E commerce mid term report

figure 1.2 Revenue table of e-commerce platforms in the fashion industry in Vietnam from September 2022 to September 2023 1.3 Purpose and objectives of creating a brand on the E-commerce

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMIC & FINANCE

UE

UNIVERSITY OF ECONOMICS & FINANCE

Lecturer: Ta Minh Thao

Class code: BUS1104E-B07E

Group: 1 Academic year: 2023-2024

P Ni oi 0 ố.-¿zgaũũađiadadaadaiiiiia 2 2.3 E-commerce Platform Selection occ cece HH HH 1111101111101 101110111011 11 11 re 3 2.3.1 Evaluate popular e-commerce platforms 1n VIetam: L1 1 12 21 2H ra 3 2.3.2 Selection of the most suitable platform for the brand c2 11222 11212212222 xe 4 2.3.3 Set-up of the brand”s online sfO€: ác 1n nn1 1 01111111111111 11111111111 Ác cá 4

P co 00) (0009)0)-0A2.) 0n ra 4 2.5 Marketing SŠtTat€ØV: nnnn n1 1011111101 HH HH Hà Hà H111 E11 Hán g 1111k, 4

PIN: 9s gu 00400240)0ðiï) )VƯđIaaa 4 2.5.2 Booking livestream on TI1kTok shOD: L1 c1 S1 1101111111 181112 11 011 1101111 ru 5

PP No lào nh ố ố.ốằằồó 6

2.5.5 Total Budget: See total budget at the link below c1 n1 1 112121121011 ray 6

2.6 Financial Plan ccc ccc ceeeceececeeecetsecteecseteesteeseetisstsesietissteesetisstsessesetetstsesenees 6

2.6.1, Fimaneial assessment of the busIness án HH2 n1 H110 1 HH 6 2.6.2 Pricing strategy and profIf I\4fB1H§: ác 1 11111111111 111111111211 1112111 11 1 11H Hráu 7 2.6.3 Return on investment afnaÌy§1S: 1911 1911111111111 11111111011 HH HH 8 Challenges⁄Diffieulties: (Table 3) LH HH1 0110110111111 1111 111111111 H HH HH Ho 8 Conclusion: (Table 4.1 & Table WlMmiiiaiiiiiiađaẳtiẳaẳảẳảẳẢẳẢẢ 8 FAN 0] 0X30 6 (ech ec ec cre 9

bÝÄY ïo 2y 80 )0 0010 0ì 0n ồó 9 5.3 Table of Evaluation of member”s GotitrIDUfIOH: - nSnn HH HH 111 ng 28

1

(Table

Introduction:

1.1 Brief overview of the current E-commerce landscape in Vietnam:

The Vietnam E-commerce Report 2023 recently published by the Department of E- Commerce and Digital Economy shows that Vietnamese e-commerce in recent years has recorded strong growth

If in 2018, Vietnam's B2C e-commerce revenue only reached about 8 billion USD, then by 2019, it had surpassed 10 billion USD (reaching 10.8 billion USD) Revenue continued to increase by 11.8 billion USD in 2020 Retail e-commerce (B2C) revenue in

2022 reached 16.4 billion USD, accounting for 7.5% of total retail revenue of goods and services national consumption.\

(Figure 1.1 The Vietnam E-commerce Report 2023)

1.2 Brief overview of the industry that your group E-commerce business will be

focused on:

From the statistical table, it shows that the fashion market on e-commerce platforms

is developing very well After analyzing and researching, our team decided to choose this

as the main platform to sell unisex handbags

(figure 1.2 Revenue table of e-commerce platforms in the fashion industry in Vietnam from September 2022 to September 2023)

1.3 Purpose and objectives of creating a brand on the E-commerce platform: 1.3)

Main Content:

2.1 Market research and analysis:

Target market overview:

(Figure 2.1: The handbag market is forecast to record a CAGR of 4.5% between 2021 and 2026.)

