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Shopping online – the new way

Update: September, 13/2014 - 13:00

People in Viet Nam are shopping online more and more.

It is especially popular to buy air tickets and book into hotels using the internet.

However, the Vietnamese do not shop online as much as people in Singapore and Malaysia.

Singaporeans and Malaysians are in fact the world's greatest online shoppers.

The growth of connected device ownership is causing a boom in the online retail sector, with the number of people making online purchases spiking in the last two years in Southeast Asia, particularly Viet Nam, global information company Nielsen said in a report last week.
The growth of connected device ownership is causing a boom in the online retail sector, with the number of people making online purchases spiking in the last two years in Southeast Asia, particularly Viet Nam, global information company Nielsen said in a report last week.

HCM CITY (VNS)— The growth of connected device ownership is causing a boom in the online retail sector, with the number of people making online purchases spiking in the last two years in Southeast Asia, particularly Viet Nam, global information company Nielsen said in a report last week.

Doan Duy Khoa, director of Consumer Insights at Nielsen Viet Nam, said: "2014 is witnessing a significant growth of e-commerce in Viet Nam.

"Entertainment activities such as travel are the key potential areas which continue to see about half of Vietnamese consumers intending to shop online.

"Searching for and finding more information on products and services online before buying in stores seems to be very popular with many Vietnamese consumers.

"Now, with the increasing use of smart phones, Viet Nam is in the top three markets in Southeast Asia whereby consumers use their mobile device to shop online most frequently."

The report said 58 per cent of Vietnamese consumers use their mobile phones to shop online frequently.

Khoa said, "And this trend is expected to continue in the coming years."

The report also said that 56 per cent of Vietnamese internet users said they use price-saving apps In-store and 44 per cent manage their grocery list with grocery retailers' mobile apps and online tools.

Regional comparison

The survey found that travel services are the most commonly bought items online in Southeast Asia along with tickets for films, live performances, exhibitions, and sports events.

Singaporeans and Malaysians rank among the world's most avid online shoppers.

Singaporeans have the highest online purchase intention globally with around 70 per cent planning to go online to buy flights and 69 per cent making hotel and tour reservations within the next six months.

The country ranks second highest globally for event tickets.

Malaysians rank second globally in buying tours and making hotel reservations online and third globally in terms of intention to buy airline tickets and event tickets online.

Around half of consumers in Indonesia, the Philippines, and Viet Nam intend to make travel and event purchases online, while it is around four in 10 in Thailand.

Digital consumers across the region enjoy shopping online.

Filipinos, Vietnamese, and Singaporeans are most inclined to buy online whereas in Indonesia, Malaysia, and Thailand they are more likely to go online to browse.

Reading online reviews, product research, and convenience are among the main reasons for consumers in Southeast Asia to go online to shop. A large number of consumers in Indonesia, the Philippines, and Singapore often look at products online before buying them in a store.

Credit card security remains a key concern across the region with five of the six Southeast Asian markets ranking above the global average with respect to concern about providing card information online.

Filipinos are the most cautious when it comes to paying online by credit card, with 67 per cent afraid of giving card information online, followed by Thais (62 per cent), Indonesians (60 per cent), Vietnamese (55 per cent), Malaysians (52 per cent), and Singaporeans (41 per cent).

This compares with 49 per cent globally.

"Concerns about providing credit card information online remains a barrier to purchase, and providing reassurances about online payment security is essential for online retailers to gain the trust of consumers," Connie Cheng, Shopper Practice Leader, Southeast Asia, North Asia and Pacific, said.

Use of mobile phones for online shopping is growing in popularity across the region, with the Philippines, Indonesia, Viet Nam, and Thailand ranking in the top 10 globally and all Southeast Asian markets scoring above the global average.

Tablet usage is also gaining traction as a means of accessing online retail sites, with all Southeast Asian markets except Singapore ranking above the global average in the use of tablets to shop online.

"Increasing connected device ownership in Southeast Asia is by far one of the most significant factors impacting the shopping behaviour of consumers across the region," Cheng said.

"Rising affluence, availability of high-speed connectivity and evolving online offerings will compound this effect in the years ahead.

"With this growth set to continue, e‑commerce represents a huge opportunity for online retailers and bricks and mortar operators alike to tap into the expanding online consumer base.

"The key to staying ahead of the curve lies in identifying and understanding consumer demand, staying abreast of evolving online behaviour and implementing tactics which build a lasting connection with consumers."

The Nielsen Global Survey of E-Commerce polled more than 30,000 internet respondents in 60 countries to examine the online shopping and purchasing intentions of consumers worldwide.

It was done in February-March this year. — VNS

GLOSSARY

The growth of connected device ownership is causing a boom in the online retail sector, with the number of people making online purchases spiking in the last two years in Southeast Asia, particularly Viet Nam, global information company Nielsen said in a report last week.

Connected device ownership refers to people owning devices, such as smartphones and tablets, which connect them to the internet.

