Social commerce, content creation, diversified payment methods, and personalization are some of the trends with great potential to take over in the near future.
Vietnam is currently one of the leading countries in Southeast Asia regarding digital services and products. Indeed, in the first half of 2021, 74% of Vietnamese people accessed the internet daily and more than 8 million became new e-commerce users, according to Google data.
Rapid growth trends are still significant even when traditional shopping has returned to the new normal. Vietnam’s e-commerce continues to set new trends. Experts suggest that digital services will be the key player in shaping the Vietnamese goods and services market in 2022.
According to Lazada Vietnam’s e-commerce report: “market trends regarding the Vietnamese e-commerce market in 2021, adapting and quickly overcoming obstacles from COVID-19.” The online sales boom, thanks to the shift in consumption habits in the past year, is also expected to continue promoting the digital transformation of brands and sellers.
Social commerce refers to the conversion of social networks into potential commercial channels.
One of the most prominent trends from the end of 2021 to the beginning of 2022 is the combination of e-commerce and social networks. Sellers and brands are focusing on taking advantage of large platforms with a huge number of daily users, such as Facebook, Instagram, Twitter, or most recently, TikTok. These platforms also help sellers and brands increase engagement with their customers.
According to a survey by Remarkable Commerce, more than 90% of social media users access their favorite platforms using mobile devices. Of those, up to 54% use social networks to research products and sellers.
Through online communication, livestreaming, shopping and evaluating products directly on social media posts with high quality images, users can easily find the products they like. On the contrary, sellers and brands have the opportunity to reach more potential customers, expand their customer files, and increase their popularity. Since then, incentive marketing programs and campaigns have also become more effective.
A livestream selling – shopping experience on the Lazada app. Photo: Lazada Vietnam
Additionally, by making good use of modern technologies such as 3D images, 360-degree videos, artificial intelligence (AI), or livestream features on social networks, sellers and brands can contribute in making the shopping interface more user-friendly and user-friendly.
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According to a Nielsen report, up to 63% of consumers still keep their online shopping habits, even when traditional selling practices resume normal activities. Many users said that they maintain the habit of buying online because of the convenience, time-saving, variable discounts program and sales events on e-comerce platform.
Shopping activities combined with entertainment, or in short, shoppertainment, are also being diversified, provide consumers with an experience of combining shopping and stress relieving after work. Not only small retailers, but big domestic and international brands are also gradually capturing this trend. In particular, via livestreaming, producers are able to give product introductions and share consumer experiences. This has helped many brands achieve peak sales records in the last few years.
Lazada’s “New Tet, Big Sale” shopping festival, launched from January 5-14, 2022, is an example of this new trend in customer behavior. In less than 10 days, Lazada recorded an increase of 2.5 times the number of users who were willing to spend on livestream. The number of orders completed on the LazLive channel also increased by 4 times. Livestream views have more than quadrupled, showing that users are interested in the entertainment content in the online spring festivals such as the Tet Gala, Lottery Sale, Chem Gia, etc. Consequently, LazLive also recorded a tremendous increase in sales, approximately eight times greater than in the same period of last year.
The above figures partly show the changes in consumers’ shopping behaviors, and the increasing trend of entertainment content on e-commerce and live broadcast platforms. Self-created content by livestreamers, sellers, and brands has become an effective tool for e-commerce activities.
On their personal pages, users can also share their product experience in the form of reviews, short videos, “unboxings,” instructions on how to use products and services, and new technology on their personal profile. This becomes a new form of marketing that not only helps promote sales and stimulate shopping, but also helps users make more informed choices in their shopping.
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Among the most prominent e-commerce trends today, personalized user experience is considered a prerequisite tool to help businesses, as well as merchants and brand partners, increase their customer satisfaction.
The report by Remarkable Commerce shows that up to 80% of users prioritize products from brands and e-commerce platforms that employ personalized experience elements and attractive discount offers. In fact, order conversion rates on online shopping platforms that prioritize personalizing user experiences also increased by 20%.
Lazada’s voice search technology
According to Lazada Vietnam’s 2022 e-commerce landscape and market trends report, the main function of personalization is to enhance the customer’s shopping experience. With permission from customers, information related to the omni-channel shopping experience is gathered and processed, helping e-commerce platforms and merchants to customize and optimize their customers’ shopping experiences. The application of AI technology plays a crucial role in making this process more efficient and accurate, thus providing results that are closest to each user’s consumption habits and preferences. Through the collected data, e-commerce platforms can also have a better understanding of customers and conduct customer behavior research, thereby allowing the platform to be able to adapt to customers’ needs, helping to increase the successful order conversion rate.
In addition, the process of personalizing customers’ shopping experiences also helps platforms acquire knowledge about customers’ spending habits. The diversification of payment methods, including payment via e-wallet, bank card, credit card, or cash on delivery (COD), is designed to suit these personal factors, meeting the needs of customers.
The electronics and fast-moving consumer goods industries are on the rise.
The epidemic has not only changed consumption habits, but also affected sales of existing products on the e-commerce floor. During the fourth COVID-19 wave of 2021, the fast-moving consumer goods (FMCG) industry witnessed strong growth. This significant growth trend can be seen not only in the number of orders and sales, but also in the number of new sellers listed on the floor.
Two recent reports by Lazada Vietnam both show that the number of new sellers in the second quarter of 2021 has doubled compared to the same period last year. In the third quarter of 2021, this number still increased by more than 1.5 times and maintained its growth until the end of the year.
Many food, beverage, and restaurant brands in the Food & Beverage sector have also responded to the digital transformation trend. Numerous F&B brands have established online shops on Lazada in the past year. In addition to familiar partners such as Nestlé and Vinamilk. New brands that target a younger generation of customers, such as Star Kombucha, are continuously beating sales and order records.
The trend of transforming from traditional business models to e-commerce has led to the highest growth in the number of sellers in this category last year. The fashion, home & lifestyle, and electronics industries also showed their attraction with an impressive number of sellers and sales.
An example among the brands that take advantage of the discounting and marketing campaigns of e-commerce platforms and achieve “huge” sales is the Co Cu brand. In the recent “New Tet, Big Sale” shopping festival on Lazada, the Co Cu brand, founded by Mr. Le Duc Duy, participated in the programs ” Universal Price 68K, Great Deal 88K, Freeship Max” and enjoyed a significant increase in the order conversion rate. As a result, the brand’s sales and orders tripled.
Another example is Mr. Pham Minh Hoang’s Inuka Store, whose sales doubled during the “New Tet, Big Sale” event. According to Mr. Pham, the growth rate of similar online stores can range between 20 and 30 percent per month.
According to the figures recorded by Lazada Vietnam in 2021, the e-commerce industry in 2022 promises to rapidly grow with a series of new trends. A Lazada representative said the platform will continue to support brands and partner sellers to conquer new challenges, and step-by-step optimize the user experience through incentive campaigns and festivals.
Thien Khai. “Promoting Vietnamese E-Commerce Breakthrough in 2022: Important Factor.” VNEXPRESS, 2022, vnexpress.net/yeu-to-thuc-day-thuong-mai-dien-tu-viet-but-pha-nam-2022-4427463.html. (Accessed Mar. 1, 2022)
Translated by: Pham Hoang Hung