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The eCommerce industry has a sizable market share in the Vietnamese economy and has shown impressive growth over the past two years due to the effects of the worldwide pandemic and social isolation.

After a year of society adjusting to the “new normal”, customers have started to buy at traditional stores again but the established trend of eCommerce consumption and the push from the wave of global digital transformation have encouraged businesses to change in order to suit the way the digital economy works.

Therefore, recognizing and anticipating the eCommerce trend of 2023 is extremely necessary for businesses’ New Year’s Marketing strategies to be implemented effectively and successfully.

Below is a list of 10 eCommerce trends that are forecast to “storm” the market in the next year.

Omnichannel

Omnichannel is an omnichannel sales model that helps businesses reach customers through many channels such as eCommerce websites, social networks, eCommerce platforms, chain stores, and distribution agents but operating in just one management system. 

Additionally, there is a second type of sales model called “Multi-channel” that differs from Omnichannel in that it allows for discrete marketing content, unlinked data, and independent channel operation.

When purchasing across numerous channels, continuous and seamless updates result in a heterogeneous and seamless customer experience.

Due to the lifting of social distance restrictions, consumers are beginning to return to in-store buying after two years of online shopping.

However, that doesn’t mean that eCommerce’s growth momentum is stagnant; on the contrary, it keeps exploding.

Businesses there make use of the current rise in popularity of online shopping to encourage the use of Omnichannel to improve the varied and efficient shopping experience.

As researchers have noted:

• An estimated 56% of customers use smartphones to look up products while in a retail store.
• Nearly 75% of users use many different channels such as websites, social networks, and physical stores to shop.
• Around 73% of eCommerce consumers say they take an Omnichannel approach throughout the experience journey. For example, after shopping at a store, shoppers continue to follow the brand’s website, social networking sites, and eCommerce platforms.

As a result, 2023 will still be recognized as a strong year for omnichannel in eCommerce.

Mobile Commerce

Mobile Commerce or mCommerce is a business model that allows companies and individuals to deliver goods and services directly to consumers through handheld wireless devices such as smartphones and tablets.

According to Bankmycell, the number of smartphone users worldwide in 2022 is 6.648 billion, equivalent to 83.07% of the world population owning a smartphone.

Moreover, it is predicted that this number will increase to 7,516 billion by 2026. In addition, the percentage of global users participating in online shopping in 2022 accounts for 58.4%.

In Vietnam alone, interesting figures are listed in the Vietnam eCommerce White Book in 2022:

• 88% of people’s means of accessing the Internet are mobile phones, while this rate will only reach 57% in 2021.
• The percentage of Internet users participating in online shopping is 74.8%.
• 91% of the electronic means commonly used to order online are mobile phones.
• Among online shopping channels, 47% of users make purchases through mobile shopping applications.

In upcoming years, the percentage of global people and Vietnamese people as well who own mobile devices and use them for online shopping is high and predicted to increase significantly. 

Social Commerce

Social commerce refers to the method through which companies advertise and sell goods and services online using social networking sites like Facebook, Instagram, TikTok, Youtube, Zalo, etc. In other words, this type of business combines eCommerce and social media.

The impact of social networks has grown significantly in recent years. Over 59% of the world’s population uses social media, it is not surprising that this percentage will continue to rise. 

While in the past businesses used social media to raise brand awareness and draw in new customers, today eCommerce businesses boost sales by offering goods and services to clients online via social media.

As a result, it’s incredibly handy for customers to interact, exchange information, and search and shop online all in one location.

According to Statista, global social commerce sales will reach $992 billion in 2022 and are projected to reach nearly $3 trillion by 2026.

Thanks to the development of social networks, social commerce has had a strong acceleration and has become a magnet for brands to come to approach and analyze a large number of potential customers, and achieve marketing and sales goals.

As a result, failing to prioritize social commerce in enterprises’ marketing strategies in 2023 is probably to lead to a significant loss of competitive advantages in the eCommerce market.

Headless Commerce

Today, businesses have a lot of choices to build an eCommerce website, but basically, the structure of a website will include the following main parts:

• Frontend: Everything the user sees and interacts with when accessing the website including the interface, content, and functions,… is received from the backend.
• Backend: All the active parts of the website or app that are not visible to the user such as the database system, design tools, management tools, and custom functions.

For websites using a traditional structure, the frontend and backend will be operated on the same platform and from there will be closely connected with each other. Therefore, any changes on the website will be edited in two parts at the same time. However, with Headless Commerce, the backend and frontend will be decoupled from each other and operate independently on two separate systems.

The benefits of deploying Headless Commerce:

• Increase customization
• Increase Scalability
• Increase the page load speed
• Seamless integration
• Multi-channel sales support

By using the Headless structure, Nike has become a brand with a much larger market share than Adidas – a formidable competitor of Nike.

Moreover, Nike’s website recorded more than 60 million pageviews in just 1 month. In addition, the proportion of direct purchases without intermediaries also increased significantly.

From Nike’s Case Study, one of the practical alternatives for companies looking to encourage eCommerce sales growth is Headless Commerce.

Shoppertainment

Shoppertainment is a form of shopping combined with entertainment that is used as a marketing strategy to encourage customer engagement with brands and consequently increase shopping demand. Moreover, it is used and takes over most of the online commerce in the era of digital transformation, when eCommerce is positioned at the forefront of contemporary business trends.

Some common practices of Shoppertainment trends:

• Live selling
• Shoppable video
• Gamification

These three practices all focus on entertainment and interaction. Then, the emotional element is aroused, leading to a series of unwise and unplanned shopping decisions. From a business perspective, this is beneficial for brands. TikTok‘s recent research proves it:

• In Southeast Asia, 82% of consumers purchase goods from companies they hardly ever use.
• 55% of consumers have made unplanned purchases.
• After watching videos on TikTok, 89% of consumers made unplanned purchases.
• Half of TikTok users confess to finding new brands or products while using the app.
• One in three customers desires to purchase and is satisfied with it.
• One in three customers wants to add fun and entertainment to shopping.

The growth of the Shoppertainment trend in recent years demonstrates the extreme demand for social interaction and connection following the period of Covid’s life.

Shoppertainment is the solution that businesses seek. This is a way to make the most of the customer’s biggest weakness – emotions.

