TikTok Shop is soaring in Vietnam, chasing Shopee's dominance

In the rapidly changing Southeast Asian e-commerce market, a new growth legend is quietly unfolding—Tuke Shop. According to the latest report from YouNet ECI, in the first quarter of 2024, Tuke Shop's GMV (Gross Merchandise Value) in Vietnam soared to 18.36 trillion VND, second only to e-commerce giant Shopee's 53.74 trillion VND. Together, the two dominate the Vietnamese e-commerce market.

This data reveals the astonishing growth rate of Tuke Shop within just one year. It has not only surpassed Lazada to become the second largest online marketplace in Vietnam, but also generated about $1.3 billion in revenue for sellers in just six months.

In addition, data shows that Vietnamese consumers spend an average of one to two hours per day on Tuke, with the platform's daily order volume approaching 2 million orders.

All of this demonstrates the strong appeal of Tuke, the short video platform known as the "time killer," in the Vietnamese market.

According to Vietnamese local media reports, more than 2.8 million small and medium-sized enterprises in Vietnam have chosen to conduct e-commerce business on Tuke, which undoubtedly highlights Tuke's extensive influence and business potential in Vietnam.

Image source: VOV WORLD

The prosperity of the Vietnamese e-commerce market has provided fertile ground for the rise of Tuke Shop. According to a report by eMarketer, Vietnam ranked eighth among the fastest-growing e-commerce markets worldwide in 2023, with a growth rate of 12.5%.

Furthermore, a report by Mordor Intelligence points out that the size of the Vietnamese e-commerce market is expected to expand at a compound annual growth rate of 10.09% from 2024 to 2029, reaching $14.7 billion in 2024 and possibly exceeding $23.7 billion by 2029.

Image source: Mordor Intelligence

The success of Tuke Shop is no accident. Behind it are powerful intelligent algorithms, strong appeal to young users, and abundant KOL (Key Opinion Leader) resources. In the current trend of recommendation-based economy, consumers increasingly rely on KOL recommendations for shopping decisions, and the vast number of influencers on Tuke have undoubtedly become a key driving force for transactions.

In addition, the launch of the Tuke Shop Mall brand mall in Vietnam has further boosted the sales of many products. Some stores achieved sales of up to 70,000 items in their first week online, demonstrating Tuke's strong execution in e-commerce business.

Recently, Tuke has also taken new steps in the European market, launching targeted recruitment programs in five countries: Germany, Italy, France, Spain, and Ireland. These programs focus on local sellers and require localized operational capabilities, such as local goods, local warehouses, VAT certification, and a certain level of sales turnover. This move indicates that Tuke Shop will further deepen its global layout, providing services to sellers and consumers in more regions.

Overall, the rise of Tuke Shop in Vietnam and even across Southeast Asia is a model of the integration of social media and e-commerce. With the continued development of the e-commerce industry and the acceleration of global digitalization, Tuke Shop is expected to bring more surprises. Whether you are a small or medium-sized enterprise in Vietnam or an e-commerce practitioner worldwide, you should pay attention to this emerging force and seize the opportunities in this market full of infinite possibilities.

We look forward to the next move of Tuke Shop and hope it will create more miracles on the global e-commerce stage. If you are also interested in cross-border e-commerce, you are welcome to join our cross-border community, communicate with more industry professionals, share industry information, and explore this opportunity-filled field together.