Explosive Growth
In line with the robust recovery of the domestic economy, the e-commerce marketplace in Q1 2024 painted a vibrant picture.
The comprehensive report on the online retail market for Q1 2024 and forecast for Q2 2024, published by the E-commerce Metric data platform, reveals that in the first three months of 2024, the total revenue across the five largest e-commerce platforms in Vietnam (Shopee, Lazada, Tiki, Sendo, Tiktok Shop) reached 71.2 trillion VND, a growth of 78.69% compared to the same period in 2023, excluding revenue from livestreaming sessions; with 766.7 million product units sold, an increase of 83.21% year-on-year.
This is a highly positive growth rate, far exceeding expectations as many forecasts from the end of 2023 indicated that growth for the entire year of 2024 compared to 2023 would only be around 35%.
With numerous domestic consumption stimulus programs being implemented, consumers are now spending more freely compared to the post-Covid-19 period. And online shopping is increasingly becoming an indispensable part of consumer habits.
Along with the tremendous growth in sales volume and value, Q1 2024 also recorded an extremely positive indicator: the number of active sellers recorded positive growth – the first time in many quarters.
Source: E-commerce Metric
It can be said that besides the economic recovery, businesses are increasingly confident in the development of the online retail market. E-commerce will be an arena that businesses must participate in if they want to reach a large number of customers.
Local businesses have also made great strides. This report shows that the total revenue and sales volume of localities outside the top 10 all increased by more than 50%. E-commerce is no longer a playground exclusive to businesses in large cities but has expanded its influence to provinces and cities. Placing warehouses in provincial cities helps shorten delivery time, promoting growth and meeting the demand for fast shopping by local consumers.
The total revenue and sales volume of localities outside the top 10 all increased by more than 50%.
Beauty Leads Sales, Growing by Almost 150%
Generating a total of 11.25 trillion VND for all five e-commerce platforms in the first three months of the year, Beauty demonstrates its influence by continuing to hold the top spot in the ranking of industries with the highest revenue.
Pham Bao Trung – Metric’s Business Director shared that the reason Beauty has been able to maintain its position year after year is due to three industry characteristics: products with high repurchase rates, numerous promotional programs compared to offline stores, and customers who are mostly women – the main customer base of e-commerce platforms. Skincare is the most popular product group with sales of 3,223 billion VND and 22.32 million units sold.
In addition, the first quarter of 2024 witnessed the rapid growth of the home appliances industry, with sales growth of 146.8% and sales volume increasing by almost 370%. The top-selling products all have high prices, such as projectors and robot vacuums. This indicates that consumers are no longer afraid to buy high-value items on online platforms if the seller can prove the product’s reputation and quality.
Beauty is a growing industry on e-commerce platforms.
The Online Retail Market in Q2 2024 Will Continue to Grow
In its forecast for Q2 2024, E-commerce Metric predicts that the total sales volume across the five largest online retail platforms in Vietnam will reach 84.87 trillion VND, with 882.12 million units of products sold; an increase of 19.2% and 13.57%, respectively, compared to Q1 2024. This is a target that is entirely achievable, given the very positive start the market has had.
Thoroughly researching the market, selecting products and e-commerce platforms for business, and developing an effective strategy based on actual data and analysis will be the right approach for sellers at this stage.
