According to a report by YouNet ECI, a leading e-commerce development consulting and analytics firm, consumers spent a whopping 87.37 trillion VND on the four multi-category e-commerce platforms: Shopee, TikTok Shop, Lazada, and Tiki, in the second quarter, marking a 10.4% increase from the first quarter.
Shopee maintained its dominance with a total transaction value (GVM) of 62.38 trillion VND, capturing a substantial 71.4% market share. Furthermore, Shopee dominated over 50% of the market share across all e-commerce product categories.
TikTok Shop retained its second position with 19.24 trillion VND in transaction value, accounting for 22% of the market share. Lazada and Tiki followed suit with 5.16 trillion VND and 584.77 billion VND, respectively.
Combined, Shopee and TikTok Shop accounted for 93.4% of the total transaction value in the second quarter of 2024, an increase from 91.25% in the previous quarter. The battle for market share in e-commerce has now become a duopoly between TikTok Shop and Shopee.
A comparison between the two platforms reveals that Shopee’s growth rate in the second quarter outperformed that of TikTok Shop. While TikTok Shop’s total GMV grew by 4.8% quarter-over-quarter, Shopee’s total GMV surged by 16.1%, allowing it to capture an additional 3.5% market share.
The primary reason for this discrepancy lies in the platforms’ reliance on the Fashion & Accessories category. This category accounted for only 24% of Shopee’s total GVM but a significant 37.5% of TikTok Shop’s GVM during the same period. As consumer demand for these products waned in the second quarter following the festive shopping during the Lunar New Year, TikTok Shop’s revenue took a notable hit.
To maintain its competitive edge, Shopee operates under the motto, “if they have it, we have it too,” continuously blending shopping with entertainment. Specifically, Shopee has been investing heavily in diverse livestream formats, collaborating with prominent KOLs, and creating a counterbalance to TikTok Shop’s shoppertainment strengths.
Meanwhile, TikTok Shop made its mark with a two-month-long birthday celebration, “Sinh nhật vui sắm,” in May and June. Notably, TikTok Shop also witnessed a surge in livestream sessions, generating millions of dollars in sales.
This collective push resulted in the entire market’s GMV for June reaching a remarkable 33.8 trillion VND, the highest monthly figure so far this year.
The growth of this entertainment-focused shopping format aligns with predictions about the driving forces behind Vietnam’s e-commerce expansion.
Looking ahead, Mr. Nguyen Phuong Lam, Market Analysis Director at YouNet ECI, forecasts that the main trends driving the growth of Vietnam’s e-commerce industry over the next 3-5 years will include daily online shopping habits, high-value product categories, and the continued rise of shoppertainment.
Overloaded Lunar New Year Orders
This year, the situation of overloaded delivery during the Lunar New Year holiday is happening earlier than usual.
Lucky Shipper Wins Big During Lunar New Year
In the days leading up to Tet holiday, the amount of online shopping has significantly increased, with delivery personnel being busy on every route in Hanoi. According to an e-commerce expert, online shopping during this Tet holiday has seen a remarkable surge and is expected to continue rising in the coming period.
A multi-billion dollar industry set to enter the top 5 largest export markets in Vietnam: USA and Japan could be major clients.
The industry has the potential to reach $12 billion by 2027, making it the fifth largest export industry in Vietnam.
