E-commerce and online

shopping behavior during

Covid-19
Thue Quist
Thomasen

CEO of YouGov Vietnam

Born in Denmark

Studied business and politics

in Hong Kong, Hanoi and
Copenhagen

12 years of Vietnam-
experience in market
research

Member of the EuroCham

Executive Committee
YouGov is an international data analytics
group.

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What will I learn the next 15 minutes?

E-commerce spending in 2020

How do the top players differ?
Will Vietnam go cashless?
What happened to
Vietnamese e-commerce
during Covid-19?
Did “Covid-
shopping”
boost
Vietnamese
e-commerce?
Spending in online retail saw a modest
spike

36%
32%
28%

5%

Spent more Spent less No change Not applicable

And managed to outperform the general
drop that is seen in physical spending
43%

28% 28%

2%

Spent more Spent less No change Not applicable

Top players
were largely
unaffected
by lockdown
 Shopee, Tiki & Lazada – Current Customers (%)

Lockdown
1st Wave

Lockdown
2nd Wave
54.1 54.0 54.0
50.9 51.5
48.5 48.3
46.3
43.7 42.3
40.9 40.9
38.5

27.6 28.0
26.7 27.3 27.9 28.2 28.5 27.5 28.1
26.2 27.4 25.5 27.2 26.5
23.6 23.5 23.8 24.0 24.8
23.2 22.5 23.2 22.8
20.7

Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

Lazada Tiki Shopee

E-Commerce revenue is projected to grow at a stable 29% this year

Revenue ($ billions) and growth rate (%) of Vietnam’s E-commerce sector

+29%

+30%

+28%

+24%
13
10.08
8.06
6.2
5

2016 2017 2018 2019 2020 (expected)

2016 2017 2018 2019 2020 (expected)

Source: Vietnam E-Commerce Whitebook, Vietnam E-Commerce and Digital Economy Agency, 2020
However…
Watch out
for
tightening
belts
Vietnam has seen very little fiscal stimulus and
salaries are taking a hit

I lost my income/job 3%

Decreased (by 20% or more) 17%

Slightly decreased (by 10-20%) 24%

No significant change 27%

Slightly increased (by 10-20%) 21%

Increased (by 20% or more) 7%

Now, let’s turn to the
brands
This
November,
YouGov
launched its
Global Best
Brands 2020
rankings
Top 10 Brands
in Vietnam
Top 10
improvers
 Impression Quality
A measurement of whether Which brands represent poor or
consumers have a positive or good quality?
negative impression of the brand

Corporate Customer
Reputation Index score is a Satisfaction
Would consumers be proud to derived net score of 6 Identify if consumers are satisfied
work for a particular brand? Brand Health metrics of the brand

Value Recommend
Which brands represent poor or
Brands that consumers would
good value for money?
recommend to or tell others to
avoid
Top E-commerce players see continuous brand health growth

Top 3 E-commerce Players – Aggregate Index Score (Lazada, Tiki, Shopee)

33.3

32.0

29.7 29.8

27.8
27.4

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

Index Score
Shopee is taking the lead in strengthening its brand health

Shopee, Tiki & Lazada – Index Score

40.2
38.3 39.0
36.6 35.9
36.2 35.3
32.2
30.3 33.2
27.1
26.5
24.4
25.4
20.1 20.7
19.6 18.8

Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020

Shopee Tiki Lazada
Let’s have a look at
some of the
differences…
 Impression
Top e-commerce
sites rely on
establishing a
Recommendation Quality
good impression
on consumers and
earning their
recommendation
for growth

Satisfaction Value

Shopee
Tiki Reputation
Lazada
 80

Shopee’s large customer

base is maintained and
Shopee
supported by both its
advertising efforts and

Ad Awareness
recommendations from its 60
customer. Lazada Tiki

Tiki meanwhile relies on

recommendation to acquire
and keep its buyers.
40
20 35 50
Bubble size = % of Current Customers Recommendation
 50
Despite having a smaller
consumers base, Tiki
Tiki maintains its position in the
market by being the top
Shopee provider of quality and
Quality

30
good value for money.

Lazada Shopee is above market

average for both metrics,
but focuses more on
10 providing good value than
10 25 40 top-notch quality.
Bubble size = % of Current Customers Value
• Largest customer base • Heavy focus on digital • High brand awareness
formats, especially on Social
• Strong customers’ Media • Generate lots of public
recommendations & attention through social media
advertising efforts • Strong in earning customers’ and high-profile KOLs
recommendations and
• Marketing target all impression • Market positioning is being
generations and all ad challenged by its key
formats • Dominate in delivering quality competitors
and good value for money
• Position themselves as
good value for money
Could Vietnam go
cashless?
Could this
really
become…
This…?
51% Vietnamese say they use cash less often since COVID-19 outbreak

COVID-19’s impact on use of cash

Thailand 57 11 2 13 16

Vietnam 51 11 3 25 10

Indonesia 48 11 2 32 7

Philippines 45 9 4 18 25

USA 25 46 7 14 8

I've paid in cash less often since the outbreak No impact – I mostly didn't use cash before and still don't
Don't know No impact – I mostly used cash before and still do
I've paid in cash more often since the outbreak

Q: What impact has the coronavirus outbreak had on your use of cash? (%)
60% Vietnamese think positively about Vietnam going cashless(!)

Sentiment towards society going cashless

Indonesia 63 13 5 19

Vietnam 60 17 4 19

Philippines 52 16 4 28

Thailand 51 26 2 21

USA 24 16 10 50

Positive No difference Don't know Negative

Q: In general, do you think it would be positive or negative if your country became cashless, meaning only electronic forms of money such as debit cards, credit cards and Apple or Google Pay would be accepted? (%)
 E-wallets are taking off

E-wallet - % Current Customers

40.0 Momo 1.6x

35.0

30.0

25.0 Viettel Pay 1.7x

Zalo Pay 1.7x

20.0
Airpay 3.2x
Visa 1.2x
15.0

10.0
GrabPay 0.9x
5.0

0.0
Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20
Summary
E-commerce continues its growth
trajectory despite Covid-19
E-commerce continues its growth
trajectory despite Covid-19
Branding and differentiation is
increasingly important in e-commerce
E-commerce continues its growth
trajectory despite Covid-19
Branding and differentiation are
increasingly important in e-commerce
E-wallets are taking off amid Covid-19
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