The Silent Revolution of Logistics in the Age of E-commerce Evolution

Mr. Phan Binh, Brand Director of J&T Express Vietnam, emphasizes that in the current context of the industry’s adjustment phase, the differentiating factor will no longer be cost, but rather who can make users clearly feel the effectiveness and companionship.

How do you assess the e-commerce market in the second quarter? What adjustments has J&T Express Vietnam made to its strategy during this period, especially for online shop owners?

Mr. Phan Binh: The Vietnamese e-commerce market is undergoing transitions, presenting challenges for market expansion to all participants.

Instead of solely focusing on maintaining order volume, J&T Vietnam proactively shifts its approach from “on-time delivery” to “delivering emotions” and “delivering experiences.” We view this as an opportunity to build stronger bonds with online sellers, who are our primary customers at present.

There is news that J&T in some international markets is applying a deep discount policy. Is J&T facing similar pressure in the Vietnamese market? And what approach does J&T choose to remain competitive?

We do not comment on specific strategies in other markets as each has its own context and customer needs. Specifically, in Vietnam, J&T recognizes that price is no longer the sole factor in retaining online sellers.

Our strategy is to invest in experiences that can create long-lasting and sustainable differentiation. In addition to long-term investments in technology to perfect our operating processes and ensure service satisfaction, we also create after-sales services that enhance the value of our offerings. The “Super Spin and Win” program is a prime example: we integrate interactivity and fun directly into the core operation of order creation.

After each order, sellers can spin and win, not only to receive gifts but also as a form of encouragement and bonding. This ensures J&T’s consistent presence in our customers’ daily operations, not just at the point of delivery.

The “Super Spin and Win” program seems like a promotional activity. Why did J&T choose this approach?

At first glance, this program resembles a typical points accumulation for rewards system, but in essence, it is a strategy to maintain J&T’s presence in our customers’ daily routines. After each order on the J&T VN Pro app, sellers accumulate points that can be used for spins – not just for prizes but to foster a “connection habit.” This interactivity and small joy are what bring sellers back every day.

So, what is J&T’s long-term strategy if it’s not just about giving gifts and promotions?

We want to “give experiences, not just gifts.” Sellers don’t just need on-time service – they need to feel accompanied. This program, with prizes ranging from practical to high-value items like the iPhone 15, is just the beginning. More importantly, it’s about the positive emotions they feel after each successful order, after each time they open the app.

Logistics companies are expected to be not just service providers but also business partners. How does J&T position itself to support online shop owners during this challenging period?

At J&T, we believe our strength lies in ensuring on-time deliveries coupled with service quality. We don’t just deliver packages; we deliver the satisfaction and positive emotions of customers, creating an emotional connection with them.

To achieve this, our strategy revolves around three main pillars:

Technology determines service quality: We heavily invest in technology to optimize our operating processes and ensure efficiency and reliability. From order placement to delivery, our closed-loop system ensures smooth operations and enhances the customer experience.

User-friendly experience: We focus on making the entire journey, from order creation to delivery, effortless and intuitive for customers, ensuring satisfaction at every touchpoint.

Sustainable customer connections: We aim to build long-lasting relationships with shop owners, not just through on-time deliveries but also through personalized and continuous interactions that meet their needs.

As the industry enters an adjustment phase, the differentiating factor will no longer be cost but who can make users feel the effectiveness and companionship most tangibly.

This may increase operating costs. How does J&T balance investment in experiences with business efficiency, especially in an economically volatile period?

We view investment in experiences as a long-term profitable investment. When sellers are loyal, they will reduce the need to compare prices, focus on service quality, and increase service usage frequency. That’s sustainable value. Instead of instant promotions, we choose to build a foundation of loyal customers.

In the long term, how do you assess the role of “customer experience” in the logistics industry? What is J&T Vietnam’s strategic direction for the next 1-2 years to maintain its differentiation?

We will continue to position ourselves as a logistics unit “putting customers at the center.” Technology, experience, and companionship will be our three main pillars. Beyond mere transportation, J&T will become the link between sellers and customers – and the emotions they leave behind after each transaction.

Thank you, Mr. Phan Binh.