When feelings of euphoria and joy are elicited during the shopping process, customers engage more, and purchase more unplanned products, conversion rates are higher, and sales follow.

AI Technology

Artificial intelligence now has a significant impact on eCommerce businesses in providing solutions to optimize the online shopping experience of customers. 

The following statistics demonstrate the incredible influence of AI on the eCommerce market and businesses operating in this field:

• The AI-powered eCommerce market is estimated to reach 16.8 billion USD by 2030 (InsightAce Analytics).
• In the retail eCommerce market, the value of AI is predicted to increase from $1.7 million in 2021 to $36.4 million in 2030 (Precedence Research).
• 78% of brands have used AI for eCommerce websites (Oracle) 
• Chatbot’s market value is predicted to reach 3.99 billion USD by 2030 (Grandview Research).
• It is predicted that eCommerce transactions made through Chatbots will reach 112 billion USD in 2023 (Business Solution).
• The cost of using AI Chatbots for customer care is 30% lower than hiring personnel to do this (Business Solution).
• 79% of eCommerce business owners admit that combining AI with marketing and sales helps increase the company’s revenue (McKinsey).
• 54% of businesses in France think that AI is good for analyzing eCommerce data (Statista).
• 70% of eCommerce business leaders in Europe and North America think that AI technology can help optimize customer experience personalization (Statista).
• 37% of users who click on an AI-driven eCommerce recommendation on their first visit to a website, return the next day (Investp).

Currently, there are two applications of AI technology that are commonly used in eCommerce:

Chatbots

For eCommerce businesses, Chatbots will be like salespeople who can interact directly with customers 24/7. This helps businesses narrow the distance in terms of geography and time zones, helping the sales and customer services process to take place effectively without interruption.

Personalized Advertising Campaigns

By collecting customer data, AI can create tailored content and recommendations for each specific customer. To improve marketing campaigns and personalize the customer experience, AI can also predict purchasing behavior based on a user’s browsing and search history, when the data is legally available.

VR/AR Technology

VR (Virtual Reality) is a modern technology that brings users into a simulated but still very realistic space with only 3D glasses (virtual reality glasses). The virtual world that the user sees is actually set up and controlled by a highly configurable computer system.

AR (Augmented Reality) is a new technology enhanced from VR technology. This technology has the potential to erase the boundary between the real world and the virtual 3D model. That is, users will experience virtual models in real space through smartphones or computers.

With a clear plan and the appropriate approach, Lazada has been in front of the augmented reality trend for a number of years and developed a certain competitive advantage in luring both consumers and sellers.

In particular, the VTO (Virtual Try On) function on Lazada includes a wealth of features to assist customers in freely selecting and trying goods like eyeshadow, eyeliner, foundation, and cushions whenever and wherever they like.

Since its launch, LazMall brand partners in the cosmetics sector have experienced tremendous success with the VTO function, which has helped to boost conversion rates by 3.1x and average order values by up to 11%.

KOL/KOC 

The rapid growth of social networks and eCommerce has given marketing efforts a fresh and original breeze thanks to KOL/KOC. Although KOL and KOC have long existed in some form, they have truly taken off in recent years.

KOL – Key opinion leader, also known as an “influencer”, is an individual or organization with expert product knowledge and influence in their field or industry.

KOC – Key Opinion Consumers are “the most influential consumers in the market”. Their job is to test products and services and make comments and reviews.

KOL will suit mid- to high-end brands, while KOC will suit mid-range brands. If KOL is used to select brand ambassadors, holiday season ambassadors, or product launch campaigns, KOC is used to boost sales in a short time or direct customers to websites or eCommerce platforms.

Some famous KOLs in Vietnam: Helly Tong, Giang Oi, Dino Vu, Co em Trendy, Chau Bui, Khanh Vy, Khoai Lang Thang,…

Some famous KOCs in Vietnam: Ha Linh, Call Me Duy, 1m88, Ong Giao Review, Chau Muoi, Hoang Viet, Pu Met 7,…

BOPIS

BOPIS – Buy Online Pick-up In Store is one of the shopping trends that promise to explode in 2023. Customers won’t have to be concerned about shipping costs, extended delivery times, or the risk of receiving unexpected goods when using BOPIS.

Businesses all around the world are pushing up their BOPIS implementation to meet customer expectations when merging online buying with in-person pickup. This is the ideal approach to boost store visits and close the gap between the offline and online buying experiences.

According to GlobeNewswire, the global BOPIS market is projected to reach $703 billion by 2027 with an estimated CARG of 19.3% between 2021-2027.

In addition, the following BOPIS trend statistics can help businesses consider implementing in 2023:

• In the last 6 months of 2022, 67% of US consumers use BOPIS.
• 49% of BOPIS consumers admit to buying more products while in store to pick up their items.
• 65% of customers choose BOPIS to avoid shipping costs.

The BOPIS model also aids businesses in cutting expenses, expediting deliveries, boosting demand for retail goods, and lowering the risk of product returns.

UGC

User Generated Content, also known as UGC, includes text, photos, video and reviews. Because people are becoming less and less engaged in the brand’s message over the past ten years, UGC has grown in importance.

According to a recent Salesforce survey, 53% of Millennials think user-generated content (UGC) influences their shopping decisions, and 92% of consumers prefer content created by friends and family over that created by brands. The reason for the above numbers is trust.

Therefore, user-generated content (UGC), such as photos, videos, and customer evaluations, is trustworthy social proof and aids in the development of a company’s reputation.

In a nutshell, businesses must quickly adapt to evolving eCommerce and digital technology trends in order to avoid falling behind and being driven out of the market. By reading 10 eCommerce trends that stated and analyzed above, businesses will have an overview to be ready for the new journey.

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.

Contact SECOMM today for free support and advice.

• Wine eCommerce sales reached $6 billion in 2021, an increase of 131% compared to 2020. In the two years 2021-2022, online wine sales increased by 4%, while in 2020 they only increased by 2%.
•  The online revenue of the wine market reached more than 261 billion USD in 2022 and is expected to grow at 10.51% annually from 2022 to 2025.
• According to IWSR, the global wine eCommerce market value will reach $42 billion by 2024.
• An estimated 1.6% of the total liquor market revenue in 2023 will be generated from online sales.
• The average annual growth rate of wine eCommerce in the US is around 20%.

