The Rapid Growth of Vietnam’s E-commerce Market
Vietnam’s e-commerce market has witnessed remarkable growth in recent years. According to Metric’s Q1 2024 report, the total revenue of the top five online retailers increased by 78.69% compared to the same period in 2023. Notably, the fast-moving consumer goods (FMCG) sector continued to show stable development, with a total revenue of 23 trillion VND, a 57% increase.
Within the FMCG sector, beer – a product group that seemed challenging to sell online due to age restrictions and tight policies on e-commerce platforms – still exhibits promising signs of potential growth. In the first five months of 2024, alcoholic beverages brought in more than 90 billion VND for sellers, a 7% growth compared to the same period in 2023. This development is largely attributed to changing consumer behavior and the growing trend of online shopping.
Consumers are increasingly favoring online shopping due to the diversity and convenience of delivery services, especially for bulky items like beer. There is also a noticeable shift in consumer behavior, with people opting to drink at home rather than drive after consuming alcohol. These factors have encouraged beer brands to strengthen their online sales channels.
Mr. Nguyen Son, an office worker in Hanoi, shared, “Before the implementation of breathalyzer tests for drivers, I often hung out with my friends at beer pubs after work. However, since the new regulation, we’ve moved our gatherings to our homes, which is safer and more comfortable. I usually choose to order beer online from e-commerce platforms because it’s convenient, saves me the hassle of carrying heavy crates, and often comes with great deals.”
Consumers are attracted to online shopping due to the convenience and diversity of delivery services, especially for bulky items like beer.
E-commerce: An Attractive Playing Field for Beer Businesses and Producers
The traditional beer supply market faces challenges due to new regulations and changing consumer habits, prompting businesses to seek new growth strategies. In this context, e-commerce emerges as a promising opportunity. HABECO, one of Vietnam’s oldest and most reputable beer brands, has recorded astonishing growth, with a nearly twofold increase in production volume in the first half of 2024 compared to the same period in 2023. This impressive development showcases HABECO’s agile business strategy, adapting to modern consumption trends.
Mr. Pham Bao Trung, Director of Business at the Metric e-commerce data platform, analyzed two critical factors for the brand’s success in the e-commerce channel: “The first and most important factor is the brand and its products. A strong brand reputation and high-quality products are essential for consumers’ consideration when purchasing through e-commerce platforms.” HABECO, with its portfolio of well-loved products like Bia Hanoi, Bia Hoi Hanoi, and Bia Truc Bach, has proactively developed effective market strategies to enter the e-commerce arena, leveraging the potential of this platform.
The second factor is the ability to quickly grasp and adapt to market trends and shifts in consumer demands in the e-commerce space. E-commerce is a highly competitive and rapidly changing environment. Identifying the opportune moments when consumer demand surges is crucial for brands to make their move. Data is the key to unlocking growth opportunities.
According to Metric, a pioneer in providing e-commerce data solutions and analytics, special events like Tet Holiday and major international football tournaments like EURO increase the demand for alcoholic beverages on e-commerce platforms. By understanding these consumption trends, brands can promptly develop effective strategies and seize the “golden opportunity” to excel.
Growth chart of the alcoholic beverage sector for the first five months of 2024 (according to Metric’s data). Metric helps brands like HABECO navigate and succeed in this promising e-commerce landscape through data-driven insights.
The e-commerce market for beer and alcoholic beverages is expected to continue growing. To effectively enter this arena, businesses must focus on product and brand development while leveraging Big Data and AI to analyze the market, formulate strategies, and execute effective marketing campaigns to achieve their growth objectives.
