Experts share information about e-commerce trends on social media at an information sharing event in HCM City on Thursday. — Photo Courtesy of TikTok Vietnam

HCM City is set to become the pioneer among provinces and cities in Việt Nam in devising a comprehensive scheme for developing e-commerce on social media.

This significant step was highlighted during an information-sharing event on the shoppertainment trend in 2024, held in HCM City late last week.

At the event, Trương Minh Huy Vũ, deputy head of the HCM City Institute for Development Studies, confirmed that the scheme is currently in the works and is expected to be submitted to the city’s authorities soon.

This scheme is a strategic blueprint that outlines the city's perspectives, commercial goals, and cultural targets while establishing a legal framework to manage and foster e-commerce activities on social media platforms.

A surge in e-commerce activities on platforms like TikTok and Facebook has driven the need for such a scheme, with trends such as live streaming involving key opinion leaders (KOLs) and Key Opinion Consumers (KOC) gaining momentum.

According to Vũ, after many successful livestreams in Thủ Đức City, Cần Giờ District and at Bến Thành Market, the city plans to host numerous livestreaming events featuring KOLs and KOCs to support micro, small, and medium-sized enterprises and traditional market traders to boost their sales.

Emphasising the future trends in e-commerce, Vũ mentioned that the second half of the year would witness a rise in live streaming to sell green products.

Furthermore, he added, e-commerce on social media stands as a crucial channel to cater to the increasing demand for home products.

HCM City’s role as a hub for the economy, culture, and digital transformation is pivotal in driving partnerships and initiatives like KOL and KOC challenges aimed at facilitating successful digital transformation for local businesses.

The city is also focusing on combating the sale of counterfeit products and tax evasion in social media e-commerce activities to ensure market transparency.

With HCM City leading the way in fostering e-commerce on social media, the realm of digital commerce in Việt Nam is set to witness a paradigm shift towards engaging and immersive shopping experiences.

E-commerce trend in 2024

Experts and brand representatives shared insights on e-commerce trends in the Asia-Pacific region, underscoring the concept of shoppertainment as a burgeoning phenomenon.

As per the "Shoppertainment 2024: The Future of Consumer and Commerce in APAC" report by TikTok, there are three fundamental shifts which lay the foundation for brands to thrive in shoppertainment across the domains of content-centricity, full-funnel optimisation, and the creator ecosystem.

First, consumers are moving away from impulsive, discount-centric purchases, seeking content that reveals the true value of products.

Second, there is a growing demand and expectation for content to elevate shopping experiences and facilitate browse-to-buy across platforms.

Third, the rise of content communities emphasises the shift from brand-driven to community-driven networks.

Consumers are increasingly drawn towards content that emphasises product value, rather than discounts. About 79 per cent of consumers are inspired to shop for content that reveals a product's value rather than for discounts.

The report highlighted market archetypes, indicating the preferences of consumers in social-oriented and product-oriented markets with respect to content and recommendations.

Vietnamese consumers, in particular, value recommendations from creators and experts, favouring credibility and communal information exchange.

Brands are advised to collaborate with credible sources and leverage authentic voices to build consumer trust and engagement.

Shant Oknayan, head of Global Business Solutions at TikTok for Asia-Pacific, Middle East, Africa & Central Asia, emphasised the importance of prioritising emotional needs through shoppertainment to enhance the consumer experience.

“Shopping used to be a joyful experience. However, the emergence of e-commerce has shifted its focus to competitive pricing and transactional efficiency. In Asia Pacific, we believe the next big commerce opportunity lies in bringing consumers back into the picture — prioritising their emotional needs through shoppertainment. It is defined as content-driven commerce that entertains and educates first,” he said.

The survey, conducted across five Asia-Pacific markets, including Việt Nam, Thailand, Indonesia, Japan and South Korea, underscored the evolving dynamics of consumer behavior and the emerging trends in e-commerce. — VNS