Key drivers of wine eCommerce growth

Global Pandemic

In the midst of the global pandemic-related crises, the wine business, like many others, saw a breakthrough in the speed of online purchasing.

When the pandemic breakout occurred, 44% of American consumers placed their first-ever online wine and liquor orders.

The year 2020 saw a 42% increase in wine eCommerce as a result. Online wine sales increased from just $1 billion in 2018 to $6 billion by 2021.

Young wine consumer

In the US, according to Avalara, Millennials and the legal drinking age population are steadily increasing.

By 2023, the Millennial generation is estimated to account for nearly 45% of the LDA (Legal Drinking Age) population under the age of 80. By 2030, this number is projected to be 54%.

In Vietnam, Millennials (25–38 years old) and Gen Z (18–24 years old), often known as MillennialZ, currently make up 47% of the population or about 45 million people who are of drinking age. The population structure of the MillennialZ generation is expected to keep growing.

The primary factors influencing the growth of the eCommerce sector as well as the digital economy of Vietnam will also be the young people’s awareness of and keeping up with new trends in digital technology compared to previous generations.

Case study

iShop Changi Wines

The Duty Free Shop Group (DFS) and Changi Airport Group (CAG) collaborated on the iShop Changi Wines eCommerce online project, which offers world-renowned and premium wines and spirits with exclusive discounts to visitors to Changi Airport, particularly those who are CAG members.

The iShop Changi Wines website is cutting-edge and exquisitely styled, showcasing the distinctive qualities of the wine industry as well as the aesthetics from page layout, color, font text, logo, and banner, all of which are guaranteed to optimize the purchasing experience while also, and this is crucial, emphasizing the identity and brand-development elements for both CAG and DFS.

Due to the fact that this is a project of well-known companies, the iShop Changi Wines website has consistently received a lot of traffic, averaging approximately 592 thousand views each month since its introduction.

Therefore, to combat the unexpected surge in traffic and orders during the busiest shopping seasons of the year, the eCommerce system must be continually enhanced and optimized.

The fact that major corporations CAG and DFS both started and developed successful wine eCommerce websites shows the enormous potential of this industry now and in the future.

Previously, the business scope of wine businesses was quite limited, but now that limit has been broken thanks to the dominance of the Internet and the rise of eCommerce.

Moreover, the government’s assistance in lowering legal restrictions has given wine producers the assurance to confidently market their goods to a significant number of potential buyers in several nations across the world.

The Warehouse

The Warehouse, established in 2001, is renowned as a top supplier of wines and spirits in Vietnam, offering more than 16 different varieties of wine from numerous nations.

In addition, along with Annam Gourmet Market, Yves Rocher, and Flormar, this is another well-known retail brand of the Nam Group. Before being formally put on the market, products at The Warehouse are consistently inspected and carefully chosen to fulfill quality criteria.

The company has so far increased the reach of its distribution network across the nation, including Ho Chi Minh City, Hanoi, Da Nang, Nha Trang, Hoi An, Quang Ninh, and Phu Quoc.

The Warehouse achieved its objective of serving the wine market with B2B and B2C business models by utilizing the Magento platform.

This implies that the business will broaden the retail channel to include private customers in addition to distributing wines to restaurants, hotels, resorts, pubs, and lounges.

A series of symbols, logos, and banners created especially to fit the characteristics of the wine industry are combined with Bordeaux red to create a website interface that is focused on UI/UX perfection.

The Warehouse is flexible, secure, and has quick ordering, payment, and delivery options. Therefore, customers can place orders through phone, mobile app, or eCommerce website.

Customers can then pick up their purchases from the store or, in major cities like HCM, Hanoi, and Da Nang, the company will deliver them quickly within 2 to 3 hours. In other places, conventional courier delivery takes 2 to 5 days.

The Warehouse has been successful in raising brand recognition, expanding its customer base, and increasing both offline and online sales as a result of the timely growth of its business model and digital transformation

Trentham Estate

Long-standing Australian company Trentham Estate Winery, founded in 1988, focuses on the manufacture and distribution of wine.

After many years in business, the company is well regarded for its creativity in the wine-making process, which resulted in a variety of wines with different delicious flavors. Also, the brand has received hundreds of medals, titles, and other industry awards.

In the beginning, the business created and ran a WordPress website system for branding purposes.

Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.

In the beginning, the business created and ran a WordPress website system for branding purposes. Trentham Estate, however, has been forced to increase its company scale by making a substantial investment in an entire eCommerce website system due to the growth of eCommerce and the increasingly varied purchasing needs of potential clients.

That is what led to the creation of the website trenthamestate.com.au, which has a modern interface while still accurately capturing the distinctive features of the wine industry.

Similar to The Warehouse, Trentham Estate likewise creates an eCommerce website based on the Magento platform with a variety of features that satisfies eCommerce requirements and wine industry specifics.

Therefore, businesses can access and serve a wide range of large customer files not only in Australia and internationally thanks to effective marketing and branding strategies, towards a sustainable business model along with the changes of the digital age. 

​​It would be hard to believe that an industry as sensitive as wine could be traded online so easily and efficiently. In that efficiency and convenience, there is a great contribution of the trend of eCommerce and the comprehensive National Digital Transformation program that is committed to supporting by the Government. This is an extremely appropriate time for wine businesses to confidently deploy eCommerce because of the support from the Government and the push from the market.

However, planning to implementation are two completely different categories. Businesses are required to have a practical strategy and technical assistance from highly skilled firms to hasten the success journey and help advance the National Digital Transformation goal. 

SECOMM has many years of expertise in effectively executing eCommerce for numerous customers in various countries. We specialize in offering free consultation services with qualified eCommerce implementation solutions.

Contact us right away for free counsel and assistance.

Cosmetics eCommerce is currently developing into a fresh and promising sales channel for companies in addition to the traditional sales channel. Businesses must work hard to sustain and achieve breakthrough growth through eCommerce platforms, though.

As a result, numerous cosmetics companies started developing online cosmetics business websites and found surprising success, such as Kylie Cosmetics, Hasaki, and Guardian,…

These websites’ success can be attributed to their early selection of an adequate and suitable eCommerce platform. Which platforms are appropriate for the cosmetics industry, then?

