Retail e-commerce continues strong growth, expected to reach $30 billion

DNHN - Online shopping through the internet and various platforms has become a common trend, saving consumers time and increasing convenience. Consequently, retail e-commerce continues to grow robustly.

As of the first six months of 2024, total retail goods and consumer service revenues have increased by 8.6% compared to the same period in 2023. However, this rate is significantly lower than the 11.3% growth recorded during the same period in 2023, considering a price increase of 5.7% (compared to 8.8% in the same period in 2023). This indicates that market growth is quite low compared to the pre-Covid-19 period and recent years.

It is projected that total retail e-commerce revenue in 2024 could reach around $30 billion, equivalent to approximately 14% of the total retail goods revenue nationwide.

One crucial factor contributing to the growth of retail e-commerce is the increase in the number of online consumers. With the widespread use of smartphones and internet connectivity, users can easily access e-commerce platforms and shop from anywhere and at any time. This has expanded the potential market and created significant business opportunities for companies.

Additionally, advancements in technology and user experience play an essential role in the development of retail e-commerce. E-commerce platforms are increasingly improved to meet user needs, from user-friendly interfaces and easy payment processes to high-quality customer service. New technologies like artificial intelligence, machine learning, and virtual reality are also applied to enhance online shopping experiences, from product recommendations to interactive shopping experiences.

Moreover, traditional retail businesses are also transforming and adjusting their business strategies to adapt to the development of retail e-commerce. Many stores and brands have opened their online sales channels, combining physical stores with online business models to optimize the shopping experience for customers. At the same time, businesses invest in online advertising, digital marketing, and data analysis to capture customer needs and enhance business efficiency.

The development of retail e-commerce benefits not only businesses but also consumers. Online shopping helps customers save time and effort, easily compare prices and choose products from various suppliers. Furthermore, discount programs, promotions, and fast delivery services make online shopping more attractive than ever.

However, retail e-commerce also faces challenges. Ensuring safety and security in online payment processes remains a significant issue. Businesses must ensure that customers' personal and account information is protected to avoid fraud and privacy violations.

Moreover, competition in retail e-commerce is increasingly fierce. Businesses must find ways to enhance their unique value and provide a better shopping experience to attract and retain customers. Ensuring product quality, customer service, and delivery processes are crucial factors in building consumer trust and confidence.

In the overall retail industry, e-commerce continues to grow strongly. According to Nguyen Quoc Lan, Deputy Director of the Industrial and Trade Information Center (Ministry of Industry and Trade), data from the e-commerce platform Metric shows that in Q2/2024, the total revenue of the five largest e-commerce platforms in Vietnam reached about VND 85 trillion, up 78% compared to the same period last year. For the first six months of 2024, the total revenue of these platforms is estimated at VND 156 trillion, also up 78% compared to the same period in 2023.

Earlier, in Q1/2024, retail revenue from the five largest platforms, including Shopee, Lazada, Tiki, Sendo, and TikTok Shop, reached VND 71.2 trillion (excluding livestream revenue), up 78.6% compared to the same quarter in 2023. This growth exceeds the forecasted revenue growth of the Vietnamese e-commerce market in 2024, which was expected to increase by about 35% compared to 2023. Among these, Shopee continues to lead with VND 53.74 trillion, accounting for 67.9% market share, while TikTok Shop ranks second with VND 18.36 trillion, accounting for 23.2% market share. Lazada and Tiki respectively achieved VND 6.03 trillion (7.6% market share) and VND 997.06 billion (1.3% market share).

Dai Hai