Market analysis 1 Market size Global Markets According to the report Digital in Vietnam 2022 of We are social, Hootsuite, the number of spending on department stores on e commerce by customers is . According to a report by Google, Temasek and Bain Company, in 2022, consumers buying online in Vietnam accounted for 49%, second only to Singapore (53%), higher than Malaysia and Indonesia. Specifically, if in 2015, Vietnams retail ecommerce only reached 5 billion USD, reaching 11.8 billion USD in 2020, continuing to increase to 13.7 billion USD in 2021. According to the Vietnam ecommerce white paper 2022, our country has up to 74.8% of internet users participating in online shopping. In particular, the items most purchased online are clothing, shoes and cosmetics (69%), home appliances (64%), technology and electronics (51%).
Market analysis 1: Market size Global Markets According to the report "Digital in Vietnam 2022" of We are social, Hootsuite, the number of spending on department stores on e-commerce by customers is growing faster than the number of users It can be said that the development of e-commerce has led to the growth of the department store industry In particular, during the Covid-19 pandemic, especially in the first months of 2021, online department stores are the only industry to achieve positive growth of 13% The global e-commerce market grew from $2,634.47 billion in 2021 to $3,047.83 billion Overall, the global revenue of the online consumer goods industry – including groceries, fashion, electronics and other household items – grew by more than half a trillion USD in 2021 (an increase of 18%), reaching a total of 3.85 trillion USD for the whole year Vietnam e-commerce market According to a report by Google, Temasek and Bain & Company, in 2022, consumers buying online in Vietnam accounted for 49%, second only to Singapore (53%), higher than Malaysia and Indonesia Specifically, if in 2015, Vietnam's retail e-commerce only reached billion USD, reaching 11.8 billion USD in 2020, continuing to increase to 13.7 billion USD in 2021 According to the Vietnam e-commerce white paper 2022, our country has up to 74.8% of internet users participating in online shopping In particular, the items most purchased online are clothing, shoes and cosmetics (69%), home appliances (64%), technology and electronics (51%) Shopee According to the chart, Shopee is currently the most popular e-commerce platform in Vietnam It is a company of Singapore's Sea Group Currently, Shopee accounts for nearly 73% of total sales of exchanges, equivalent to about 33.5 trillion Soon Lazada is accounting for 20% of the market share, corresponding to revenue of 9.7 trillion, equal to about 1/3 of Shopee sales Lazada is the e-commerce platform of Alibaba Group, China Shopee and Lazada have outpaced two domestic competitors, Tiki and Sendo, occupying the No and positions with a revenue market share of 5.8% and 1.4%, respectively This Shopee currently has more than 160 million active listings with about million sellers, including more than 7,000 leading brands and distributors As of 2017, the platform has recorded 80 million app downloads, more than million in Vietnam It currently works with more than four million suppliers with more than 180 million products Accordingly, the leading e-commerce site continues to be Shopee with nearly 89 million visits in the quarter A total of 42 million users made their first purchase on Shopee Mall in 2021 and partners with a total transaction value of 100 million US dollars (nearly 2,300 billion VND) In 2021, Shopee Vietnam's net revenue is nearly 5,700 billion VND 2:Market growth Global e-commerce growth Global e-commerce sales are expected to total $5.7 trillion worldwide by 2022 This number is expected to continue to grow over the next few years, proving that e-commerce is becoming an increasingly lucrative option for businesses Additionally, of all global retail sales in 2022, 19.7% are expected to come from online purchases That is, nearly $0.20 of the $1 spent on retail goods this year will be done over the internet Online sales are expected to continue to grow and make up a larger share of the retail pie By 2026, it is estimated that the world's e-commerce retail sales will exceed $8.1 trillion, and total e-commerce retail sales will reach 24% Global e-commerce growth table Vietnam's e-commerce growth Compared to the situation of e-commerce in the world, Vietnam has a strong growth rate According to Statista, the global e-commerce growth rate has a growth rate of 16.24% in 2021 and is forecast to break through to 24.5% in 2025 In Vietnam, this figure in 2021 is more than 20%, with a scale of 16 billion USD By 2025, the growth rate of e-commerce in our country could reach 29%, reaching 39 billion USD Metric.vn data shows that Shopee, Lazada, Tiki and Sendo are the e-commerce platforms with the largest market share in Vietnam The report "Digital in Vietnam 2021" recorded e-commerce spending in