Vietnam's e-commerce sector is gearing up for notable changes as it approaches 2025, reflecting both resilience and innovation amid global economic challenges. According to NielsenIQ, the Vietnamese market is maintaining steady growth, marked by consumers’ increasing reliance on digital platforms for shopping.
Despite global economic challenges, including rising inflation, Vietnamese consumers are shifting their spending habits. A recent report highlighted startling statistics: 50% of the population has begun to concentrate their expenditures primarily on food and basic necessities, with the percentage of their income allocated for groceries increasing from 50% to 54% between the second and the third quarters of 2024.
This shift isn't solely due to economic pressures; it points toward transformative behavioral changes where consumers are opting for online platforms such as Shopee, TikTok Shop, and Lazada, attracted by promotions and convenience. While traditional retail networks still prevail with approximately 1.4 million grocery stores and over 9,000 markets claiming around 75% of market share, e-commerce is experiencing remarkable growth rates of 35-45% every year, reshaping consumer habits throughout the nation.
Platforms like TikTok Shop have surged, capturing significant market attention with 15% share growth recorded last year. The rising trend of multichannel shopping has been evidenced by 25% of online consumers using these platforms for stockpiling products, demonstrating the innovative convergence of convenience and savings amid economic uncertainties.
Simultaneously, there's been increasing demand for eco-friendly products. According to the Ministry of Industry and Trade, Vietnam has seen average annual growth of 15% for green product consumption over two years leading up to 2023. Significantly, 72% of consumers are willing to pay higher prices for sustainable goods, underscoring the considerable societal shift toward environmental consciousness among buyers.
This trend has been reinforced by findings from AppotaPay, which emphasizes the necessity of sustainable consumption as not just favorable but fundamental for Vietnamese products hoping to penetrate international markets. By 2025, experts anticipate e-commerce will constitute about 10% of total retail revenue, significantly boosting the Vietnamese digital economy’s share of GDP to 20%.
Heading to 2025, several key trends are expected to dominate the e-commerce scene. Whatever trade might start resembling, the rise of conversational commerce is marking itself as particularly pivotal. The advancements powered by GenAI are set to transform how customers engage with e-commerce platforms. A relevant study by Boston Consulting Group states consumers appreciate the ability to handle complex product inquiries — showcasing the emphasis on knowledge and guidance throughout their shopping journeys.
AI-driven systems are marrying traditional searches with engaging, responsive interactions, allowing seamless product exploration. For example, Amazon’s chatbot, Rufus, supports buyers during peak shopping seasons, enhancing purchasing experiences. Perplexity AI is also revolutionizing ease of use, providing instant responses and suggestions to optimize shopping processes.
Though technology like AI can substantially boost revenues by offering personalized experiences, the demand for transparency will rise as well. Understanding how data is utilized and the rationale behind AI-driven recommendations will be major factors in cementing consumer trust. Per consumer trends revealed by Capgemini, 62% of individuals place greater trust in transparent and ethical AI operations from companies, fostering loyalty and brand referrals.
Looking toward the future, applying Explainable AI (XAI) holds promise as it not only provides predictions but also offers insights and analysis, elucidatively guiding consumers on product suggestions. Such transparency will make personalized experiences believable and actionable for users, increasing conversion rates as they feel confident in their shopping environment.
Online retail and dropshipping are among the fastest-developing trends within e-commerce as these models adapt to satisfy changing consumer demands. The global dropshipping sector is projected to soar past the $400 billion mark by 2025 according to Horizon reports, backed by low startup costs and operational flexibility, allowing businesses even minimal inventory to thrive.
Another area ripe for growth is modernizing B2B sales transaction systems. Companies are advancing the digital interaction landscapes, shedding antiquated setups. SaaS models are enhancing data management flexibility and streamlining sales processes, enabling B2B ventures to grasp modern efficiencies typically found only within simpler B2C frameworks.
Voice search technology is set to shape how consumers access information and shop online, prompting businesses to optimize for this feature beyond mere trend status. The convenience and rapidity allow users to prioritize voice commands over traditional typing, indicating it’s now integral for maintaining competitive advantages.
With the rise of environmentally conscious consumers, brands must adopt friendly practices throughout all components, from sourcing materials to waste management. Amid significant shifts reshaping retail, companies actively weaving sustainability within their operations stand to reap the rewards.
Vietnam’s e-commerce scene is not just maturing; it's poised for innovative leaps. By integrating consumer preferences, emphasizing transparency, and leveraging technology, businesses can navigate both immediate challenges and capitalize on future opportunities.
