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VietJet shares AirAsia's vision for e-commerce
July 5th 2019
VietJet wants to sell more to existing customers and utilise a new e-commerce platform for sales of non-flight related products. Read More »
VietJet could not have rapidly grown and amassed market share against state-owned rivals without some form of blessing from the government. Its good government relations were on display this week when Vietnam’s prime minister, Nguyen Xuan Phuc, attended a ceremony in Tokyo to mark two new VietJet flights to Japan. The prime minister was in Japan for the G20, but nonetheless made time for VietJet.
In Japan, VietJet vice president, Nguyen Thi Thuy Binh, told the Nikkei news agency that within two years the LCC would launch an e-commerce site offering a range of products from financial services to consumer goods and other travel products. AirAsia group boss, Tony Fernandes, recently discussed the same strategy for his airlines.
Like the AirAsia group, VietJet wants to leverage data to increase ancillary sales but also intends to reach customers who are not its passengers. AirAsia has a head start, is larger and is present in more markets than VietJet. In its first quarter, VietJet air travel revenue rose 28% and ancillary revenue grew 45%.