In 2021, the production index of the entire leather, footwear, and handbag industry

increased by 5.2%; Export turnover also increased by 4.6% compared to 2020

In addition, in 2022 the leather, footwear, and handbag industry set a record with

export results of more than 28 billion USD, billions of USD higher than the target set at the beginning of the year

Of which, footwear export turnover reached 23.932 billion USD, an increase of

34.8%, and handbags and suitcases reached approximately 4.1 billion USD, an increase

of 35.6% over the same period last year

Through the above data, we can also see that the leather handbag market in Vietnam

is growing strongly In addition, the trend of "Vietnamese people using Vietnamese products" is increasingly developing strongly That is also the reason for us to see that this is a potential market and we should invest and develop

Competitor analysis: The Vietnamese handbag market has many competitors After

we researched the market, we came up with some competitors according to the following table:

(Table 2.1.1)

Market Segment: (Table 2.1.2)

2.2 Brand Development:

¢ Brand positioning and value proposition:

- Targeted Customers: students and working people

- Business model: online based

- Revenue model: sale revenue

- We want our brand to reflect the user's personality The design is simple but still retains its uniqueness and innovation We want each person wearing a handbag to feel comfortable and be themselves Luxury and luxury are expressed through every design

We take advantage of quality materials in Vietnam to produce products that are not only good but also have prices suitable for the majority of Vietnamese people

To make a difference, attract customers with new experiences, build lasting relationships with customers by connecting with them through personalized experiences instead of product discounts Linfini chooses to give familiar customers gifts on special occasions of the year In addition, Linfini member customers will be invited to private parties

¢ = 6Core value:

We want to be a brand stands for a lifestyle, of freedom to express themselves and define

their own happiness, to build our identity, therefore, our core value will be built base on 4 main

freedom - constraint, work - leisure Consumers feel the dynamism, freedom, and comfort

of being themselves when wearing beautiful clothes and wearing Linfini products

¢ Brand name & logo design:

- Brand name: “LINFINI’ means “Infinity”

- With the dream of starting a business, Linfini was born, a brand providing mainly fashion

handbags, established on March 26, 2023 in Vietnam with the desire to meet the tastes of

fashion enthusiasts and the increasing demand for handbags from domestic customers

- Logo design: (Figure 2.2.1)

- We choose the wordmark logo type, with Anton typeface - a san serif font - in order to emphasis the basic feel but still high-fashion and also create a trust-worthy, stable and strong feel for our brand image to suitable for our message, to be fearlessly chase your

own happiness Beside, we decide to use the metallic material for our logo and using the

another version of our logo, which is more simple, with the letter “L” combine with the

circle outside

Color: we choose black and white as our primary color to bring the high-class feel, combine with the color light red, light blue, and light green to create a friendly, young

and dynamic feel to our customers, in order to build a fashionable brand but youthful,

extrovert and trendy not being old and outdated

Brand story and messaging:

Brand story:

Linfini wants to tell a story of embracing all the uniqueness of each person, uniqueness in their imagery, in their style, in their definition of happiness, to freely express themselves through fashion Linfini wants to be more than a brand but a friend that will be their with our customers, through their journey define themselves, define their happiness, to appreciate any forms of their happiness and be a motivation to non-stop evolving to be the better version as

a whole through fashion, through imagery

Brand messaging:

Through Linfini, we want to bring a story, a message about the value all kinds of happiness, even though it can be small and insignificant, therefore, for this brand, we form the tagline and our statement based on that message: “Endless Happiness” We not only want to bring to our beloved customers a singular happiness, a big or small happiness, but appreciate all the happiness in life in your own way, in order to have the ability to build endless happiness, limitless boundaries

Product selection & Sourcing:

Product: There are products for men and women

Most of Linfini's handbags have a minimalist style, can be coordinated with many different fashion styles, and have a highly applicable role in life However, when wearing that seemingly small but simple bag, we can still exude a unique, trendy aura through the color and meticulous design of each product and the bag owner can freely express the style they want to create their own "unique" difference without being constrained by any framework This is also one of the images that Linfini wants to aim at "be yourself, be unique" through our products

(Figure 2.2.2)

- Material: Most of Linfini's products are made of PU leather

* PU leather: Polyurethane Synthetic Leather, also known as artificial leather This

type of leather also has the advantage of good cold resistance, convenient processing and

is the most ideal replacement material for natural leather

largest e-commerce platforms in Vietnam (Shopee, Lazada, Tiktok Shop, Tiki, Sendo) reached 63 trillion VND 443.170 is the total number of sellers with orders on 5 floors with 602 million products sold Shopee ranks top 1 in market share with a revenue of 43.713 trillion VND (market share is 69%) TikTok Shop contributed 25 trillion Vietnamese dong If we only consider the revenue from the four platforms Shopee, Lazada, Tiki, and Sendo (with TikTok Shop launching in late April 2022), the growth rate compared to the same period is 33% Compared to the second quarter of 2023, Shopee continues to demonstrate stability by increasing its market share by an additional 6% Despite a slight decrease in market share, TikTok Shop still performs well, as evidenced by a 5% increase in revenue compared to the previous three months Lazada stands in the third position on the ranking, with sales reaching 8,768 billion VND

