International Business

Opportunity of Shopee
ENTERING VIETNAM MARKET

Group 6:

- Nguyen Ha Nam

- Nguyen Minh Hanh

- Nguyen Linh Chi

- Bui Phuc Nguyen Anh

- Ngo Chau Nhi

- Nguyen Ba Thai Duy

Lecturer: Mrs. Nguyen Hong Tra My

 Shopee General Introduction
01 Current context of Shopee in Vietnam

Shopee Analysis
02 Macro & Micro Level Analysis of Shopee entering Vietnam

03 Shopee in the Future

Current direction & Recommendations
 1. Shopee in Vietnam Introduction
Formation
- 2009: founded in Singapore by SEA group
- 2015: first introduced in Singapore
- 2016: entered Vietnam market
- Now: available in 8 countries.
Vision & Mission
- Connect buyers & sellers through an
e-commerce platform.
- Promote consumer protection and build a
sales culture.
Development
- 2015: held Shopee University event
(Taiwan)
- 2017: launched Shopee Mall (Taiwan)
- 2018: cooperated with P&G to introduce
Super Brand Day (Indonesia)
Business Model
- Original model: C2C
- Current model: hybrid (C2C & B2C)
1. Shopee in Vietnam Introduction

- 2017: Total merchandise value was US$1.6 billion, up 206% compared to 2016

- 2018: Total revenue (GMV) reached US$10 billion

- 2019: top 1 in terms of website traffic, reaching an average of 38 million visits/month

(among e-commerce platform)

- 2020: Total Revenue was US$35.4 billion, double that of 2019, and accounted for 57% of
the Southeast Asian e-commerce market

Current
Content
 Political stability:

2. Political Collectivism Individualism

Shopee
Analysis Totalitarianism Democracy

MACRO LEVEL Taxation: Steady → boost competitiveness

Current economic system: Socialist-oriented market economy

Stable Exchange Rate

Economical
Economic growth: Stable GDP growth rate

Import/ export system: Develop throughout border gates & ports

Low inflation rate (2-4%): Encourage investments

2. Social
Potential customers:
Highest rate of e-commerce consumers in SEA (49.3 million)

Shopee
Analysis
Potential labor force:
- Well-trained HR in related fields: Marketing, Sales, Logistics
- Abundant delivery force
MACRO LEVEL

Technology Adoption: Vietnam has a total of 96.9 million

inhabitants, with 68 million having internet access and more
than 145 million mobile customers

Technological
Online payment customer experience:
- Electronic payment platforms: Momo, Zalopay
- Internet banking services
→ Increase consumer acceptance of online payments

Technological transformation speed: Investment of US$415

million from the state in the information technology sector
 Environmental
2.
Shopee
Analysis
MACRO LEVEL
Legal
Various regulations: Encourage foreign companies to invest and
operate their business in the country

Ethical
- Generates jobs and business opportunities
- CSR programs → making E-commerce accessible to everyone
Campaign "Shopee 11.11 Million Hands” with UNICEF Vietnam
 - Shopee’s online presence → a trustworthy marketplace
- 60 million visitors/ month → Popular e-commerce platform with
highest number of online audiences
2.
Potential sales from high traffic channel
Shopee
Analysis
Events and offers Application
1 STRENGTHS
- Various coupon codes for
free-shipping
2 5 - User-friendly features
→ A point that few
- Events, discounts,...
→ Prompt customers 3 4 others can match

No commission fee Promotion innovation

- No strain for retailers - Significant marketing efforts

→ Great location for new businesses → Everywhere advertisements
- Enterprises can choose native - Affiliate Marketing makes client
advertising and purchase sponsored ads growth more consistent
Shopee in Vietnam Affiliate Program
Rivalry among existing competitors
2.
Shopee
Bargaining power of buyers
- Price sensitive Analysis
- Easy to substitute to other platforms
- No Switching cost MICRO LEVEL
→ Execute many strategies to maintain
and attract customers

Bargaining power of suppliers

Suppliers:
- Outsources available IT companies
and IT developers
→ Easy for Shopee to build up website
- Server provider themselves

Threat from alternative products

- Ex: Offline stores
However, statistics show customers are
changing purchasing behaviour to online
due to Covid-19 period
 COVID-19 OPENS OPPORTUNITIES FOR E-COMMERCE
WHEN PEOPLE CHOOSE MORE ONLINE SHOPPING

Since the outbreak of Covid-19, which channel will I shop more?

7% 6% 3%
25%

Online Supermarket Retail Store Market

* Source: Nielsen Infocus, March 2020

 3. Shopee in Future: Current Action

a, Implement digital strategy:

- As Covid begins: collaborated with entrepreneurs to adopt digital strategies
→ Attract customers.
Ex: In 2020-2021, Shopee worked with POND to integrate AI-powered beauty tech solution.
- Recently: merged Airpay → ShopeePay to adopt digital payment, changed the name
of Now to ShopeeFood to create a consistent brand.

b, Implement personalization strategy:

- Take a hyper local approach
→ For example: Shopee run localized initiatives around festivals such
as Tet in Vietnam.
- Offer brands innovative tools sets to customize flagship pages.
→ Offer personalized service to customers.
3. Shopee in the Future: Recommendations
With Sellers: Businesses struggle to
With Customers: There are lots of
protect their goods
problems from users
→ Implement more policies to
→ Apply technology in the process,
protect the sellers' brand
! with CDP (Customer Data Platform)
→ Customize personalization to serve

!
shoppers better

With Shopee Interface: All the

!
information on the homepage make
users dissatisfied
→ Remove unnecessary features
→ Assist customers in making
decision, not overwhelm them
CONCLUSION
NOW
IT’S TIME FOR
QUESTION &
ANSWER
Do you have any question for us?