Tiktok Shoppertainment: The Game-Changer in Vietnam’s E-commerce Industry

Welcome to Vietnam Untold, your ultimate source for the latest news and insights on Vietnam. 

Today, we bring you an intriguing story about the popular social media platform TikTok Shoppertainment and its unique approach to e-commerce, combining shopping and entertainment in a model known as Shoppertainment. 

TikTok, known for its short videos and vibrant community, has become a formidable player in the e-commerce industry in Vietnam. By leveraging its livestream feature, TikTokers can interact with viewers while simultaneously selling products, creating a new and engaging shopping experience.

A recent report by the Mobile Marketing Association (MMA) reveals that 7% of Gen Z respondents identified TikTok Shop as their most frequently used platform for shopping, surpassing well-established marketplaces like Tiki and Facebook, which are more commonly used by older customers.

Industry analysts believe that TikTok’s success lies in its ability to meet the needs and behaviors of young, smartphone-savvy customers who enjoy short videos as a form of entertainment. Vietnam’s young population has provided fertile ground for the birth and rapid growth of TikTok Shop.

According to the e-commerce data platform Metric, TikTok Shop has experienced exponential growth, surpassing established players like Tiki and Sendo to secure the third position in market share.

In the first three months of this year alone, TikTok Shop generated a revenue of 255 million USD, equivalent to 80% of Lazada’s revenue. With over 68,000 shops and 42.1 million products sold, TikTok Shop has become a force to be reckoned with.

However, with its explosive growth, TikTok Shop also faces risks and challenges. One significant concern is the prevalence of counterfeit goods and imitations on the platform. Products such as clothes and shoes bearing famous fashion brands’ logos are being sold for surprisingly low prices, raising doubts about their authenticity. For example, fake Louis Vuitton T-shirts are being sold for prices ranging from 3 to 10 USD, and pairs of Hermès shoes for just 8 dollars.

To address this issue, TikTok Shop claims to strictly prohibit counterfeit goods and requires sellers to provide brand authorization for branded products. Each product undergoes scrutiny before being created, uploaded, and sold on the platform. However, despite these measures, sellers still find ways to bypass the platform and sell low-quality and counterfeit products, posing a challenge to maintaining a reliable online shopping environment.

Experts acknowledge the challenges faced by e-commerce platforms, including TikTok, when it comes to counterfeit goods and commercial fraud. They emphasize the need for active involvement from relevant authorities to protect consumer rights and promote the development of a trustworthy digital economy in Vietnam.

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