Traders move online to drive holiday profits
Traders move online to drive holiday profits
Online shopping on e-commerce platforms is growing rapidly and boosting revenues for businesses during the Lunar New Year.
Sales revenue of Rhys Man, a personal care brand for men on TikTok Shop, has grown by about half over the past month, through a new TikTok shopping campaign.
Rhys Man joined TikTok about two years ago, hoping to increase business sales through affiliate marketing campaigns and shopping ads solutions such as livestreams and TikTok product shopping ads.
At the launch ceremony of the TETastic with TikTok campaign, which took place two weeks ago, Jason Song, a marketing head of TikTok Shop in the Asian-Pacific region, said that this e-commerce platform was trying to help businesses increase revenue.
“With 98 per cent of users expressing positive interaction with ads on TikTok and 94 per cent intending to shop on TikTok Shop ahead of the Lunar New Year, TikTok has awakened enticing business opportunities for small business through various effective marketing methods,” Song said.
TikTok Shop has become the second-biggest e-commerce platform in Vietnam with a total transaction value of nearly $227.8 million, ranked only behind Shopee with a total transaction value of more than $953.5 million, according to YouNet Group.
There are currently about 28 million businesses operating on this platform.
According to market research company NielsenIQ, Vietnamese consumers and businesses have concerns about the upcoming Lunar New Year.
NielsenIQ said that 63 per cent of consumers in Ho Chi Minh City and 53 per cent of consumers in Hanoi are struggling financially. Accordingly, the revenue of the fast-moving consumer goods industry in January and February only grew about 54 per cent compared to the period before the Lunar New Year holiday, and there was no change compared to last year’s break.
The company predicts that online shopping channels will contribute to stimulating the revenue of consumer businesses because more than 70 per cent of the customers of these platforms are young people aged 18-39, and usually office workers. The main factors that encourage online shopping are the shopping experience, a rich variety of products, and promotions.
A report by Metric, an e-commerce data platform, said that the total market revenue of the Lunar New Year decorations market on Shopee, Lazada, Tiki, and Sendo reached $338,000. There were 1,763 shops with orders generated on the four e-commerce platforms with 427,000 product units successfully delivered, an increase of 56 per cent over the same period before the Lunar New Year last year.
Metric expects the Lunar New Year decorations market to earn $2.7 million in revenue on e-commerce platforms in the two months before the 2024 Lunar New Year season, with about 2.7 million products sold.
Consumer behaviour is shifting, with beer a good example. While it is experiencing negative growth on direct shopping channel, the number of orders for beer on e-commerce has increased significantly. Metric statistics showed that in December, beer revenue on e-commerce platforms reached $983,000, an increase of 16.5 per cent over the same period last year.
Dr. Le Thi Hai Yen, lecturer at the University of Economics and Law under Vietnam National University in Ho Chi Minh City, said that shopping behaviour is changing in many different aspects. “Online shopping helps consumers comfortably compare prices between many suppliers and save more money than shopping directly at markets and supermarkets, thanks to the application of many promotion codes,” Yen said
According to the Ministry of Industry and Trade, Vietnam had as many as 62 million consumers shopping online in 2023, accounting for more than half of the total population.
Statistics from the E-commerce Department under the Ministry of Industry and Trade also show that the total e-commerce value of the Vietnamese market in 2023 reached about $20.5 billion, up 25 per cent compared to 2022, an increase of more than $4 billion.