Salesforce Commerce Cloud

Salesforce Commerce Cloud (SFCC) is a highly flexible SaaS eCommerce platform that allows companies to offer the best B2B and B2C shopping experiences. Moreover, Salesforce gives Commerce Cloud access to Einstein AI to further enhance this system’s intelligence.

Top cosmetic brands currently using Salesforce Commerce Cloud to deploy eCommerce include L’Occitane, Lancôme, Loreal, Nars, Neutrogena, NYX Cosmetics, and Shiseido,…

Pros:

• SFCC offers a flexible and scalable hosting infrastructure as a cloud-based SaaS platform, and this vendor will be in charge of configuration, updates, maintenance, security, etc., helping users save time and money in these areas.
• Since SFCC is practically a ready-made solution, businesses only need to express their ideas, and SFCC’s IT team will develop them in a matter of weeks.
• The amazingly functional system supports cosmetic eCommerce businesses by allowing customers to select product sizes, purchase items in sets, take advantage of shock deals and flash sales, and receive new customer discounts and loyalty points.
• Unlike other SaaS platforms, SFCC scales and manages traffic spikes for sales seasons and other unplanned events with ease.
• Synchronizing sales channels, reaching, and serving clients across many channels are made possible by omnichannel solutions for the cosmetics industry.

Cons:

• Developers and businesses are required extensive SFCC understanding.
• SFCC charges users on a revenue-based model. Depending on the selected plan package, customers will pay 1 or 2% GMV (Gross Merchandise Value) to preserve website ownership. This means that the higher the revenue, the more expenses must be paid to SFCC.
• Limited integration with 3rd party services.

=> SFCC is suitable for B2C and B2B cosmetic businesses.

Magento

Magento is a popular open-source commerce platform in the field of eCommerce, with nearly 200,000 websites in use. Currently, Magento has 2 versions: Magento Open Source (free), and Magento Commerce (paid).

Cosmetic eCommerce websites built successfully on the Magento platform with high brand awareness include Laneige, Sigma Beauty, and Hasaki,…

Pros:

• Many cosmetics themes from the global developer community and Magento website developers so businesses can use existing themes which easy to customize or use self-designed themes.
• Functional systems from basic to advanced, specialized for the cosmetic industry such as choosing product size, buying in sets, exclusive deals, product suggestions, viewed products, member incentives, etc.
• Due to its comprehensive customization options, Magento enables businesses to fully own, control, and customize the source code, facilitating the efficient operation of systems. Moreover, Magento may be customized to fit the eCommerce requirements of enterprises of various sizes.
• Highly scalable, beneficial for future system expansion, and featuring multiple sites, stores, languages, and currencies.
• Because Magento is a complete eCommerce system, it can guarantee smooth operation and minimize potential dangers from data systems and transaction processes, resulting in high security. As a result, the reputation of the website, system safety, and user rights are all improved.
• There is a huge skilled Magento developer community present worldwide, ready to help with technical issues as well as provide assistance in creating eCommerce solutions appropriate for each business model.

Cons: 

• There is no repository of themes from Magento to support businesses.
• Implementation typically takes three to six months, but it might take up to a year due to a sophisticated functioning system.
• Although the platform is free to use, the cost of implementing eCommerce with Magento is quite high, about $50,000-$100,000 depending on the complexity of the project.

=> Magento is appropriate for a range of cosmetics business types, including B2B, B2C, and B2B2C, as well as for various business sizes, including start-ups, SMEs, and major companies. However, large organizations use Magento because it is frequently relatively expensive to deploy.

WooCommerce

WooCommerce is a free WordPress plugin that allows businesses to transform a regular WordPress website into a professional eCommerce website with full features and easy customization with just a few simple steps.

A few good examples of big brands that have built successful eCommerce websites with WooCommerce and generated huge sales such as: MOI Cosmetics, Bo Shop, Nuty Cosmetics, AB Beauty World, Beauty Garden,. ..

Pros:

• There are many free and premium themes from the WordPress and WooCommerce communities for the cosmetics sector which are easy to customize or businesses can use self-designed themes.
• Functional systems from basic to advanced for cosmetic eCommerce business such as similar product suggestions, viewed products, discount vouchers, and new customer incentives,…
• Easy integration with a variety of 3rd party services.
• The cost of building an eCommerce website is not too high compared to other open-source platforms like Magento, with total annual costs ranging from $110 to $1,500+ for domains, hosting, themes, extensions, plugins, etc.
• eCommerce website implementation time with WooCommerce takes about 1 to 3 months to complete.

Cons:

• The functional system is still limited in terms of features specific to the cosmetics industry.
• The scalability is not as high compared to other open-source platforms such as Open Cart, and Magento because it depends on the WordPress system.

=> WooCommerce will be suitable for cosmetics businesses that are familiar with the WordPress platform and want to develop an eCommerce system.

Shopify

Shopify is a popular SaaS platform in the world that provides a variety of solutions for businesses of all sizes to successfully build eCommerce websites. After being in the market for about 20 years, Shopify has gradually grown to become one of the top eCommerce platforms in the world, trusted by many Vietnamese and foreign companies. 

Kylie Cosmetics, Innisfree, Sulwhasoo, Cho Tinh Cua Boo, Guardian, and Ofélia are some examples of companies in the cosmetics industry leveraging Shopify for eCommerce websites and enjoying great success.

Pros:

• Available and diverse themes for the cosmetics industry.
• Functional system from basic to advanced, supporting eCommerce business such as similar product suggestions, viewed products, discount vouchers, and new customer incentives.
• The initial cost is quite reasonable with a variety of options for businesses from $29/month to about $2,000/month.
• The time to build an eCommerce website is quite fast from 1-7 days, or more depending on the complexity of the system.
• Shopify has a large developer community to serve businesses.

Cons:

• The layout of existing templates causes duplicating, and it’s challenging to alter themes or create your own interface because doing so will have an adverse effect on the entire system.
• The system of specific functions for the cosmetics sector is still limited.
• A wider range of 3rd party services but still only integrated with services available in Shopify’s app store.
• Deployment costs are both advantages and disadvantages of Shopify when the initial cost is quite reasonable, but in the long run, businesses have to pay the cost of using the platform, interface, application, etc., regularly every month. This makes it difficult to manage cash flow.
• Because it is a SaaS platform, it will be difficult for Shopify to expand its website in the future.

