Showing posts with label Vietnam Online Grocery Market. Show all posts
Showing posts with label Vietnam Online Grocery Market. Show all posts

Wednesday, March 29, 2023

Future Outlook of Vietnam Online Grocery Market: Ken Research

 1. 1.85% Online Grocery Penetration Rate in 2021P Provides Enormous Opportunity for the Companies to Expand in Vietnam

Vietnam Online Grocery Market

The current penetration rate for grocery in Vietnam stands at 1.85%. The Ideal target audience for online grocery services is smartphone users aged 25-44. Companies must focus on developing strategies to attract customers and thereafter undertake strategies to retain those customers by regularly engaging with them. In terms of gender based penetration rate, Demand for online grocery has increased among the people living independently as they are increasingly outsourcing their chores through online grocery shopping. Employed Population at 15+ in Vietnam stood at 49 Mn as of 2021. Opportunity lies for the company to gain traction from female and male working population. Women are the major decision makers for grocery shopping in a household.

In order to attract more female customers, companies should focus on developing women centric strategies and providing cashback offers and promotional discounts. Demand for online grocery has also increased among the people living independently as they are increasingly outsourcinga their chores through online grocery shopping. Employed Population at 15+ in Vietnam stood at 49 Mn as of 2021. Opportunity lies for the company to gain traction from female and male working population.

2. Price, Delivery Cost and Delivery Time Amongst Most Influencing Factors Affecting Purchase Decision

Vietnam Online Grocery Market Revenue

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Price, Delivery Cost and Delivery Time Amongst Most Influencing Factors Affecting Purchase Decision but in terms of domination, the most beneficial factor of shopping online was identified as a possibility to compare prices and buy at a lower price. Customer prefer the operator that would offer similar products at a lower price. Moreover, faster delivery increases the chances of regular and frequent orders. Delivery fees, convenience charges or any other surcharges reduces the chances of regular orders. It has been noticed that customer prefers their orders to be delivered within the promised time slot, preferably between 6 – 9PM.

Aside from lost sales, stock-outs also lead to reduced customer satisfaction and lowered loyalty levels. In case of stock-outs, companies must provide alternatives. Optimum product portfolio maintained by companies ranges between 8,000-20,000 products across multiple categories. Hassle free payment, return & refund experience is also an important factor in a purchasing decision. A clear return policy gives consumers a feeling of security. About 60% of online grocery shoppers prefers cash as mode of payment.

3. Online Grocery Market expected to be around USD 2,700+ Mn by 2026F (CAGR 20.4%)

Vietnam Online Grocery Market Share

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Online grocery penetration is expected to increase from 1.85% in 2021P to 3.35% by 2026F owing shift in customer preference from offline to online grocery shopping. Sudden peak in 2021P was noticed due to the emergence of Covid-19 Pandemic. As people went into quarantine, online grocery shopping became increasingly popular as a result of which masses became habitual of the convenience arising out of the same. Increasing percentage growth GMV is expected to decline post 2021, owing to certain percentage of customer shifting back to grocery shopping from Traditional Market, hypermarkets and supermarkets.

Wednesday, April 6, 2022

Vietnam Online Grocery Market Outlook to 2026: Ken Research

The report titled “Vietnam Online Grocery Market Outlook to 2026 - Market Driven by Increasing Smartphone Penetration, Changing Shopping Habits of Consumers and Regional Expansion of the Online Grocery Players" provides a comprehensive analysis of Online Grocery Delivery Market in Vietnam. The report covers various aspects including the current online grocery delivery scenario in Vietnam, need & opportunities describing the target addressable market, addressable gap in the market and possible solutions.

The report also covers current supply and demand in the region, detailed working of Marketplace and Omnichannel operating model, trends, developments, challenges, seasonality trends, current & upcoming technologies facilitating online grocery delivery industry, revenue streams and marketing strategies driving the industry. It gives detailed explanation of competitive scenario including cross comparison between major players, SWOT, and detailed company profiles of major players and concluding with future scope and analyst recommendations.

Market Overview

Gaps in offline grocery shopping such as inconvenience of commute, long payment queues and cost of impulse buying led to the introduction of the e-grocery delivery in Vietnam. Population aged between 25 and 44, is considered an influential customer base for online grocery shopping. The industry is currently positioned in a growth stage registering a double-digit CAGR between 2016 and 2021P. High internet penetration, rising working population and increasing number of single families has led to the growth of e-grocery services in Vietnam. Companies have expanded their product portfolios from food & beverages to household supplies, fresh food, fish & meat and other product categories.

Market Segmentation

By Product Category (Beauty & Health, Food & Beverages, Household Supplies and Fresh Food)

Beauty and Health mapped as most demanded product category. This was followed by Food & Beverages and Fresh Food. Shopee, Tiki and Lazada are major players in online grocery segment in 2021.

