Collecting 16,000 billion, TikTok Shop "surpassed" many e-commerce platforms

TikTok Shop has risen to second in revenue in e-commerce platforms in Vietnam.

Also read: TikTok Sees ‘Shoppertainment’ As Trillion-Dollar Opportunity For Asia Pacific

Vietnam a potential market for shoppertainment: report
E-commerce data platform Metric released the report Overview of e-commerce platforms (e-commerce) in the first half of 2023. The report is based on data analysis of 5 e-commerce platforms, including Shopee, Lazada, Tiki, Sendo, and TikTok Shop.

According to the report, the total revenue on e-commerce platforms in the first half of 2023 is VND 92,745 billion, with more than 394,000 shops having orders. Compared to the same period last year, e-commerce revenue in Vietnam has increased by 46%.

In the first half of 2022, the TikTok Shop floor has yet to be launched; if calculating the growth rate in the same period when only counting on the revenue of 4 exchanges, Shopee, Lazada, Tiki, Sendo, the number will be 22.5%.

Regarding rankings, Shopee (VND 59,000 billion) continues to be the leading e-commerce platform in revenue, with an almost unchanged market share, accounting for 63%. The biggest surprise in the second quarter compared to the first quarter of 2023 was the order of the TikTok Shop.

With a revenue of more than 16,000 billion VND, this platform quickly took the market share of the remaining e-commerce platforms and replaced Lazada (15,700 trillion VND) in second place. Followed by Tiki (1,600 billion dong) and Sendo (112.3 billion dong).
In terms of products, on all 5 e-commerce floors, beauty still brings the most revenue with more than 16,000 billion VND, far behind the categories of women's fashion and home life. Statistics by floor, beauty topped the revenue on Shopee, Lazada, and Tiktok Shop. Meanwhile, phones - tablets bring the most revenue to Tiki.

Compared to the second quarter of 2022, the second quarter of 2023 witnessed a sharp decline in the number of homes for sale when the decrease reached 18%, equivalent to 76,030 homes on the floor. This shows that retail and non-professional retailers gradually withdraw from the market, and profits will flow to those who are professional and have invested in selling on the e-commerce floor.

In addition, many factors affect the withdrawal from the e-commerce platform, such as market fluctuations; the economy is still facing many difficulties...

About TikTok Shop, although officially launched in Vietnam at the end of April 2022, Tiktok Shop has shown a dizzying growth rate when reaching revenue of 16,000 billion, surpassing other e-commerce giants.

However, content management on the main platform, TikTok, needs help. Especially the posting and distributing of malicious content on this cross-border social networking platform. If TikTok is banned in Vietnam, the TikTok Shop will become zero.

At the end of May, at a meeting with media companies and online content creators (KOLs), the Ministry of Information and Communications representative gave tough messages about managing content on cross-border social networks such as TikTok, Facebook, and YouTube.

Le Quang Tu Do, Director of the Department of Information and Communications, affirmed that if the parties do not cooperate, the authorities realize that the cross-border platform is a dangerous environment, adversely affecting society, then surely There are bound to be restrictions.

"Our message is that cyberspace, like real life, must be held accountable. Suppose cross-border social networking platforms do not cooperate with State management agencies. In that case, they will be blocked from operating in Vietnam. Suppose TikTok does not cooperate with the Government with the direct management agency of the Ministry of Information and Communications. In that case, the platform will be banned," Do said.