=> Shopify is considered suitable for start-ups or SMEs with global operations.

Haravan

Haravan is a leading technology firm in Vietnam, that was founded in 2014, with the intention of eventually extending to many other Southeast Asian nations.

It specializes in offering businesses and merchants in Vietnam solutions for eCommerce, engagement marketing, and omnichannel retail.

Haravan has gained the trust of many companies in the cosmetics industry as a result of the efficiency of the website system that the business has created and the ground-breaking online retail sales.

The Face Shop, The World of Lipsticks, The World Skin Food, and Lam Thao Cosmetics are some well-known cosmetics companies in Vietnam that have launched eCommerce websites using the Haravan platform.

Pros:

• Available and diverse themes for the cosmetics industry.
• Wide range of applications, from basic to advanced to start an eCommerce business.
• Reasonable eCommerce deployment cost, various packages from 200,000 VND/month to 3,000,000 VND/month, making it easy for customers to choose.
• ​​The time to build an eCommerce website is fast, only about 30 minutes for businesses to own a website with all the necessary features to get started. However, for the website to work effectively, businesses need to spend more time researching and developing the system.

Cons:

• The layout of existing templates causes duplicating, and it’s challenging to alter themes or create your own interface because doing so will have an adverse effect on the entire system.
• The system of specific functions for the cosmetics sector is still limited.
• Only integrated with services/utilities located in Haravan’s ecosystem.
• Because it is a SaaS platform, it will be difficult for Haravan to expand the website in the future.

=> Haravan is suitable for start-up cosmetics businesses or SMEs (small and medium-sized enterprises) with operations mainly in Vietnam.

An extremely critical first step in developing a cosmetic eCommerce website is selecting the appropriate platform. Businesses may develop websites more quickly and affordably while enhancing their competitive advantage and sustainable growth by choosing the right eCommerce platform.

The improper platform, on the other hand, will cost firms a lot of money and effort to adopt and switch platforms repeatedly. Therefore, in order to select the best platform, organizations must take into account the objectives and issues with the current model.

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions. 

Contact SECOMM today for free support and advice.

The Covid-19 pandemic not only encourages the tremendous growth of eCommerce but also helps shift consumers’ priorities from in-store to online buying. However, instead of just buying, consumers frequently prefer to seek out novel, inspiring experiences.

Therefore, every company should strive to implement the approach of shopping combined with entertainment (Shoppertainment) in order to improve marketing effectiveness and boost sales.

What is Shoppertainment?

Shoppertainment is a combination of two elements “shopper/shopping” and “entertainment”.

Shoppertainment is described as “the provision of recreational or leisure facilities within or next to a retail store or shopping center, as part of a marketing strategy, which is designed to attract customers and stimulate purchasing” in the Oxford Dictionary (1990).

Many companies, notably IKEA, the biggest furniture retailer in the world, have used shoppertainment with success in the past. IKEA launched a campaign in 2019 called “IKEA nightclub – Tonight is to sleep” for 100 lucky individuals.

During this campaign, customers can partake in activities like manicures, massages, snacks, and tea instead of cocktails before spending the night in rooms with IKEA furniture that is soon to be released.

The brand has had remarkable sales success thanks to the campaign’s resonance in North America.

The shoppertainment trend, however, is no longer just restricted to stores or other physical locations thanks to the growth of eCommerce and digital marketing but has instead gained popularity and taken over online shopping activities.

In comparison to the prior definition, shoppertainment has been enlarged and changed. Shoppertainment is a trend that combines online shopping with entertainment, allowing buyers to engage with merchants in addition to purchasing products as usual.

In Vietnam and in the Asia-Pacific region, certain forms of entertainment-infused shopping are very common. Examples include live streaming, shoppable videos, and gamification.

What role does shoppertainment play in eCommerce?

According to the Vietnam eCommerce White Paper 2022, the size of the retail eCommerce market in Vietnam will increase from $11.8 billion in 2020 to $13.7 billion in 2021 and is estimated to reach 16.4 billion USD in 2022.

Meanwhile, the percentage of consumers shopping online on eCommerce websites is 78% in 2021, up 4% over the same period last year.

Because of the urgency, lack of options, and social isolation, the effects of the epidemic have actually contributed to a change in consumption tendencies from in-person purchases to online purchases.

Since that time, it has seen the quick decline of the conventional commerce model and the rise of eCommerce. By 2026, Statista projects that eCommerce sales will total $8.1 trillion.

Additionally, it is not surprising that consumers like shoppertainment. Although this combination is not novel, it promises to set the consumption trend in the years to come as eCommerce takes center stage.

The demand for online shopping will be higher there, and expectations for the best shopping experience—including both online shopping and fascinating experiences will also be higher.

Retail businesses around the world have seen a significant rise in sales during the outbreak by combining online shopping with live streams, entertainment videos, and video games to create real-time digital interactions with customers.

For instance, Taobao Live, which Alibaba introduced in 2016, saw a 150% surge in sales in 2020 when the epidemic first appeared in China.

“Shoppertainment is now a basic expectation. You really have to leverage engaging tools so the shopper gets to learn about the product, its superiority, and has fun along the way,” notes Alex Vogler, senior director and head of marketing, eBusiness, Procter & Gamble (P&G) Asia, Middle East, and Africa. 

The Covid-19 pandemic has had a significant negative impact on the human psyche, causing issues including depression and anxiety. On the other hand, a portion of the populace said that the social connections they were unable to have prior to the epidemic significantly improved their psychological well-being.

People need to connect with the community and others like them more than just for amusement. Brands have therefore concentrated on improving the consumer experience by transforming personal experiences into shared ones that bring communities together.

As an example, consider the hashtag #TikTokMadeMeBuyIt. Through the TikTok platform, users can easily and amusingly share their shopping experiences, resulting in videos going viral and receiving more than 4.5 billion views.

Shoppertainment will result in emotional and impulsive purchasing decisions since it emphasizes entertainment and connection. According to a recent TikTok research:

• In Southeast Asia, 82% of consumers purchase goods from companies they hardly ever use.
• 55% of consumers have made unplanned purchases.
• After watching videos on TikTok, 89% of consumers made unplanned purchases.
• Half of TikTok users confess to finding new brands or products while using the app.
• One in three customers desires to purchase and is satisfied with it.
• One in three customers wants to add fun and entertainment to shopping.

