Online shopping has been popular worldwide and Vietnam will keep up with the trend quickly thanks to its active Internet use, said a report by KPMG International launched early this week.
Chong Kwang Puay, managing partner and consumer markets lead of KPMG in Vietnam and Cambodia, said online shopping is becoming prevalent in developed economies.
With its high Internet penetration rate, Vietnam will see online shopping surging soon. Supply chain, distribution and retail channels, marketing channels, performance measurement and store turnover will all need to be re-assessed in this new reality, the expert said in the KPMG International survey titled “The truth about online consumers.”
According to the report, 18% of consumers in Vietnam and Cambodia purchase goods from an online-only retailer such as Amazon, Lazada and Nhommua. Some 10% purchased from the website of a retail shop, and only 3% purchased directly from a manufacturer or brand’s website.
The number one reason consumers gave for shopping online is the convenience of shopping. This is followed by having the ability to compare prices, or to find online sales or better deals.
Overall, consumers tend to trust online information and reviews. When asked about what is considered when deciding on a purchase, 9.9% of respondents went for online reviews, 9.8% for brands and only 0.2% for promotional and complimentary benefits.
The report also reveals that recommendations from friends and relatives are the most important channel (11.5%) when consumers seek information about a product before purchase. Other channels for information that organizations and brands should consider include social media (8.3%), online shops (8.2%) and online reviews (8%).
To gain consumer trust, companies and brands are recommended to improve online security and privacy protection. Most respondents (26.5%) consider customer data and information protection to be of utmost importance, and 20.4% consider food and product safety as the most important attributes.
KPMG International commissioned Intuit Research to conduct the survey of global online shoppers about their purchase behavior, purchase drivers, and perceptions and attitudes towards online shopping. The sample consisted of consumers aged 15 to 70 years old that made at least one online purchase in the past 12 months and who were within the top 65% of income earners in their country.