Again, why Facebook will dominate the Vietnam market

Category: How Business is done 4 Comments »

The argument which was left unclosed…

On the fly with the news, I hastily posted an entry on the status of Facebook’s translation to Vietnamese project. That entry was left unfinished with a big gap between my premise and my conclusion.

Facebook flow

So here I am to fill the that gap with more complete points

…urged me to review basic principles of the market…

The search for the answer reminds me of two articles that should be read going further into Facebook’s strategy

“Facebook is a relationship-centric SNS”

TanNg, Vài gợi ý cho người dùng mạng xã hôi ở Việt nam

***

“As with the overseas Vietnamese students, we tackle them by word of mouths. So far, we have identified a number of key Vietnamese student networks in the US and the UK. But again, it depends largely on “viral effect” – one person sign up, love it and spread it to others. We have great faith in our product and are working hard to constantly improve the system. So yes, we plan to use a combination of word-of-mouth and traditional outreach strategies.”

Khoa Pham & Thanh Le, Interview with faceViet’s CEO

Leave these points here, we’ll come back to them later.

…to get the foundation questions answered

1. How does Facebook acquire users?

Facebook started off in Ivy League’s colleges. Then these students introduced the website to their connections. More and more joined and used the service because it was a useful product.

Facebook user acquisition 01

That’s why we say Facebook is a relationship-centric SNS. The motivation for users to use Facebook is mainly their connections. Facebook’s user acquisition is organic and natural as long as it remains useful a product to the users.

Facebook user acquisition 02

How about Vietnamese users? A picture is worth a thousand words

Facebook user acquisition 03

2. What builds reception readiness?

In the illustration, I put my hypothesis on reception readiness of Facebook particularly and the social network concept as a whole.

So what found this readiness in users?

1. The use of interactive IT systems in their work/study

Emails, KPI management systems, deal tracking systems (yes, CRM or issue-tracker if you’re more familiar with either of them), e-learning systems, version control systems, discussions boards, digital submission systems, scheduling (or timetabling) systems, accounting systems, payroll systems…

The more proficient people with (some of) these systems, the more ready they are to use interactive SNS.

How familiar are the majority of Vietnamese students with these systems?

2. Media coverage & user educating

Or how well the media educate potentials users of the values SNS bring them.

User educating is not PR; it’s about values. It should not involve throwing the product on users; it’s about attracting them. It’s not about exposing your greed selling to users first; it’s about solving their problems first.

3. Water the root

Social network spread of efforts

Correctly if I’m wrong, but I believe that spending more efforts on power users would reinforce the organic introduction loop.

Where is the root of Vietnamese SNS users? Mr. Thanh Le from faceViet mentioned his point above and I agree with him.

3. Why will Facebook dominate the Vietnam market when they launch?

1. Because Facebook has the root of the roots.

2. Because Facebook is mature in all product, brand recognition and business model, if compared to other competitors from local market.

3. Because Facebook will stand longer. This crucial point is usually, and possibly intentionally, ignored in many discussions on SNS in Vietnam. All Yahoo! 360 users have gone through the fear of losing their contents and social graphs. They will make judgment in choosing the next destination! I think they are smart enough to know how big (which in turn means stable) the world’s biggest SNS is and how long it is going to last store their contents and social graphs as compared to competing services.

But Facebook doesn’t satisfy the needs of many Vietnamese users…

What do the majority of Vietnamese users need now?

  • A blogging platform? Well, Facebook is relationship-centric, not content-centric. Nevertheless, it has a powerful Notes application.
  • Media sharing? Well, Facebook is relationship-centric, not content-centric. Nevertheless, it is launching a music site.
  • Customization? Well, Facebook is relationship-centric, not ego-centric. Nevertheless, certain application allows users to customize their page.
  • Facebook is overwhelming with feature. Well, writing on walls, sending messages and uploading photos are way too hard it took me forever to learn. Fortunately, Yahoo! 360 and Flickr did are doing very well to educate users (including me) on these three extremely difficult tasks. Other features? If you don’t like them just leave them be, they won’t bite.

