online

Ref: How much do you agree or disagree with each of the following statements?

Base: Internet users who window shop but have never bought anything online &

who never visit online shopping sites, n=298

Negative statement

ONLINE SELLING BEHAVIOR

Online Selling Behavior

Incidence and Top Categories Sold

Ref: Have you ever SOLD anything over the internet, either via an auction site or your own website? / What kind of products have you sold online?

Base: All respondents, n=2,495; Online sellers, n=849

34%

n=849

Online Selling Behavior

Type of Goods Sold

NEW 33%

2 nd HAND 37%

BOTH 30%

Ref: Was the item(s) you sold new or second-hand/used?

Base: Online sellers, n=849

Online Buying and Selling Behavior

Most Popular Categories Sold

Ref: What categories of products have you ever bought online?

What kind of products have you sold online?

Base: All respondents, n=2,495

Online Selling Behavior

Type Of Websites Used by Sellers

Ref: Which are the following shopping/buy & sell/auction sites you visit the most often? / Which of these sites did you make your last three purchases from?

Base: All respondents, n=2,495

Online Selling Behavior

Handling tax implications and accounting

Setting the price Trusting the buyer Ensuring the delivery of product Establishing and controlling the payment system

Deciding what to sell Advertising/promoting the item to the audience

Sourcing the product to sell

17%

61%

Dissatisfied Satisfied

Satisfaction with result

Future online selling likelihood

18%

57%

Unlikely Likely

Ref: How satisfied were you with the result of selling online? / How likely are you

to try to sell something online in the future? / From this list what would be the top three most barriers that you believe you would face in conducting or setting-up online sales?

Base: All respondents, n=2,495; Never sellers n=1,646

100%

n=2,495

66%; n=1,646 34%; n=849

EXECUTIVE SUMMARY

Online Shopping Incidence and Behaviour

• Virtually all (99.7%) internet users have visited a shopping site online and 72% do

so everyday

• Two-thirds of Vietnamese online shoppers access shopping sites online and 45%

do so on a desktop PC – only 22% use their smartphone and just 8% use a tablet

• A staggering 88% have ever bought something online, with 20% claiming more than 25 purchases to date and a median of 8.75 purchases

• Most have bought things through coupon sites (65%) and classified ad sites (29%), with 13% buying through commercial sites and 11% through online retailer sites

• Even among the 12% who have never bought anything online, 4% do not rule out the possibility that they will – nor are never-shoppers more prevalent among the older age groups, indeed older respondents (35-54 years) appear to contain more heavy buyers than younger age groups

• Most commonly bought items are fashion (61%), house appliances (42%), food and beverages (37%), mobile devices (37%) and cosmetics (31%) Least likely to have been purchased online are phone apps and software (12%)

• Average (median) spend on last item purchased was approx VND 367,000 (US$ 17.6), though 8% said they spent over 5 million VND (US$ 240)

Executive Summary

Online Shopping Incidence and Behaviour

• But given poor access to credit and low bank usage in Vietnam, cash on delivery dominates e-commerce in Vietnam - three quarters of last purchases were by cash

on delivery to home and only 5% made by credit or debit card

• Vietnamese on-line buyers feel comfortable buying online - with a plurality (38%) believing that online shopping is better than face-to-face shopping, while just 25% feel it is worse and two-thirds saying they will buy online again in future

• They also believe most items can be sold online – though electronic devices and mobile devices are thought to be least appropriate to be bought online, while few people reject buying travel services and tickets online

Non-buyers

• Among never buyers, around 75% have window-shopped online and wanted to buy something that they could afford, but did not buy it, with 40% citing the higher price online than in the shops as the major disincentive, followed by the need to touch and feel the objects (32%)

• Trust appears to remain a barrier among those who have never bought online Three-quarters agree that making payments remains dangerous and less than half (40%) agree that you can be reasonably sure of delivery if you buy something over the internet

Executive Summary

• Over half also appear to enjoy the shopping experience and finding out about new products the old fashioned way

Online Selling Incidence

• While 88% have ever bought online, just 34% have ever sold anything online –with the incidence of selling new and used goods being roughly equal

• Nevertheless, interest in selling online is high even among those who have never done so – with over half (57%) saying they will likely sell something online in

Executive Summary

Conclusions

• Persons who join internet panels are self-selected and hence can be expected to

be more active online than the average internet user But even accounting for this, this survey indicates that internet commerce is here to stay in Vietnam and can only be expected to grow

• Vietnamese netizens feel comfortable online and a surprising number have

bought (88%) and sold (34%) online already

• However, online commerce in Vietnam has adopted a peculiarly Vietnamese flavor

in accordance with the state of financial development Three quarters of

transactions are completed using cash on delivery whereby a delivery man rides the ubiquitous motorcycle to your door to deliver your order Credit and debit cards are so rare that only 5% of last transactions were paid in this way

• Trust in payment systems, and doubts about whether goods will be delivered also remain as significant barriers to online commerce in the minds of never buyers – even though two-thirds agree that online purchases save time, and possibly money over face to face shopping

• But as confidence in the banking and payments systems improves, these barriers are also likely to slowly dissolve and internet commerce can only thrive and grow

Executive Summary

FOR MORE INFORMATION CONTACT:

Contact : Pham Tran Nghia

Tel: +84-8-3823-3007