Vietnam is rapidly emerging as a digital powerhouse, showcasing remarkable growth in e-commerce, with an estimated market size of approximately $25 billion. This impressive figure places Vietnam among the top 10 markets globally for the fastest-growing e-commerce sectors, with around 60% of the population engaging in online shopping. The shift towards digital commerce has significantly transformed consumer habits, marking a pivotal evolution in how Vietnamese people shop.
One of the standout trends in Vietnam’s e-commerce landscape is livestream shopping, which has gained immense popularity. Currently, there are about 2.5 million livestream sessions occurring each month across various platforms. This innovative shopping method not only facilitates direct connections between sellers and buyers but also creates an interactive shopping environment where customers can ask questions, receive advice, and make purchases in real time. The potential for livestream shopping is substantial, with projections indicating that by 2026, it will account for a significant portion of Vietnam's total e-commerce revenue.
Matthieu Guerin, Deputy General Director of Digital and Marketing at L’Oréal Vietnam, emphasizes the transformative nature of livestream shopping, particularly in the beauty and fashion sectors. He notes, “Livestream shopping has become a crucial turning point, offering a more authentic and engaging experience compared to traditional shopping. This format combines technology, creative content, and entertainment, allowing consumers to easily access products. Livestream sessions also enable customers to interact directly with experts, leading to more informed purchasing decisions.”
One major factor contributing to the success of livestream shopping is the role of Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs). Vietnamese consumers are increasingly inclined to seek recommendations from influencers and experts in various fields, including beauty, fashion, and technology. These KOLs and KOCs not only share personal experiences but also provide detailed information and objective product reviews, helping consumers make more accurate purchasing choices.
24-year-old Vân Khánh exemplifies this trend, sharing, “Buying cosmetics through livestream has almost become a habit for me. One reason I enjoy it is that I can see the products demonstrated live. Shops often have someone trying on lipsticks, foundations, and eyeshadows, so I can easily visualize whether the colors and textures suit me.” This firsthand experience enhances consumer confidence and satisfaction.
In response to the dynamic changes in the beauty industry, L’Oréal has recently inaugurated a "Livestream Factory" (Livestream Studio) aimed at optimizing the livestream shopping experience. Spanning 1,700 square meters and featuring 22 continuously operating livestream studios, the facility is equipped with professional-grade cameras, lighting, and sound systems designed to produce high-quality livestream sessions. This investment marks a significant step in L’Oréal's strategy to leverage technology in transforming the beauty industry and enhancing consumer experiences.
Vismay Sharma, President of the South Asia - Middle East and North Africa (SAPMENA) region at L’Oréal, underscores the importance of Vietnam in the digital marketplace, stating, “E-commerce is changing how consumers shop online. With a vibrant digital economy and tech-savvy consumers, Vietnam is a key market for exploring new digital potentials.” The opening of the Livestream Factory signifies a new chapter in L’Oréal's ongoing efforts to innovate within the beauty sector, utilizing digital technology to reshape consumer experiences and drive growth in the retail beauty market in Vietnam.
As Vietnam continues to embrace digital transformation, the rise of e-commerce and livestream shopping reflects broader global trends while also catering to local preferences and behaviors. The combination of interactive shopping experiences, expert advice, and innovative technology is not only reshaping how Vietnamese consumers approach shopping but also positioning the country as a leader in the digital economy.
In conclusion, the rapid growth of e-commerce in Vietnam, particularly through livestream shopping, signifies a fundamental shift in consumer behavior. With industry leaders like L’Oréal paving the way for technological integration in retail, the future of shopping in Vietnam looks increasingly digital and interactive.