Vietnam in 2020 for each category In particular, buyers spend the most on the tourism, transportation and travel industry with a total expenditure of up to 3.18 billion US dollars Next is the electronics industry with total revenue of 1.57 billion USD, 1/2 of the leading industry Other industries with billion-dollar e-commerce revenues are fashion and beauty, furniture and household goods, food Vietnam's economic growth Data of the General Statistics Office, the wholesale and retail sector decreased by 0.21% compared to the previous year, reducing by 0.02% in the growth rate of the total added value of the whole economy; the transportation and warehousing industry decreased by 5.02%, reducing by 0.3%; the accommodation and catering services sector plummeted by 20.81%, down 0.51% Summarizing the whole year of 2021, Vietnam's economic growth is only 2.58%, the lowest in the past 30 years In that context, Vietnam's e-commerce still maintains a stable growth rate of 16%, retail revenue reaches 13.7 billion USD in 2021; the proportion of e-commerce retail revenue in the total retail sales of consumer goods and services nationwide reached 7%, up 27% over the same period in 2020 Vietnam B2C e-commerce revenue in 2017 – 2022 (billion USD) Foreign direct investment continues to pour into Vietnam's e-commerce sector in 2022 Companies from China, Japan, South Korea, and the U.S have expanded their digital presence on local e-commerce platforms Shoppe Company Growth The discussion growth of e-commerce floors in 2021 increased sharply, the brands Shopee, Lazada, Tiki increased times; Sendo alone has a 7-fold increase in discussions compared to 2020 At the same time, Shopee's search trends on Google Trends always have the highest popularity, monthly average >65/100 Popular keywords searched include "Shopee Discount Code Search", "Shopeefood", and "Shopee Pay Accordingly, Shopee leads with nearly 89 million visits in the quarter, up about 14% compared to the third quarter of 2021 and about 30% over the same period last year Shopee is also the number one e-commerce site on both mobile platforms, Android and iOS Comparing Tiki and Lazada is almost flat compared to Q3/2021, the traffic is 17.9 million units and 20.6 million units, respectively Compared to Q4/2020, both ecommerce platforms grew negatively, with Tiki at -20% and with Lazada at -1% traffic increased by 6.61% month-on-month (desktop) according to similar web statistics Access to shopee.vn shopee.vn generates the majority of social media traffic through Facebook, followed by Youtube and Instagram (desktop) Engaging an audience through Tiktok offers the possibility of new opportunities according to web statistics Access from social networks to shopee.vn The number of Shopee sellers in the vicinity of major cities grew by 70% compared to the same period last year In 2021, in orders were from new Shopee users, while the number of Shopee users in the vicinity of major cities has increased by 40% The number of ShopeePay e-wallet users in the vicinity of big cities increased 2.5 times, as more and more people enjoy the convenience of digital payment methods Besides, ShopeePay is also an effective tool to connect many online sellers and retailers with new customers More than 1,000 local sellers exceeded the revenue of 100,000 USD (nearly 2.3 billion VND) in days of Shopee's year-end shopping festival of 9.9, 11.11 and 12.12 First-time sellers entering online business also recorded significant growth during the year-end shopping season On November 11 alone, sales of new sellers on Shopee increased 18 times compared to the average of weekdays The "ShopeePay Near You" feature is a new feature that helps users discover many offers when paying at stores near them After implementation, this new feature has recorded million transactions made at partner stores Shopee Mall continues to create growth momentum for partner brands, pioneering the provision of innovative solutions and tools to support brands in sustainable development Many partner brands have recorded strong growth and achieved new milestones A total of 42 million users made their first purchase on Shopee Mall in 2021, and partners had a total transaction value of 100 million US dollars (nearly 300 billion VND) In 2021, Shopee Vietnam's net revenue is nearly 5,700 billion, VND nearly 2.5 times the figure of 2020 and times higher than 2019 However, along with increased revenue, the platform's annual recorded losses tend to decrease Market Trend : World e-commerce Trust is the main currency of the future of e-commerce Brands must be transparent, authentic, and available to their customers, especially when online consumers spend the majority of their time: on social media Social e-commerce trends are the online shopping hub for consumers tomorrow, with brands investing in video and in-person shopping Direct-to-consumer (DTC) companies are also investing in online communities to personify their brands, increase customer