4 prominent trends in the online retail market in 2024

In recent years, e-commerce has been constantly developing. The trend of e-commerce is increasingly dominating the modern business landscape. With an expected scale of 52 billion USD by 2025, Vietnam's e-commerce is undergoing great changes and opportunities.

According to many surveys, Vietnam is the country with the highest growth rate in the Southeast Asian region in terms of online shopping. It is forecasted that revenue and sales volume on Vietnamese B2C online retail platforms will continue to increase strongly next year, possibly reaching 650 trillion VND by 2024.

Specifically, according to the 2023 online retail market overview report and 2024 forecast published by Metric, there are 4 prominent trends in the 2024 online retail market.

Direct sales to consumers

Instead of using distributors, manufacturers now sell directly to consumers on e-commerce platforms. This allows manufacturers to have complete control over operations such as production, marketing and sales. At the same time, intermediate costs are reduced to the maximum level, helping to increase profit margins.

For example, if they apply the B2B2C (business to business to customer) model, they will have to spend 35% - 40% of the cost on the product price for agents. In the case of selling directly on the e-commerce platform, they will only spend a much lower fee (less than 10%).

Knowing how to take advantage of trends will help businesses make huge profits.

With that extra money, they can deduct it directly from the selling price or invest in product features.

As manufacturers expand their business markets to e-commerce platforms, the price war is expected to continue to be fierce in 2024.

Shopping through voice search

These technologies have completely changed the way sales operate and the way users shop by creating more sophisticated, accurate and secure experiences.

While AI and machine learning are currently mainly applied by online shopping platforms or e-commerce websites with large investment resources, big data is being rapidly deployed on a wider scale.

Not only e-commerce platforms with available internal data sources, businesses selling on the platform can also apply this technology through neutral third-party software providers.

This tool helps brands increase revenue and market share based on authentic analytics, especially during difficult market times.

Business managers will better understand what consumers want and market changes; thereby creating opportunities to help businesses take firm steps, minimize risks and make decisions faster than competitors.

Big data also helps optimize transportation - logistics, supply chain management, R&D and business operations on the floor.

Responsible consumption

The responsible consumption trend is not leaving e-commerce behind. Consumers are more sympathetic and prefer to use products from brands that demonstrate environmental and social responsibility rather than just low prices or deep discounts.

They are even willing to pay more for businesses that fulfill this responsibility. On the contrary, users tend to refuse to use products if the business is involved in negative activities to the environment, or has unstandard behaviors in management (for example, discrimination or unfair pay, use of underage labor...).

Some criteria that businesses can focus on in 2024 include: creating more environmentally friendly products, using sustainable packaging materials, sourcing products from ethical suppliers...

Generation 7X, 8X approaches online shopping in a booming way called Baby Boomer

Baby Boomers are the generation born between 1956 and 1964 and came of age during the turbulent 1970s.

Boomer II experienced many historical events that changed the world and Vietnam. They were the ones who witnessed the rapid change from the black and white TV screen to the era of technology, wifi, and smartphones.

This was also the generation that experienced major social changes such as feminism, the civil rights movement, anti-war protests, and the sexual revolution.

Even TikTok, which is traditionally marketed as a platform for teenagers, has seen a rapid growth in Boomer II users. In 2020, only 7.1% of TikTok users in the US were over 50, or about 7.1 million people. By 2023, that number had risen to nearly 21 million users (14%).

E-commerce is a rapidly growing industry with great potential in the future. To be successful in this industry, businesses need to grasp and apply the latest trends, as well as create unique and different values ​​for customers.

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