With a population of nearly 100 million people and a high internet penetration rate, eCommerce has become an important part of Vietnam’s economy. eCommerce websites in Vietnam offer a convenient and cost-effective way for consumers to shop for a wide range of products and services, from electronics and fashion to food and travel. According to the Vietnam E-commerce Association (Vecom), the country’s e-commerce revenue in 2022 maintained an increase of about 15% compared to the previous year. It is also forecasted to rise by 300%, from 13 billion USD in 2021 to 39 billion USD in 2025.
The most popular 3 eCommerce websites for consumers in Vietnam are Shopee.vn, Lazada.vn, and Tiki.vn. These websites dominate the eCommerce market in Vietnam and attract millions of users each month. In this article, we will explore the key features and strengths of each website, as well as compare their user interface, customer service, product variety and quality, delivery and logistics, and other factors that are important to consumers who want to shop online in Vietnam.
1. Shopee.vn
Shopee is a Singapore-based e-commerce platform that was launched in Vietnam in 2016. Since then, Shopee.vn has been able to establish itself as a major player in the market with the number of monthly visitors amounting to approximately 78 million in the third quarter of 2021, according to Statista.
Key features of Shopee.vn
- User-friendly interface: Shopee.vn’s interface is designed to be simple and intuitive, making it easy for users to search for products, compare prices, and complete their purchases. The website also has a mobile app that is available for download on both iOS and Android devices.
- Frequent promotions: Shopee.vn offers frequent promotions and discounts to attract and retain customers. These promotions include daily deals, flash sales, and discounts on specific products or categories.
- Competitive prices: Shopee.vn’s prices are often lower than those of its competitors, making it an attractive option for price-conscious shoppers. The website also offers free shipping for certain products and orders over a certain amount.
- Popular categories: Some of the most popular categories on Shopee.vn include electronics, fashion, home and living, beauty and personal care, and groceries. The website also offers a wide range of products from local and international sellers.
- Payment methods and delivery options: Shopee.vn accepts various payment methods, including credit cards, bank transfers, and cash on delivery. The website also offers multiple delivery options, such as standard shipping, express shipping, and pickup at designated locations.
However, what makes Shopee really stand out from other competitors is using gamification to boost user engagement and drive sales. Through the games, Shopee users can earn Shopee coins, which can be exchanged for discounts later, by playing simple in-app games such as Shopee Shake or Shopee Farm.
Marketing strategies of Shopee.vn
When it comes to marketing strategies, Shopee has implemented a range of marketing activities to increase brand awareness, attract new users, and drive sales. Some of the key marketing activities that Shopee has used in Vietnam are:
- Influencer collaborations: Shopee has partnered with a number of popular influencers in Vietnam to promote its products and services, such as singer Bao Anh or football stars U23 team. These influencers create sponsored posts and videos that showcase Shopee’s products and offer exclusive discounts and promotions to their followers. They also often attend Shopee’s events and promotions to further promote the brand and engage with users.
- Social media campaigns: Shopee has a strong presence on social media platforms such as Facebook, Instagram, and YouTube, and regularly runs campaigns on these platforms to engage with users and promote its products. Shopee often uses creative and engaging visuals and videos to catch the attention of users and offers exclusive discounts and promotions for those who engage with its social media content.
- Sponsorship of events: Shopee has sponsored a range of events in Vietnam, including music festivals, sports events, and cultural events. Through these sponsorships, Shopee is able to increase brand awareness and engage with users in a fun and exciting way. Shopee also often offers exclusive promotions and discounts for users who attend these events.
2. Lazada.vn
Founded in 2012, Lazada Vietnam is a subsidiary of the Alibaba Group, which is one of the largest e-commerce companies in the world. It is one of the most prominent e-commerce platforms in Vietnam and has become a preferred online shopping destination for many Vietnamese consumers.
The growth of Lazada Vietnam has been impressive since its launch. In the first year, the company recorded a revenue of $1 million, which increased to $10 million in 2013. In 2020, the platform had over 50 million monthly active users in Vietnam, making it the second most popular e-commerce platform in the country after Shopee. Not only did the number of sellers increase by three-fold in the last two years but Lazada also saw a four-fold increase in orders during the fourth wave COVID-19 epidemic in Vietnam.
Key features of Lazada.vn
One of the strengths of Lazada Vietnam is its extensive product range. The platform offers a wide variety of products, including electronics, fashion, home appliances, and beauty products, among others. Lazada also offers products from international brands, making it easy for Vietnamese consumers to access global products.
