TikTok Shop shows strong growth in Q1 2024
TikTok Shop shows strong growth in Q1 2024
TikTok Shop was the only platform to record an increase in transaction volume, expanding its market share by 6.3% since the end of 2023, according to a report by YouNet ECI, an HCM City-based e-commerce intelligence company.
TikTok Shop was the only platform to record an increase in transaction volume, according to YouNet ECI. — VNA/VNS Photo |
In the first quarter of 2024, a sharp drop in sales during the two weeks of the Tết holiday, e-commerce platforms' Gross Merchandise Value (GMV) decreased by 16 per cent compared to Q4 2023.
The report said four platforms, Shopee, TikTok Shop, Lazada, and Tiki, generated a total GMV of VNĐ79.12 trillion, selling 768.44 million units.
Shopee maintained its lead with a GMV of VNĐ53.74 trillion and more than half the country's market share.
TikTok Shop followed with a GMV of VNĐ18.36 trillion. Notably, in just under a quarter, it has increased its GMV by 15.5 per cent while gaining an additional 6.3 per cent market share.
Lazada and Tiki brought in VNĐ6.03 trillion and VBĐ997 billion, respectively.
Nguyễn Phương Lâm, head of the Market Research Department at YouNet ECI, said: "Shoppertainment (shopping combined with entertainment) remains the main driving force helping Việt Nam's e-commerce platforms maintain growth momentum towards 2025 with fashion and beauty products leading the trends. Meanwhile, tech products and home appliances are growing faster on TikTok Shop than on other platforms."
According to the report results, in Q1 2024, most product categories on e-commerce platforms saw a decrease in GMV compared to Q4/2023. The categories most affected included high-value products such as tech (-15.8 per cent), electronics (-28.4 per cent), and home and lifestyle (-16.3 per cent).
This trend also led to an average value per product in the quarter settling around VNĐ109,000, a 7.5 per cent decrease compared to the previous quarter.
Leading in transaction value in this quarter were fashion accessories at VNĐ23.4 trillion and beauty products at VNĐ12.7 trillion, also the two best-selling product categories on the TikTok Shop and Shopee.
