The Surge of E-Commerce in Vietnam: A Closer Look
A Booming Market
In the first half of 2023, Vietnamese consumers spent an impressive VNĐ143.9 trillion (approximately US$5.7 billion) across five major e-commerce platforms, purchasing around 1.53 million items. This remarkable growth—54.91% and 65.55% for revenue and sales volume, respectively—highlights the burgeoning e-commerce landscape in Vietnam. The figures suggest that Vietnamese consumers are increasingly embracing the convenience and variety that online shopping offers, a trend that has been accelerated by changing consumer behaviors and the pandemic’s lasting effects.
The Rising Stars: TikTok Shop and Shopee
Amid the growth figures, two platforms shine particularly bright: TikTok Shop and Shopee. Their success is not merely incidental; TikTok Shop registered an astonishing growth rate of 150.54% in revenue, while Shopee followed with a robust increase of 65.96%. Both platforms have capitalized on the rising trend of livestream shopping, which has become a popular way for sellers to engage consumers in real time. This innovative shopping format allows sellers to showcase products dynamically and interactively, turning shopping into an engaging experience rather than a simple transaction.
Struggles of Other Platforms
However, not all e-commerce platforms have enjoyed the same success. Competitors like Lazada, Tiki, and Sendo have faced significant challenges, seeing declines in both revenue and sales volume. Lazada’s revenue fell by a staggering 43.81%, with Tiki not far behind at 48.55%. These downturns indicate that while some platforms are thriving, others struggle to adapt to the evolving market dynamics and consumer preferences.
The Livestream Shopping Trend
The surge in livestream shopping has proven pivotal for TikTok Shop and Shopee, allowing them to tap into the interactive nature of social media. This format facilitates real-time interactions, fostering a sense of community among buyers and sellers. As viewers can ask questions, request product demonstrations, and engage with hosts, this immersive experience often leads to higher conversion rates, encouraging impulsive purchases.
Local Brands: A Call to Strategize
Interestingly, the e-commerce landscape remains dominated by international brands, with local Vietnamese brands struggling to gain a foothold. Among the top 10 brands with the highest e-commerce revenue, only Vinamilk, a well-known domestic dairy producer, made the list. This stark reality underscores the urgent need for Vietnamese brands to develop robust digital strategies to better compete in the rapidly changing market. Building a strong online presence and leveraging new sales trends will be crucial for local brands to thrive against their international counterparts.
Emerging Consumer Trends
Looking ahead, changes in consumer demand are already taking shape. Market analysts, such as those from Metric, anticipate a significant uptick in the demand for school supplies as the new school year approaches. Items priced under VNĐ50,000 are expected to become particularly popular in August and early September. With back-to-school season around the corner, sellers who can effectively market these products online stand to benefit.
Future Opportunities
The e-commerce ecosystem in Vietnam is evolving dramatically and presents numerous opportunities for sellers and brands alike. The rise of platforms like TikTok Shop and Shopee showcases how adaptability and innovation can lead to success in this competitive arena. As trends continue to shift, the ability to respond to consumer preferences and leverage new shopping behaviors will be paramount for future growth.
The landscape of Vietnamese e-commerce is not just a reflection of purchasing power; it’s an indication of how technology and social behavior are reshaping commerce as we know it. Whether you’re a seasoned seller or a new entrant, understanding these dynamics is essential for success in this vibrant market.