The studies mentioned above demonstrated the enormous influence that social networks and online shopping trends have on consumer decisions.

Because of this, Vietnamese retail companies have prioritized shoppertainment in their marketing plans.

Customers demand a more social and engaging online shopping experience, as well as the ability to connect and converse with one another while buying, which is the reason for any of this.

Best Shoppertainment practices

Live Selling

In recent years, both buyers and sellers in the Asia-Pacific (APAC) area have grown accustomed to live selling. Live selling is less common in the US and Europe than it is in APAC, but businesses there are nonetheless keeping an eye on this trend.

For instance, AliExpress initially introduced the live selling feature in France in May 2020, and since then, more than 3,000 live programs have been launched, with the involvement of more than 100 vendors.

The combination of sales, interaction, and entertainment makes this one of the top social selling strategies. Customers can interact with vendors directly, view actual product photos, and make decisions by pushing their shopping emotions.

Plus, the engaging social interactions that take place throughout live streaming help retailers make an impact on customers, resulting in a high return rate.

Due to the growth of the Shoppertainment trend and the effectiveness of live streaming in generating sales through social networks, eCommerce marketplaces have started to put more of an emphasis on investing in producing engaging entertainment material for users on their apps, particularly through live streaming.

The customer buying experience is improved by several well-known live stream channels, like TaobaoLive, LazLive, Shopee Live, TikiLive, etc.

These companies have the resources to develop this feature for themselves, but lower-budgeted companies can still try the live-selling concept by integrating Facebook or YouTube live stream with an eCommerce website.

Shoppable Video

Live-streaming videos will be effectively replaced by shoppable videos. One of the joys of using this type of video is that companies may produce videos in their own distinctive styles that quickly introduce customers to their products, explain how they operate, and demonstrate how to use them. These videos can be attached to an eCommerce website. Users can always click the product link in this kind of short video to find out extra details or to make a purchase. The short-form video has overtaken popular platforms like TikTok, Instagram Reels, and Youtube Shorts as the go-to method for branding, cultivating customer trust, and influencing purchasing decisions.

83% of people, according to Nielsen study, prefer watching videos of advertisements to GIFs or text. Short-form videos have gained popularity as a result of global digital transformation and consumer preference, and many brands now opt to use those as part of their video marketing strategies due to their useful advantages, which include the following:

• Simplify the customer journey
• Increase customer engagement
• Improve the conversion rates
• Get a boost in sales
• Create brand loyalty
• Build a better customer experience

Gamification

Gamification or Gamification  Marketing is the skillful incorporation of a video game’s mechanics into promotional operations in a unique and impressive method to meet marketing objectives.

Gamification’s primary advantage, similar to live selling, is engagement, which keeps people on the site, drives conversions, and boosts sales.

Users are actually more likely to return for more shopping if a business can convince them that engaging with it is an interesting experience rather than a transaction.

A study by Bazaar Voice demonstrates the impact of gamification on businesses’ marketing strategies as follows:

• 70% of shoppers want gaming elements incorporated into online shopping.
• But only 42% of shoppers enjoy gaming in-store.

For instance, take Bajaj Finserv’s Indian financial company’s Gamification Marketing campaign. The game was created by this firm to encourage people to use its travel loan services.

Users will complete tasks and respond to questions about their preferred travel destinations. Customers adored the campaign, and it immediately trended on Twitter with more than 75 million impressions.

Thus demonstrating Bajaj Finserv’s efforts to develop engaging experiences and provide them to customers in line with its marketing strategy. Brands attract more potential customers, enjoy the better engagement, and increase conversions as a result of the viral impact.

Shoppertainment has been around for a while, but it wasn’t until Covid-19’s effect that this trend truly took off. Businesses should take advantage of this trend to improve the online shopping experience for customers and increase sales in the era of eCommerce.

Due to the growing demands of customers for a better shopping experience and the ongoing changes in the market, achieving this goal is difficult and labor-intensive. As a result, companies must work with expert agencies to plan the proper eCommerce deployment from the start.

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.

Contact SECOMM today for free support and advice.

When the Prime Minister approved the “National Digital Transformation Program to 2025, with a vision to 2030,” national digital transformation became formally a goal shared by the entire Vietnamese people in 2020.

Since then, localities, ministries, branches, and even the government have all gradually incorporated the term “Digital Transformation” and applications of digital technology into their everyday activities.

Thus, we all realize the significance and impact of the digital transformation trend. What essential elements, nevertheless, determine the National Digital Transformation Program’s success or failure?

Overview

What is Digital Transformation?

The process of using digital technology to completely alter each person’s lifestyle, each company’s business model, and each nation’s government operations in order to create new values and prospects for future development is referred to as transformation, also known as digital transformation.

Today, all businesses, big and small, have to decide whether to embrace innovation or risk lagging behind, becoming ineffective, and going out of business.
Furthermore, digital transformation involves- not just comprehending and utilizing technology but, more importantly, reinventing the complete business strategy as well as the vision and development priorities of the nation in relation to the global development trend.

According to data from Mordor Intelligence, the digital transformation age is shining in practically “every nook” of the global economy, confirming that this is not a “soon to fade” trend but rather a new and sustainable development orientation following the pandemic crisis.

• The estimated value of the global market for digital transformation is $998.99 billion in 2022 and is expected to reach $2744.68 billion by 2026. The compound annual growth is 17.42%.
• Global spending on digital transformation is expected to reach $1.6 trillion by the end of 2022 and surpass $3.4 trillion by 2026.
• Over 90% of global businesses, both large and small, are adopting digital initiatives.
• 97% of business executives say the COVID-19 pandemic has spurred digital transformation efforts.
• 95% of startups have a digital business plan compared to 87% of traditional, established companies.
• According to statistics, currently, only 13% of jobs do not require digital skills, and 33% are jobs that require proficiency and advanced digital skills.

