The combination of social networks and e-commerce not only brings new shopping experiences to consumers but also creates many attractive business opportunities for businesses in a competitive market. Currently, Social commerce has become an important part of the e-commerce industry in Vietnam.
Social Commerce is a combination of social networking and e-commerce.
The Development of Social Commerce in Vietnam
E-commerce began to boom in Vietnam in the 2010s, when online shopping platforms such as Lazada and Tiki emerged. However, it was not until the rise of social media that the concept of social commerce really became popular. Facebook, with millions of users in Vietnam, became a pioneer in this field as individuals and small businesses began to take advantage of Facebook features such as fanpages and groups to promote and sell products.
Not only Facebook, other social networking platforms such as Instagram, Zalo and recently TikTok have also quickly grasped the trend and developed features to support e-commerce. Instagram with its integrated “shop” feature allows users to shop right in the application, while TikTok with its creative short videos has created a new craze in how to promote products and interact with customers.
To meet the growing needs of users, social networking platforms are constantly updating and developing new features to support e-commerce. Facebook launched the Facebook Shop feature, allowing businesses to create online stores directly on their personal pages or fanpages. Instagram introduced the “Checkout” feature that allows users to make purchases without leaving the app. TikTok is not far behind with the TikTok Shopping feature, integrating shopping links directly into videos.
According to research from Datareportal and Wearesocial, as of January 2024, the number of social media users in Vietnam reached about 72.70 million people, equivalent to 73.3% of the population, and the average time a social media user in Vietnam spends on social media activities is about 2 hours and 25 minutes per day (ranked in the top 20 in the world ). This shows the high level of participation and dependence on social media of Vietnamese people. These figures, along with the responsiveness of social media platforms, are still creating great opportunities for businesses participating in Social Commerce to reach and interact with potential customers.
The number of social network users in Vietnam accounts for a high proportion of the population.
Leveraging Social Commerce brings many benefits to both businesses and users
One of the biggest benefits of social commerce is the ability to connect deeply with customers through direct and continuous interaction through social media features. Social media platforms allow businesses to interact with customers through comments, messages, and posts quickly and conveniently, creating a close and trusting relationship. This not only helps increase customer loyalty but also helps businesses better understand their needs and desires.
The ability to reach a large number of potential customers using social networks is another huge benefit of Social Commerce. Reaching customers is becoming faster and more effective thanks to user filters on social networking platforms. In addition, thanks to the viral ability of social networks, information about products and services can be widely shared, helping businesses expand their reach and attract many new customers.
Social commerce also brings a rich and diverse shopping experience to consumers. Instead of having to visit individual shopping websites, customers can view and shop directly on familiar social networking platforms. This is not only convenient but also helps create more interesting and personalized shopping experiences.
The challenges when applying Social commerce are not small.
One of the biggest challenges of social commerce is security and privacy. Trading and sharing personal information on social media poses many cybersecurity risks. Businesses need to ensure that customer information is properly protected and that they comply with data security regulations. Experiences involving loss of personal information and privacy breaches can lead to loss of trust and loss of customers.
Product and service quality is also a prominent issue with the rapid development of social commerce. Many customers complain about buying fake or low-quality goods or poor customer service. This requires businesses to ensure product and service quality, as well as build brand reputation on social networks.
Social commerce creates an environment with many business opportunities, which also means high competition. Businesses are required to constantly innovate and create to attract and retain customers. Competition comes not only from large businesses but also from thousands of small stores and individuals selling on social networks. This requires businesses to have flexible, effective business strategies and constantly innovate during their operations.
Future Trends of Social Commerce in Vietnam
Integrating AI and advanced technology
In the future, the integration of artificial intelligence (AI) and advanced technologies such as virtual reality (AR) and augmented reality (VR) will help enhance the shopping experience on social media platforms. AI can help personalize the shopping experience, providing product recommendations based on customers' preferences and shopping behavior. AR and VR can create more immersive online shopping experiences, allowing customers to see and try on products visually.
The growth of specialized social commerce platforms
In addition to major social networks, specialized social commerce platforms are expected to grow strongly. These platforms will focus on providing features and tools to support online sales, helping businesses optimize the sales process and interact with customers. Platforms such as Shopee, Lazada and Tiki are also gradually integrating social elements into the shopping experience to benefit customers.
Market expansion and international cooperation
Social commerce in Vietnam is not only limited to the domestic market but has the potential to expand to the international market. Cooperating with international e-commerce platforms and taking advantage of new technologies will help Vietnamese businesses reach global customers. This is also a great opportunity for businesses to expand their markets and increase their competitiveness on an international scale.
Social commerce has been changing the way of shopping and doing business in Vietnam. With the rapid development of social networking platforms and the benefits it brings, social commerce promises to continue to be an important trend in the future. However, to succeed in this field, businesses need to grasp new trends, face challenges and constantly innovate and create. Social commerce is not only a business opportunity but also a powerful tool to help businesses build and develop their brands in the digital age.
Source: https://moit.gov.vn/khoa-hoc-va-cong-nghe/nhin-lai-su-phat-trien-thuong-mai-dien-tu-qua-mang-xa-hoi-tai-viet-nam.html
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