Social Commerce: Reshaping the Vietnamese E-commerce Landscape
the Vietnamese e-commerce market is undergoing a significant conversion, moving beyond customary online shopping towards a more integrated “all-in-one” experience driven by social commerce and artificial intelligence (AI). Major platforms like Meta, YouTube, and Shopee are actively experimenting with integrating social features into their shopping experiences, blurring the lines between entertainment and commerce. This shift reflects a strategy to maximize user engagement and profitability.
According to Hoai Nam, a market analyst, AI is the key enabler of this evolving model. He explains that AI facilitates personalized customer experiences through product recommendations, targeted promotional content, and behavioral analysis, ultimately boosting conversion rates and reducing operational costs. The future of e-commerce, he argues, will be “operated based on smart experiences and social participation, not cheap prices or promotions.”
This transition necessitates a fundamental shift in business strategy. Companies can no longer solely focus on sales; instead, they must invest in creating a holistic user experience that encompasses entertainment, connection, and personalized services.Consumers are now seeking more than just quick deals – they desire experiences tailored to their individual needs.
However, this growth isn’t without it’s challenges. Nam cautions that increased regulatory scrutiny is unavoidable, encompassing stricter policies related to taxation, product quality, live streaming, and promotional content. He emphasizes that compliance is crucial for market survival, stating, “If you do not strictly comply with these requirements, the seller can be delivered in the market. Now, it is indeed not a competition for ‘short-term competitions’, but a long-term and enduring investment.”
Another key trend identified by experts is the rise of cross-border e-commerce. Vietnamese companies are actively exploring expansion into markets like Indonesia and the Philippines, while simultaneously facing increased competition from foreign, particularly chinese, companies entering the Vietnamese market. This creates both opportunities for growth and challenges in defending domestic market share.
Successfully navigating this new landscape requires companies to adopt a comprehensive approach.this includes leveraging customer data effectively, building trust through consistent and sustainable content, implementing AI-driven solutions, and preparing for increased cross-border competition. Vietnam‘s e-commerce sector is entering a phase of redefining its rules, where only agile and well-structured companies will thrive.
Source: https://vtv.vn/Social-commerce-xu-huong-huong-dinh-dinh-Hinh-truong-Thuong-MAI-DIEN-TU-TU-10025092518175374.htm.htm.htm.htm.htm