Vietnam’s live-stream market witnesses a sharp increase

DNHN - Figures from the Coc Coc platform show that around 77% of survey participants have watched a live-stream sale, of which 71% have purchased the live-stream session.

The Vietnamese live-stream market has witnessed a sharp increase in both quantity and quality. On average, there are 2.5 million live-stream sales sessions per month, with the participation of more than 50,000 sellers.

At the 2024 Vietnam E-commerce Panorama Forum, Ms Le Minh Trang from NielsenIQ’s Retail Research Department said that, according to the results of a recent survey, the number of people buying through e-commerce is 60 million. Every day, there are 3.5 million visits to e-commerce sites. The number of people shopping online every week in Vietnam ranks 11th globally, and 90% of consumers intend to maintain and increase their use of e-commerce platforms for shopping.

Information from AccessTrade Vietnam also shows that the three most popular livestream sales platforms in Vietnam are Facebook (31.9%), Shopee (30.9%) and TikTok (17.2%). Figures from the Coc Coc platform show that around 77% of survey participants have watched a live-stream sale, of which 71% have purchased the live-stream session.

Explaining this rapidly growing trend, Ms Le Minh Trang pointed out the strengths of the livestream sales method. First and foremost, the greatest strength of livestreaming is that buyers can easily interact with sellers to find out more information (materials, features, etc.). Also during the livestream sessions, buyers will be able to observe the products they are interested in in more detail and more closely.

In addition, a fairly common element of current livestream sessions is the entertainment factor, with 78% of customers saying that they find watching livestream sales sessions on platforms such as TikTok Shop, Shopee, etc. fun and relaxing.

In the first quarter of 2024, Vietnamese people spent more on online shopping. According to figures from Metric, the combined retail revenue of the five largest e-commerce platforms in Vietnam, namely Shopee, Lazada, Tiki, TikTok Shop and Sendo, reached VND 71,200 billion in the first quarter of 2024, an increase of 78.69% year-on-year.

A clear example is that in December 2023, the Ho Chi Minh City People’s Committee, in collaboration with TikTok, organised a live stream programme at Ben Thanh Market, which achieved a gross merchandise value (GMV) of up to VND 4 billion in just 5 days of broadcasting.

The Vietnamese livestream market has witnessed a sharp increase in both quality and quantity. Of these, shopping livestream (shopping via livestream) is currently the most popular type of livestream, accounting for 62%.

So, what should businesses keep in mind before implementing livestream sales activities on e-commerce platforms?

According to NIQ, one of the factors that helps livestream sales to be effective is building a genuine connection with buyers by leveraging the power of influencers (KOLs/KOCs, etc.). Around 50% of respondents said that their purchasing decisions are influenced by KOLs/KOCs.

These influencers need to have the following characteristics: Knowledge of the industries and products; ability to demonstrate the core value delivered to consumers (KOLs/KOCs’ reliability and reputation); content that conveys appropriate and creative messages; and a way of communicating and expressing their personality that is friendly to consumers.

To create sustainable growth for e-commerce, Tran Quy Hien, General Director of Ecomstone Vietnam, suggested that businesses need to highlight the value and unique characteristics of Vietnamese products. It is important to promote products through stories linked to the special features and heritages of each region and place name and to develop Vietnam’s unique products to attract international buyers.

“Each product needs to have a story – from its origin, how it is made, to the love for the product to tell consumers in Vietnam and abroad, and this will sell,” added Mr Hien.

In addition, businesses need to build a “.vn” domain name as the basis for digital brand recognition, which is also a decisive factor in building trust and ensuring safety for both businesses and consumers.

Tuan Anh