Major assignment module e commerce topic analysis of thien long's e commerce activities (2021 2023)

Overview and product Thien Long Group Joimt Stock Company, formerly known as Thien Long Ballpoint Pen Base, was established in 1981.. In 2008, the company changed its name to Thien Long

CY) CMC UNIVERSITY

HA NOI - 2024

TABLE OF CONTENT

LIST OF FIGURES AND TA BLUES o 5 sọ HH nh nh như m he 2

I.INTRODUCTION TO THIÊN LONG GROUP CORPORA TION 4 1.1 Overview and DFOCÏUC 5 5 5 0 Hư vn mm me 4 1.2 Analysis of business results of Thien Long Group Joint Stock

Company in the past three years (2021-2023) 7

Il MACRO-ENVIRONMENT OF THIEN LONG GROUP CORPORATION 9

3.2.1 Identification of Thien Long's E-commerce retail channels and CFANSACTIONAL ÍOTHẨ cọ lọ H TH l TH TT Tnhh Gà sim te 3.2.2 Benefits, and limitations of TL in e-commerce CfIVIfGS -~«.s5 3.2.3 Thien Long's electronic payment system in its e-commerce activities 3.3 Thien Long's Online Purchasing Decision-Making Procesg 0 000085

3.3.3 Evaluation of Alternatives (Evaluation of |Ïf€FH(fV€S) e««.5

4.1.3 Opportunities 4.1.4 Threats

4.2 Recommendations for Thien Long's E-commerce activities 00000

LIST OF FIGURES AND TABLES

Figures:

Figure 01 - Logo of Thien Long Group Company with the slogan "Power of

knowledge" and five trademarks Source: thieHÏOHĐOTOHD.COHH ào co ằ ch hhho 4 Figure 02 - Development milestones of Thien Long Source: thienlonggroup.com 6 Figure 03 - Thien Long's website Source: HHCTHCÍ ào cành HH nh Hàn 24 tigure (4 - Thien Long" booth on Shopee (Tre: TÌÌl,VH àà cành kho 24 Figure 05 - Thien Long's payment system on the website thienlong.vn Source:

Tables:

lable 01- Balance sheet of Thien Long Group Corporation (2021-2023) (unit: million VND) Source: FInaHCe VielSfOCĂ.VH vi uc ngàng kh kh kho 8 Table 02- Income Statement of Thien Long Group Corporation (2021-2023) (unit:

tmilion VNI) Source: Fimanee WlefSfOCẰ ĐH cv ch nh nà nh TT kh kg 8 1abBle 03: List and positions oƒ IThien Long (TrOUĐ IIandag0Ẵ€H€TH ÍCđH cà 19 Source: ẢMHIHOT'S OVWH COHDIÍGHOH ch Tnhh Hà HH HH HH kh kh 19

MEMBER LIST

I INTRODUCTION TO THIEN LONG GROUP CORPORATION

1.1 Overview and product

Thien Long Group Joimt Stock Company, formerly known as Thien Long Ballpoint Pen Base, was established in 1981 In 1996, from Thien Long Ballpoint Pen

Base changed to Thien Long Production - Trading Co., Ltd By 03/2005, the Company

changed to the form of a joint stock company and changed its name to Thien Long

Production - Trading Joint Stock Company In 2008, the company changed its name to Thien Long Group Joimt Stock Company and was officially listed on the Ho Chi Minh

City Stock Exchange on 26/03/2010

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Figure 01 - Logo of Thien Long Group Company with the slogan "Power of knowledge" and five trademarks Source: thienlonggroup.com Thien Long Group Company (Thien Long Group) manufactures and trades in four main product groups: office tools, pens, student tools and fine art tools Thien Long Group's products have the common characteristics of rich designs, high quality, reputable brands and reasonable prices, meeting a variety of needs of consumers from education levels to employees and executive levels

Along with developing product groups, Thien Long also focuses on developing brands for each different customer segment:

- Buizner: is the trademark of Thien Long's high-end product lines such as high- end ballpoimt pens; Premium pencils; Premium ballpoint brushes; Premium fountain pens;

- Colokit: 1s a trademark representing the product line of fine art tools for children such as: oil wax pens, crayons, watercolors, bowls, wax molds,

crayons,

- Thien Long: is a brand of pens and office tools including traditional product

lines such as: ballpoint pens, needle quills, gel pens, ball pens,

- Diem 10: 1s the trademark of the group of student tools serving the target group

of students providing products such as: chalkboard, double, writing notebook, gum, pencil, compass, pencil,