(Figure 2.3.1.1 Monthly revenue on e-commerce platform: first 9 months of 2023)

The highest revenue segment across the platform is the 200,000 VND - 350,000 VND

price range, followed by the 100,000 VND - 150,000 VND and 150,000 VND - 200,000 VND ranges

Generally, the lower price segments are generating higher revenue, indicating a strong demand for affordable product categories among consumers in Vietnam (Figure 2.3.1.2 Statistics on price segments on e-commerce floors in the third quarter

of 2023)

2.3.2 Selection of the most suitable platform for the brand

Linfini decided to choose TikTok Shop instead of Shopee as the main commerce platform to build its brand and increase brand awareness among consumers Firstly, TikTok Shop has lower selling fees compared to Shopee Shopee charges over 3% fixed

fees and payment fees, along with additional service fees, whereas TikTok Shop has a 2%

commission fee and a 3% transaction fee Secondly, the shopping experience is incredibly convenient While browsing videos on the TikTok app, buyers don't need to exit the app to access a shopping website or another application to make a purchase They can simply click on the links embedded in the videos or use the available shopping cart within the TikTok app to directly experience the shopping process Thirdly, TikTok Shop

is integrated with TikTok, which has a large user base This integration makes it easier for TikTok Shop to promote its products through TikTok Everything becomes simpler and more effective The accessibility between consumers and products on TikTok Shop is more open and offers more opportunities Lastly, the development space for TikTok Shop

is relatively new and vast There are still many undiscovered aspects for you to explore

In parallel with Tiktok Shop, the business also built a sales website Here we want to

prove our credibility Just like we also want to target loyal customers Build a website so

we can retain that customer file The average conversion rate of a loyal customer is 60%

to 70%, while the conversion rate of a new customer is 5% to 20% Business profits increased by 25% to 95% when customer retention increased by only 5%

2.3.3 Set-up of the brand’s online store:

https://linfini ite wixsi linfinish

(figure 2.3.3.1) (figure 2.3.3.2)

2.5.1, Booking PR (KOC/ KOL/ Influencer):

Because Lifini is a newly launched handbag brand on the market, we want customers

to have a certain brand awareness and a clear understanding of Linfini's products, so we choose to use images of KOCs/ KOL/Influencer to achieve that goal by posting a video coordinating outfits with Linfini products thereby helping customers have a more comprehensive view of the product

At this time, Linfini chose to deploy on the main platform Tiktok - the most used platform in the Vietnamese market recently as well as the target customer groups Linfini targets will focus heavily on this platform

Objective: Increase brand awareness by 600,000 people in the market by achieving 2

million total reach of PR videos on TikTok

Timeline: 30/5/2024 - 30/10/2024

KOLs/Influencers: (Table 2.5.1 Detail information about KOC/ KOL/ Influencer) 2.5.2 Booking livestream on TikTok shop:

Livestream booking is indispensable when Linfini chooses Tik Tok Shop as one of its

main sales channels As a new brand on the market, in order to reach customers and

achieve the desired revenue, we will offer the best possible price on livestream sessions, meeting the needs of customers to buy goods at good prices Tik Tok users today

Objective:

- Achieved revenue of 5 billion VND in a total of 6 livestream sessions

- Increase brand awareness by 5 million people on Tik Tok platform

Timeline: 8/8/2024, 9/9/2024, 10/10/2024 The days of the livestream will be on a

couple of days in the month, because these days are the big sales of the month, with more customers buying and watching the special livestream

KOLs Live Stream: (Figure 2.5.2.1 KOL Diep Le)

(Figure 2.5.2.2 KOL Pham Thoai)

(Table 2.5.2: Detail information about KOL Live Stream)

