E-COMMERCE - MARKET POTENTIAL IN VIETNAMLE MAI ANH30 June 2017

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ABOUT SMARTOSC

2006Founded in

APAC, UK, USAPresence in 9 cities across

> 40%YOY Growth in 2016

400+Employees in Jun 2017

ISO 9001:2008Process oriented

500+Clients to date

Internet Shopping Assess

DigitalMarketing

AREAS WE CAN PARTNER

Technology& Delivery

B2B & B2C E-commerce

Mobile first &Responsive design

Omni-Channel Solutions

CRM &Loyalty programs

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WHAT WE GONNA TALK ABOUT TODAY

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E-COMMERCE KEY FACTORS TO LOOK AT

Vietnam Economy

Internet Shopping

Assess

Geography/Population

Distribution

Payment Method

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VIETNAMESE ECONOMY

ASEAN’s fastest-growing real consumer spending

Source: Euromonitor

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ACCESS TO ONLINE SHOPPING

Source: Euromonitor

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GEOGRAPHY AND POPULATION DISTRIBUTION

Source: Euromonitor

Is VN geography and population distribution “ecommerce friendly”?

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GEOGRAPHY AND POPULATION DISTRIBUTION

Source: Euromonitor

Vietnam is neither easier or more complex to tackle vs. TH, ID or PH. Particularity of Vietnam population is in being ‘bipolar’.

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PAYMENT METHOD

Source: Euromonitor

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3 STRUCTURAL ECOMMERCES CHALLENGES

Source: Euromonitor

LOGISTICS

● Undeveloped infrastructure

● Geographic diversity

● Scattered logistics networks

PAYMENTS

● Low credit card penetration

● Local alternatives preferred

● Cash-on-delivery needed

RETAIL ECOSYSTEM

● Inexperience local merchants

● Lack of resources

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THINGS TO CONSIDER

Source: Euromonitor

IN VIETNAM, IN PARTICULAR, THE NUMBERS ALSO SHOW AN OPTIMISTIC TREND

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Ecommerce Market size is constantly growing in the last 5 years

Source: Euromonitor, Statista

● Vietnam is in top 3 emerging internet market in 2015 with more than 39% of growth.

● Revenue in the "e-Commerce" market amounts to US$2,187m in 2016.

● Revenue is expected to show an annual growth rate (CAGR 2017-2021) of 16.5 % resulting in a market volume of US$4,024m in 2021.

● The market's largest segment is the segment "Electronics & Media" with a market volume of US$842m in 2016.

● User penetration is at 50.5 % in 2016 and is expected to hit 58.0 % in 2021.

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THE GROWTH IS ACROSS ALL SECTORS

Source: Statista

(*) The data exclude hotel booking, travel packages, online insurance & movies tickets

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THE ECO SYSTEM OF E-COMMERCE IS BEING ESTABLISHED

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A GROWING NUMBER OF PARTNER TO CREATE A STRONG ECOMMERCE ECOSYSTEM

DO YOU BELIEVE IN MASSIVE E-COMMERCE IN VIETNAM?

THE ANSWER IS YES

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THANK YOU