E-commerce in Vietnam faces decreasing purchasing power

Consumers on e-commerce platforms used to prefer high-end, luxury items.

The trend has changed, however, as buyers now focus on healthcare products, sportswear, and fitness products.

The reason for this change is the impact of economic difficulties and inflation, many vendors on e-commerce platforms believed. 

They added that buyers now tend to seek healthcare products with reasonable prices and prefer direct discounts.

Hung, whose online store specializes in selling phone accessories and electronic goods, said that the revenue of this group of products decreased by nearly 40 percent compared to the same period last year.

Online shoppers only focus on beauty or healthcare products and tend to cut unnecessary spending, Hung added.

Lazada’s report on February 3 showed that consumers want to receive more value from the products they buy, aside from looking for discount offers. 

The Vietnam E-Commerce Association (VECOM) said that up to 83 percent of businesses allowed consumers to perform the entire shopping processes on mobile devices in 2021, up from 52 percent in the preceding year.

The percentage of businesses launching promotions specifically for shoppers using mobile devices rose to 48 percent in 2021 from only 35 percent in 2020.

As consumers tend to tighten spending, retailers should not consider e-commerce the only channel to grow sales, said Nguyen Anh Duc, general director of Saigon Co.op.

They should concentrate on developing and improving the shopping ecosystem and supporting users in their purchasing decisions, Duc elaborated.

Source: Tuoi Tre News