Title [METRIC] Online retail market in 2024.pdf ✅

The 2024 Overview Report on the Online Retail Marketplace provides a comprehensive view of the development of the e-commerce market in Vietnam, focusing on the top 5 e-commerce marketplaces: Shopee, Lazada, Sendo, Tiki, and TikTok Shop. This report will help businesses grasp new consumer trends, enabling them to build sustainable business strategies that align with the rapid changes in the market. Amid increasingly fierce competition and the significant shift towards online shopping, the data and analysis in this report will serve as essential tools for supporting business decisions. The report includes an overview of Vietnam's economic situation, updates on the e-commerce market in Vietnam in 2024, and a comprehensive review of the online retail marketplaces over the years 2022–2024. It provides an in-depth analysis of the online retail marketplace in 2024, covering aspects such as market size and growth, sellers, warehouses, categories, price segmentation trends, and top brands. Additionally, the report offers forecasts on consumer trends and growth for 2025. The report's research methodology is based on collecting and analyzing data from various sources. We employ Big Data analytics and Artificial Intelligence (AI) tools to process and synthesize information, ensuring the accuracy and comprehensiveness of the report. The data collection period spans from January 1, 2024, to December 31, 2024. Products classified as services, gifts with abnormal sales volumes inconsistent with consumer feedback, and fake single- order sales have been excluded. Products sold during livestream sessions are also not included. Furthermore, the report references and incorporates third-party data, with all information clearly cited to ensure transparency and reliability. Metric Team INTRODUCTION
DATA COLLECTION & ANALYSIS METHODOLOGY Scope of the marketplaces Data collection period Scope of product categories Key metrics • 5 e-commerce marketplaces: Shopee, Lazada, Tiktok Shop, Tiki, Sendo, and • Over 100,000 e- commerce websites. Daily data collection from January 1, 2021, to present All product categories generating sales on e- commerce marketplaces • Sold Quantity • Gross Merchandise Volume (GMV) = product price * quantity sold • Number of Shops: active sellers on the marketplaces • Price Segments, Brands, etc.: for each product • Product Information History Big Data collection from e- commerce marketplaces and websites Data Collection Data cleansing, analysis, and systematization of data points Data cleansing Calculation of basic statistical metrics. Categorization analysis by industry, product groups, (SKUs), etc. Data analysis Convert data from numerical form to tabular format for easier identification of trends and key information. Data visualization Data analysis software Metric.vn eReport platform In-Depth Online Retail Market Research Report Certificate of Top 1 Best-Selling Brand
1. Shopee strengthens buyer support policies, the government tightens e-commerce tax regulations, and Temu temporarily suspends operations in Vietnam. Shopee has increased buyer benefits by extending the return period to 15 days and allowing order cancellations even during delivery. Meanwhile, the government has tightened e-commerce tax regulations, requiring marketplaces to withhold and remit taxes on behalf of sellers starting in 2025. Besides, the e-commerce marketplace Temu has temporarily suspended operations in Vietnam due to its failure to register as a legal business entity. KEY HIGHLIGHTS 3. TikTok Shop grew by 121%, expanding its market share at the expense of Lazada's, while Shopee experienced steady growth. Shopee maintained a stable position with a 34% growth and unchanged market share, while TikTok Shop experienced a 121% increase in sales, expanding its market share and capturing a significant portion from Lazada. In contrast, Lazada, Tiki, and Sendo reported negative growth ranging from - 50% to -54% due to intense competition and changes in consumer behavior. TikTok Shop's rise not only solidified its position but also reshaped the e- commerce market landscape. 5. Shopping trends on e-commerce marketplace show a strong focus on essential products, a preference for low prices, and an increasing interest in green and sustainable consumption. The growth rate of e-commerce sales in 2024 was 4.2 times higher than the nationwide retail and consumer service revenue. Demand for essential products such as food, beverages, and Mother & Baby items saw significant growth. Additionally, the rising preference for green and sustainable consumption reflects a shift in consumer habits. The low-price segment, particularly for products under 200,000 VND, also experienced strong growth in both sales and market share. 2. The total sales for 2024 reached 318.9 trillion VND, marking a 37.36% increase compared to 2023, with particularly strong growth observed toward the end of the year. The online retail sales across five e-commerce marketplaces in 2024 reached 318.9 trillion VND, reflecting a 37.36% growth compared to 2023. Sales experienced significant growth in the second half of the year, especially in Q4, which accounted for 91.15 trillion VND. However, year-over- year growth slowed progressively across the months, even during the peak shopping season. Despite this, the market retained strong appeal, driven by promotional events and the end-of-year shopping season. 4. A reduction of 165,000 shops generating orders was observed despite strong market sales growth, highlighting the dominance of shops with clear strategies. Sales increased by 37.36% despite a 20.25% reduction in the number of shops (equivalent to 165,000 shops), reflecting a market shift where sellers with clear strategies are driving growth. Additionally, the presence of 31,500 foreign sellers on Shopee has created significant competitive pressure on domestic sellers. 6. It is forecasted that sales in 2025 will reach 387.5 trillion VND, representing a 21.5% growth compared to 2024. Sales in 2025 are projected to reach 387.5 trillion VND, with a total volume of 4.2 million products, reflecting growth rates of 21.5% and 23% compared to 2024, respectively. This growth is driven by the shift toward online shopping, promotional strategies, and seasonal events such as holidays and Tet celebrations. However, fluctuations between the beginning and end of the year require sellers to continuously adapt to economic factors, e- commerce marketplace strategies, and emerging consumer trends.