Vietnamese youth earn big from live-shopping

Shopper-tainment is a growing tendency in many countries. Nielsen IQ’s report on consumer behaviors showed that Omni shopper is now the most growing trend in Asia Pacific. 

“Omni-shopping accounts for up to 79%, as consumers have become familiar with online shopping and become Omni shoppers,” said Le Minh Trang of Nielsen IQ.

The report found that Vietnamese Omni shoppers account for 57%. A high number of consumers have shifted to online shopping.  Statistics all show that online shopping is favored and is growing rapidly. The total e-commerce shopping value reached US$13 billion in 2021, contributing 5.5% to the retail market. The figure is expected to rise to US$39 billion by 2025.

Live shopping/live streaming and commercial entertainment is a trend in regional countries, including Vietnam, according to Trang. In China and Thailand, people use livestream not only for entertainment, but also to sell goods and shop. 

In Thailand, for example, 14% of people use livestreaming to advertise products, and 10% to buy things. The figures are 31% and 20%, respectively, in China.

According to Do Huu Hung from the Vietnam E-commerce Association (Vecom), social marketing is one of three booming channels thanks to entertainment and high interaction level.

At present, with social marketing, businesses still use traditional channels such as Facebook, Google and YouTube, but by spreading content to create brand recognition to boost sales.

Livestream and review are the most popular forms that attract high numbers of users thanks to their specialization. 

Thanks to the boom of social marketing, the contingent of content creators has also been developing strongly in Vietnam, becoming a trend among the youth.

According to Hung, there are about 200,000 active content creators on social networks and about 1,000 have the income of over US$5,000 a month thanks to high conversion rate.

Surveys on businesses also found that the conversion (into orders) rate of content creators is 3-5 times higher than selling goods on e-commerce platforms. The average conversion rate is 13%-15% (it is 3%-5% on e-commerce).

Besides, with the boom of e-commerce platforms such as Shopee and TikTok, affiliate marketing is now the choice of many businesses. Hung estimated that about 2,000 Vietnam’s businesses are using affiliate marketing. Many businesses allocate 50% of their budget and some businesses reserve 100% of their budget for the ad channel.