retention, and overcome skyrocketing advertising costs Trend Rising acquisition costs force brands to foster long-term relationships with their customers Businesses strengthen customer connections by putting their brand identity front and center Direct-to-consumer competition is rising Although retail business doors have reopened, ecommerce sales aren’t slowing, resulting in an influx of DTC brands competing for customer attention Advertising costs are skyrocketing across platforms Digital advertising costs are eating up marketing budgets, putting performance marketing–heavy customer acquisition models in jeopardy Brand building is helping attract and retain customers Businesses are overcoming the competition by investing in brand building, which increases customer lifetime value, boosts conversion rates in the short term, and attracts out-of-market buyers in the long term Trend Death of third-party cookies forces brands to rethink personalization Online retailers rehumanize their brands through communities, transparency, and shared values Consumers are demanding personalization Consumers continue to demand personalized shopping experiences, even as regulations make data tracking harder, and the biggest players phase out support for third-party cookies Personalization isn’t a magic bullet for customer engagement Brands innovate with first-party data, but personalization isn’t enough to create long-term relationships with customers Brand communities are building customer loyalty Brand communities become key to building trust and brand equity, and improving customer retention Trend New commercial opportunities emerge on the biggest social platforms Brands embrace experimentation to take advantage of social commerce Ecommerce is migrating to social media platforms Ecommerce activity is congregating on social media platforms, from brand marketing to customer service to shoppable advertising Social platforms are presenting new ways to engage customers Diverse platforms and rapidly evolving features lend themselves to unique customer experiences, encouraging brands to reimagine consumer engagement Video is making social commerce more sociable Video is key to unlocking the power of social commerce Leading brands are focusing on social-first approaches like behind-the-scenes livestreams, video consultations, and personalized product recommendations Vietnam e-commerce The digital economy in Vietnam is growing rapidly and four key sectors—e-commerce, online travel, food and transportation, and online media—are increasing the application of technology to keep up with consumer demand In 2021, the e-commerce industry in Vietnam recorded a growth of 16% over the previous year, reaching a total value of goods worth 13 billion USD The shift to e-commerce in Vietnam has opened the door for low-income people to try running their own micro-businesses Women have also helped increase their combined household income through online sales Vietnam's e-commerce growth in 2022 is forecast to reach $16.4 billion in revenue, the first time the industry has reached this value According to a recent report, 53% of Vietnamese consumers have considered online shopping as a habit, which bodes well for the development of Vietnam's e-commerce industry in the coming years There is a high demand for Vietnamese agricultural products and exporters can exploit the growth of Vietnam's e-commerce sector to promote and market these products By partnering with manufacturers, distributors, and other industry players, online merchants can support the growth of the agricultural industry through their own capabilities Digital banking also plays a key role in Vietnam's e-commerce sector In 2022, 85% of Vietnamese consumers prefer digital financial services over traditional payments The digital transformation of Vietnam's banking system allows for leaner systems that make it easier for consumers to access services With more innovations, it can assist in accelerating the e-commerce sector as more consumers maximize online shopping channels Revenue from livestream sales is expected to continue to increase, leading to an increased need for product reviews to support purchasing decisions Omnichannel will become a new form of retail Brands will take advantage of both traditional and online channels by joining e-commerce platforms, using available online marketing tools The customer's shopping journey will gradually be personalized This will be the key to attracting attention and retaining consumers E-commerce platforms have invested in AI and Big Data to aggregate and process information, thereby designing their own experiences Shoppe The demand for goods at shoppe has grown strongly in different categories, especially the beauty and women's fashion industry, increasing sharply on holidays or discount days In the first major sales seasons of 2022, the statistics of the top best-selling products of the Beauty and Women's Fashion industry clearly show the buying