The Surge of Online Shopping in Vietnam: A 37.7% Increase in Transaction Volume
Introduction to Vietnam’s E-Commerce Growth
Vietnam’s e-commerce landscape is thriving, a phenomenon highlighted in a recent report by the e-commerce data platform, Metric. Between January and September of this year, Vietnamese consumers splurged a staggering VND227.7 trillion (approximately US$8.9 billion) on online shopping platforms. This reflects a remarkable 37.7% increase in total transaction volume compared to the same period last year. The data indicates that online shopping has become an ingrained consumer habit, forging a new retail norm in Vietnam.
Transactional Insights and Quarterly Performance
The report brought to light that in the third quarter alone, total e-commerce transactions reached VND84.7 trillion ($3.3 billion), marking a 15.9% uplift compared to the same quarter in 2023. This growth is indicative of a strong consumer shift toward online platforms, as digital options become increasingly preferred over traditional retail.
Increased Product Variety and Challenges in Store Count
Beyond the rise in transaction value, the volume of products purchased online also surged, hitting 2.43 million items—a striking 49.8% increase year-over-year. However, despite this growth, the number of active stores on these platforms witnessed a slight decline. There are now 580,300 active online stores, a 1% decrease from the previous year. This paradox illustrates the competitive nature of e-commerce, where not all players can thrive equally.
Platform-Specific Growth Trends
Notably, the data encompassed leading platforms such as Shopee, TikTok Shop, Lazada, Tiki, and Sendo, focusing solely on legitimate transactions while excluding fake orders and promotional products. TikTok Shop emerged as a standout, boasting a remarkable year-on-year revenue growth rate of 110.6%. Shopee, not far behind, managed a respectable growth of 11.3%.
Analyzing platform performance in Q3 revealed an intriguing pattern: Shopee, TikTok Shop, and Tiki experienced significant sales boosts starting in July, peaking in August before witnessing a slight drop in September. In contrast, Lazada and Sendo experienced a consistent decline in sales over the same timeframe.
The Rise of TikTok Shop
TikTok Shop’s meteoric rise is particularly noteworthy. Its strategic integration of shopping with entertainment has resonated well with consumers, translating into doubled revenue growth from the previous year. This trend underscores the importance of leveraging engaging content to enhance the online shopping experience.
Tiki’s Resurgence
Tiki also reported a robust recovery in Q3, achieving over 38% growth compared to the preceding quarter. This rebound signals a positive trajectory for the homegrown platform, suggesting that Vietnamese consumers are turning to local solutions when shopping online.
Growing Preference for Official Stores
A significant trend from the latest figures is the robust performance of official brand stores, often referred to as shop malls. While they constitute only 5% of the total stores with completed orders, they contribute nearly one-third of total market revenue, showcasing a remarkable 53% increase from 2023. This shift illustrates a consumer preference for authenticity and quality, particularly for higher-end products.
Forecasting Growth for the Year-End Shopping Season
The last quarter of the year is typically a crescendo of shopping activity, bolstered by numerous holidays, including the early Lunar New Year celebrations. As preparations for Tet shopping begin to peak in late November and December, e-commerce sales are projected to surge.
The forecast for growth in the coming months is promising, with expected increases of around 10%, 20%, and 35% in October, November, and December, respectively, compared to the same months in 2023. This momentum is poised to push sales across the top five online retail platforms to VND80.6 trillion ($3.2 billion).
Key Products Driving Sales
Key contributors to this anticipated growth include autumn and winter fashion, apparel, and beauty products. The beauty sector in particular remains significant, with sales reaching VND15.5 trillion ($617.5 million), accounting for 18% of total sales in this quarter—a notable increase of 26.6% year-on-year.
Encouraging Early Purchases
To capitalize on the upcoming shopping wave, businesses are encouraged to implement dual shopping campaigns that target both Tet and year-end purchases. This proactive approach could help retailers maximize their sales potential during this peak shopping season.
By understanding these trends and consumer behaviors, businesses can better position themselves to navigate Vietnam’s rapidly evolving e-commerce landscape. As online shopping continues to solidify its place in everyday life, the future looks bright for both consumers and retailers alike in this vibrant market.