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www.idc.com
eCommerce Vietnam 2007
in the Context of WTO
and Worldwide ICTHyperdisruption
delivered by Robert gray, Research VP
Vietnam e-Business Forum 2007
Hanoi, Vietnam 2007 January 17, 2007
Including contributions by: Frank Gens, Steven Minton,
Rick Villars
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Hyperdisruption the Definition
Major structural changes taking place along differentindustry
vectors at once all interacting with each otherand, more important,
accelerating each other.
Small business become big More software become services
More services become software
Business IT players become more "consumer-ish
Consumer players become more businesslike
Source: IDC Predictions, 2007, Doc#204631,Dec 2006, Frank
Gens
Insight: disruptive changes provide openings
For newer entrants like Vietnam
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eCommerce Spending Share of GDP
0.2%Vietnam52
2.7%Indonesia35
3.4%Thailand30
5.7%China24
11.9%United States6
17.3%Singapore1
eCommerce Shareof GDP (%)CountryRank
Source: Information Society Index, 2006, Doc#204122,Nov 2006,
Steven Minton
Insight: Vietnams Internet eCommerce opportunity
waits to be developed. Vietnam can benefit
from the learning of others.
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Can You Survive Without eCommerce?
Only with the permission ofyour customers and supplychain
Only in monopoly markets
or in product sectors wherepersonal touch and directproduct
experience isparamount
and then only withsignificant difficulty!
Insight: Most product and service organizations
will need eCommerce in the future.
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What Makes eCommerce Interesting?
Low entry barriers, small suppliers cancompete with larger
ones
Low friction transactions at high speed
Better buyer experience, more efficient sales
24 x 7 marketVirtually no geographic boundaries
Long tail of large product set
No-cost delivery of bit-based products
Computer-based and mediated payments
Finer grain monitoring and control
Insight: eCommerce transaction is generally a
betterexperience and is the 21st century way to
get to market
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Buton the Other Side
Your competitor is only a clickaway
You may need to change businessprocesses to gain full
benefits
Infrastructure must be robust and24 x 7 x 365
Need for local language andEnglish
Need for emphasis both on buyerexperience as well as
Fraudprevention
Insight: Successful eCommerce requires
effort and discipline
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Business to Business Considerations
Power of global trading sites
Dis-intermediation of distributionstages manufacturer to
retailertransaction
You, as manufacturer, areconsidered part of the supplychain and
outsourcedproduction
Expect to be tightly managedand held to commitments
andquality
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How has Mature eCommerce ImpactedDeveloped Nations?
eCommerce supportsstore shopping
eCommerce creates
entirely new products &services
Large, public eCommercebusinesses have very high
market value
Insight: eCommerce is important andgrowing more important
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What Vietnam Needs to Build for eCommerce
Reliable electricity supplyInternet access &
Broadband Internet access speeds
Pre sales support search, product
price comparisons, product reviews
Electronic payment systems
Product delivery systems
Post sales support operation,updates, warranty support
Legal framework
Insight: Vietnam will need to improve
Infrastructure to gain full eCommerce benefits
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Recommendations
Design products for regionaland global tastes and styles
Create efficient infrastructure transport, and payments
Self-police on product qualityOrganize for volume supply
Develop Vietnam supplierdirectory on web for
consumers
Insight: The opportunity is huge
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Advantage.Vietnam
Ability to create clean slateeCommerce, learning
frompioneers
Support for English as second
languageLow product unit cost advantagewith high quality
Large ex-patriot (Viet Kieu)
population of Vietnamese aroundthe world
Insight & Conclusion: work to strengths
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Please email me at
[email protected]
Questions?
mailto:[email protected]:[email protected]
