Online shopping demand rising rapidly in smaller cities

Nov 21st at 14:01
21-11-2014 14:01:36+07:00

Online shopping demand rising rapidly in smaller cities

Online goods distributors have noted that the highest revenue growth rates do not come from Hanoi and HCM City, but from smaller cities and provinces.

According to the Express Delivery Service JSC, 55 percent of the company’s orders are from Hanoi and HCM City, the two commercial hubs of the country, while the other 45 percent from other cities and provinces.

The figures were 80 percent and 20 percent, respectively, in the past.

Luong Duy Hoai, general director of the company, noted that the numbers of orders have increased sharply in the last three months from Da Nang and Can Tho cities.

Other delivery service companies have also noted a sharp increase in both the number of orders and the value of orders from other markets besides the two major cities, including Lao Cai province in the north, Da Nang in the central region and Can Tho in the south.

A businessman noted that consumers in the markets now order valuable products, including LCD/LED TVs and electronic items, while buyers in Hanoi and HCM City only order small-value products such as a computer mouse or school bags.

Thoi bao Kinh te Saigon has noted that the number of loyal clients in other cities and provinces has been on the increase, as they are easier to be please than urbanites, which can be seen in the lower percentage of rejects in other cities than in Hanoi and HCM City.

Hoang Giang, the owner of phukiengiare.vn online shop, said the number of clients from localities outside HCm City has been increasing rapidly. Phukiengiare.vn finds businesses to work as COD (cash on delivery) agent for it and help the online shop deliver products to clients in rural and remote areas.

A report released earlier this year by Sendo.vn, an online trading floor, also pointed out that there were sharp increases in the number of online orders from other cities and provinces than from Hanoi and HCM City.

While only 46 percent of orders came from two key markets, 54 percent came from others, which previously were not considered important markets.

Sendo.vn noted that the sharpest rise in the value of online trade transactions were from Thai Nguyen, Lao Cai and Lai Chau, provinces in the north.

Of the three, Thai Nguyen was the province which had the highest value per order, at VND472,000. Meanwhile, the average transaction value was VND313,000 in HCM City and VND257,000 in Hanoi.

Tran Hai Linh, CEO of Sendo.vn, noted that clients from other cities and provinces account for a high proportion of the total transactions on Sendo.vn, partly because of the long distance between the buyers and seller.

However, analysts noted it is too early to come to the conclusion that Hanoi and HCM City would be surpassed by other towns and cities. They said Hanoi and HCM City remain the biggest sources of loyal clients, for whom shopping online has become a long-term habit, not just an occasional purchase.

vietnamnet



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