- Flexoffice: 1s a trademark of office tools including products such as printing paper, pens of all kinds, file covers,

Thien Long has become one of the Vietnamese brands trusted and attached to many generations Thien Long has learned and met the needs of consumers through marketing strategies At the same time, the Group pursues four core values: dedication,

diversity and integration, challenge and innovation, and honesty As a result, despite

over 40 years, Thien Long's products still receive love and trust from many customers

The company also develops an omnichannel ecosystem for the brand through many

activities such as investing in stores such as Clever Box - specializing in providing

stationery and creative toys DIY and STEAM

Besides, Thien Long Group also constantly invests in developing export markets and 1s In the Top 17 best business partners in the world with the stationery market Thien

Long covers the market in 63 provinces and cities across the country with more than

60,000 retail outlets In addition, Thien Long also uses other sales models such as direct sales channels for supermarkets, bookstores, schools, retail businesses (B2B), With relentless efforts, Thien Long Group has brought itself many prestigious titles such as: Top 50 Best Listed Companies in Vietnam (2013 - 2022), Top 10 Vietnam Gold Star Awards in 2003, 2018, 2021-2022, One of the enterprises whose

products have been recognized as Vietnam National Brands 2022, and Vietnamese

High-Quality Goods Award (1997 - 2022)

Figure 02 - Development milestones of Thien Long Source: thienlonggroup.com

Despite achieving many successes, Thien Long has constantly caught up with market trends In the current digital era, Thien Long has sought and cooperated with experts around the world to bring advanced technology into the production process and invest in digital transformation for businesses to achieve business goals Currently,

Thien Long has affirmed the position of Vietnam's No | brand in stationery but also exported to more than 70 countries worldwide with brands FlexOffice, Colorkit and

Bizner

With a vision of sustainable development, Thien Long Group always focuses on developing production technology, especially self-designing and manufacturing many machines and equipment for the production process; Focus on designing and manufacturing to replace imported molds In 2020, the impact of the Covid-19

pandemic has accelerated the development of technology, Thien Long will also

Innovate to catch up with this trend by improving the automation rate of factories

Besides, the Group has always put environmental factors on top since its inception

Thien Long's factories are applied standard wastewater treatment systems, do not pollute the environment, and are equipped with fuel-saving machinery systems

1.2 Analysis of business results of Thien Long Group Joint Stock Company in the past three years (2021-2023)

Short-term liabilities 578,296 831,256 659,537 Owner's equity 1,825,578 1,957,872 2,093,980

Table 01- Balance sheet of Thien Long Group Corporation (2021-2023) (unit: million

VND) Source: Finance Vietstock.vn

Table 02- Income Statement of Thien Long Group Corporation (2021-2023) (unit:

million VND) Source: Finance Vietstock.vn

With the impact of the covid-19 pandemic, Thien Long Company inevitably

experienced a significant revenue decline of nearly 18.6% in 2021 (compared to the

same period in 2019) However, Thien Long has relatively strictly controlled other expenses such as reducing selling costs, business management costs, In addition, the company also applies flexible sales policies, promotes sales activities on e-commerce platforms, strengthens support for distributors and points of sale to overcome difficult

periods In addition, Thien Long also increased control of operating expenses and

inventory strictly As a result, Thien Long has received many positive results i 2022 such as:

- Total assets after the pandemic (in 2022) reached VND 2,869 billion, up 18.75% compared to the pre-pandemic time (in 2019)

- Ownerquity in 2022 reached more than VND 1,957 billion, up 8.4% over the same period in 2019

8

- Net revenue in 2022 reached more than VND 3,520 billion, up 8.2% over the same period in 2019

However, the financial report for the fourth quarter of 2023 of Thien Long Group Joint

Stock Company recorded net revenue of nearly VND 700 billion, down about 7% over the same period last year As explained by the management of Thien Long Group, the overall purchasing power of the whole year 2023 will decrease significantly compared

to the previous year, including domestic and foreign markets In response, the

company has made great efforts to implement sales programs to maintaim revenue and keep market share, so revenue has only decreased slightly