2.5.3 Giveaway on Facebook:

After having a certain level of recognition in the market Besides using Tik Tok social network, Linfini also wants to use Facebook fan page to organize a Giveaway to help increase the number of people who know about the brand in general and especially Linfini's website in particular, in addition to helping the brand have a chance to know about the brand in general and Linfini's website in particular opportunity to interact with customers and collect potential customer data

Objective: - Received more than 400 member registrations on the website

- The article will reach 20,000 people, achieve 3,000 interactions (likes, comments, shares, )

(Table 2.5.3 Detail timeline of Giveaway event)

Rules:

Customers participating in the program will click on the website to create a membership, then they must take a screenshot when successfully registered and comment under the post with three numbers they want, mention three friends and share the post publicly At the end of the program, Linfini will randomly draw the 3 luckiest numbers according to the contest rules to award an Advent Calendar as a prize

Reward:

Each box in Advent Calendar will contain a different gift for each day in the month

such as a 30% discount voucher, scent candle, nail polish, or even in the last box

corresponding to the date 24, the customer will receive 80% off of 1 Linfini’s product when they go to the website to purchase By that way, it not only makes the customers curious about the gifts but also a way to help Linfini communicate with customers, engage customers to the brand and encourage them to go to the website

(Figure 2.5.3 Advent Calendar gift for Giveaway event)

2.5.4 Loyalty Program:

The Style Rewards program implemented by LINFINI is available on both online and offline platforms Customers can upgrade their membership level by reaching their annual purchase target through the points system

Customer experience:

The program is currently implemented online To register, customers need to fill out the registration form on LINFINI's website or register directly at the store

Mechanism of action:

The program is divided into 3 levels:

Rose Gold (1-499 points)

Gold (500 - 999 points)

Platinum (Over 1000 points)

How to assign points:

Online purchases: Receive 10 additional Style points for every 20,000 VND purchase Customers can collect Style points and receive special badges After achieving all badges, customers can receive an additional 100 Style points The program has 3 types of badges for customers:

Beauty Reporter badge: To earn this badge, customers need to write 5 product reviews

Beauty Addict Badge: To earn this badge, customers need to complete all account information

Social Connect Badge: To earn this badge, customers need to log in to linfini.com from their social media accounts

(Table 2.5.4: Incentives for members)

2.5.5 Total Budget: See total budget at the link below

https://does.øoogle.com/spreadsheets/d/

1Na7651wzh2t8IRBItdDLVofZ2wpAnr_x§2KFg7sx912M8/editgid=0

Revenue, costs, prices and profits

2.6.1.1 Monthly costs

- Warehouse rental cost: 500,000 VND/month

- Staff costs: 5,000,000 VND/month including:

+ Packing staff: 2,000,000 VND/employee/month * 2 employees = 4,000,000 VND/month

+ Boxchat staff: 1,000,000 VND/month

- Other costs: 300,000 VND/month

=> Total cost per month is: 5,800,000 VND

2.6.1.2 Cost of producing a product

The cost of producing a product includes: PU leather, Strings, sewing thread,

Accessories, Processing Totaling: 206,000 VND

2.6.1.3 Important assumptions and projections

a Estimated revenue and expenses for the first month (June 1, 2023):

- On average, we sell 2 products per day, the cost price of each product is 206,000

The first month's result was a loss of 6,020,000

(six million twenty thousand VND)

b Estimated revenue and expenses for the second month (July 1, 2023):

- On average, we sell 4 products per day, the cost price of each product is 206,000

VND

The second month, with the costs of producing a product, the store hires: Nhan Nghia and Huyen Nguyen

The second month's profit was 42,440,000 VND

(forty-two million four hundred and forty thousand VND)

c From the 3rd month to the 5th month (August 1, 2023 - October 30, 2023)

- On average, we sell 5 products per day, the cost price of each product is 206,000

VND

For three consecutive months, with the costs of producing a product, the store hires

KOC: Lil Thu, Wren Evan, Phap Kieu

Result of three months profit 119,370,000 VND

(one hundred nineteen million three hundred seventy thousand VND)

During those three months, to increase sales many times over, the store hired two

Livestream KOLs, Diep Le and Pham Thoai, with the goal of selling 1,200 products in 3 livestream days (August 8, September 9, October10)

In three months with two KOC and KOL campaigns, the total profit earned was

1,387,090,000 VND

(One billion, three hundred and eighty-seven million, ninety thousand Dong)

