The data just published by Metric – e-commerce data platform, showed that retail sales on the five largest e-commerce platforms in Vietnam: Shopee, Lazada, Tiki, Sendo, Tiktok Shop have reached 71.2 trillion VND, an increase of 78.69% compared to Q1/2023. This number far exceeded expectations as many forecasts predicted that e-commerce market revenue in 2024 would only increase by around 35% compared to 2023.
REVENUE GROWTH SURPASSED EXPECTATIONS
At the same time, Metric recorded more than 766 million product units sold, nearly 511,000 stores generating orders (an increase of 9% compared to the same period last year) with 13.1 million products sold (an increase of 10% compared to the same period last year) through these major e-commerce platforms. Notably, the number of sellers also grew more strongly than in Q2-2023, at 9.22%. This is a positive sign as this indicator has always been negative in many previous quarters.
In which, Hanoi and Ho Chi Minh City are the two localities with the highest sales and output based on warehouse location, accounting for over 70% of the total market. E-commerce revenue of Hanoi on the five e-commerce platforms mentioned above reached over 20,000 billion VND (an increase of 77% compared to Q1/2023), of Ho Chi Minh City over 14,000 billion VND (an increase of 65% compared to Q1/2023). These two localities are still considered strong growth markets in the near future.
Besides Hanoi and Ho Chi Minh City, the business situation on e-commerce platforms in other localities also showed positive signs, with total sales and output of localities outside the top 10 all growing by more than 50%. This proves that e-commerce is no longer a playground for businesses in big cities but has tended to expand its influence to provinces and cities.
BEAUTY SECTOR CONTINUES TO TAKE THE LEAD
Bringing a total of 11.25 trillion VND (an increase of 62.53% compared to Q1/2023) for all five e-commerce platforms in the first three months of the year, the Beauty sector showed its influence by continuing to maintain its top position in the ranking of industries with the highest revenue. Following are the sales of the Women’s Fashion sector with a turnover of 9.58 trillion VND (up 93.65% compared to Q1/2023) and the Home – Living sector with 9.13 trillion VND (up 78.53% compared to Q1/2023)
“The reason why the beauty industry can maintain its position from year to year comes from three characteristics of the industry: products with high repurchase power, many promotional programs compared to offline stores, and most customers are female – the main customer base of the platforms. e-commerce,” said Pham Bao Trung, Business Director of Metric.
In addition, Q1/2024 also witnessed the rapid development of the home appliances sector, with revenue growth of 146.8% and output growth of nearly 370%. The top of the best-selling products are all priced high, such as projectors, robotic vacuum cleaners, etc. This shows that consumers are no longer afraid of buying valuable items on online platforms if sellers prove their reputation and product quality.
QUARTER 2/2024 FORECAST TO CONTINUE STABLE GROWTH
According to Metric’s forecast for Q2/2024, total revenue on the five largest online retail e-commerce platforms in Vietnam will reach 84.87 trillion VND with 882.12 million product units sold; up 19.2% and 13.57% respectively compared to Q1/2024. This is a completely achievable target when the market has had a very positive start.
The market’s peak business season will accelerate from Q2/2024, with a growth rate of 19.2% compared to Q1-2024, equivalent to an increase of about 78% compared to Q2/2023. Therefore, businesses need to have a plan to produce – import goods appropriately from the beginning of the year to avoid running out of goods to supply the market, thereby reducing revenue and market share.
“Therefore, thoroughly researching the market, choosing products and e-commerce platforms to do business, and developing effective strategies based on real-world data and analysis will be the right direction for sellers in the current period,” emphasizes Mr. Trung.