At the end of 2023, Thien Long Group's total assets are VND 2,808 billion, down VND 61 billion compared to the beginning of the year Liabilities at the end of the year of Thien Long Group recorded a total of VND 714 billion, down approximately 22% compared to the beginning of the period, equivalent to VND 197

billion 92% of the company's debt is in short-term items, of which the most are short-

term loans Thien Long Group currently has equity capital of more than VND 2,100 billion, up slightly from VND 1,957 billion at the beginning of the year Undistributed profit after tax by the end of the period reached nearly VND 700 billion (BT, antv.vn,

2024)

Despite achieving many positive results, this is still only considered a slow recovery

period of businesses after the difficult period of the Covid-19 pandemic Moreover,

Thien Long's quick ratio and short-term ratio have decreased steadily from 2021 to

2023 (from 3.2 to 3.1 and 2.0 to 1.9) Particularly, the cash payment ratio decreased from 0.7 (2021) to 0.4 (2023) This proves two things: the first is that Thien Long's solvency has plummeted; the second is that Thien has had to borrow more than before the pandemic

Il MACRO-ENVIRONMENT OF THIEN LONG GROUP CORPORATION 2.1 Demographics

2.11 Age

Based on data from the General Statistics Office, the population of Vietnam in

2023 reached approximately 103.8 million people and is distributed among age groups

as follows:

- The 0-14 age group accounts for 22.4% of the population

- The 15-64 age group accounts for 69.7% of the population

- The 65 and over age group accounts for 7.9% of the population

For the age group of 0-14, this is mainly composed of students, with a high demand for writing utensils, especially pencils, colored pens, fountain pens, and

student notebooks The demand for writing utensils in this group depends on age and educational level For example, elementary school students need pencils and colored

pens for drawing, while middle and high school students need fountain pens for writing assignments, and student notebooks need to be of good quality for notetaking

For the 15-64 age group, which includes students, students, and workers, they have diverse needs for writing utensils and office supplies, depending on the industry, field of work, and personal preferences For example, students and students need pens,

rulers, compasses, and notebooks, while workers need pens, pens, highlighters,

notebooks, and document clips

For the 65 and older age group, they have a need for pens and notebooks for note-taking and reading newspapers Some elderly people also have a need for pens, usually large-sized pens that are easy to hold, with bold and clear writing ink

Analyzing potential customer groups by age helps Thién Long Company develop appropriate and effective marketing strategies, thereby increasing revenue and market share

gender helps Thién Long Company develop suitable and effective marketing

strategies, thereby increasing revenue and market share

2.1.3 Occupation

According to trends, the proportion of labor in the service sector is increasing, while the proportion of labor in agriculture is decreasing The demand for writing

utensils in office, education, and learning sectors is increasing

Potential occupations such as office workers, teachers, and students all have a need for ballpoint pens, with a preference for ballpoint pens with water-based ink, oil- based ink, or cheap ballpoint pens depending on each customer group

Businesses need to focus on these potential customer groups and diversify

products and services to meet the specific needs of each customer group Marketing

strategies need to be carefully designed to reach and attract potential customers from various sources, including B2B e-commerce channels and social networks, e-

commerce platforms

2.1.4 Income

Statistical data shows that the average income per capita in Vietnam in 2023 is 4.2 million VND/month, with different distributions depending on the region In the North, the average income per capita is 3.8 million VND/month, while in the Central region it is 4.0 million VND/month and in the South it is 4.5 million VND/month (Source: General Statistics Office of Vietnam)

This reality significantly impacts e-commerce activities, especially in the production and retailing of ballpoint pens Customer demand for ballpoint pens is

divided into different income segments For those with low incomes, they often look

for cheap ballpoint pen products to meet basic learning needs Meanwhile, those with

medium incomes usually expect better quality ballpoint pens with diverse designs and brands For the high-income group, they prefer to own high-end ballpoint pens,

unique, and representing personal class

With this understanding, the e-commerce strategy of the company needs to be

carefully developed Product diversification is necessary to meet the needs of each

customer segment In addition, promotional programs and discounts need to be designed to suit different customer groups Finally, product marketing also needs to be focused selectively to effectively reach potential customer groups

