The Rise of Digital Shopping in Vietnam During Tet

As Tet, Vietnam’s lunar new year, approaches, the landscape of consumer shopping is undergoing a remarkable transformation. A new consumer study by Decision Lab highlights how Vietnamese consumers are increasingly favoring digital channels and social commerce for their Tet shopping. This trend illustrates a profound shift in shopping habits, driven by the digital economy and evolving consumer preferences.

The Context of Tet: More Than Just a Holiday

Tet is Vietnam’s biggest cultural and economic milestone, traditionally centered around giving and togetherness. Yet, contemporary consumer behavior has expanded beyond merely participating in a pre-holiday shopping rush. Spending now extends over a more prolonged period, with preparations ramping up in the days leading to Tet, only to see a rebound as consumers shift their spending from gifts for others to treating themselves post-holiday. This evolving pattern offers distinct opportunities for brands to engage consumers throughout the Tet season.

Insights from the Decision Lab Study

The Decision Lab study, conducted alongside Meta and involving over 800 consumers, reveals the dominance of digital-first behavior throughout the Tet shopping journey. For retail products, social media and e-commerce platforms are now the primary avenues for discovering products, gathering information, and making purchases. For instance, brand pages on platforms like ShopeeMall and LazMall are critical, being the most commonly used channels for product discovery (49%), information gathering (54%), and final purchases (44%).

Health and Beauty: Unique Discovery Phases

While the retail sector shows a general reliance on e-commerce channels, health and beauty products present a slightly different pattern. About 40% of consumers start their discovery process through self-searching online or by contacting sellers via messaging apps. During the consideration phase, 58% reach out directly to sellers through these channels for more information before completing their purchases—often via platforms like Facebook Messenger or Zalo.

The Influence of Meta’s Family of Apps

The influence of Meta’s Family of Apps (Facebook, Instagram, Messenger, and WhatsApp) is significant among Tet shoppers. Approximately 27% of these shoppers reported using only these platforms for their most recent retail purchases, a figure that soars to 53% for health and beauty products. Such data underline how deeply intertwined social media is with consumer purchasing behavior, shaping decisions throughout the shopping journey.

Shifting Spending Patterns and Payment Preferences

Beyond mere digital engagement, Vietnamese consumers’ spending accelerates during Tet, revealing key trends. Recent data from Visa indicates that international spending is growing at twice the rate of domestic expenditure, attributing this to rising overseas travel and cross-border e-commerce. Consumers are also gaining confidence in online shopping across traditionally in-person categories like insurance and travel.

In terms of payment methods, contactless transactions have gained significant traction. Between January and February 2024, 64% of Visa transactions in Vietnam were contactless, highlighting a shift toward mobile wallets and other cashless solutions. This trend is further supported by findings from Visa’s Consumer Payment Attitudes study, where 74% of respondents favor contactless payments for various purchases, signaling a major shift in consumer behavior.

The Embrace of AI Tools

The integration of artificial intelligence tools into shopping behavior is another noteworthy trend. The Decision Lab study indicates that 20% of consumers employ AI for finding shopping information, with 18% using it for location tracking. Additionally, 13% utilize AI for budgeting and expenditure tracking, showcasing its role in modern consumerism.

This trend extends beyond shopping: a separate Decision Lab study found that 78% of Vietnamese consumers have engaged with AI platforms recently, with many incorporating them into their daily routines. Popular uses include gathering information (37%), enhancing learning (34%), and content translation (33%). The motivations behind using AI primarily revolve around time-saving (67%), simplifying learning (60%), boosting creativity (51%), and improving accuracy (48%).

The E-commerce Boom in Vietnam

Vietnam is quickly emerging as a leader in the Southeast Asian e-commerce landscape, accounting for $25 billion of a total transaction value of $100 billion in 2024. With over 60 million online shoppers, the region positions itself among the top ten globally. It is anticipated that sales in Vietnam’s major e-commerce platforms, including Shopee, Lazada, Tiki, and TikTok Shop, will grow nearly 42% year-over-year, reflecting a broader trend toward online shopping.

Among these platforms, TikTok Shop has emerged as a leading channel, particularly through the engaging “shoppertainment” model. This fusion of video content with real-time shopping enhances interactivity and boosts customer loyalty, marking a significant trend in Vietnam’s shifting retail environment.

Conclusion

Vietnamese consumers are at the forefront of a digital shopping revolution, particularly during Tet. Their embrace of e-commerce, social media, AI, and innovative payment methods underscores a dynamic change in consumer behavior that retailers and brands must navigate. As this digital landscape continues to evolve, understanding these trends becomes imperative for success in the Vietnamese market.