E-commerce percentage of FMCG online value share per markets, excluding fresh produce (Photo: Kantar Worldpanel)Hanoi (VNA) - Vietnam e-commerce, although small, is among the fastest growingglobally, according to a report released by Kantar Worldpanel, a global expertin shoppers’ behaviour.
The report “The Future of E-commerce in FMCG” (fast moving consumer goods) isbased on tracking the purchase of more than 500,000 shoppers in key countriesspanning three continents.
In terms of absolute value growth, the top six contributors are all leadingpower economies, led by China and the United States.
The other top performing countries are the Republic of Korea, the UK, Japan andFrance.
However, the online grocery sector is also expanding into new markets. Therehas been significant value growth, for example, in Thailand (104 percent),Malaysia (88 percent), and Vietnam (69 percent), where e-commerce is in itsearly stages.
In Vietnam, the e-commerce channel has evolved thanks to booming internet usageand smartphone ownership, together with massive investment of key retailplayers. It now takes 0.5 percent of the fast-moving consumer goods (FMCG)market in four key urban cities of Vietnam, which are HCM City, Hanoi, Da Nang,and Can Tho.
The percentage of e-commerce shoppers grew from 5.4 percent to 8.8 percent infour cities in the last year alone.
“Although the size of Vietnam e-commerce market is still small compared toother formats, it holds a strong potential because the value growth ofe-commerce within FMCG is up to 69 percent,” said David Anjoubault, manager ofKantar Worldpanel Vietnam. "This makes Vietnam one of the countries withthe highest e-commerce growth rate in the world,”
“It’s now the critical time for investors to enter this promising market.Current retail giants should gradually move their offers online and takeadvantage of their brand equity with omni-channel strategy to defend theircurrent position.
On the whole, consumer trust and high logistics cost for delivery model aremajor challenges that need to be addressed by businesses to move Vietname-commerce forward,” he added.
The study showed that e-commerce now accounts for 4.6 percent of all FMCG salesglobally. While the e-commerce channel is growing, the FMCG market as a wholeis sluggish, increasing just 1.3 percent during the same period.
E-commerce now contributes to a record 36 percent of global FMCG growth andwill continue to outpace growth in offline FMCG retail.
“Our projections show that in 2025, online FMCG will become a 170 billion- US-dollarbusiness and hold a 10 percent market share” says Stéphane Roger, globalshopper and retail director at Kantar Worldpanel.
The big global uplift will come from the US, predicted to rise from a 1.5percent e-commerce share this year to 8 percent in 2025.
The Republic of Korea and China will continue to lead the way and Asia ingeneral remains at the cutting edge of online adoption.
Vietnam e-commerce specifically, is expected to expand from 0.5 percent to 2.2percent share in 2025 coupled with the rise of digitisation.- VNA
VNA