2.1.5 Educational Background

The latest statistical data from the Population and Housing Census in 2019

shows that the proportion of people of school age 1s 60.2%, of which the proportion of people with a basic education level is 86.8%, and the proportion of people with a higher education level is 13.2% This trend shows a significant increase in the

proportion of people with higher education levels, and forecasts indicate that this trend

will continue in the coming years

In this context, the demand for high-quality education 1s increasing, especially

at higher levels of education This leads to an increasing demand for learning support

products, including ballpoint pens Furthermore, the rapid development of e-commerce

1s strongly driving the demand for purchasing these products online

The impact of these trends on the ballpoint pen market is clear The demand for

high-quality ballpoint pen products with good quality and high utility features is

increasing However, the market is also becoming more competitive due to the participation of many domestic and foreign enterprises

To meet the increasingly strict market demands, businesses need to focus on product and service innovation Product diversification, quality improvement, and

promotion programs are necessary measures to be implemented in a timely and

effective manner Moreover, the development of e-commerce sales channels 1s

particularly important to efficiently reach potential customers

2.2 Political and Legal Environment

In a stable political environment, the Vietnamese government has implemented many supportive measures to promote e-commerce development, such as the National

E-commerce Development Strategy by 2025 and the vision to 2030 These policies

focus on improving infrastructure, enhancing logistics, encouraging electronic payments, training human resources, and many other measures

Moreover, the legal system regarding e-commerce has been updated and

unproved through the amendment and supplementation of the E-commerce Law in

2016 to 2020 These adjustments aim to specify the responsibilities of parties

participating in e-commerce activities, enhance electronic payments, and protect the rights of consumers

These new policies and regulations not only create favorable conditions for the

business activities of Thién Long Pen in the e-commerce environment but also help the enterprise save operating costs, expand the market, and increase revenue Furthermore, they ensure the nights and satisfaction of both businesses and consumers in the process

of conducting online transactions, from protecting against counterfeit and pirated goods to ensuring the purchase of genuine and high-quality products

Overall, a stable political environment along with supportive policies and a

perfected legal system have created a favorable context for the business activities of

Thién Long Pen in the e-commerce environment This simultaneously ensures the rights and satisfaction of both businesses and consumers in an increasingly developing

e-commerce environment

2.3 Economic Environment

According to reliable data from sources such as the World Bank and Statista, in

2023, Vietnam's GDP growth rate reached 6.2%, along with an average income per

capita of $4,170 per year and a smartphone usage rate of 80.3% These figures not only reflect stability but also significant development in the country's economy and

digital culture

Looking at these positive signs, it seems that consumer demand is becoming increasingly high, including the demand for office supplies products such as ballpoint

pens The stable growth of the economy along with the increasing average income per

capita has created an ideal environment for the development of this industry

In addition, the increasing purchasing power of consumers for e-commerce products is also an important factor The high average income per capita has created a class of consumers with higher purchasing power for online products, including office supplies and ballpoint pens

From the perspective of Thién Long Company, it 1s important to continue

innovating and improving product quality to meet the increasingly diverse and demanding needs of consumers At the same time, it is necessary to focus on

developing e-commerce sales channels to efficiently reach potential customers and

expand market share in the context of the booming e-commerce industry in Vietnam

2.4 Cultural and social environmenti

The cultural and social environment has had a positive impact on Thién Long

Pen's e-commerce activities in recent years The strong growth of e-commerce, changes in consumer shopping behavior, and increasing demand for high-quality

stationery products have created favorable conditions for the company to develop its online sales channels, expand its market, and increase revenue

The significant increase in internet usage and online shopping in Vietnam from

2021 to 2023, as indicated by reliable data from Statista, has provided a conducive business environment for Thién Long Pen to thrive in the development of its e- commerce sales channels This surge in e-commerce has opened up new opportunities for businesses to access a larger pool of potential customers, expand their market reach, and boost revenue

14 Furthermore, the evolving consumer shopping behavior, particularly the

preference for online shopping, has compelled Thién Long Pen to adapt flexibly and swiftly Improving the online shopping experience for customers through product and service diversification, providing fast and convenient delivery services, as well as implementing attractive promotional programs, are measures that Thi¢n Long Pen

needs to undertake to meet the increasingly high demands of the market

Additionally, there is a rising demand for high-quality stationery products, especially among students, office workers, and professionals Therefore, Thién Long Pen needs to focus on manufacturing and supplying high-quality ballpoint pens with advanced features to meet the diverse needs of consumers

