Vietnamese people spend 800 billion VND every day to buy online.

In the first half of the year, on average, Vietnamese consumers spent approximately VND800 billion per day on 5 platforms: Shopee, Lazada, Tiki, Sendo and Tiktok Shop.

The above information is stated in the "Online Retail Market Report for the First 6 Months of 2024" by e-commerce data company Metric (one of the two leading e-commerce data providers in Vietnam). The company said that the published data was collected using technology, eliminating fake orders and gift items. Accordingly, the total sales of the 5 floors in the past half year reached 143,900 billion VND, an increase of 54.91% over the same period in 2023. This rate is significantly higher than the 7.4% growth of the retail industry in the first 6 months of the year, according to data from the General Statistics Office.

During the same period, total retail sales nationwide reached nearly VND2.4 quadrillion. Thus, the market size of the five largest online retail platforms in Vietnam is estimated to account for about 6% of the retail industry. "E-commerce in Vietnam continues to grow and become a bright spot in the overall economic picture," Metric commented.

The main contributors to online channel sales growth came from TikTok Shop and Shopee, reaching 150.54% and 65.97% respectively compared to the same period in 2023. According to Metric, this is thanks to the two platforms having a deep understanding of the market and the needs of Vietnamese consumers. Meanwhile, Lazada, Tiki and Sendo witnessed double-digit declines in customer spending over the past half year.

In the first six months of the year, consumers purchased 1,533 million products online (based on successful orders), up 65.5% year-on-year. Notably, the low-cost segment under VND200,000 still maintained strong appeal, with market share increasing by 3% year-on-year.

"With many fluctuations in the current economic situation, tightening spending is still the criterion applied by many families. Therefore, consumers prioritize products with affordable prices that fit their budget," the report stated.

Thanks to the advantage in the low-cost segment, especially promotional sales via livestream, growth in terms of product output on TikTok Shop increased the most in the first half of the year, up to more than 240% compared to the same period in 2023, while Shopee increased by 65.5%.

By industry, Vietnamese people spent the most on beauty, women's fashion and home - living in the past half year. All three industries led in terms of online sales and output. On average, Vietnamese people spend 144 billion VND per day on beauty products, more than 100 billion VND on women's clothing and home appliances.

Along with strong growth comes many challenges for both sellers and online shoppers. Google & Temasek forecast that the scale of e-commerce in Vietnam will reach 24 billion USD by 2025. According to expert Le Hoang Long of NielsenIQ Vietnam, this industry is growing fast but also changing fast.

"Livestreaming may be the driving force for this year and next year, but the online environment changes a lot and quickly, so we need to constantly monitor to grasp upcoming changes," Mr. Long gave an example at a recent event.

In fact, sellers are facing increasingly high levels of competition, especially when many people are racing to the bottom on prices during livestream sessions. Ms. Nguyen Huyen Trang, owner of a home appliance store in Ho Chi Minh City, said that she used to reach a peak of selling 1,000 orders per day in August 2023, but now it is only 60-70%.

"The decline is due to many factors, from the trend of tightening spending, customers choosing cheaper products, waiting for promotional programs or livestream sessions with 'floor-breaking' prices," said Ms. Trang.

Time-sensitive discounted items are sold on an e-commerce platform on July 25. Photo: Dy Tung

Online channels are becoming increasingly competitive as many brands gradually shift from traditional sales channels, with the participation of celebrities and factories wanting to sell directly to end customers. Not to mention, on most platforms, customers can also buy products from foreign stores easily and diversely.

Metric data shows that there were 573,800 stores operating on 5 platforms Shopee, Lazada, Tiki, Sendo and Tiktok Shop in the first 6 months of the year. In contrast to the increase in sales, the number of stores decreased by 7.54% compared to the same period, showing a high level of competition and elimination.

For buyers, the opportunity to buy cheap goods through online markets also comes with the risk of being mixed in with poor quality goods. Over the past six months, market management agencies have cracked down on many online warehouses that were suspected of selling fake or unknown products.

In the document implementing the campaign to use Vietnamese goods issued by Ho Chi Minh City last month, the Ho Chi Minh City People's Committee requested the local Market Management Department to "pay special attention" to inspecting, controlling, and handling violations in online business, buying and selling, and livestreaming.

Currently, some customers proactively choose genuine stores (Shop Mall) to shop. Metric said that the market share of Shop Mall in the past half year has increased by 12.29%, showing that consumers increasingly prioritize choosing products with clear origins and reputable sellers.

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