Online purchases are deals that involve buying things over the internet.

When online purchases are spiking, more of them are happening.

Doan Duy Khoa, director of Consumer Insights at Nielsen Viet Nam, said: "2014 is witnessing a significant growth of e-commerce in Viet Nam.

To witness something means to see it happen.

If something is significant it is worth paying some attention to.

E-commerce is business that is done online.

"Entertainment activities such as travel are the key potential areas which continue to see about half of Vietnamese consumers intending to shop online.

There is a good chance that Vietnamese people will shop online more to buy things that are to do with entertainment activities. This makes entertainment activities a key potential area.

Consumers are people who buy and use things.

"Now, with the increasing use of smart phones, Viet Nam is in the top three markets in Southeast Asia whereby consumers use their mobile device to shop online most frequently."

A mobile device is a device that can be carried around.

Khoa said, "And this trend is expected to continue in the coming years."

A trend is a general direction in which something is developing or changing.

Singaporeans and Malaysians rank among the world's most avid online shoppers.

To be ranked means to be given a position in a system that lists people from the best to the worst.

Avid means keen and interested.

Singaporeans have the highest online purchase intention globally with around 70 per cent planning to go online to buy flights and 69 per cent making hotel and tour reservations within the next six months.

By having the highest online purchase intention globally means that Singaporeans want to buy things online more than any other community in the world.

Reservations are bookings.

Digital consumers across the region enjoy shopping online.

Digital consumers are people who are often online and like to buy things that way.

Filipinos, Vietnamese, and Singaporeans are most inclined to buy online whereas in Indonesia, Malaysia, and Thailand they are more likely to go online to browse.

To browse means to surf the Internet.

Reading online reviews, product research, and convenience are among the main reasons for consumers in Southeast Asia to go online to shop.

Reviews are reports about restaurants, books, movies and theatre, written by someone who gives his or opinion of them.

Product research means finding out more about a certain thing that they may want to buy before you actually buy it.

It can be convenient for people to read things online because it is easy. For example, if they were to go to a book library they would firstly have to travel there and, secondly, find what they are looking for by going through lots of books rather than simply carry out an internet search.

Credit card security remains a key concern across the region with five of the six Southeast Asian markets ranking above the global average with respect to concern about providing card information online.

Credit card security is the feeling that no one will get hold of your credit card information to steal money from your bank account.

Filipinos are the most cautious when it comes to paying online by credit card, with 67 per cent afraid of giving card information online, followed by Thais (62 per cent), Indonesians (60 per cent), Vietnamese (55 per cent), Malaysians (52 per cent), and Singaporeans (41 per cent).

To be cautious means to be careful.

"Concerns about providing credit card information online remains a barrier to purchase, and providing reassurances about online payment security is essential for online retailers to gain the trust of consumers," Connie Cheng, Shopper Practice Leader, Southeast Asia, North Asia and Pacific, said.

A barrier to purchase means something in the way that stops people from buying.

Reassurances are things that remove people's worries and fears.

Tablet usage is also gaining traction as a means of accessing online retail sites, with all Southeast Asian markets except Singapore ranking above the global average in the use of tablets to shop online.

As using tablets becomes more accepted, so it gains traction.

"Rising affluence, availability of high-speed connectivity and evolving online offerings will compound this effect in the years ahead.

If there is rising affluence it means that more people becoming richer.

Evolving means developing.

"Compound this effect" means "have an influence on the shopping behaviour of consumers across the region".

"With this growth set to continue, e‑commerce represents a huge opportunity for online retailers and bricks and mortar operators alike to tap into the expanding online consumer base.

Retailers are people who sell things directly to people who will use them, rather than to people who will sell them on to other people.

Brick and mortar operations are businesses that deal with the customers face to face.

The consumer base is the community of people who are consumers (who buy and use things).

"The key to staying ahead of the curve lies in identifying and understanding consumer demand, staying abreast of evolving online behaviour and implementing tactics which build a lasting connection with consumers."

Demand is the amount people want things and are usually willing to pay for them.

The Nielsen Global Survey of E-Commerce polled more than 30,000 internet respondents in 60 countries to examine the online shopping and purchasing intentions of consumers worldwide.

When people are polled they are asked questions about something people are doing a survey about.

Respondents are people who reply to questions.

WORKSHEET

State whether the following sentences are true, or false

1.      The poorer people become, the more they shop online.

2.      Some people fear that it may not be safe to use their credit cards to do online shopping.

3.      Singaporeans are especially afraid of using credit cards to do online shopping.

4.      Many people in three island countries in south-east Asia often look at products online before buying them in a store.

5.      More people in Thailand than in Indonesia, the Philippines and Viet Nam intend to make travel and event purchases online.

 

ANSWERS:

© Duncan Guy/Learn the News/ Viet Nam News 2014






































1. False; 2. True; 3. False; 4. True; 5. False.

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