Video platforms increase competitive pressure on e-commerce market

The recently released third quarter e-commerce market reports continue to show that video platforms tend to increase market share compared to traditional e-commerce businesses. Shopping through videos helps users see more clearly the actual images of products, interact with sellers... Also because of this trend of users, recently, e-commerce platforms have had to change, choosing to "join hands" with video platforms to adapt and maintain market share.

For nearly a year now, the tech review creator has been adding affiliate marketing, embedding product purchase links directly into his video streams. The commissions shared by brands now account for more than 80% of his total income.

Mr. Nguyen Ha Nam - Online content creator said: "Personally, I think that in the next 2-3 years, it will be a shopping trend for users in Vietnam, when it solves the problem of content creators and audiences. Content creators have more income, and audiences can buy products at reasonable prices."

When e-commerce platforms cooperate with video platforms to sell products to consumers, they will have to share a portion of the profits with the video platform. But according to experts, this is an inevitable direction in the context of entertainment video platforms increasingly increasing their market share in the Vietnamese e-commerce market.

The market report shows that in the third quarter, the e-commerce sales of the entertainment video platform increased sharply by nearly 70% compared to the same period last year, continuing to take market share from the traditional online marketplace model. The time spent watching shopping-related video content in Vietnam also increased by more than 500% in the past year, with more than 2.4 million products tagged on videos for affiliate marketing.

Ms. Mukpim Anantachai - Director of YouTube Partnerships in Vietnam and Thailand shared: "Vietnam is a market where young consumers are very active with online shopping. We see that their behavior has really shifted from just watching videos, to seeking advice from content creators to choose the right products for them. Content creators are also very quick to increase interaction with the community to have a new source of income from affiliate marketing."

According to experts, for shopping through videos to develop healthily, it will require the important role of influencers on social networks (ie KOL or KOC). Users make purchases partly based on the reputation of the marketer, so influencers must be responsible for thoroughly researching the product and must be strictly sanctioned if there are negative consequences for buyers.

The competition between video platforms and e-commerce is not just a race for market share, but also a reshaping of the entire digital consumer journey. When every shopping experience can be "packaged" in a few seconds of video, it is likely that in the future, every view will become a business opportunity and every user, a potential seller.

Source: https://vtv.vn/nen-tang-video-tang-suc-ep-canh-tranh-len-thi-truong-thuong-mai-dien-tu-100251108135824126.htm