TikTok Shop and Shopee Dominate Vietnam’s Online Retail Market in Q1 2021
The first quarter of 2021 saw the online retail market in Vietnam experience robust growth, with total retail revenue exceeding expectations. According to a report by YouNet ECI, Shopee maintained its dominance in the market, capturing more than half of the market share. TikTok Shop emerged as the runner-up with a market share of 23.2%, showing significant growth from the previous quarter.
The integration of entertainment elements into the online shopping process has been crucial for platforms like TikTok Shop and Shopee in enhancing the shopping experience for consumers. This trend is expected to continue driving market growth and increasing consumer engagement in the future.
E-commerce development is playing a crucial role in strengthening Vietnam’s digital economy, with businesses increasingly investing in technology and digitalization. The growth of digital services is expected to meet customer expectations for convenience and improve operational efficiency, leading to continued growth in the industry.
The top five platforms, including Shopee, Lazada, Tiki, Sendo, and TikTok Shop, collectively saw significant revenue growth and an increase in successful product deliveries during the first quarter of 2021. This growth reflects their appeal to Vietnamese consumers who have been increasingly adopting online shopping as a daily habit due to domestic consumption stimulation programs and other factors.
The online retail market in Vietnam is forecasted to continue its growth trajectory, with GMV expected to peak at 16.8 billion USD by 2025. Businesses are advised to focus on cost control, revenue generation, and digital transformation to thrive in this competitive digital landscape.
In conclusion, Vietnam’s e-commerce industry looks promising with continued growth expected in the coming years. Platforms like TikTok Shop and Shopee are leveraging shoppertainment features to enhance the shopping experience for consumers while businesses are investing heavily in technology and digitalization to meet customer expectations for convenience and improve operational efficiency.
