Amazon, Alibaba suggest Vietnamese businesses sell home decoration items

The purchasing power of home decor and compact furniture on Amazon and Alibaba continues to increase, opening up opportunities for "Made in Vietnam" products.

From grass brooms, water hyacinth baskets to lightweight chairs, shelves, and home decor products "Made in Vietnam" are attracting customers on Amazon. A black painted bar stool priced at $81 from Linon Home Dcor is labeled Amazon's Choice and sold more than 50 products last month.

Selling garden tables, chairs and wooden planks, BeeFurni's revenue on this platform in the first 10 months of 2022 increased by 300% compared to 2021. The brand's stools, launched in 2018, cost from 35 USD to 50 USD depending on size, attracting hundreds of customer reviews with an average score of 4.4/5.

According to Amazon statistics, the home decor & interior industry witnessed outstanding growth in the period 2020-2022. Even though people have returned to the office, they still spend a lot of time enjoying life. This helps stimulate online shopping for products.

A round stool priced at nearly $35 made in Vietnam sold on Amazon. Screenshot — A round stool priced at nearly $35 made in Vietnam sold on Amazon. *Screenshot*

Last year, "wall decoration, kitchen decoration, bathroom decoration" were the most searched keywords in this category. Popular products included products that help organize things, natural styles, and make use of local materials such as rattan, bamboo, coconut, and grass. This is the advantage of Vietnamese handicrafts.

Over the past three years, home & kitchen has consistently been among the top selling categories of Vietnamese sellers on the platform. Mr. Gijae Seong, CEO of Amazon Global Selling Vietnam, assessed that this is a category with "great potential and still has many untapped advantages" for Vietnamese businesses.

With about 1,500 craft villages, abundant raw material supply and supply chain advantages, Vietnamese furniture and decoration manufacturers have great potential in the international market, according to Amazon. Data shows that currently, 62.3% of searches for furniture result in purchases.

Beyond retail, online wholesale opportunities are also promising. Alibaba said that sourcing home and garden products is one of the three most popular Vietnamese product categories on its wholesale platform.

In the past three months, Vietnamese products in this category have increased by 64% compared to the same period last year in terms of the number of potential buyers. The most searched for groups are those with reasonable prices and high practicality, such as dining sets, kitchenware, home textiles, storage and organization products.

Specializing in selling wrought iron products such as doors, fences and railings, Nguyen Phong Metal - a small and medium-sized enterprise - has opened a large export channel from this platform, according to Sales Director Pham Nguyen Le Uyen. Their first order on Alibaba was worth 45,000 USD 3 years ago. To date, the proportion of export revenue has doubled that of domestic sales.

To increase the chances of successful online furniture and home decor exports , Alibaba notes that B2B buyers are increasingly demanding durable, functional, convenient and cost-effective products. This trend opens up significant opportunities for modular, smart and composite furniture.

For retail customers, Amazon says products with simple, elegant designs that fit a variety of interior styles and cultures are likely to appeal to customers from many places. International customers favor products that use light, natural tones and are made from environmentally friendly materials.

Vietnam is highly regarded by both platforms as one of the countries with a large number of skilled craftsmen, about 7.4 million workers. Traditional craft villages have rich experience and a long history, creating unique and distinctive products.

However, to be successful in the global market, there must be a harmonious combination between "what Vietnam has" and "what the international market expects". For example, with products made from rattan, bamboo, and sedge, manufacturers must improve the processing of raw materials because they are easily affected by factors such as humidity and insects.

Or furniture using synthetic materials must comply with the product regulations of the platform as well as local agencies. Children's furniture must comply with CPSC/CPSIA, ANSI standards in the US & CE certification for the EU.

Once a product is available, the business strategy also needs to be timely. According to Amazon research, the development and inventory preparation cycle for furniture products is typically 30 to 60 days and can be adjusted based on supply conditions and purchasing trends during low and high seasons.

For office furniture, peak season is usually in January and February, when people return to work after the New Year holidays. For home appliances, peak season is mainly during the back-to-school season and the first week of the last two months of the year, when sales are on sale and revenue from regular customers increases fivefold.

In the first seven months of the year, Vietnam's wood and wood products export turnover reached 7.21 billion USD, down 26.2% compared to the same period in 2022. All five largest markets, accounting for 89% of turnover, namely the US, Japan, China, the EU and South Korea, weakened. Except for Japan, the remaining four markets all decreased by double digits.

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