OK, leave the details there and take one step back to look that the big picture.

Vietnamese users, in their first experience with Web 2.0, were given a blogging platform (Yahoo! 360) and very basic social networking features. They want a place to communicate, express and share. The options for them were way so limited while local services are still not mature, or in other words, many Vietnamese users have not used a full relationship-centric SNS yet. We don’t know how Facebook will change their preferences until it does. This we don’t know, doesn’t make an argument whether Facebook satisfies their current needs or not. Reality will answer.

Conclusion

This entry fills the gap I left from my previous argument: Facebook will dominate.

How do you disagree with me? Or which service do you think will challenge Facebook?

Acknowledgment

With special appreciation to these people for helping me with this post:

Duy Doan, VCCorp

Thu H. Nguyen, Australian Consulate General




Tags of this article: ,,,,,.


Last update October 31, 2008

Related Posts


  • Now that Yahoo! 360 will officially be closed, where will you move your blog and friends to?

  • CPM Advertising comes to Vietnam market

  • Yahoo! launched Yahoo! 360plus Vietnam

  • The day (social media) people fear is near: Facebook’s gonna launch in Vietnam

  • Yahoo!, take the LITTLE advantage you have over Facebook!
  • Digg this post | Post to Reddit | Post this post to del.icio.us | Favorite this post on Technorati | Stumble Upon this post | Bookmark on Yahoo! | Share on Facebook | Bookmark on Google

    How will Twitter make money?

    Category: How Business is done 1 Comment »

    Twitter’s success has boiled to the point the even some Twitterers start to wonder how would the service monetize.

    Here is the short list of a few ways I can think of for Twitter’s evolution:

    1. Same as that of Facebook: display ads in left & right white spaces
    2. Same as that of Google Adword: you tweet “I love cold drink”, an ad for Coca-cola is displayed
    3. Same as that of faceViet: display ad between tweets
    4. Same as that of vietnamworks: service providers pay Twitter to create a Twitter account specifically for brand-engagement / market research / recruitment / sales. This is politically difficult as the line between a service provider and a non-provider is vague
    5. Same as that of many popular blogs providing premium subscription: celebrity Twitterer charge followers for valuable tweets, part of the charge goes to Twitter
    6. Same as that of a social-C2C-commerce: Twitters become actual seller & procurers

    What are your ideas?




    Tags of this article: ,,,.


    Last update October 1, 2008

    Related Posts


  • Contemporary History of Self-Expression on the Net

  • Google To Launch Venture Fund, reported TechCrunch

  • Twitter then BackType boost hierarchization in web societies

  • The topics I’d wish somebody would start blogging professionally for: Investment, Fund Management and Financial Analysis

  • Business lessons from Keangnam Vina, observed through the Request of Commitment
  • Digg this post | Post to Reddit | Post this post to del.icio.us | Favorite this post on Technorati | Stumble Upon this post | Bookmark on Yahoo! | Share on Facebook | Bookmark on Google

    Saigon Twitterers First Gathering 14/9/2008

    Category: How to better Communication 7 Comments »

    A. What happened, basically

    Chip did a very nice coverage with her immediate post Twitter SaiGon 1st Gathering. Thanks a lot Chip, it wouldn’t never have been successful without you.

    B. What happened in details

    The detailed agenda included the normal information exchange and 3 main sections as listed below:

    B. 1. E-Learner Platform 2.0

    Two students, Mat and Hung, and starting to build their grand program on teaching children on an E-Learning environment which emphasizes Openness and Cost-saving and takes advantages of Web 2.0

    Hung’s presentation immediately inspired many interesting debates. Apart from popular arguments on technology, costs and practicability of the tools, what impressed me most was that we brought the Willingness for Alternative Solutions on the table. We didn’t stop at the fad of new tools, we touched the heart of a Mindset issue.

    For now, to avoid repeating Hung’s words duplicating Hung’s contents, I invite you to CLICK HERE to see their slide show for the program.

