Online shopping surge shapes Vietnamese retail market

Shifts in consumer behavior and preferences underscore rapid e-commerce growth.

Online shopping is growing rapidly in Vietnam, with consumers being more familiar with the digital setup, especially high income groups and the millennials.

Tran Nguyen Phi Long, Head of Retail Marketing at PNJ Group, said that the online shopping boom is characterized by several key behavioral shifts including consumers becoming increasingly value-conscious.

He said that consumers today are seeking greater benefits from their purchases. This includes a predilection for premium brands, albeit with a discerning eye for deals, reflecting a nuanced balance between quality and cost. 

A 2023 survey highlights that more than 21% of Vietnamese shoppers engage in online purchasing several times a week, driven by smarter advertising strategies and a growing trust in mobile platforms. 

However, this has led to low brand loyalty, with price competition driving consumers to switch between e-commerce platforms in search of better deals. Furthermore, sustainability and purpose-driven choices are gaining traction, with Vietnamese consumers becoming more inclined towards environmentally friendly and locally sourced products.

Cultural factors also play a pivotal role in shaping consumer preferences. Long highlighted the importance of social, psychological, and economic influences, with a growing emphasis on social values and the pursuit of products that enhance one's social standing. 

He added that international brands have introduced new dimensions to consumer preferences, with many Vietnamese showing a preference for foreign products perceived to be of higher quality. 

“More Vietnamese consumers prefer International and import products. Most Vietnamese consumers claim that the international products generally have higher quality, and they're willing to buy the international brand, if the price is assembled at local ones as well,” he said.

As Vietnam's economy continues to integrate globally, the presence of international brands has heightened consumer expectations and introduced a diverse range of products into the market. Long observes that this has not only changed the competitive landscape but has also encouraged local brands to innovate and improve their standards to meet evolving consumer demands. 

“I think it is also the challenge and also the passion for the local brands to have developments in the future. But it's good. It's great for the overall economy,” he said.