In Vietnam, online alcoholic beverage sales surge
In Vietnam, online alcoholic beverage sales surge
Vietnam’s consumption of beer, wine, and alcoholic drinks experienced a significant surge in e-commerce platforms in the second half of 2023, according to a recent report by Ho Chi Minh City-based e-commerce data analysis firm YouNet ECI.
A screenshot of Saigon Beer - Alcohol - Beverage Joint Stock Corporation on e-commerce platform Shopee |
Analyzing data from beer, wine, and fermented fruit juice brands on three e-commerce sites Shopee, Lazada, and Tiki, the report reveals a 12-percent increase in revenue during the last six months of 2023.
Specifically, beer traders on these platforms generated a total revenue of VND351 billion (US$14.2 million) for 2023, with the second half presenting an 11-percent revenue growth rate compared to the first half.
Notably, on the Shopee platform alone, the beer industry witnessed an astounding 154-percent growth rate, soaring from VND34.9 billion ($1.4 million) in the first half to VND88.7 billion ($3.6 million) in the latter half of last year.
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| Comparison of the alcoholic beverage industry’s growth rate on Vietnam's e-commerce platforms between the second half and the first half of 2023. Photo: YouNet ECI |
Nguyen Phuong Lam, head of the e-commerce market analysis department at YouNet ECI, attributes this remarkable growth to three main factors.
Firstly, breweries have intensified their promotional efforts on e-commerce platforms, particularly on Shopee Mall, to offset declines in conventional channels.
Saigon Beer - Alcohol - Beverage Joint Stock Corporation, commonly known as Sabeco, for instance, witnessed its Saigon Lager product experience a significant increase of 4.6 points in e-commerce market share just one month after launching its Shopee Mall store in November 2023, thanks to a robust promotional strategy and strong brand presence.
Sabeco also secured a spot among the top five best-selling beer brands on e-commerce platforms in 2023, with its Saigon Lager line ranking among the top six best-selling alcoholic beverage products.
“Consumers today prioritize product authenticity when shopping, preferring genuine outlets to avoid counterfeit or expired goods,” Lam noted.
“This underscores the importance for brands to promote authentic shops on e-commerce platforms, as data indicates consumers’ high confidence in these channels.”
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| Top-selling beer and cider product lines on Vietnam's e-commerce platforms in 2023. Photo: YouNet ECI |
Secondly, large-scale promotion programs by both platform operators and brands have been enticing consumers, with super sale events driving a 35-percent climb in weekly revenue for the beer industry.
Lastly, the growing familiarity of Millennial (people born between 1981 and 1996) and Gen Z (people born from 1997 to 2013) consumers with e-commerce has played a significant role in the industry’s prosperity.
This is evident in the wide array of beer and wine brands targeting these demographics available on these platforms.
“Product lines like Tiger Crystal, Heineken Silver, and Chill Cocktail, tailored specifically to Millennials or Gen Z, lead the charts in beer sales on e-commerce platforms,” Lam explained.
Overall, over 500 brands are offered on e-commerce sites compared to just 60 in supermarkets, providing a broader product selection.
