This report introduces “GLOBAL2ME,” a promising Vietnamese startup.
We will introduce investment opportunities at the seed stage, as well as opportunities for Japanese companies wishing to enter the Vietnamese market to sell their products on GLOBAL2ME’s live commerce platform.
Live Commerce is the Future of EC
The new coronavirus has caused a major shift in consumer purchasing behavior around the world. Restrictions on movement due to quarantine policies have led to further growth in mail order sales, which are being deployed in a number of ways. In this context, live commerce has become a new trend and is expected to grow in the after-corona market as well.
Rapid Growth of Live Commerce
Live commerce is a term that combines live streaming and the sale of goods and services, and is spreading mainly in China. The term was unfamiliar before the outbreak of the new corona, but after the new corona has subsided, live commerce has flourished and is viewed by many users.
Success Stories from China
The U.S. and China are the largest e-commerce markets in the world. China is rated as one of the largest markets for live commerce.
In 2016, social networking and e-commerce platforms were equipped with the ability to display products available for purchase during video streaming by users, and electronic payment for product purchases could also be used.
The 2017-2018 period is seen as a time of rapid growth for live commerce in China. From ordinary people to celebrities and KOLs (meaning influencers, short for Key Opinion Leader) became live streamers and actively sold products. The number of live commerce users increased rapidly. One of the reasons for this increase was that KOLs were able to answer followers’ questions during the video streaming, which facilitated communication between the two parties and made it easier to imagine the actual purchase of a product. Multi-channel networks (MCNs), like UUUM in Japan, also appeared and played the role of organizing content, enabling them to propose effective advertising to clients by consolidating KOLs into a single company. EC platforms paid subsidies to content creators and began to build their own The company has begun to build a supply chain.
Transaction volume through live commerce boomed from 2019 to 2020 with a significant increase. Live streamers were diversified, including students and civil servants; 40% of the population (524 million) in China used live commerce in 2020.
Live commerce is even more prevalent in China in 2020 and beyond, with a wide variety of products for sale, including life insurance, mortgages, travel, automobiles, real estate, satellite services, etc. In 2021, about 700 million users (68% of the population) in China will be watching live broadcasts. In 2021, China’s live commerce market is worth $300 billion and is expected to double to $600 billion by 2023.
In 2020, Austin Li’s live streaming attracted 162 million viewers and generated RMB 3.911 billion ($600 million) in transaction value. In addition, on 10/20/20/20, he conducted 12 consecutive hours of live streaming and recorded RMB 10 billion ($1.5 billion) in transaction value. In his four years as a live streamer, Li Jiaqi’s annual income is estimated to be about $19 million.
Another popular live streamer is Baraa (薇婭). A popular livestreamer who is said to be able to sell all kinds of products, including space rockets, through live-streaming, Weyer’s fortune is projected to be $1.4 billion in 2021, placing him among the 500 richest people in China.
Development of Live Commerce in Vietnam
Vietnam’s EC growth rate will be among the world’s top 5 in 2022. The number of EC users is growing year by year due to the widespread use of the Internet. Although the development of live commerce lags behind that of China, it is seen as having great potential. factors that will influence Vietnamese consumers’ decision-making in 2022 include watching live broadcasts, communication on both sides, and fast response from sellers.
Popular Vietnamese e-commerce sites such as Sendo and Shopee have anticipated the live commerce trend and introduced live streaming, electronic payment, and other features to accelerate the sale of products through live streaming. In addition, many investors are beginning to enter live commerce in Vietnam, attracted by the success stories of China.
Companies have partnered with KOL, live streamers, and others to regularly sell products through live streaming. In terms of sales results, live streamer Pham Thoai live-streamed on Tiktok for 24 hours straight, generating 76,000 orders. There was one moment in particular when he received over 2,000 shirt orders in one minute. The livestream received 5.1 million views and about 30 million likes. There was also a moment when 24,000 people watched simultaneously.
On the other hand, there is still no company in Vietnam that can provide a total solution for live commerce, and the market potential is seen as very large.
