Tag: Decision Lab

Ho Chi Minh, Vietnam – Despite the growing popularity of social commerce amongst Vietnamese consumers, there remains a prevalent risk of fraud in the social commerce scene. New report from Decision Lab unveils that 60% of consumers in Vietnam reported having received products that do not match with advertised images. 

The report notes that late delivery and inability to return goods are other common negative experiences that consumers often encounter. Despite this, social commerce remains popular amongst Vietnamese consumers, with online communities, such as Facebook and Zalo groups, being the main drivers of product discovery for at least 67% of consumers. Yet, casual product discovery, another common pathway to social commerce, is more popular among Gen Z consumers. Gen Z’s are also more sensitive to ads from sellers.

The report also noted that when asked which sellers people often purchase from on social media, 75% of consumers said familiar shops–or shops that they have purchased from previously. Only one-third of the consumers are willing to explore unfamiliar stores.

“Social elements permeate every activity on social media, and social commerce is no exception. Vietnamese consumers know how to make use of social connections to reduce risks when buying goods through social media. Merchants and brands should embrace the social aspects of social commerce to build lasting relationships with their customers,” the report stated.

They also added, “Importantly, a driver for repurchasing intent is a positive initial experience with the shop. As such, social merchants should aim to lock in a positive impression with customers from the get-go to ensure repeat purchases.”

Ho Chi Minh, Vietnam – Amidst the growing popularity of online shopping, there has been a high demand for shopping beauty products online and interestingly, more men in Vietnam shop for beauty products online than women, according to new research by marketing research company Decision Lab.

According to their data, 58% of their male respondents say they have shopped online for beauty products while 49% of the female respondents shopped online for beauty products. However, female shoppers still dominate all purchases for beauty products, amounting to 69% of the respondents. This is in contrast to the 28% of the male respondents.

“Notable from the responses was that women’s love of the shopping experience – often described as a type of ‘therapy’ – was reflected in the fact that it was men who said they had purchased beauty products online more often than women, with just under 10% more male respondents saying they had done so in the past three months,” the report stated.

The data also showed that shoppers in Vietnam are more informed than ever prior to buying but that the channel of research or browsing activity – be it online or offline – does not always determine the channel of purchase. This is especially true when it comes to non-durable goods like food and beverage, where the vast majority of purchases are still made in brick and mortar outlets.

Furthermore, smartphones have continued to increase their role in the everyday lives of Vietnamese consumers. Thanks to the emergence of branded ride-hailing apps like Grab, the mobile phone now dominates short distance travel bookings and has an equal split with computers of purchases in categories like mobile phones, clothing, and footwear. When it came to long-distance travel and hotel bookings, the computer was still preferred.

Vietnam – Popular social media platform Facebook has gained new grounds in Vietnam as an alternative to e-commerce services, according to data from marketing research company Decision Lab.

According to their report, Facebook Commerce grew by 2% and 4% for Gen Y and Gen Z respondents respectively during Q4 2021. In addition, around 31% of Hanoi citizens picked Facebook as their choice for e-commerce services. This figure marks a 11% points increase among consumers from Hanoi compared to Q3 2021. 

The report also noted that Facebook Commerce was also utilised by 9% more consumers from Ho Chi Minh City and other key cities such as Da Nang, Nha Trang, Hai Phong, and Can Tho in Q4 2021. In contrast, throughout the rest of Vietnam, Facebook commerce only grew by 2% points, standing at 24% in this time period.

Despite its popularity as an e-commerce platform, Facebook is losing ground as a social media platform in the country. The platform lost 11% of its position as Vietnamese’s primary app in Q4 2021–a continuation of a negative trend starting early 2021. Worse, Facebook seems to be losing Millennial and Gen Z users, who are increasingly favouring other platforms such as Zalo and TikTok.

“The general rise of Facebook as an e-commerce platform reflects Facebook’s push for commercial activities. In Vietnam, consumers can trade goods through not only Facebook Marketplace, but also Facebook groups, shops’ pages, and individual merchants,” the report stated.