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Nielsen: Tech growth driving e-commerce revenue growth

Released at: 17:11, 14/12/2018

Nielsen: Tech growth driving e-commerce revenue growth

Photo: Viet Tuan (VET)

More innovative IT and mobile products good news for online sales.

by Hong Nhung

Innovative IT and mobile product has surged 11 per cent in the past two years in Vietnam, with an increase in consumer convenience within the online buying ecosystem leading to purchasing in a broader range of categories, according to a new report from global researchers Nielsen.

The 2018 Nielsen Connected Commerce Report, which looks at consumers’ online purchasing habits, reported that 98 per cent of those who have access to the internet have made a purchase online, up 1 per cent against 2017. The report also revealed that 17 per cent of digital consumers purchased fresh groceries online, up 5 per cent against 2017, which is contributing to overall FMCG e-commerce growth.

Stalwart e-commerce categories like fashion, travel, and books continue to account for the largest proportion of online transactions. Categories posting the most significant growth in e-commerce activity include restaurant deliveries, packaged groceries, and fresh groceries.

“Travel, fashion, and books are typical categories for first-time online shoppers, but as their familiarization, comfort, and trust levels increase, their category repertoire expands into areas like beauty, personal care and baby products, and then moves even wider afield to packaged and fresh grocery categories, and this is evidenced by the significant jump we’ve seen in online purchasing in groceries and food delivery in recent years,” said Mr. Nguyen Anh Dzung, Executive Director, Head of Retail Measurement Service, at Nielsen Vietnam.

The Nielsen report reveals that consumers are more open to purchasing packaged and fresh groceries online when they are offered certain purchasing options and quality assurances. Over half (63 per cent) of consumers said that a money back guarantee for products not matching what was ordered would encourage them to buy online. A further 52 per cent are enticed by same day product replacement services for products not available, while 56 per cent are looking for free delivery for purchases above a minimum spend.

“With the rise in consumer adoption of online purchasing, the continuously evolving e-commerce space has blurred the lines between online and offline,” said Mr. Dzung. “A few years ago, e-commerce purchase was mostly focused on non-perishable goods such as travel, fashion, and books, but over time we are seeing a rise in purchases across new categories. Looking ahead, the next wave of evolution in online purchasing behavior will likely be driven by innovations in digital capabilities like personalized recommendations based on programmatic consumption and online behavior.”

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