Grab and MoMo are dominating the Vietnamese e-commerce market

Posted on 2020-09-18 17:48:20

With the entry of Grab and MoMo, the Vietnamese e-commerce market will become more competitive.
According to the 2020 e-commerce white paper issued by the Ministry of E-commerce and Digital Economy (Ministry of Industry and Trade), the number of online shoppers in Vietnam reached 44.8 million in 2019 and 39.9 million in 2018. Compared with USD 160 in 2015, per capita consumption has increased by USD 225 per year. Vietnam's e-commerce growth ranks top three in Southeast Asia.
At present, Vietnam's leading general e-commerce platforms including Shopee, Tiki, Lazada and Sendo have invested a lot of money. The funds invested in these businesses are the clearest proof of the potential of online shopping in Vietnam and the region.
According to the white paper, e-commerce retail sales in Vietnam reached US$1.008 billion in 2019, accounting for 4.9% of the country's total retail sales of consumer goods and services. This is about 12% lower than the world average.
In addition, only 42% of Vietnamese participate in online shopping, which is lower than the 56% average of Southeast Asia, surveyed by Forrester.
Due to the large size of the market, in the past ten years, many companies have plunged into the e-commerce market in Vietnam, hoping to occupy a place, but later many companies have to stop operations. However, when both Grab and MoMo build a specific ecosystem, the situation is different. E-commerce becomes an inevitable branch of the "super application".
By launching GrabMart in Vietnam and some Southeast Asian countries, Grab has been involved in e-commerce. In Vietnam, in addition to traditional fresh goods, GrabMart has groceries, supplementary foods, cosmetics, children's products...Although the products are not yet diversified, the platform is expanding more suppliers. Grab is currently cooperating with large supermarkets such as BigC, Co.op Food, Cheers, Lotte Mart.
At the same time, MoMo has just added an "online shopping" function and has jointly sold it with suppliers such as Co.op Smile and Cheers. Similar to GrabMart,the number of suppliers on MoMo is very small.
Data from the e-commerce white paper shows that the number of people shopping online has dropped sharply from 74% in 2018 to 52% in 2019. In contrast, the number of users purchasing through the app rose from 52% to 57%, which means that the number of purchases through the app exceeds the number of purchases on the website.
Both MoMo and Grab have an advantage in this trend because they are both smartphone apps. In the upcoming e-commerce game, Grab has a strong advantage in goods delivery, and MoMo has a strong advantage in payment capabilities.
Cooperating with payment company Moca, Grab has powerful delivery and payment tools, these two elements are extremely important in e-commerce.
At the same time, 20 million MoMo users are used to paying for online services. The user base of MoMo and Grab is very high-quality because they are ready to pay from the moment they install the app.
However, unlike other e-commerce platforms, both Grab and MoMo will treat online shopping as part of the application in their own way, instead of focusing on developing this area.
Grab already has a strong delivery team and Moca payment platform. Grab drivers are also familiar with online payment and cash payment, or cash on delivery. With the expansion of more supplier partners, this platform obviously has many advantages to develop online shopping channels.
However, Grab's advantages go far beyond this. For example, Grab can provide SMEs with goods and raw materials and allow them to owe money within a certain period of time. Or, you can let users buy goods and services on Grab until the end of the month without paying interest.
In any case, Grab and MoMo have participated in e-commerce in some way, using the existing ecosystem, with rich financial resources and diversified services, to seize the opportunity to complete their big business.

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