Social commerce and the rise of TikTok Shop in Vietnam
Vietnam has seen a rising social media penetration rate over the last decade, with tech giant Meta’s Facebook being the most popular platform among all generations in the country. According to a recent survey, among many reasons for using social media, around a third of internet users in the country stated that they relied on these platforms to find products to purchase. Consequently, more Vietnamese businesses are using social media as an advertising channel and integrating their websites with social media platforms to enhance the consumer shopping experience.While Facebook is still the most preferred social commerce platform in Vietnam, TikTok Shop could soon change this. TikTok Shop has been chipping away at the market share of other popular e-commerce platforms in the country, such as Lazada and Tiki, capturing 20 percent of the total e-commerce market share based on revenue in the first half of 2023. Since its launch, TikTok Shop has successfully created a new shopping experience by introducing live-streaming events, interactive product demonstrations, and other forms of ‘shoppertainment’ experiences to drive sales.