Introduction to GLOBAL2ME
Established in 2022, GLOBAL2ME is a company that operates a live commerce platform for Vietnamese people that produces unique content and sells high-quality products. Through live-streaming, the company will use cutting-edge marketing techniques to promote effective sales and contribute to the sales of its stalls.
GLOBAL2ME aims to become the top live commerce company in Vietnam and will focus on the following four elements
- Trend makers: leading the market, understanding consumer preferences, increasing brand awareness
- Content creation: accurate information, effective messaging for sales promotion
- Platform provision: multi-platform, total support for live streamers
- Live streamer networking: strengthening networks with celebrities, KOLs, etc., fostering a community of professional live streamers, consulting for brands
The live streaming will be deployed on multiple channels, including the live commerce platform developed by the company, social networking services, and mall e-commerce sites. The target audience is Vietnamese people around the world. Specifically, Vietnamese within Vietnam (about 99 million), Vietnamese living in Japan (about 500,000), Vietnamese living in the U.S. (about 2.5 million), and others. In terms of products sold, the company is focusing on five categories that are particularly popular among Vietnamese consumers.
GLOBAL2ME will provide the following content (live streaming)
①VIRAL WITH ME: Product advertisement with short videos produced by the company
- Video length: 1 to 3 minutes
- Frequency of distribution: 1 video produced daily
②LET ME TALK: Live streamers selling products
- Live Streaming in Studio
- Frequency: 60-minute live streaming Monday-Friday
③STYLE WITH ME: Live streaming or review of products and services at the company’s site.
- Frequency: 60-minute live streaming on Saturdays and Sundays
④LET ME SHOW: Hold an event (fashion show, make-up show, hair show, etc.)
- Online and offline
- Frequency of delivery: 120-minute events in January and quarterly
Strengths of GLOBAL2ME
GLOBAL2ME was founded by two co-founders with outstanding achievements in related fields: Mai Thu Huyen and Phi Hoa.
Mai Thu Huyen is known as a successful businesswoman with more than 20 years of experience in media and entertainment as a producer, actress, and television host.
Mr. Phi Hoa came to Japan as a Japanese Government (Monbukagakusho) Scholarship student and graduated from Osaka University and Osaka University Graduate School. He has more than 12 years of business experience between Japan and Vietnam, and is a bridge between Japan and Vietnam.
Apart from its highly qualified management team, GLOBAL2ME’s strengths include its advanced technical capabilities, creative content, and extensive network of brands and live streamers.
Investment Opportunities in GLOBAL2ME
At a time when live commerce is seen as the mainstream of future e-commerce, GLOBAL2ME is a promising startup for both domestic and foreign investors. GLOBAL2ME is raising funds at the seed stage.
- Sales : $2.5 million (estimated for 2023)
- Funds raised : $396,508 (seed stage)
- Fundraising target : Domestic and foreign investors
- Operational plan : Platform development (30%), marketing (30%), organization building (40%)
Estimated sales for 2023 are $2.5 million, and the enterprise value is expected to reach $7.9 million. With the rollout of the Live Commerce Hub and market expansion into the U.S. and Japan, sales are expected to experience stimulated growth, with the company aiming to go public by 2031, when GLOBAL2ME is expected to have sales of $155 million and an enterprise value of $665 million.
GLOBAL2ME has raised $396,508. The minimum investment in that amount is $22,028. Investors who plan to invest in GLOBAL2ME, a high-growth startup, are expected to return approximately 6x ($137,987) in Series A, 15x ($323,786) in Series B, $690,675 in Series C, and 65x ($1,425,253) at IPO The company is a member of the American Stock Exchange.
This investment project is recommended for investors who
- Venture capitalists who participate from the initial stage and expect large returns in the future
- Companies or investors who want to enter the Vietnamese market or develop sales channels in Vietnam
- Companies or investors who want to sell their products in Vietnam
- Companies or investors who want to invest in IT companies
- Companies or investors who want to acquire know-how on digital marketing
For more information, please contact VietBiz or its operator, ONE-VALUE Co.