Technology

Compete with Chinese goods on e-commerce


Ms. Uyen (Ho Chi Minh City) recently turned to buying dresses and lipsticks from Chinese sellers on Shopee. According to her, fashion products from China are cheap, with diverse models, and the shipping cost is cheap.

“The dress in China sells for around 100 thousand, while Vietnamese products range from 200 to 300 thousand. The lipstick over there is only a few tens of thousands. All very diverse models. Shipping fee is only about 17 thousand, if the promotion code is only 7 thousand, sometimes 2 thousand. While ship from Hanoi to Saigon sometimes lose 40 thousand “, Ms. Uyen explained.

Many people are on the e-commerce floors of Shopee, Lazada, Tiki to buy products from abroad, mainly from China. Fashion, cosmetics, phone accessories, home decorations, stationery, gardening, … with extremely many designs from foreign sellers are always ready to serve domestic needs.

Orders shipped from China to Vietnam cost only 20,000 VND. (Photo: Hai Dang)

The global landing of Chinese goods

A source from Lazada Vietnam told Vietnamnet that there are tens of thousands of foreign sellers on this site, but it is unclear how much of the total. To imagine, Sendo side said they have about 500,000 sellers across the floor.

Both Lazada and Shopee have large stakes from Alibaba and Tencent. Tiki also takes investment from JD.com. Therefore, the fact that goods from China are available on these pages is quite easy to understand. Through Lazada and Shopee, Chinese goods are available throughout Southeast Asia.

In fact, Vietnam is among the countries that are familiar with cross-border e-commerce slower than the world and some regional countries.

Ms. Quah Mei Lee (Frost & Sullivan) said that cross-border e-commerce in Southeast Asia is quite small, only about 10% globally by 2025, but it is a market with huge potential. In particular, Vietnam, along with Indonesia and the Philippines are in a very challenging market group, while Singapore, Thailand and Malaysia are the main development markets.

Even on the Amazon page, Marketplace Pulse statistics show that among the top sellers, the Chinese side has surpassed the US. Specifically, in January 2020, the number of Chinese stalls accounted for 49% compared with 47% of the US. Two years earlier, homes sold from the continent accounted for only 37% compared with 58% of the US. This statistic focuses on the top 10,000 sellers with sales of $ 1 million or more on Amazon.

Also by this statistic, in the top 100,000 sellers, China accounts for 58%, the US only reaches 36%. However, if the statistics of over 1 million homes are sold, the Chinese side only accounts for 37%, the US sellers account for 50%, the rest are stalls from other countries.

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The proportion of Chinese sellers in the top 1,000 businesses on Alibaba increased sharply. (Source: Marketplace Pulse)

In India, a country with a movement to boycott Chinese goods, the Ministry of Commerce and Finance decided to ask Amazon, Flipkart and many other e-commerce platforms to attach origin to goods sold on these pages. Since August 1, 2020, these online shopping sites have gradually added the country of origin for goods.

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“Made in China” products cover the whole world, not just Vietnam. (Photo: Hai Dang)

Cross-border e-commerce is an inevitable trend

E-commerce has become a lever to help Chinese goods circulate globally. On the contrary, thanks to these platforms, Vietnamese goods also have the opportunity to expand their markets to the world.

Mr. Tran Thanh Hai – Deputy Director of Import and Export Department (Ministry of Industry and Trade) – said that cross-border e-commerce is an inevitable trend on a global scale. Vietnamese businesses need to seize the opportunity to exploit the scale of exports worth up to $ 200 billion.

Currently, the number of businesses joining global sales platforms is increasing. According to statistics, there are about 1,000 participating businesses on Alibaba and about 200 participating businesses on Amazon. In particular, the number of Vietnamese sellers with sales exceeding $ 1 million on Amazon has increased 3 times in 2020.

Speaking to Vietnamnet, Ms. Dang Tuyet Dung – Visa Director of Vietnam and Laos – said that after Covid-19, the number of payments on domestic and cross-border e-commerce increased many times compared to before. Users in Vietnam put money into Google services, Facebook, and buy goods on Amazon.

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The scale of e-commerce in Vietnam is expected to reach 29 billion USD by 2025. (Source: Google)

The impact of the epidemic has made e-commerce in Vietnam thrive – 35% / year, of which, cross-border e-commerce in Vietnam is among the fastest growing group in Asia Pacific.

However, Mr. Tran Thanh Hai recommended that, in addition to opportunities brought about by integration, Vietnamese businesses also face international competition.

On the business side, Ms. Dang Tuyet Dung said that when participating in global business, it is necessary to have a good understanding of how the platforms are participating, payment methods and international payment support.

“Another important thing is prestige. Enterprises whether doing business domestically or internationally need to ensure the quality of high-quality goods and services to compete, ”Ms. Dung told Vietnamnet.

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Vietnamese businesses need to take advantage of their own strengths to compete with foreign goods. (Photo: Hai Dang)

This is also the approach of many businesses when facing with competition with cheap goods from China. For example, in the US, businesses are advised to increase product quality, label Made in USA as a brand, and at the same time ensure the quality of goods by certification from prestigious agencies of this country such as USDA. , EPA and CPSC.

Besides, an advantage of domestic goods is the ability to deliver fast. Meanwhile, cross-border goods usually take a week or more to reach users. Therefore, domestic firms are advised to speed up delivery, even within the same day, in order to compete with foreign goods.

Vietnam is considered a country with great potential to develop cross-border e-commerce thanks to its advantages in the manufacturing industry, an abundant supply of labor, with many young talents and a large online community.

However, to develop this field, TS. Vu Duy Nguyen – Faculty of Tax and Customs – Academy of Finance, proposed the Ministry of Industry and Trade to replicate the model to support connecting domestic businesses with major e-commerce platforms in the world such as Alibaba, Amazon, and Ebay through the Program: Export through e-commerce, develop Vietnamese brands on the e-commerce floor, train Vietnamese human resources on e-commerce, general booths.

Cross-border e-commerce is an inevitable trend. It opens up opportunities for Vietnamese products to be sold globally, but with that is the entry of international goods into the domestic market. This is an opportunity for Vietnamese businesses to look back and adapt to the new business environment.

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