Of the 9 billion USD in transactions through the 5 largest multi-industry e-commerce platforms in Vietnam last year, 90% belonged to Shopee, Lazada, and TikTok Shop.
The figures were recently released in the report "E-commerce in Southeast Asia" by technology investment management and consulting firm Momentum Works (Singapore). Of which, 9 billion USD is the total transaction value (GMV) through the 5 largest multi-industry e-commerce platforms in Vietnam, including: Shopee, Lazada, Tiki, TikTok Shop and Sendo.
Shopee's market share last year was overwhelming at 63%, 2.7 times that of the second-placed Lazada. In addition, despite being a newcomer, TikTokShop - an e-commerce feature within the short video social networking app TikTok - has captured 4% of the market share, higher than Sendo.
While Shopee and Lazada's market share rankings are stable, TikTok Shop, despite only entering the market in March last year, has grown rapidly, even competing with e-commerce "seniors" who have spent years burning money to gain a name in Vietnam.
Earlier this year, the artificial intelligence-based reputation monitoring platform Reputa also announced its 2022 e-commerce rankings. While Shopee unsurprisingly topped the list, Tiktok Shop took third place, surpassing Tiki. Reputa's rankings calculate popularity through scoring criteria based on the level of spread, likes, interest, and discussion of users on social networks.
Source: Reputa
Shopee and Lazada’s dominance is similar across Southeast Asia. Shopee has the highest market share in all six markets measured: Indonesia, Malaysia, Thailand, Vietnam, the Philippines and Singapore. Lazada is second in five markets and second in the region.
TikTok Shop has a market share of 1-5% depending on the country, with total transactions through this platform last year in Southeast Asia being $4.4 billion. Momentum Works assessed the development of this platform as one of the prominent trends this year.
According to the Department of E-commerce and Digital Economy (iDEA), the size of the B2C retail e-commerce market in Vietnam reached 16.4 billion USD, accounting for 7.5% of the country's retail sales of goods and consumer services. The reason this size is larger than Momentum Works' calculation is because it covers the entire market, with specialized trading floors and e-commerce via social networks.
Other studies also point to the prospects for online shopping. Visa’s recently released Consumer Payment Attitudes study found that 85% of consumers surveyed said they used home delivery for the first time during the pandemic, and 64% shopped on major online platforms in the past year.
Across Southeast Asia, consumers spent $99.5 billion on e-commerce platforms last year, up 1.8 times from 2020. “E-commerce in Southeast Asia is likely to follow a normal and healthy trajectory in the next few years. Shopee and Lazada will hold their ground, sharing market share with one or two other global players,” said Jianggan Li, Founder and CEO of Momentum Works.
The firm forecasts Southeast Asia's total e-commerce GMV under a business-as-usual scenario to reach $175 billion in 2028 and the potential to reach $232 billion under a best-case scenario.
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