South Korean multinational conglomerate plans to close its e-commerce website Lotte.vn in Vietnam from January 20 to restructure its business plan.
Accordingly, Lotte.vn will merge with Lotte Mart for a strengthened the e-commerce platform of the retailer in the market, Pham Minh Tung, head of Marketing Department of Lotte Vietnam, was cited by NDH.vn, a local online news channel.
The company has sent letter to its partners, suppliers to announce the suspension of sales on this e-commerce website.
Lotte.vn e-commerce website launched in October 2016 is managed by Lotte E-commerce, a subsidiary of Lotte Vietnam.
When established, Lotte.vn aimed to become a leader of Vietnam’s retail market with 20 percent market share. However, after 3 years of operation, the e-commerce brand could not become outstanding among brands including Shopee, Sendo, Lazada or Tiki.
After two years of operation, Lotte.vn introduced only 3.000 product categories, a much smaller number compared with competitors.
2019 was a bad year for e-commerce market. Vingroup has recently announced the merger of Adayroi e-commerce website into VinID amid fierce competition in this sector.
Data from some market research firms shows that Lazada, Shopee, Tiki, and Sendo suffered a losses of VND5,100 billion ($221 million) in 2018, a tripled number against 2016. The accumulated losses exceeded VND12,500 billion ($541.3 million).
Source: NDH/ NhipCauDauTu
Discover more from Vietnam Insider
Subscribe to get the latest posts sent to your email.