Homeshopping in Vietnam

2021 DEVELOPMENTS

Sales growth accelerates as pandemic keeps consumers at home

In 2021, homeshopping was able to register positive growth given consumers’ home seclusion from May onwards due to COVID-19. The extended time at home paved the way for a greater number of products to be purchased from TV channels, especially those from the largest category of consumer health, as the Vietnamese became more vigilant over their personal health and wellbeing.

Leading sales baton passed on frequently in homeshopping

Consumer appliances began the review period as the most valuable area of homeshopping, supported by the communication of information about products and affordable pricing. However, consumer appliances had a mixed performance over the review period and lost share to other homeshopping channels, as it faced increasing competition from e-commerce and store-based specialists.

Lack of brand identity characterises homeshopping

Homeshopping remained very fragmented in 2021 with no clear leading player. There are many small- and medium-sized businesses selling products that are imported from China, with no clear information about the manufacturer or brand.

PROSPECTS AND OPPORTUNITIES

Deceleration in current value sales growth predicted

Over the forecast period, homeshopping is expected to register steady current value sales growth, but at a lower level than over the review period. This slowdown will occur because homeshopping faces rising competition from other channels such as e-commerce.

Online purchases likely to become more prevalent

In the coming years, many homeshopping players are projected to expand into e-commerce as a way to maintain their growth amidst the slowdown of the overall homeshopping channel. Having an e-commerce arm also helps customers who prefer to have time to make their purchase decision after watching an infomercial, as they can go online and place an order.

TV homeshopping platform to keep driving sales

Catalogue mail order homeshopping is expected to remain negligible in Vietnam over the forecast period, with TV homeshopping continuing to be the primary homeshopping method. There are many homeshopping TV channels on which retailers can run infomercials.