In summary, the cultural and social environment has positively influenced Thién Long Pen's e-commerce activities by fostering strong e-commerce growth, shaping consumer shopping behavior, and increasing demand for high-quality stationery products, thereby creating favorable conditions for the company to expand its online sales channels, market reach, and revenue

2.5 Technological Environment

The rapid development of technology, especially information technology and telecommunications, has created a favorable environment for e-commerce activities The widespread use of smartphones, tablets, and computers has significantly increased access to online shopping platforms and digital payment methods

Moreover, the application of advanced technologies such as artificial

intelligence, big data, and blockchain has brought many advantages to e-commerce activities, from optimizing supply chain management to enhancing the shopping experience for consumers

For Thién Long Company, taking advantage of these technological advances is essential for developing and maintaining competitiveness in the market This includes optimizing the company's e-commerce platform, enhancing the user experience, and

unplementing personalized marketing strategies based on data analysis

Moreover, investing in research and development to innovate products and processes is crucial for staying ahead of the competition and meeting the evolving needs of consumers in the digital age By embracing technology and leveraging its potential, Thién Long Company can position itself as a leader in the e-commerce market for office supplies, including ballpoint pens, in Vietnam

Furthermore, environmental pollution is becoming an increasingly serious

issue, with rising pollution of water sources, air, and soil This can lead to increased production costs for businesses, as the prices of water and raw materials nse due to

depleted natural resources and pollution Moreover, consumers are increasingly focusing on environmental issues and tend to choose environmentally friendly products

With these challenges, Thi¢n Long Pen needs to focus on producing

environmentally friendly products to meet consumer demand while considering measures to minimize the impact of climate change and environmental pollution on its business operations

I, ELEMENTS IN E-COMMERCE ACTIVITIES OF THIEN LONG GROUP CORPORATION

3.1 Thien Long's business model

3.1.1 Value Proposition

Thien Long's current market positioning:

® Thien Long is positioned as a provider of prestigious, high-quality, reasonably priced stationery with attentive customer service

¢ Thien Long's products bring customers convenience, efficiency and good experience in learning, working and creating

3.1.2 Revenue model

Thien Long's current revenue sources:

¢ Main source of revenue: Sales revenue model

Thien Long has traditional stationery retail stores, and also on popular e- commerce applications and platforms such as: Shopee, Lazada, Tiktokshop, In addition, Thien Long also has a private online sales website

¢ Other sources of revenue:

- Advertising: Allow other stationery suppliers to advertise their products on the website and app

- Printing services: Provide printing services for stationery upon request

- Corporate gift supply services: Provide stationery products as gifts for businesses

3.1.3 Competitive environment

With a reputable brand and high product quality, Thien Long has occupied a

large market share In the domestic market However, Thien Long also faces fierce

competition from domestic and foreign competitors

Domestic:

® Hong Ha Stationery Joint Stock Company:

- Thien Long's direct competitor in the mass stationery product segment

- Has a nationwide distribution network and competitive product prices

- Key products: Printing paper, pens, school supplies, office supplies,

- Target market: Pupils, students, office workers, businesses

Currently, Hong Ha Stationery Jomt Stock Company is Thien Long's No 1 direct domestic competitor in the mass stationery product segment

® In addition, Thien Long also has a number of other competitors with some

specific products such as: Ben Nghe ballpoint pens, MIC whiteboard chalk, Foreign:

¢ Deli Group (China):

- Specializing in manufacturing stationery at affordable prices

- Providing a variety of products such as pens, pencils, notebooks, files, paper clips

- Worldwide distribution network and competitive prices

The Deli brand 1s also a stationery brand trusted by many people with a variety

of products, designs, and types This is also Thien Long's foreign rival

3.1.4 Management Team

1 Chairman of the board Mr Co Gia Tho

2 Member of management Council Mr Nguyen Dinh Tam

3 Member of management Council Mr Pham Tri Nguyen

4 Member of management Council Ms Co Cam Nguyet

5 Member of management Council Ms Tran Thai Nhu

6 Member of management Council Ms Co Ngan Binh

7 Member of management Council Mr Tayfun Uner

8 In charge of administration Mr Nguyen Ngoc Trung Chanh

BOARD OF DIRECTORS/CHIEF ACCOUNTANT

1 Director-General Ms Tran Phuong Nga

2 Deputy General Manager Ms Vo Thi Hai Ha

3 Deputy General Manager Ms Dao Thi Thanh Binh