Shopee continues to be the leading trading platform with a 63% market share in Vietnam

DNHN - Metric data indicates that Shopee maintained its position as the leading e-commerce platform in terms of revenue during the first half of the year, with a market share of 63%.

E-commerce data platform The report Overview of e-commerce platforms (e-commerce) in the first half of 2023 has just been published by Metric. The report is based on an analysis of data from five e-commerce platforms, namely Shopee, Lazada, Tiki, Sendo, and TikTok Shop.

According to the report, the total revenue on e-commerce platforms during the first half of 2023 was VND 92,745 billion, there were more than 394,000 shops with orders, and approximately 907 units of products were delivered successfully. Vietnam's e-commerce revenues have increased by 46% compared to the same period last year.

The TikTok Shop floor has not yet been launched in the first half of 2022; therefore, the growth rate for the same period based solely on revenue from Shopee, Lazada, Tiki, and Sendo will be 22.5%.

On all 5 e-commerce floors, the industry that generates the most revenue is beauty, with over 16,000 billion VND, followed by women's fashion and home life.

According to each floor, beauty was the category with the highest revenue on Shopee, Lazada, and Tiktok Shop. Meanwhile, mobile devices generate the most revenue on Tiki.

Metric data indicates that Shopee maintained its position as the leading e-commerce platform in terms of revenue during the first half of the year, with a market share of 63%.

The biggest surprise came from the position of TikTok Shop when, in the second quarter, this e-commerce platform surpassed Lazada in revenue, reaching more than 16,000 billion VND and ranking second in Vietnam.

ByteDance owns the e-commerce platform TikTok Shop, which is located within the social network TikTok. The shopping feature permits sellers, brands, and content creators to display and sell their products to users.

TikTok Shop entered Vietnam officially in April of last year. Despite its late entry into the Vietnamese e-commerce market, TikTok Shop has experienced rapid growth. According to Metric's data, sales on TikTok Shop reached VND 1,698 billion in November 2022, with 13 million products sold and 32,000 sellers receiving orders.

This level of sales in November is sufficient for TikTok Shop to surpass Tiki (396 billion VND) and trail only Lazada (2,603 billion VND) and Shopee (8,761 billion VND) in terms of e-commerce platforms. The company has the highest monthly sales in Vietnam.

TikTok Shop's monthly revenue at the time was equivalent to 80 percent of Lazada's monthly revenue during the same period and four times that of Tiki. TikTok Shop has an average daily revenue of 56.6 billion VND and sells 434,000 products with an average price of 130,000 VND.

According to YouNet ECI e-commerce data analysis company Director of Market Insights Nguyen Phuong Lam, TikTok Shop not only attracts consumers but also increases the number of influencers creating content on the floor. However, the revenue results also increased significantly. On this platform, both the GMV (total value of goods) and the number of orders increased by a factor of six.

According to the most recent report by the consulting firm Momentum Works, since its launch in 2021, TikTok Shop's GMV (total merchandise transaction value) in Southeast Asia has increased from $600 million in the previous year. 2022 from $4.2 billion in 2021 to $4.4 billion in 2022. This growth rate exceeds that of rivals such as Lazada and Shopee.

TikTok Shop has surpassed Sendo and Tiki in terms of both revenue and market share to become the third most popular e-commerce platform in Vietnam, just behind Shopee and Lazada.

According to YouNet Media's YMI rankings, TikTok Shop surpassed Sendo and Tiki to take third place on the list of the most popular e-commerce platforms in Vietnam in just 10 months.

TikTok Shop was able to quickly attract a large number of online sellers due to the surge in interest. The number of monthly visits to the store management page on TikTok Shop's website increased by 282% from January to May 2023, reaching 4.2 million.

Thus, TikTok Shop, a foreign brand that has only been present in the Vietnamese e-commerce market for a year, has surpassed Lazada, Tiki, and Sendo to become an e-commerce platform with a large number of active sellers in the month. This indicates that domestic businesses are losing ground in the e-commerce race.

In the meantime, research conducted by Momentum Works indicates that the total value of goods sold via Tiki in 2022 decreased by 7% compared to the previous year. Notably, up to 45 percent of these transactions are distributed by Tiki itself. According to analysts, this strategy is prohibitively expensive for a developing market like Vietnam.

Ms. Weihan Chen - Head of Research, at Momentum Works (Singapore), commented on the e-commerce market in Vietnam: "Vietnamese e-commerce businesses almost exclusively attract sellers. However, the multinational exchanges not only attract Vietnamese sellers but also sellers from Southeast Asia and China, where the supply chain is highly developed. The Chinese business group has an advantage in terms of sales optimization, while the Vietnamese business group is limited in terms of product diversification.

Dr. Pham Cong Hiep - Faculty of Business, RMIT University Vietnam, stated, "In this race, fierce competition can cause Vietnamese businesses to lose their breath. To promote strengths, global e-commerce should target small and niche markets.

Thu Phuong (T/h)