Il Vietnam represents fertile ground forE-commerce, having a expected growth this year of 35%. Driving this trend is an expanding middle class, a young and tech-savvy population and the spread of social commerce.
Vietnam: e-Commerce turnover exceeds 9,52 billion (+53,4%)
Un relationship on the local online retail market conducted by Metric indicates that the turnover of the country's top 5 e-commerce platforms – Shopee, Lazada, Tiki, TikTok Shop and Sendo – reached VND 2023 trillion in 232,13 (9,52 billion dollars), scoring an increase of 53,4% compared to 2022. The report predicts that revenue will continue to grow this year, reaching over VND310 trillion (12,72 billion), with an increase of 35%.
Furthermore, the development of electronic commerce has surpassed traditional retail, such as supermarkets and convenience stores. The convenience of online shopping and the ability to stock large volumes of goods at low cost, compared to more expensive retail stores, has meant that demand for shopping complexes has remained relatively low. This has been further influenced by the lack of space in Vietnamese cities, which have grown at a dizzying pace in both size and population over the past decade. Here because McKinsey and Company predicted that the Vietnamese e-commerce market could reach traditional retail size as early as 2025.
The 3 factors driving e-commerce in Vietnam
Vietnam, moreover, has the highest growth in online shopping in Southeast Asia, as a result of a young population, a tall one diffusion of the internet it's a increase in income. In fact, the majority of the population is under the age of forty and is incredibly expert in the use of technology compared to their parents' generation. All powered by a digital banking system that sees funds transferred and deposited in real time at no cost.
Il Direct to Consumer model (DTC) will continue to be the most popular since it allows companies to control the entire process, from production to marketing to sales. Furthermore, intermediate costs are significantly reduced, leading to higher profit margins. For example, by adopting the B2B2C (Business to Business to Customer) model, companies should allocate 35-40% of the product price to distributors. By selling directly on e-commerce platforms, however, they pay much lower commissions, less than 10%, and the remaining amount can be deducted directly from the sales price or invested in improving the product.
Artificial intelligence and Big Data and machine learning increase sales
Furthermore, in 2024, artificial intelligence, machine learning and analytics Big Data will continue to gain ground. These technologies are profoundly changing the way sales happen, creating more refined, accurate and secure experiences. While the AI elmachine learning are mainly applied by large online platforms, big data can also be quickly analyzed by SMEs. This tool can help brands ad increase turnover and market share based on authentic analytical data, especially in difficult times, allowing you to gain a better understanding of consumer desires and market trends. Finally, big data also helps to optimize transport: logistics, supply chain management and R&D above all.
