South Korean conglomerate Lotte Group is going to launch its online shopping website in Vietnam, taking on an ecommerce market considered to have great potential for growth.
Aim to take up one fifth of the market share
The ecommerce site Lotte.vn will offer goods and services, drawing on the retail network of Lotte Department Store, Lotte Mart, Lotte Home Shopping and L.POINT, which opened earlier in Vietnam.
Seo Tae Ho, head of Lotte ecommerce, said that the site was designed to help Lotte become a dominant player in Vietnam’s ecommerce market with a market share of 20%. To achieve that goal, it is likely that the company will pursue an aggressive price strategy.
Advanced operation and logistic systems
Lotte will also introduce an ecommerce operation system, developed and tested in South Korea and will include services such as direct delivery and a membership service.
More than 90% of items purchased in Ho Chi Minh City will be delivered to customers in 24 hours through the group's L.express. The daily delivery service will also be available in five other major cities, including Hanoi, Danang, Can Tho and Hai Phong.
Tap into the growth potential in Vietnam
The total value of Vietnam's ecommerce market reached US$4 billion in 2015, a 37% increase from previous year. Although ecommerce accounts for only 2.8% of Vietnam's retail market, more young people are buying online. Seo Tae-ho said, "Vietnam's ecommerce market has recently shown rapid growth, emerging as an attractive market with large potential."
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