South Korea’s Lotte to shut down Vietnam e-commerce website

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

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