The e-commerce market is considered a “fertile land”, but it is not lacking in serious challenges due to fierce competition. In the context of e-commerce platforms growing strongly, Shopee still maintains its leading position in Vietnam. In today’s article, Optimal FB will learn about Shopee market share in Vietnam. Let’s analyze!
Shopee market share in Vietnam
In the first quarter of this year, Shopee continued to maintain its throne in the online retail market with more than 50% market share, while TikTok Shop also increased its market share strongly. According to a report from YouNet ECI, consumers spent about VND 53,740 billion shopping on Shopee, helping this platform maintain a 67.9% market share by total transactions. The remaining positions in the top largest e-commerce platforms in Vietnam still belong to Lazada (7.6%) and Tiki (1.3%).
Meanwhile, TikTok Shop has occupied 23.2% market share, an increase of 6.3 percentage points compared to the previous quarter, with shopping revenue reaching 18,360 billion VND, an increase of 15.5% compared to the previous quarter. The platform currently has three times the GMV of Lazada. At TikTok Shop Summit 2024, it was reported that 2.8 million businesses participated, the number of sellers maintaining a stable GMV tripled, and views of live stream sessions and short videos doubled ten times compared to the previous year. This strong growth is also confirmed by Metric, showing that retail revenue of Vietnam’s e-commerce market in the first quarter reached VND 71,200 billion, an increase of 78.69% over the same period last year. The total number of successfully delivered orders also increased by 83.21% to 766.7 million product units, far exceeding previous forecasts.
How Shopee takes the top position in the Vietnamese market
According to Kirin Capital, the strategy to help Shopee succeed in Vietnam includes the “cash burning” strategy and marketing strategy. When first entering the Vietnamese market, not only Shopee but all e-commerce platforms participated in the race to “burn money” to compete for market share and change consumer shopping habits from traditional supermarkets or markets to online shopping. Right from the time of launch in 2016, Shopee launched a “money burning” campaign in Vietnam using the “revenue whitening” strategy for three consecutive years from 2016 to 2018, launching a series of promotional codes to dominate the market early. Despite using a cash-burning strategy, since 2019, Shopee has recorded revenue for the first time and continues to grow strongly year after year. In particular, in 2022, according to data from Vietdata, Shopee reported a profit of VND 3,000 billion for the first time, revenue for the year skyrocketed to VND 11,000 billion, offsetting up to 40% of the total accumulated losses of other companies the year before that.
Kirin Capital believes that from a long-term perspective, this strategy is likely to lead to sustainable profits when online shopping habits in Vietnam become popular. From there, Shopee attracted more users to join the platform and created a strong ecosystem that made both buyers and sellers dependent on the platform. At that time, Shopee can gradually reduce previous incentives to increase profits, while still maintaining a stable customer base. In addition, the application of artificial intelligence (AI) in analyzing data and customer base helps Shopee provide product suggestions that suit each person’s desires. After more than seven years of launching in the Vietnamese market, Shopee has increasingly integrated more features into its shopping application, turning Shopee into a miniature social network. They build an interactive community through features such as ShopeeLive (live streaming), Shopee Games (play games in the app, receive promotions), Shopee Feed (message board to share content about items), or Shopee Live Chat (live chat between buyers and sellers).
Kirin Capital assesses that Shopee’s marketing campaigns often keep up with trends and impress consumers. The most prominent of Shopee’s marketing strategies is making good use of Influencers. Realizing that the young customer base accounts for more than 30% of the Vietnamese market, Shopee has chosen representative faces to be stars that attract the attention of young people such as Son Tung M-TP, Tien Dung, or even invited investment. The famous Korean music group BLACKPINK is the representative face in promotional campaigns. Taking advantage of the heat of the representative faces, Shopee has created interesting “trend-catching” TVC advertisements such as the 2018 Birthday Sale event advertisement on December 12 with the hit song “DDU-DU DDU-DU” by BLACKPINK, or the advertising campaign with Son Tung M-TP and the catchy slogan “Like Shopping, surf Shopee.” All of Shopee’s advertising campaigns are a big hit, and this is considered the company’s success when choosing influencers very appropriately.
In the article on Optimal FB, we have listed for you the detailed content in the most accurate way. We hope that the information we have shared can help everyone in learning about Shopee’s market share. in the e-commerce industry and how Shopee takes the leading position in the Vietnamese market.
Contact Info
Information about “Shopee market share in Vietnam” hopes to provide you with additional necessary knowledge. At optimal FB, there is a team of highly qualified and experienced staff and experts who will provide facebook agency account as well as support when you run Facebook ads. Contact us via phone number: +84 8 3405 5222.
Frequently asked questions
The number of Shopee users in Vietnam has grown impressively in recent years. Since its launch in 2016, Shopee quickly attracted a large number of consumers thanks to its strong marketing strategy and attractive promotions. According to statistics, by 2022, Shopee will have tens of millions of registered users in Vietnam, becoming the top popular e-commerce platform. Convenience, product diversity and continuously improved shopping experience have helped Shopee maintain and expand its customer base, thereby strengthening its strong position in the Vietnamese e-commerce market.
The online shopping situation in Vietnam in 2024 continues to grow strongly, becoming an indispensable part of people’s consumption habits. With the increase in internet and smartphone users with supportive policies from the government and businesses, the e-commerce market has seen a boom in sales and users. E-commerce platforms such as Shopee, Lazada, Tiki, and Sendo constantly improve services, launch many promotions, and apply new technology such as AI to improve user experience. The fierce competition between exchanges also brings great benefits to consumers, as they can access a variety of products with reasonable prices and quick delivery services.
