TikTok Shop Vietnam become the second largest local e-commerce platform in Vietnam

Consumer Staples Author: Xin Zeng, Ruoxin Zhang Jul 26, 2023 06:17 PM (GMT+8)

EqualOcean was informed that on July 20, 2023, Vietnamese data research company Metric(Chinese:越南数据研究公司米特里克)released the e-commerce market report for the first half of 2023. According to the report, it is worth noting that in the Vietnamese e-commerce market in the first half of 2023, TikTok Shop(Chinese:抖音商城) surpassed Lazada(Chinese:拉扎达) and ranked second in terms of e-commerce market revenue share, second only to Shopee.

TikTok shop is an e-commerce tool launched by ByteDance, which is a new e-commerce game. Its depth combines TikTok app(Chinese:抖音) and TikTok for business(Chinese:抖音广告系统) account. Different from traditional marketplace e-commerce such as Amazon, ebay, etc., TikTok shop abandons the Bidding Rank model and relies on customized recommendation + LIVE and video to generate traffic.

Metric's e-commerce market report data shows that TikTok Shop achieved revenue of VND 16.30 trillion(USD 706.1 million)and sold 117 million products; third-ranked Lazada achieved revenue of VND 15.70 trillion and sold 117.50 million products. For an e-commerce platform that just entered the South East Asia market last year, this development rate is very amazing. As the country with the highest active level of Internet celebrities in South East Asia, Vietnam has more than 2.50 million Live-Streaming Marketing events per month, and the economy spawned by influencer promotion is also growing rapidly.

By consulting the report of Vietnam data research company Metric , EqualOcean shows that Vietnam is one of the fastest growing countries in the e-commerce market in South East Asia; it is expected to reach a compound annual growth rate of 31.7 in 2022-2025. By 2025, its e-commerce market size will reach USD 32 billion, and it is expected to surpass The Kingdom of Thailand to become the second largest e-commerce market. In the first half of 2023, Vietnam's e-commerce platform revenue reached VND 92.745 trillion, nearly 400,000 stores generated orders and sold more than 900 million products. Compared with the same period last year, Vietnam's e-commerce revenue increased by 46%.

As of July 2023, TikTok Shop has expanded overseas in some countries. Specifically, TikTok Shop has been the main battlefield in many European countries such as the US, the United Kingdom, France, Germany, Italy, Spain, and the Netherlands. By checking the data of TikTok official website, it can be found that it launched TikTok Shop business in April and May in the first half of 2022 to serve local sellers in Vietnam, and the cross-border business was also launched in June and July this year, and it is open to all sellers including cross-border and local.

Some well-known e-commerce platforms in Vietnam include: Shopee(Chinese:虾皮) ,Tiki , Lazada, Sendo, Thegioididong, etc. Along with the growth of consumers on social platforms, there are also the entry of merchants of various sizes. According to the Vietnam E-commerce Association(Chinese:越南电商协会): "The business of e-commerce and social networking platforms is the highlight of the Vietnamese e-commerce industry in Quarter 1 in 2022 and 2023." The e-commerce performance brought by the marketing attributes of social platforms is still worth looking forward to, not to mention, TikTok has a huge user traffic advantage.

It can be seen that the e-commerce performance brought about by the marketing attributes of social platforms is still worth looking forward to, not to mention, TikTok also has a huge user traffic advantage TikTok Traffic plus Internet celebrity marketing, TikTok Shop's performance in Vietnam continues to rise, and it took only 10 months to surpass Vietnamese local e-commerce Tiki and Sendo , ranking third in the most popular e-commerce platform in Vietnam.