The platform’s logistics network is another key strength. Lazada has a strong logistics network in Vietnam, with 30 warehouses across the country. The company also has a large fleet of delivery partners, which ensures the timely delivery of products to customers.
Lazada Vietnam has also invested in technology to improve its platform and enhance the shopping experience for consumers. The company has introduced several features, including LazLive, which allows sellers to host live streams to showcase their products and interact with customers. The platform also offers a secure payment system, which ensures that transactions are safe and convenient for customers.
Marketing strategies of Lazada.vn
Lazada Vietnam has invested heavily in marketing activities to increase its visibility and attract more customers. The company has run several campaigns and initiatives to engage with consumers and improve their shopping experience. One of the most successful campaigns is the annual Lazada Birthday shopping festival, which usually takes place in February and March. The festival offers numerous huge discounts and promotions on products across all categories. The 2020 edition of the festival saw Lazada Vietnam record a GMV of over VND 1.1 trillion ($47.6 million) within the first hour of the sale.
Apart from the Birthday festival, Lazada Vietnam has also run several other marketing activities, including the LazMall Super Brand Day and the Lazada Brand Mega Sale every month. These campaigns offer exclusive deals and discounts on products from top brands on the platform. This e-commerce platform has also collaborated with local celebrities and influencers to promote the platform and its products. The company has partnered with several Vietnamese celebrities, including singers, actors, and social media influencers, to create engaging content and drive brand awareness. Some of the most popular influencers include MC Tran Thanh, singer ChiPu and actress Ninh Duong Lan Ngoc.
3. Tiki.vn
Tiki is another leading e-commerce platform in Vietnam and it was launched in 2010. It is a Vietnamese-owned company, headquartered in Ho Chi Minh City, and has become a popular online shopping destination for Vietnamese consumers. For 2-3 initial years after its launching, Tiki focused on selling books and stationery, especially international English-language books online. However, nowadays, Tiki offers a wider range of products, including electronics, fashion, home appliances, and groceries, among others.
From 2014 to 2019, Tiki experienced rapid growth over the years, with its revenue increasing from VND 69 billion ($3 million) to VND 4.4 trillion ($191 million). The platform has over 10 million registered users and delivers to more than 63 provinces and cities in Vietnam. In 2020, the platform achieved a GMV of over VND 16 trillion ($696 million).
Key features of Tiki.vn
One of the strengths of Tiki is its customer service. The platform has invested in providing an excellent shopping experience for its customers. Tiki offers a range of delivery options, including same-day and next-day delivery, and has a 30-day return policy for its products. The company also has a 24/7 customer service hotline and chat support, which allows customers to reach out to Tiki at any time for assistance.
Another strength of Tiki is its investment in technology. The company has introduced several features to enhance the shopping experience for its customers. Tiki has a mobile app that allows customers to easily browse and purchase products on their smartphones. The app also offers push notifications for exclusive deals and promotions. Tiki has also introduced a chatbot feature, which allows customers to ask questions and receive assistance with their orders.
Tiki has also invested in its logistics network. The company has over 30 warehouses across Vietnam and has a fleet of delivery partners that ensure timely delivery of products to customers. Tiki has also introduced a self-pickup option, which allows customers to collect their orders from designated locations, further improving the convenience of shopping on the platform.
Marketing strategies of Tiki.vn
Tiki has also implemented several marketing activities to attract and retain customers. The platform has partnered with local banks to offer exclusive discounts and promotions to customers who use their credit cards to make purchases. Tiki has also collaborated with local celebrities and influencers to promote the platform and its products. The company has partnered with popular Vietnamese singers and actors to create engaging content and drive brand awareness.
One of the most successful marketing initiatives by Tiki is “Tiki cùng Sao Việt”, a marketing campaign in collaboration with local celebrities, also known as “Sao Việt”. The campaign aims to promote Tiki and its products through celebrity endorsements and engaging content such as music videos. The celebrities featured in the campaign are popular actors, singers, and influencers in Vietnam, such as Hoa Minzy, Hoàng Yến Chibi, Erik, and Chi Pu. There are a total of 66 music videos in this series up until 2021. The collaboration generated a lot of buzzes and attracted a large number of customers to the platform.
Conclusion
In conclusion, as the e-commerce market continues to grow, these platforms are well-positioned to maintain their dominance and continue to provide value to consumers and businesses alike. While there are many challenges to selling through e-commerce sites in Vietnam as a foreign brand, the potential benefits are also significant. With the right approach and investment, foreign brands can tap into the growing e-commerce market in Vietnam and reach a large number of customers across the country.
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