1. Definition:
1.1. Demographics is a very popular type of market segmentation and requires market classification based on age, gender, income, race, etc. At a minimum, most companies have a general idea of getting their product purchased demographics.
1.2. Market Segmentation is the process of dividing the overall market into different groups of customers according to certain criteria so that each group of customers has the same characteristics, needs, and buying behaviors.
2. Segmentation by geographic location:
55%
45%
Percentage of new online consumers in the first half of 2021
New online consumers( suburbs area) New online consumers(inner city area)
There is a perception that only big and developed cities, where e-commerce thrives and prospers. But that's a mistake to look at the chart above, while the number of e- commerce users from major cities such as Hanoi and Ho Chi Minh City is almost saturated the percentage of users in other provinces and cities shows promising growth, with nearly 4.5 million new online consumers come from suburban areas, Accounting for 55% of the country's 8 million new online consumers in the first half of 2021. This shows that the e-commerce market in Vietnam is expanding, and the gap between urban, suburban, and even rural areas is gradually narrowing in terms of the
The e-commerce market in the regions is gradually shrinking but in terms of distance is still very large, for many reasons:
o The market model is limited, so it has not attracted the attention of companies.
o The Internet system is not developed.
o The difference in the delivery service.
o People still have doubts about the service.
3. Market segmentation by demographic:
3.1. Age:
The
report cited data from DataReportal in 2021 showing that in Vietnam, more than 85%
of digital users are between the ages of 35 and 44 (Generation Y), Nearly 84% of digital users aged 45-54 (Generation X) and more than 75% of digital users between the ages of 55 and 64 (Boomers II generation) purchased at least one product online in January 2021. These statistics show the popularity of e-commerce for every generation, as opposed to the normal perspective that "only young people shop online".
Generation Y(35-> 44) Generation X(45-> 54) Generation Boomers II (55- 64) 70%
72%
74%
76%
78%
80%
82%
84%
86%
85% 84%
75%
Online purchase rate of at least one product by January 2021
Online purchase rate of at least one product by January 2021
3.2. Income:
Based on the chart, the average income by age is completely different. In adolescence, due to not having made money and the income mainly comes from their parents, there is usually a type 6 income with 0 -> 1,499,000 VND. Looking at adolescents, income is no longer entirely dependent on their parents, they can earn money through part- time jobs so the common salary is type 5. In the last two age groups, adults and middle-aged people, due to having a stable source of income, from many sides, the salaries of adults belong to group 2, besides that the salary of middle-aged people is quite even between groups with the no. 2 salary group is the highest.
That suggests that at any age it is possible to enter the e-commerce market, with the value of the goods they buy can increase with the age group. The value of goods allocated:
Adolescence Young people Adults Middle-aged
0 1 2 3 4 5 6
Income structure of people in different age groups in Vietnam
From 0-1,499,000VND From 1,500,000VND- 2,999,000VND From 3,000,000VND- 4,999,000VND From 5,000,000VND- 7,499,000VND Từ 7,500,000VND- 14,999,000VND From 15,000,000VND- 29,999,000VND
1,000,000VND->
2,999,000VND 3,000,000VND->
4,999,000VND 5,000,000VND up 0%
5%
10%
15%
20%
25%
30%
35%
40% Online shopping value
The value of online shopping of consumers over VND 5 million accounts for the highest proportion - 35%, from VND 3 million to VND 5 million accounted for 22%, from VND 1 million to VND 3 million accounting for 26%, moreover, the value of online shopping per capita reached 202 USD, up 8.6% in 2020.
4. Market segmentation according to psychology and preferences:
Spa services, beauty
DVD, video, music, game
Consulting, training
Stationery, books
Electronics
Clothing, shoes, cosmetics
Airfare, train tickets, bus tickets
Book hotels, tours 0%5%
10%15%
20%25%
30%35%
40%45%
50%
Popular items purchased online
Các mặt hàng được mua trực tuyến phổ biến
The items favored by online consumers are spa services, DVDs, videos, and games leading with the same 45% more than double that of electronics, only 20%, consulting and training 3rd when accounting for nearly 40%. Office items, airfare, and hotel bookings are behind at a rate of about 25%. In addition, the buying habits of
Vietnamese consumers have also made positive changes. From just getting used to traditional business deals, face-to-face, being held, viewed, and being able to try products, they have now gradually approached and loved the form of online shopping.
5. Market segmentation by behavior:
5.1. Reasons for purchase:
Friends, relatives introduced View comments, reviews View ads Wed/ Reputablely labeled app Wed/Application registered with the Ministry of Industry and Trade other
0 0.20.40.60.8
Reasons for choosing wed site/Application.
Percentage of online buyers
Wed/App Design Information privacy policy How to order Customer Service Return and exchange policy Shipping and delivery Payment method Seller's reputation Quality of goods/services Price
Customer factors of in- terest
Percentage of online buyers
It can be seen that the two factors that are most interested in consumers are the aesthetics of wed and information security policies, which Account for approximately 90% of decisions on customer interest, followed by how to order, Complex or simple, accounting for nearly 60%. We can see that the price is only a small part of the buyer's decision. The remaining factors account for only about 30% of the buyer's decision.
Modern consumers increasingly value issues of personal information and convenience rather than price comparisons.
As for the reasons for choosing to visit any website, it is affected by many factors, e.g.
highest rate with nearly 0.8, it is quite surprising that the ad does not appear in the top 3 factors.
5.2. Benefits:
For consumers: E-commerce helps consumers have more choices about products and services, minimizes purchase time and travel costs, creates the opportunity to buy products at lower selling prices, access to more information, ...