In Vietnam alone, the government has established a National Digital Transformation Program for 2025, with a vision to 2030, with particular targets to shorten the distance with other countries around the world, including:

• 80% of online public services at level 4 are performed on mobile devices.
• 90% of work records at ministerial and provincial levels are online while 80 percent of work records at the district level and 60 percent of work records at the commune level are processed online.
• All national databases including those for population, land, business registration, finance, and insurance are online and connected, with shared data on a government reporting information system.
• 50% of banking operations by customers are to be fully online.
• 50% of the population has a digital checking account.
• 70% of customer transactions are made through digital channels.
• 50% of decisions on lending, small and consumer loans of individual customers made digitally and are automated.
• The digital economy accounts for 20% of GDP.
• The rate of the digital economy in each industry, and each field accounts for at least 10%, and labor productivity increases by at least 7%.
• Vietnam is among the top 50 leading countries in information technology, the top 30 countries in innovation, and the top 50 countries on the competitiveness index.
• Fiber optic network infrastructure covers 80% of households and 100% of communes.
• Universalize 4G/5G mobile networks and use smartphones in remote areas.
• The percentage of the population with electronic payment accounts is over 50%

Why is Digital Transformation important?

The fact that the goals are stated in great detail in the national digital transformation program with a focus on 2030 demonstrates how seriously the Vietnamese government takes the significance of digital transformation for the prosperous growth of the nation.

Think about the global Industrial Revolution 4.0 wave that is currently in motion. With the aid of connection provided by the Internet of Things (IoT), real-time data access, and the introduction of cyber-physical systems, the Industrial Revolution 4.0, also known as Industry 4.0, primarily focuses on advancing modern digital technology to an entirely new level.

Every Government, organization, corporation, and individual throughout the world must transform its business model, and the manner of working from non-digital to digital operation, in order to keep up with this current technology and immerse itself in the Industry 4.0 wave. The name of this procedure is “digital transformation”.

Vietnam, despite having a minor economy compared to other countries, is a crucial part of the massive Industrial Revolution 4.0 that is currently underway. Vietnam must therefore undergo a digital transformation in order to compete.

The goal will be challenging to accomplish if just businesses execute digital transformation because the capital and costs are quite high; therefore, businesses require assistance from the government budget and outside finance.

On the other hand, even with a massive budget, it can be challenging for businesses to implement effective digital transformation if the government does not go digital, but continues to run in the old manner, handles administrative procedures slowly, lacks direction, and supports businesses clearly and methodically.

​​Furthermore, without the support of the people, the National Digital Transformation process to catch up with the global Industry 4.0 wave will be impossible. However, the public needs the government to inform, direct, and inspire digital transformation.

Also, businesses must create useful digital transformation strategies that both before and after implementation considerably raise people’s quality of life.

Vietnam must structure three main areas of digital transformation: the government, businesses, and people, or in other words, the digital government, digital economy, and digital society, if national digital transformation is the outcome it seeks to achieve in order to gradually join the Industrial Revolution 4.0.

These three crucial overlapping and interdependent relationships make up the National Digital Transformation.

The current state of Vietnam’s National Digital Transformation 

Throughout the earlier years, Vinasa reports that in 2019, 40.6% of organizations and businesses confirmed that they have resources available for digital transformation and that 23.6% of them are putting it into practice. However, 30.7% of them are uncertain of what to do despite doing some research, and 38% are unsure of where to begin.

​​Due to the Prime Minister’s approval of the “National Digital Transformation Program to 2025, with a vision to 2030” and the abrupt change brought on by the impact of the global pandemic, Digital Transformation is now regarded as the process’ starting year. This makes it a top priority to maintain Vietnam’s economy.

The government and Vietnamese enterprises have been able to promote awareness of the importance and urgency of digital transformation in order to help the country overcome the obstacle thanks to the economic crisis brought on by the effects of the Covid-19 outbreak.

According to the UN, Vietnam’s digital government statistics are better than the average for the area. Vietnam specifically saw a rise of 2 places in 2020, moving up to rank 86th out of 193 UN member states globally and 6th out of 11 Southeast Asian nations.

The establishment of the National Digital Transformation Committee and the decision to appoint October 10 of each year as National Digital Transformation Day in accordance with the National Digital Transformation policy for a better life for the people are two additional significant events that will forever be remembered in Vietnam in the years 2021 and 2022.

As a result, leaders and people are more conscious of the significance, function, and advantages of digital transformation, and there are coordinated actions throughout the entire system, from the government to the general populace.

According to data from the Ministry of Information and Communications, the databases that Vietnam has built up to the second quarter of 2022 include:

• Citizen data: Approximately 78 million data including birth registration, marriage registration, death registration,…
• Social insurance data: Over 17 million records.
• Vaccination data: Over 133 million records.
• Data of officials and employees: Over 570,000 records.
• Citizen ID card with the chip: Nearly 72 million records.

Additionally, the percentage of qualified online public services offered to individuals and enterprises has surpassed 97.3%; the percentage of these services that produce dossiers has gotten to 67.8% and the percentage of administrative procedures handled online has gotten to 43.2%.

Moreover, the economic sector has seen some very good improvements as a result of digital transformation. The Ministry of Information and Communications predicts that by the first quarter of 2022, the value of Vietnam’s digital economy will be 53 billion USD and that there would be 500 more newly founded digital technology businesses than there were at the same point in 2021.

The number of monthly users on Vietnamese mobile digital platforms climbed by more than 100 million compared to the same period in 2021, and the percentage of the digital economy in GDP increased to 10.41% in the first half of the year from 9.6% in the end of 2021.

3 key factors make National Digital Transformation successful

Based on specific analysis and data on the situation of National Digital Transformation in Vietnam, it is clear that there are 3 main pillars that lay the foundation for the success of the National Digital Transformation process: Digital Government, Digital Economy, and Digital Society.

Digital Government

In order to increase operational efficiency and develop new operating models and alter the way services are offered using digital technology and data, a government must transition all of its operations to a digital environment. This allows enterprises to take part in the service delivery process. In other words, this is how the government is becoming digital.

Vietnamese citizens have been instructed in the past to finish the registration processes necessary to access the Citizen Identity Card with a chip, which is gradually replacing the previous ID card. This serves as one illustration of how well the digital government is progressing in Vietnam.

The process of processing dossiers and issuing ID Cards in the early stages is not really effective because the National Database on Civil is still under construction and staff training on how to use digital technology and digitize paper data on the data system is still limited. However, the procedure for issuing chip-based ID cards in addition to the cost is public and transparent.

