【Vietnam】”Honda” Shows A New Business We Should Focus On!

Xin Chao!I’m Sakurai in charge of Vietnamese market.

As you know, most of Vietnamese people use motorcycles. Pew Research Center published ‘Car, bike or motorcycle? Depends on where you live’ in 2014. It says the proportion of households that own motorcycles in Vietnam is 86% and the second largest after Thailand in 44 countries and regions around the world.

▶︎Reference:http://www.pewresearch.org/fact-tank/2015/04/16/car-bike-or-motorcycle-depends-on-where-you-live/

 

 

Then, “Honda” which is popular with Vietnamese invested a Ridesharing company having the largest pool of drivers in Southeast Asia! This time, I’d like to introduce a strategy of “Honda” and new business in Vietnam.

Actual Situation of Honda in the developing countries

“Honda” announced that they would start to cooperate with ‘Grab’ expanding ridesharing business in South East Asia on 12th December in 2016. They want to collaborate with ‘Grab’ in the motorcycle sharing areas.

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※画像:https://play.google.com/store/apps/details?id=com.grabtaxi.passenger&hl=ja

In fact, the sales of “Honda” in the developing countries turns flat. They lost their sales in Indonesian market, and there are many other rival company in Indo. As a result, total sales all over the world in 2015 was a 3% decrease from the previous year, 17.1 million. So, “Honda” invested ‘Grab’ to make new motorcycle market!

 

The Effect of Honda × Grab

There’s a possibility that the sales of “Honda” will decrease because of investing ridesharing. I’m going to explain the effect of Honda × Grab.

①Improvement of products and services

“Honda” will get data of Grab which shows Grab users’ attributes and location. Through this information, “Honda” can know frequency of use, moving distance and so on by sexes and by ages. Thus, they may be able to develop products and set prices efficiently.

 

②Easing of traffic congestion

Application of Grab shows locations of drivers and users by GPS. “Honda” want to develop new products to avoid traffic jams by this technology.

 

③Enhancing their brand power

“Honda” has already been popular and famous as most of Vietnamese want to buy their motorcycles to make a boast of. However, “Honda” wants customers having motorcycles to buy cars by adding more value.

 

Focusing on ’Sharing Economy’!!

“Honda” focused on Grab because ‘Sharing Economy’ is expanding, in which people rent beds, cars, boats and other assets directly from each other, coordinated via the internet!

According to the report of Nielsen, American research company, ‘IS SHARING THE NEW BUYING?’, 76% of Vietnamese like to use sharing economy. In addition, the rank of goods which consumers can share or rent; 1st Electronics, 2nd Motorcycle, 3rd tools for do-it-yourself.

As sites of E-commerce are getting better, ‘Sharing Economy’ will be more popular because of reasonable prices. If you enter the market as soon as possible, you will cut cost and get more customers. Moreover, what people in a country can share is different from other countries, or localization is very important.

 

ASIACLICK can research markets and give you advices about strategy, support to start your company in foreign countries and promotion. We have correspondents in South East Asia and China, Korea, Taiwan and Hong Kong, so they tell you the current market information and help you with localization. Please contact us (info@asiaclick.jp)!

 

(ASIACLICK・Vietnamese marketer/Sakurai)

※Reference:http://www.nikkei.com/article/DGXLZO10575910S6A211C1TJC000/

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