KardiaChain and E-commerce powerhouse FADO join hand to disrupt the multi-billion cross-border market
Standing by our mission of “Accessible blockchain for millions”, KardiaChain Foundation works passionately to bring in leading companies in the growing markets to blockchain. One of the hottest markets in this decade is E-commerce that becomes the most profitable market in the world with the estimated revenue of $4.9 trillion in 2021 (Kerick, 2021). During this technology revolution, blockchain technology has been proven to provide numerous benefits of technology infrastructure and user experience, e.g. decentralization, security, traceability, and transparency.
KardiaChain is delighted to form a strategic partnership with FADO, a veteran cross-border E-commerce platform, to integrate KardiaChain blockchain technology into FADO system to utilize the benefits of traceability and transparency to improve user experience.
Founded in 2014, FADO is a true powerhouse ranking #1 in the cross-border E-commerce platform and #5 in e-commerce platforms overall in Vietnamese market. FADO differentiates themselves as a means for local customers to have access to global products, with the vast majority originating from the developed markets such as the US, Japan, and Germany. FADO website attracts over one million customers monthly with an average order size of $200, revenue racks up to $2 billion. Furthermore, FADO collaborates with ECVN, a government-owned platform specialized in the B2B field to help local productions reach out to importers overseas with convenience. Nevertheless, a partnership with the global giant Alibaba Group helps FADO open up opportunities for merchants to promote and export local products to over 240 countries.
With such overwhelming performance, FADO is one of the most prominent members of VECOM (Vietnam E-Commerce Association), the largest e-commerce association with 480 members ranging from enterprises to small businesses and individuals.
In their future endeavors, FADO is keen on pushing for further expansion with ambition to become a game changer in the prosperous cross-border E-Commerce field. Mr. Dat Pham, CEO and Founder of FADO affirms“ We believe the collaboration between KardiaChain and FADO will create transparency of goods movement and gain trust from customers, provide customers with the quickest access to cross-border quality products with ease”.
KardiaChain’s network with qualifications in transparency, traceability, high TPS and compatibility with multiple blockchains provide the best solution for FADO in achieving their mission as a pioneer in the cross-border e-commerce field. Benefits of integrating blockchain in e-commerce including:
- Traceability and certification of originality, components, production value of certain luxury products with transparency.
- Transaction proficiency, security and transparency.
- Rewarding loyalty program through tokenizing FADO coin to raise both customer acquisition and customer retention rate.
- Providing stablecoin solutions to maximize profitability through cross-border transactions without loss through exchange rate between multiple currencies.
Blockchain and E-commerce opportunities
Vietnam e-commerce market growth is forecasted as following:
- Revenue in the eCommerce market is projected to reach US$7,010m in 2021.
- Revenue is expected to show an annual growth rate (CAGR 2021–2025) of 5.67%, resulting in a projected market volume of US$8,741m by 2025.
- The market’s largest segment is Electronics & Media with a projected market volume of US$1,843m in 2021.
- User penetration will be 52.7% in 2021 and is expected to hit 70.1% by 2025.
- The average revenue per user (ARPU) is expected to amount to US$135.39.
The acceleration of adopting e-commerce has correlation with the widespread of the COVID-19 pandemic, resulting in a high demand for thorough product comprehension. Customer journey on e-commerce platforms has evolved to be not only a marketplace but more as a research tool, especially products with high monetary value. The research process includes visibility such as ratings, comments and images. The incentive aspect of loyalty programs in redeeming points, efficiency and complexity of transaction globally also affect the success rate of business made. Therefore, transparency in both information, records of production and movement, records of transaction made is crucial for users to achieve satisfaction in both researching and purchasing.
Blockchain provides the solutions for the above mentioned aspects. Salchi (2021) stated on bigcommerce.com, “Blockchain is a natural fit for ecommerce because it is designed for storing transactional data in a way that is secure and decentralized.”
Kerick, F., 2021. The Growth of Ecommerce. [online] Medium. Available at: <https://medium.com/swlh/the-growth-of-ecommerce-2220cf2851f3> [Accessed 11 March 2021].
Shalchi, C., 2021. Customer Loyalty Blockchain: A New Ecommerce Rewards Program. [online] The BigCommerce Blog. Available at: <https://www.bigcommerce.com/blog/customer-loyalty-blockchain/#customer-loyalty-programs-need-an-upgrade> [Accessed 11 March 2021].
Statista. 2021. eCommerce — Vietnam | Statista Market Forecast. [online] Available at: <https://www.statista.com/outlook/dmo/ecommerce/vietnam> [Accessed 11 March 2021].
VIR, V., 2021. Alibaba partners with Fado to sell Vietnamese goods globally. [online] Vietnam Investment Review — VIR. Available at: <https://www.vir.com.vn/alibaba-partners-with-fado-to-sell-vietnamese-goods-globally-66418.html> [Accessed 11 March 2021].