    B. 2. BarCamp Saigon

    “BarCamp is an ad-hoc gathering born from the desire for people to share and learn in an open environment. It is an intense event with discussions, demos and interaction from participants.”

    So why would you want to join the BarCamp in Saigon:

    1. If you’re a geek, you know what you do
    2. If you’re in the technology field, this is a chance for you to meet with people with similar interests love
    3. It’s a learning opportunity
    4. It’s not only for networking. It’s open and honest
    5. It’s a chance for you to see, hear, touch and talk about new things fresh right out of people’s head
    6. If you’re an analyst, come over here to this information goldmine
    7. Even if you’re not in technology, you might want to come here and share the problems you have in your jobs and maybe someone with a technical expertise can help with a solution you’ve never thought of
    8. Start-ups, meet people here!
    9. Venture capitalists, all geek faces around the region are here
    10. Please feel free to add your point here or with a comment below

    Please simply put the date in your calendar: 15/11/2008

    B. 3. Mentioning some web services

    Google, Navigos’ Caravat and Yahoo! Portal clone Timnhanh. Only quickly through though; we didn’t dig deep down on each.

    B. 4. An investment opportunity

    …on technology, blogging and media… something that’s never been done in Vietnam.

    You don’t want to miss the next part. I know you don’t want to miss the next gathering. Please CLICK HERE to subscribe, you’ll never miss the next good things.

    C. My Key Observations

    Obviously, the topics don’t want to go away from my mind so easily. There are some few things I’ve observed from our gathering that I’d like to share:

    C. 1. CommunicatioN first, then media

    The gathering is an evidence of “CommunicatioN, not CommunicationS“. Technology (Twitter) serves as a platform to build and strengthen the human quality of communicatioN.

    C. 2. Synergistic power

    Unlike networking functions I had previously attended/organized, the gathering was full of positive, creative and synergistic energy, thanks to the burning passion and rich ideas from each attendant.

    In other words, it was networking not for the sake of sheer networking. It happens when the good comes first, rather than the goods come first.

    How do you agree with me?

    C. 3. The internet is so full & rich has it fully reached the users?

    This exclamation came from N., a non-tech-savvy professional: “The internet is so rich. I only have a Facebook and a LinkedIn”. This brought 2 thoughts up on me:

    1. It reminds me of “Way of a Scientist” that I was thinking hard on one year ago.

    Way of a Scientist

    We (solution providers) want to keep users from the complexity of technology.

    2. It’s a good excuse for me to bring this statistics on the table: 58% of people don’t know what social networking is.

    How about Vietnamese users? What is the percentage do you think? I believe that analyzing my following suggestions would be useful:

    1. The opportunities of expressing via more traditional channels. This should help justifying the love for blogging in many Vietnamese users
    2. The willingness to look for alternatives. This should help explaining Yahoo! 360’s huge success in Vietnam
    3. The amount of time an average Vietnamese spend on online activities as compared to their peers in some other countries such as US or Japan. This should help reasoning the growth of social networks.
    4. Physical distance between Vietnamese mutual connection. This might help with analyzing micro-blogging.

    C. 4. Globalization

    Kevin gave us a compliment “This is the first time we mid expats and Vietnamese that works!” Thanks Kevin, I don’t know about others, but if I am to name one thing that pushes me on, it would be my conviction in being a “Global Villager”.

    Hold your breath…

    …the next event is coming soon…




    Tags of this article: ,,,,,,,,,,,,,.


    Last update September 17, 2008

    Related Posts


  • Heating up Saigon in November 2008: Barcamp Saigon and Google DevFest

  • Slums inside a city, solve it now before it gets too late

  • How will Twitter make money?
  • Digg this post | Post to Reddit | Post this post to del.icio.us | Favorite this post on Technorati | Stumble Upon this post | Bookmark on Yahoo! | Share on Facebook | Bookmark on Google

    WP Theme & Icons by N.Design Studio