“Livestream Discounting: The Race to the Bottom That Will Destroy Businesses Reliant on E-commerce Platforms”

BIN Corporation Group’s Chairman, Shark Le Hung Anh, emphasizes the importance of owning one’s sales channel, especially with the rising trend of livestreaming on e-commerce platforms.

Speaking at the Central Innovation and Startup Forum on June 28, Shark Hung Anh identified the most challenging aspect for any startup as finding customers and creating a market for their products and services. He underlined that this is an essential matter for the survival of any startup.

Recalling his own entrepreneurial journey over a decade ago, Shark Hung Anh shared how he maximized online advertising and technological tools to quickly reach his target market and minimize expenses. However, he noted that times have changed.

“Nowadays, we often follow trends, such as the current trend of livestreaming and selling through Affiliate Marketing. But when we follow these trends, we don’t truly own the core of our sales system,” he cautioned.

“Let me tell you, if the e-commerce platforms change their policies or make things difficult for sellers, all these businesses and startups that relied on those channels will suddenly find themselves in crisis, overnight,” Shark Hung Anh warned.

The Chairman of BIN Corporation Group has witnessed many central region-based businesses that primarily sell online struggle to adapt when the intermediary platforms change their policies. He also noted the recent trend of livestreams offering massive discounts, which he believes will disrupt the market.

“One of the core issues here is to ensure we own our sales channels. Don’t rely too heavily on trendy sales channels,” he emphasized.

Being born and raised in the central region (Tam Ky, Quang Nam), Shark Hung Anh acknowledged the strengths of central region entrepreneurs, including their strong spirit of progression and resilience. However, he pointed out that the region’s market is smaller, and consumer spending is not as high as in larger cities. He suggested that startups could initially target larger markets to fully explore their potential before entering smaller markets.

Looking back on six seasons of Shark Tank Vietnam and working with over 4,000 startups, the show’s Production Director, Le Hanh, summed up the secret to entrepreneurial success as “borrowing.” She asserted that youth, ideas, ambition, and vision are the values that startups bring to the table. She encouraged young entrepreneurs to be bold and confident in “borrowing” social resources to accelerate their progress.