In recent years, livestream sales have rapidly gained traction in Vietnam, transforming the way businesses reach and engage with consumers. The COVID-19 pandemic accelerated this trend, and livestreaming became a preferred tool for businesses aiming to expand their reach and boost sales. But the big question remains: Is livestream sales a savior or a destroyer of Vietnamese businesses? Let’s dive into the benefits, drawbacks, and implications of livestream sales on revenue, customer trust, and brand image in Vietnam.
Livestreaming has emerged as a highly effective tool for various industries in Vietnam, particularly for those that benefit from direct consumer interaction. Sectors like fashion, beauty, electronics, and food products have thrived in this space. For example, clothing brands and beauty companies often host livestreams to showcase their latest collections or products, offering promotions and discounts in real-time. Agriculture products, such as fresh fruits and vegetables, are also increasingly sold via livestreaming, helping farmers and small traders bypass intermediaries to connect directly with customers.
Small and medium-sized enterprises (SMEs) have significantly embraced livestreaming as a way to reach a broader audience. TikTok, Shopee, and Facebook have become the dominant platforms for these sales, with over 2.5 million livestream sessions held monthly, involving more than 50,000 sellers. One notable example is KIDO Group, which shifted a significant portion of its sales to livestream channels, seeing a boost in its online presence and achieving top rankings on platforms like Shopee.
In Vietnam, livestream shopping has become a particularly strong trend among Millennials and Gen Z, who make up a large portion of the online shopper demographic. This shift in consumer behavior has encouraged many SMEs to adopt livestreaming, creating a more interactive and personalized shopping experience for customers.
Livestreaming sales allow businesses to reach a wider audience and convert viewers into buyers through real-time engagement. A study by Nielsen found that businesses using livestreaming saw a 30% increase in sales, with much of that attributed to the real-time interaction between the host and the audience, which builds a sense of urgency and excitement.
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Livestreaming provides businesses with a platform to showcase their products directly, answer questions, and engage with customers instantly. This transparency builds trust, a significant factor in a market where consumers value authenticity. This is especially beneficial for SMEs and startups, which might not have the budget for large marketing campaigns but can leverage livestreams to connect with customers.
Livestreaming costs for Vietnamese businesses vary depending on their approach, allowing flexibility to suit different budgets. Small and medium-sized enterprises (SMEs) often spend around $100–$200 USD on platforms like TikTok or Shopee Live, relying on organic engagement and in-app features to reach audiences without major investments. This strategy works well for targeting niche markets and cutting traditional marketing costs.
For larger campaigns, however, businesses seeking extensive reach invest more heavily in influencer partnerships and event promotion. Quyền Leo Daily’s recent TikTok livestream illustrates this higher-end strategy: backed by well-timed promotions and influencer collaborations, it generated close to 70 billion VND (around $3 million USD) in a single event. This shows that while livestreaming can be cost-effective, larger investments can deliver significant returns, with platforms like Shopee, TikTok, and Facebook enabling brands to reach millions at various price points.
The quick pace of livestream sales can sometimes push sellers to prioritize quantity over quality, leading to risks of customer dissatisfaction. This has given rise to issues of poor product quality or exaggerated claims that damage customer trust in the brand and, ultimately, the business itself.
For many small Vietnamese businesses, handling high volumes of sales generated from livestream events can be a logistical nightmare, often leading to supply chain disruptions, inventory issues, and customer complaints. Many Vietnamese SMEs lack the infrastructure and resources required to scale up, limiting the long-term benefits of livestream sales.
Many businesses rely heavily on specific platforms for livestreaming sales, such as TikTok and Shopee Live. However, these platforms frequently update their algorithms, potentially limiting organic reach and views. This platform dependency can jeopardize business stability if algorithms shift unfavorably.
High brand and product recognition are critical in livestream sales, as they establish a foundation of trust with potential customers. Without initial brand awareness, livestream sales are likely to be less effective, as viewers may hesitate to purchase from lesser-known brands. Strong brand presence reassures customers of quality, making it a core factor for successful livestream sales.
The strength and credibility of the livestream organizer significantly impact audience engagement and sales. Influencers or well-known personalities with loyal followers can drive higher trust and conversion rates, as their endorsements carry weight among their followers. This is particularly important for new brands looking to gain trust and traction in a competitive market.
Products that are inexpensive tend to perform better in livestream settings, as they align with the impulse-buying nature of the format. Customers are more inclined to make spontaneous purchases during a livestream if the price is accessible, making affordability a key success factor for livestream sales.
Products that offer clear, practical benefits often resonate more strongly with livestream audiences. Demonstrating functionality and problem-solving capabilities in real time can increase viewer interest and trust, leading to higher conversion rates. Products that fulfill a specific need are more likely to stand out and drive sales in a livestream format.
For Vietnamese businesses, livestream sales are a double-edged sword. While the model offers increased sales potential, brand awareness, and reduced marketing costs, it also poses significant challenges. The emphasis on rapid interaction and authenticity places pressure on businesses to deliver quality, and failure to do so can lead to loss of customer trust.
The effectiveness of livestream sales in Vietnam hinges on how well businesses can harness this tool in a market where brand and product awareness are often low for foreign entrants. For brands that succeed in raising recognition, building trust, and fostering genuine relationships with consumers, livestreaming can be transformative, creating opportunities for engagement and real-time customer interaction. However, for brands still new or unfamiliar to Vietnamese audiences, the lack of initial awareness can make livestreaming less impactful. Without established credibility, these brands risk seeing limited results, as audiences may be hesitant to purchase from brands they know little about. In this way, livestreaming could either accelerate brand growth or underscore existing challenges in reaching and converting a new customer base.
The future of livestream sales in Vietnam remains bright, but it comes with inherent risks that businesses must address. As this model continues to evolve, Vietnamese businesses should adopt practices that prioritize quality, customer engagement, and effective logistics to reap long-term benefits from livestreaming. Only by finding the balance can livestream sales truly become a savior, rather than a destroyer, of Vietnamese businesses.
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