By Cities

Ho Chi Minh City and Hanoi are the major cities of Vietnam based population and urbanization. These cities are equipped in terms of setting up warehousing facility, transportation, procurement of grocery and carrying out other backend operations. Working professionals, who are the major end users of online grocery delivery services, are concentrated in Ho Chi Minh City, Hanoi and Da Nang.

By Mode of Payment (Cash on Delivery and Online Payment)

The demand is still dominated by Cash on Delivery payment method followed by online payment.

Cash is the most preferred mode of payment owing to following reasons:

Customers are skeptical for security of their financial details. They believe their bank details are not secure if they use online mode of payment.

Majority of people in rural Vietnam are still not comfortable with Online Payments due to lack of knowledge and awareness.

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By Preferred mode of Delivery

Customers in Vietnam prefer their orders to be fulfilled within 30 minutes – 2 hours. They are willing to pay extra charges for Express Delivery to get their orders on time. Second most preferred mode of delivery is – Standard delivery in a Specific time period, this mode of delivery is generally preferred by working professional in Vietnam.

By Age Group (18-24, 25-37, 38-44, 45+)

About 60% of grocery orders were placed by customers belonging to 25-44 years age group. It has been witnessed that the demand for online grocery is rising among working professionals & married couples as they have less time to physically visit a store for grocery shopping. Moreover, smartphone users Aged 25-44 (targeting working professionals) who are willing to rely on online grocery delivery platforms for fulfilling their grocery needs are the key target population for online grocery delivery companies.

In addition to this, demand for online grocery has increased among the people living independently as they are increasingly outsourcing their chores, such as grocery shopping to reliable vendors online. Approximately 30% of the online grocery buyers are frequent shoppers and they place the order around 3-5 times a month.

Competitive Landscape

The industry is concentrated with presence of 6-8 players operating across marketplace and omnichannel model. Delivery Cost, Delivery Time, App Interface, Discounts & Offers, Return Policy, Ease of Payment have been major factors influencing customer behavior. The major players include Shopee, Tiki and Lazada. Companies with large product assortment, wide regional presence and express delivery are identified as clear leaders in the industry.

Future Outlook and Projection

The demand is expected to grow with a double digit CAGR on the basis of GMV between 2021P and 2026F. Companies are anticipated to focus on expanding tie ups with suppliers & grocery stores to fulfill customer orders. The demand is expected to be driven by upcoming technologies such as Drone Delivery, Warehouse Automation, Voice Ordering and others. Market consolidation is expected in future as players with heavy financial backing and better brand value will acquire small players.

Key Segments Covered:-

By Product Category

Beauty & Health

Food & Beverages

Fresh Food

Household supplies

Others

By Mode of Payment

Cash on Delivery

Online Payments

By Age Group

18-24 years

25-34 years

35-44 years

45+ years

By Type of Business

B2B

B2C

By Mode of Delivery

In a specific time period

Express Delivery

Others

By Cities

Ho Chi Minh City

Hanoi

Da Nang

Companies Covered:-

Shopee

Tiki

Lazada

Chopp

GrabMart

Co.opmart

Key Target Audience:-

Online Grocery Delivery Companies

Supermarkets & Hypermarkets

E-commerce Companies

Food Delivery Companies

Investors

Time Period Captured in the Report:-

Historical Period: 2016–2021P

Forecast Period: 2021P-2026F

Key Topics Covered in the Report:-

How is the Online Grocery Market positioned in Vietnam?

Comparison of the Brick-and-Mortar Grocery with the Online Grocery Platform

Target Addressable Audience for the market

Supply Ecosystem and Challenges

Demand Scenario, Target Customer and Factor Influencing Consumer Behavior

Cross Comparison of Operating Models (Marketplace and Omni-channel)

SWOT Analysis

Current Technologies Facilitating Online Grocery Delivery Industry

Upcoming Technologies in Online Grocery Delivery Industry

Investment and Funding in Online Grocery Delivery Companies in Vietnam

Competitive Landscape – Cross Comparison of Major Players

Company Profiles

Future Market Analysis and Trends

Analyst Recommendations

Research Methodology

For More Information on the research report, refer to below link:-

Vietnam Online Grocery Market

Related Reports:-

Indonesia Online Grocery Market Outlook to 2026 – Driven by Changing Shopping Habits of Consumers and Regional Expansion of Local & International Players in the Archipalego

KSA Online Grocery Delivery Market Outlook to 2025- Driven by Changing Shopping Habits of Consumers and Regional Expansion of Local & International Players in the Kingdom

UAE Online Grocery Delivery Market Outlook to 2025- Driven by Increasing Working Population, Introduction of Express Delivery and Regional Expansion

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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249