As Vietnam steps into an era of rapid economic expansion, its e-commerce market emerges as a cornerstone of growth. The Vietnam E-commerce Intelligence 2025 report forecasts staggering growth, predicting the market will reach $49.9 billion by 2028, driven by the rising purchasing power of two key demographics: Gen Z and Millennials. This transformation isn’t just about numbers—it’s a fundamental shift in consumer behavior, preferences, and expectations. For marketing, PR, and communication professionals, understanding these dynamics is crucial to unlocking Vietnam’s full e-commerce potential.

The Forces Behind Vietnam’s E-Commerce Boom

Vietnam’s e-commerce market is expected to grow at a 35% compound annual growth rate (CAGR) over the next five years. This growth stems from two key forces:

1. Shoppertainment—a blend of shopping and entertainment that dominates platforms like TikTok Shop and livestream e-commerce.
2. High-value baskets—as consumers’ incomes rise, so does their willingness to spend on higher-priced goods, particularly among Millennials.

Simultaneously, Vietnam’s young population is a critical driver. With 65% of online shoppers split almost equally between Gen Z and Millennials, brands must tailor their strategies to capture both demographics’ distinct behaviors and desires.

Gen Z: The Digital-Native Innovators

Gen Z, born between the late 1990s and early 2010s, grew up in a digital world shaped by social media, mobile devices, and seamless e-commerce experiences. Their buying habits reflect an appetite for entertainment, self-expression, and instant gratification. Gen Z shop frequently—2-3 times a month—but spend modestly, often influenced by viral trends, micro-influencers, and shoppertainment. Categories like fashion, beauty, and personal care dominate their carts.

Brands looking to engage Gen Z need to:

• Invest in Livestream Shopping: Gen Z shoppers prefer interactive, real-time shopping experiences with micro-influencers offering exclusive deals and unfiltered reviews. TikTok Shop’s success in Vietnam highlights the potential of this format.
• Stay Trend-Driven and Agile: Gen Z lacks brand loyalty; their preferences are shaped by viral trends, peer recommendations, and social media challenges. Brands must embrace pop culture and align with influencers to remain relevant.

Take, for instance, Cocoon, a Vietnamese personal care brand that blends tradition and modernity. By leveraging authentic micro-influencers and highlighting local ingredients, Cocoon resonates with Gen Z’s values of authenticity and community. Similarly, fashion brands like Calem.Club succeed by integrating shoppertainment and staying plugged into Gen Z’s lifestyle trends.

Millennials: The Balanced, High-Value Shoppers

Unlike Gen Z, Millennials—Vietnam’s working-age powerhouse—shop online with purpose and spend significantly more per transaction. Shopping 1-3 times weekly, Millennials prioritize convenience, clear information, and a seamless pre- and post-purchase experience. Their carts often include high-value items like home appliances, consumer electronics, and products for family use.

For brands targeting Millennials:

• Focus on Personalization and Trust: Millennials expect tailored offers, clear product descriptions, and transparent return policies. After-sales services—like proactive delivery updates, warranty activations, and follow-up calls—build trust and encourage repeat purchases.
• Build Communities Around Shared Interests: Millennials value work-life balance and are drawn to interest-based communities. Successful brands like Adidas Runner Club and ASICS Running Club Vietnam build loyalty by fostering spaces for shared experiences.

In addition, tech-driven solutions that save time—such as robot vacuum cleaners—are thriving among Millennials who prioritize products that enhance quality of life. E-commerce platforms can amplify this trend by offering flexible payment options like Buy Now, Pay Later services.

Strategic Takeaways for Brands

Vietnam’s e-commerce growth is an opportunity, not a given. Brands must align their strategies with consumer behaviors while maintaining agility in a fast-changing market.

1. Understand Your Audience Deeply: Data-driven insights into what Gen Z and Millennials value—entertainment, community, or convenience—are essential.
2. Leverage Shoppertainment: Platforms like TikTok Shop demonstrate that entertainment-led shopping drives sales. Invest in engaging livestreams and influencer collaborations to connect authentically with younger audiences.
3. Prioritize Post-Purchase Experiences: For Millennials, excellent customer care—such as follow-up communications and personalized guidance—can transform a transaction into brand loyalty.
4. Stay Agile with Trends: Viral trends move fast, especially for Gen Z. PR and marketing campaigns must be nimble, leveraging influencers and creating playful, current messaging.
5. Build Communities: Whether through fitness clubs, tech forums, or niche interest groups, brands can foster loyalty by offering spaces for connection.

The Road Ahead

Vietnam’s e-commerce market is primed for explosive growth, but only brands that listen to consumers, innovate with purpose, and deliver authentic value will thrive. Marketing and communication professionals must recognize the nuanced differences between Gen Z’s trend-driven spontaneity and Millennials’ demand for convenience and trust.

By blending data intelligence with creativity and a consumer-first approach, brands can unlock not just Vietnam’s market potential but also its consumers’ hearts.

 

(Originally posted on Clāra’s Insight)