trend of Buyers: The Facial Care product group leads the Beauty market on Shopee Products in the Body Care category have outstanding sales in the first half of 2022 Shirts and Dresses are still the two categories that bring the highest revenue when accounting for 40% of the total sales of women's fashion on Shopee Along with the strong demand for open shops to serve the equivalent of the demand needed in the market that shoppe has not yet occupied all The number of Shopee sellers in the vicinity of major cities grew by 70% compared to the same period last year In 2021, in orders were from new Shopee users, while the number of Shopee users in the vicinity of major cities has increased by 40% Market share and demand : Global and Vietnam Vietnam's e-commerce growth is forecasted by firms to continue to boom in the coming years and will reach 39 billion USD by 2025, ranking 2nd after Indonesia (104 billion USD), equal to Singapore Vietnam's total Internet economic revenue by 2025 is forecast to reach 57 billion USD, second only to Indonesia Vietnam also has the 2nd highest percentage of consumers shopping online in the region, behind only Singapore According to the "Digital 2022 global overview report" of We are social & Hootsuite, the percentage of internet users shopping weekly in Vietnam ranks 11th among countries (58.2%), on par with the global average, higher than the US, Australia, France, Japan, Germany but lower than Thailand, Malaysia, South Korea, China, Singapore, Philippines, India, Indonesia and the UK Across Southeast Asia, Google, Temasek and Bain & Company's "Southeast Asia Economy 2021" report forecasts e-commerce revenue to grow from $120 billion in 2021 to $234 billion in 2025 It is forecasted that the average online shopping value of online consumers will continue to increase strongly, from $ 381 / person in 2021 to $ 671 / person in 2026 With a rate of 49%, consumers shopping online in Vietnam are second only to Singapore (53%), higher than Indonesia and Malaysia Shopee Assess The ranking of websites helps to assess the value of a company Over the past three months, shopee.vn's global ranking has dropped from 282 to 295 But still holds the number one position in Vietnam's e-commerce market And ranked 6th in the most visited websites in Vietnam In the first half of 2022 report of Metric.vn Data Research Company, Vietnam is becoming the second largest market in Southeast Asia, only after Indonesia in the context of outstanding development after the COVID-19 pandemic Metric.vn's data shows that Shopee, Lazada, Tiki and Sendo are the most prominent ecommerce platforms in Vietnam Specifically, Shopee is the e-commerce platform accounting for the largest market share in Vietnam today with sales up to VND 43,118 billion, accounting for 72% of the market share from November 2021 to May 2022 Ranked 2nd is Lazada with a market share of 20.9%, equivalent to VND 12,539 billion Tiki and Sendo are far behind the two competitors above According to iPrice Group's statistics in Q4/2021, Shopee is currently the leader in popularity with nearly 89 million visits On social networks such as Instagram, Facebook, Youtube, the presence of this e-commerce giant is very outstanding Notably, Shopee's traffic is more than double the number that direct competitors like Tiki, Lazada, and Sendo combined Lazada is currently only ranked 4th with 20.6 million visits, followed by Tiki's 5th place with 17.8 million visits Sendo dropped to 11th place with nearly million visits Traffic of shopping sites Referece https://apidn.reputa.vn/blog/upload/files/e7dcdb48-f6ba-4fdd-80d4-24e72be58062.pdf https://www.shopify.com/research/future-of-commerce/future-of-ecommerce#Trend1 https://www.similarweb.com/fr/website/shopee.vn/#ranking https://magenest.com/vi/thi-truong-thuong-mai-dien-tu-viet-nam/ https://baodautu.vn/viet-nam-la-thi-truong-lon-thu-2-sau-indonesia-trong-linh-vuc-thuong-maidien-tu-dong-nam-a-d173250.html https://thuongtruong.com.vn/news/tong-luong-truy-cap-cua-tiki-lazada-va-sendo-chi-bang-motnua-cua-shopee-76177.html https://vneconomy.vn/thuong-mai-dien-tu-viet-nam-nam-2022-uoc-dat-16-4-ty-usd.htm https://viettimes.vn/shopee-dang-bo-xa-tiki-lazada-va-sendo-post154568.html https://www.marketresearchvietnam.com/insight/the-growth-of-e-commerce-in-vietnam-in-2022 https://www.thebusinessresearchcompany.com/report/ecommerce-global-market-report ... monthly average >65/100 Popular keywords searched include "Shopee Discount Code Search", "Shopeefood", and "Shopee Pay Accordingly, Shopee leads with nearly 89 million visits in the quarter,... accounting for 20% of the market share, corresponding to revenue of 9.7 trillion, equal to about 1/3 of Shopee sales Lazada is the e-commerce platform of Alibaba Group, China Shopee and Lazada have... electronics (51%) Shopee According to the chart, Shopee is currently the most popular e-commerce platform in Vietnam It is a company of Singapore''s Sea Group Currently, Shopee accounts for