Panorama of Vietnam's retail industry in 7 months of 2024

Vietnam's retail industry in the first 7 months of 2024 has witnessed many significant changes, marking strong growth in both total retail sales of goods and consumer service revenue. According to data from the General Statistics Office, total retail sales of goods and consumer service revenue at current prices are estimated to reach 3,625.7 trillion VND, an increase of 8.7% over the same period in 2023. 

This picture not only reflects general economic development but also shows changes in people's shopping behavior and consumption trends.

Multi-faceted growth of Vietnam's retail industry in 7 months of 2024

The 7 months of 2024 witness an extremely vibrant retail picture with multi-faceted growth in many areas:

Retailing consumer goods with solid purchasing power 

With revenue reaching 2,801 trillion VND, an increase of 7.4% over the same period in 2023, the consumer goods market shows that consumer purchasing power is still very stable and even tends to increase, despite the Macroeconomic factors and changes in shopping behavior. 

Thereby, it shows that consumer confidence in the economy is gradually recovering, while the demand for essential and utility products is still very large.

Accommodation and food services with strong recovery 

The accommodation and food service industry has had an impressive comeback with a growth of 15.2% over the same period last year. This number clearly reflects the strong recovery of the tourism industry after the effects of the pandemic. Consumers are increasingly looking for diverse culinary and resort experiences, driving the development of these services.

Travel tourism revived

With a growth rate of 31.8% compared to the same period last year, the travel and tourism industry has had a spectacular revival. Both domestic and international tourism recorded strong growth, showing that people's need to explore and experience is increasing.

Other services are diverse and flexible

Revenue from other services reached 370.2 trillion VND, accounting for 10.1% of the total and increasing by 9.4% over the same period last year. The diversity of these services shows the adaptability and innovation of the Vietnamese retail industry in meeting the increasing and diverse needs of consumers.

The outstanding development of e-commerce

A bright spot in Vietnam's retail picture is the strong development of e-commerce. E-commerce is creating an unprecedented online shopping fever in Vietnam. In the first 6 months of 2024, total revenue on the top 5 e-commerce platforms (Shopee, Lazada, Tiki, Sendo and TikTok Shop) grew impressively by 78% compared to the same period last year, reaching 156 trillion VND . 

This number shows the strong attraction of online sales channels to Vietnamese consumers.

Looking back at 2023, the scale of Vietnam's retail e-commerce market has reached 20.5 billion USD (equivalent to about 518,352 billion VND), of which the 5 largest e-commerce platforms contribute a large part. , reaching 232,134 billion VND. It is forecast that this number will continue to grow strongly in 2024, reaching nearly 30 billion USD and accounting for about 14% of total retail sales of goods nationwide.

Why is e-commerce growing so quickly?

This increase shows that e-commerce is not just a temporary trend but has become an indispensable part of the shopping life of Vietnamese consumers. Convenience, product variety and attractive promotions have increased the appeal of online shopping.

• Maximum convenience: With just a few mouse clicks, consumers can easily search and shop for diverse goods, anytime and anywhere.
• Product diversity: E-commerce platforms provide a huge warehouse with millions of products from many different brands, meeting all consumer needs.
• Competitive price: Promotions and discounts are regularly launched by e-commerce platforms, attracting a large number of customers.
• Enjoyable shopping experience: Features such as product reviews, price comparisons, and diverse payments help users have an interesting and convenient shopping experience.
• Flexible payment: Many forms of payment are supported, from bank cards to e-wallets.

Factors driving the growth of e-commerce:

• Infrastructure development: The increasing popularity of high-speed internet, along with the development of logistics services, has created favorable conditions for quick and efficient delivery.
• Changing consumer behavior: Young, high-income and technology-savvy consumers are increasingly making up a large proportion, driving the demand for online shopping.

Consumers' online shopping behavior

NielsenIQ Vietnam's report on consumer shopping behavior shows that Vietnamese consumers are making significant changes. Specifically, the frequency of online shopping has doubled compared to 2023, with the average person making nearly 4 online transactions per month and spending more than 8 hours per week "surfing the web" looking for products. . 

This shows that online shopping is not just a temporary trend but has become an indispensable part of Vietnamese people's daily lives. This number is nearly double the monthly frequency of Vietnamese people going to the supermarket.

It is worth noting that the reason consumers choose to shop online is not simply because of cheap prices. Up to 25% consumers shop online to stock up on goods for their families, and 21% to meet immediate food needs. 

Proving that online shopping has become an indispensable part of Vietnamese people's daily lives, from shopping for essential items to ordering food.

Popular items on e-commerce platforms

Not only has shopping frequency increased, but the list of goods "hunted for" by Vietnamese consumers on e-commerce platforms is also extremely diverse. Leading the list are essential items such as food, drinks and cosmetics. 

In addition, fashion, household appliances, technology products, and items for mothers and babies are also equally popular. Even digital services such as room booking, ticket booking, and service registration are increasingly chosen by more and more people on e-commerce platforms.

This diversity shows that Vietnamese consumers are gradually shifting their shopping habits from traditional stores to e-commerce platforms to meet the diverse and rich needs of modern life.

New growth driver for e-commerce

The above numbers show that online shopping has become a popular activity, and shopping for essential items has also become popular. However, to maintain and continue to develop, e-commerce needs to soon find new growth drivers to meet the increasing needs of consumers. Businesses need to constantly innovate and look for new drivers. new growth force.

The strong growth of e-commerce in recent times is undeniable. However, to maintain growth momentum and meet increasing consumer demands, businesses need to constantly innovate and find new growth drivers.

• Personalize your shopping experience: Using technologies such as artificial intelligence and big data will help businesses better understand customer behavior and preferences, thereby making appropriate product suggestions and creating shopping experiences. personalized.
• Ensuring product and service quality: Product and service quality is always a core factor to retain customers. Businesses need to focus on quality control and building professional and transparent service processes.
• Community building: Create a loyal customer community through interactive activities, customer care and attractive promotions.
• Diverse sales channels: Besides e-commerce platforms, businesses should diversify sales channels by building their own websites, selling on social networks or opening offline stores to reach more customers.

Factors influencing purchasing decisions

Manufacturers need to grasp the factors that influence consumers' purchasing decisions according to each shopping channel. For each different purpose, buyers have different criteria for choosing shopping channels. Specifically, the issues that manufacturers need to pay attention to are the criteria that drive purchasing and spending decisions by each retailer.

To optimize revenue and increase customer satisfaction, manufacturers and retailers need to focus on product segmentation. This helps meet the buyer's needs during the purchasing process. At the same time, take advantage of the multi-channel trend to reach more shoppers, because consumers tend to favor modern and convenient retail types.

Conclude

Overall, the picture of Vietnam's retail industry in the first 7 months of 2024 shows strong development and diversification of consumer shopping channels. The boom of e-commerce has brought many new opportunities and challenges for retail businesses. To make good use of these opportunities, businesses need to grasp trends, innovate and constantly improve service quality to meet the increasing needs of consumers.