Shopee and TikTok Shop Dominate Vietnam’s E-commerce Market with a Combined 93% Share

According to data from e-commerce research firm YouNet ECI, consumer spending on Vietnam’s four major e-commerce platforms reached 87.37 trillion Vietnamese Dong (approximately $3.48 billion) in the second quarter of 2024, marking a 10.4% increase from the first quarter. Shopee holds a dominant position with a 71.4% market share, followed by TikTok Shop at 22%. Lazada and Tiki account for just 5.9% and 0.7% of the market share, respectively.

Despite TikTok Shop’s strong performance in the fashion and accessories category, representing 37.5% of its total transactions, it has yet to compete comprehensively with Shopee. Shopee is drawing on TikTok Shop’s experiences, integrating short video and livestreaming features, and enhancing user experience through promotional activities that blend entertainment. This demonstrates Shopee’s ongoing efforts to optimize its platform strategy and maintain its market leadership.

A survey by international market research firm Kantar forecasts an increase in online shopping expenditures in Vietnam for the latter half of the year, with 69% of consumers planning to purchase more products, particularly through live sales. Vo Anh Tu, Co-founder and Creative Director of TCC & Partners, predicts that livestreaming will continue its popularity in late 2024 due to its ability to offer quick interactions, instant discounts, and efficient transactions. Nguyen Phuong Lam, Market Analysis Director at YouNet ECI, notes that the growth of Vietnam’s e-commerce market over the next 3-5 years will be driven by online shopping behaviors, high-value product transactions online, and the development of entertainment shopping models.

Shopee and TikTok play significant roles in commerce. As of May 2024, TikTok has 67.7 million users, and Shopee is the most popular e-commerce platform in Vietnam with monthly website visits reaching 102 million. Many users utilize these platforms to watch livestreams to discover new products and make purchases, providing entrepreneurs with opportunities to reach new customers, build brand awareness, and increase sales.

Shopee and TikTok have become essential tools for online transactions in Vietnam. Thai entrepreneurs looking to enter the Vietnamese market should leverage these platforms’ sales channels and marketing advantages. Successful platform marketing requires a deep analysis of customer behavior to effectively tailor strategies. For instance, TikTok users tend toward purchasing clothing, whereas Shopee users favor cosmetics and home products. Additionally, marketing through KOL/KOC on TikTok and Shopee is expected to significantly increase this year.

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