As a result, when people arrive at the location where the chip-based ID card is made, processing will go more quickly if their information is already in the National Database; otherwise, they will need to provide more birth certificates and household registration information and will have to wait a long time for staff to check, enter data, and complete related procedures.

After that, the chip-based ID card will be sent to the registered address by post, but for the above reason, this process also takes quite a while.

The Public Service Portal of the Ministry of Public Security, however, is currently supported by the government and simply requires people to visit the location to capture pictures and fingerprints.

This demonstrates the government’s prompt responsiveness in streamlining business procedures while also saving time for both citizens and employees. This is evidence of the Government’s ongoing attempts to modernize itself digitally.

In addition, on the CCCD chip, more than 14 information fields of citizens are stored: (1) CCCD number; (2) Full name, other names; (3) Date of birth, month, and year; (4) Gender; (5) Nationality; (6) Ethnicity; (7) Religion; (8) Hometown; (9) Place of permanent residence registration; (10) Identification characteristics; (11) Date of issue; (12) Expiration date;

(13) Full name of parent, spouse; (14) issued 9-digit ID card number; (15) Portrait photos; (16) Features of fingerprint extraction and selection of two index fingers; backup for iris images, and other information.

Moreover, a chip-based ID card can replace important papers such as Identity Cards, Health Insurance (HI), Social Insurance (Social Insurance), Birth Certificate, Marriage Certificate, and Household Registration Books….

It is clear that switching from conventional ID cards to chip-based ID cards has several advantages for both the general public and the government. People’s personal information is highly secure, preventing the creation of fake documents.

Also, ID cards with chips make paperwork and transactions straightforward because many pieces of crucial information are combined onto a single card, saving time and preventing the scenario where someone forgets to bring the necessary paperwork and causing the processing of documents to be interrupted.

The government made a wise choice by implementing chip-based ID cards.

The government can save, control, and check information about a specific individual quickly and efficiently with the use of chip-based ID cards and the National Database, helping to effectively control the situation of local security and order as well as national security.

Also, this helps free up labor for government employees who deal with people, handle paperwork, and maintain correctness, speed, and synchronization.

Digital Economy

The second factor that makes the success of the National Digital Transformation process is the Digital Economy.

Digital Economy is an economy that maintains and develops constantly based on modern digital technology. The digital economy is also known as the Internet Economy, the New Economy, or the Web Economy. This particular economy is made up of electronic transactions over the internet. 

According to the definition from the Vietnam Private Economic Forum, the digital economy is all economic activities based on digital platforms. Digital economy development is the use of digital technology and data to create a new model of cooperation and business, in line with the development trend of modern technology.

Therefore, everyone would immediately think of eCommerce when discussing the digital economy or the most prominent business model of the trend of digital transformation, and the strong push that this industry provides for high-volume industries catches the trend of digital transformation.

Few people anticipate that the conventional market model, which has become ingrained in Vietnamese culture, would soon be replaced by the market model 4.0, which accepts cashless payments. In several of Hai Phong’s traditional markets, this novel method of buying and selling was introduced for the first time, to the delight of the locals.

The Viettel Money application of Viettel Military Telecom Group, a pioneer in the digital transformation of market 4.0 models in 63 provinces/cities, enables all small businesses and individuals to purchase and sell things at the market by scanning QR codes or transferring money via phone number.

Moreover, cashless payment makes it easier for customers to shop at the market without worrying about issues like carrying change or budgeting extra cash for purchases. Also, many shopkeepers in the market are afraid of this issue pretty much.

Previously, if customers paid in cash with a denomination that was too big, shopkeepers would have to run everywhere to change money, causing time-consuming for both parties and other customers waiting to be served, the issue is now solved with just one smartphone.

Following the success of Hai Phong’s 4.0 market model, many other localities have also implemented this model and received positive feedback signals from the people such as Da Nang, Quang Ninh, Thai Nguyen, Lang Son, etc.

The market 4.0 model has spread to every nook and cranny of the nation’s small trading places, including farmers’ markets, grocery stores, sidewalk shops, amusement parks, parking lots, and more.

The digital transformation trend has quickly extended to places where it was previously impossible, helping to advance the digital economy and achieve the objective of a comprehensive national digital transformation.

Digital Society

Finally, the term “digital society” refers to all human activities in a broad sense. Digital technology, which is based on the exponential growth of information and data, is the primary driver behind digital society.

It transforms all facets of social structure, from the government and business to the individual. In a limited sense, “digital society” refers to both digital citizenship and digital culture.

From this perspective, the three pillars of a digital nation are the digital society, the digital government, and the digital economy.

Teachers, parents, and students all adore the eLearning model, which is developing into a popular teaching and learning trend, especially in light of the recent pandemic and widespread implementation of social distancing policies.

Students can access lessons at any time, studying at home, using simply an electronic device with an Internet connection. As a result, teachings can be discussed and interacted with by professors and students without them having to actually meet.

This model also supports student doing teamwork well because it is not time- or space-constrained, saving on travel expenses in addition to using many other helpful resources.

However, for eLearning to really replace traditional teaching and learning methods, it takes a lot of effort from both the Government, the school system, and the student’s parents.

In fact, eLearning is only a small part of the digital society effort besides many other important aspects of society that need to be digitally transformed to make life more convenient for people.

National Digital Transformation has become one of Vietnam’s top goals and this is also a rare project that has received special attention from the highest levels of leadership and international support. Since then, Vietnam has had a full foundation to hope to realize the goal of becoming a digital country from now to 2030.

The development of a digital society, economy, and government, in particular, is a necessary and sufficient condition for a successful national digital transformation.

In fact, every citizen, from intellectuals to regular citizens, is gradually demonstrating a certain understanding in their own way about the digital transformation and awareness that the country is in a transition period to match the general development trend of the times.

This is in addition to the efforts of businesses and the support from the government. 

Especially for businesses, digital transformation is an imperative remedy to withstands to withstand the tsunami of eradication brought on by the pandemic’s rapid shift in new business patterns.

Following Covid-19, business digital transformation flowed slowly, gently, and steadily, assisting the economy’s continued rotation.

The first step of the digital transformation journey for businesses is to start implementing eCommerce.

With many years of experience in successfully implementing eCommerce for many customers in many countries, SECOMM specializes in providing consulting services with comprehensive and professional eCommerce implementation solutions.

Contact SECOMM today for free support and advice.