2.6.2 Pricing strategy and profit margins:

2.6.2.1 Pricing techniques:

Use cost-based pricing techniques, and determine prices using the cost-plus method

- Fixed costs (Fixed costs): PU leather, sewing needles, sewing threads, Accessories with a total price of 176,000 VND

- Variable costs (Variable costs): labor costs with a total price of 30,000 VND Expected profit ratio on selling price: 300.5%

Product selling price = Cost price + (Cost price x % Desired profit)

With a suggested price of 825,000 VND, along with a product cost of 733,000 VND,

we need to sell 70 products to break even

2.6.2.2.3 Achieve target profit:

With the proposed price of 825,000 VND, the desired monthly profit is 42,000,000

VND, along with the product cost of 733,000 VND, you need to sell 120 products/month

to achieve the target profit

2.6.3 Return on investment analysis:

“The way to determine the initial return is:

ROI = (Revenue - Cost of goods sold) / Cost of goods sold”

5 Appendices:

5.1 Reference List:

Mordor Intelligence, Phân tích quy mơ thi trường và thị phần túi - Xu hướng & dự báo tăng trưởng (2023 - 2028), mordorintelligence.com/https://www_.mordorintelligence.com/vi/industry- reports/handbags-market?

xem ngay 20/12/2023)

Neuyén Thi Hong Lan, 7/1/2023, Xây dựng và bảo vệ thương hiệu của doanh nghiệp Việt Nam

trong quá trình hội nhập qumc tn, tapchieongsan.org.vn,

https:/www.øoòle.com/url2g=https:/www.tapchicongsan.org.vn/web/guest/nghien-cu/-/

2018/826969/xay-dung-va-bao-ve-thuong-hieu-cua-doanh-nghiep-viet-nam-trong-qua-trinh-hoi-

nhap-quoc-te.aspx&sa=D &source=doces&ust=1697774254 159792 &use=A Ov Vaw0-

BsIXDSvId3PdAYzea2dE (xem ngay 20/12/2023)

Hoang An, 14/9/2023, Thời trang Việt trong “làn sĩng” đua tranh trên các sản trực tuynn, thesaigontimes.vn, https://thesaigontimes.vn/thoi-trang-viet-trong-lan-song-dua-tranh-tren-cac- san-truc-tuyen/ (xem ngay 20/12/2023)

Metric, 15/11/2023, METRIC céng bm Bao cao Thị trường sàn TMDT quy IH/2023, advertisingvietnam.com,https://advertisingvietnam.com/metric-cong-bo-bao-cao-thi-truong-san- tmdt-quy-1i2023-p23 | 10 (xem ngày 20/12/2023)

Thu Huynh, 2023, Sự binn động thị trường sản thương mại điện tử ViêxNam năm 2023,

truong-tmdt-trong-quy-1i-2023 (xem ngày 20/12/2023)

Nguyễn Chuẩn, 06/11/2023, TikTok Shop “đánh chinm” vị trí thứ 2 trên sản thương mại điện tử

Việt Nam, diendandoanhnghiep vn,

doanhngh

tu-viet-nam-253699 html (xem ngay 20/12/2023)

Nguyễn Van Dương, 31/03/2023, Lịng trung thành của khách hàng là gì? Tầm quan trọng của

khách hàng trung thành, bancanbiet.vn,

https://bancanbiet.vn/long-trung-thanh-cua-khach-hang-la-gi-tam-quan-trong-cua-khach-hang- trung-thanh/2 t%E1%BA%A7m quan _tr%E1%BB%8Dng _c%E1%BB%A7a kh

WC3%AIch h%C3%A0ng trung th%C3%AO0nh: (xem ngày 20/12/2023)

Revenue

2014 2 015 2016 2017 2018 2020 2021 2022 2023*

Figure 1.1 The Vietnam E-commerce Report 2023

Shopee 25,619.5 tỷ đồng

Lazada 3,252 tỷ đồng Tiki 43.6 tỷ đồng Sendo 21.9 tỷ đồng

=Shopee s#TiktokShop sLazada sTiki Sendo

Figure 1.2 Revenue table of e-commerce platforms in the fashion industry in Vietnam from

September 2022 to September 2023

10

Age 20-35 years old

Family life cycle | Young/single, married

Income 10.000.000 - 25.000.000 VND

Psychographic

12