Premia TNC Vietnam Team
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With the recent rapid contraction of the Korean home shopping market, companies that thrived on this growth are seeking new avenues. While TV-based home shopping once established itself as a trusted sales channel for consumers, shifting consumer patterns in recent years have led to the emergence of mobile shopping and live commerce as new focal points. Consequently, companies that maintained their traditional home shopping business models are realizing the need for change and are turning their attention to overseas markets with promising growth potential.
Amid these changes, the Vietnamese e-commerce market is offering new opportunities for Korean home shopping companies. As one of the fastest-growing online shopping markets in Southeast Asia, Vietnam is experiencing an average annual growth rate of over 25%, with a mobile-centric shopping environment becoming the mainstream. In particular, the rise of live commerce platforms like TikTok Shop and Shopee Live is fostering sales methods similar to traditional home shopping models, creating an environment that Korean companies can adapt to relatively easily.
The Changing Face of Korea's Home Shopping Market: Mobile-Centric Consumption Trends
In the past, watching home shopping channels on TV while shopping was a common consumption pattern. However, recently, consumers are switching to OTT platforms like YouTube and Netflix, reducing their TV viewing time. Consequently, viewership ratings for home shopping broadcasts are steadily declining, leading to a corresponding decline in sales. This shift means that existing home shopping companies should adopt new approaches to connect with consumers through new channels.
4 Major Changes in the Korean Home Shopping Market
- Decline in TV-Based Home Shopping Viewership
- TV viewing time is decreasing as consumers increasingly turn to OTT platforms for entertainment.
- Growth of Mobile Shopping and Live Commerce
- Mobile-centric sales are expanding rapidly through platforms such as Naver Shopping Live and Coupang Live.
- Changing Consumer Purchasing Behaviors
- Shoppers are moving toward live commerce, which offers real-time interaction and immediate feedback during purchases.
- Rising Need for Overseas Expansion
- With the domestic market becoming saturated, more home shopping companies are exploring opportunities in Southeast Asia to sustain growth.
As the home shopping industry rapidly transitions to mobile and live commerce, the Vietnamese market is emerging as a new opportunity.
The E-Commerce Market in Vietnam Provides the Ideal Launchpad for Home Shopping Companies
Vietnam is the fastest-growing e-commerce market in Southeast Asia, with live commerce and mobile shopping emerging as key consumer trends. If Korean home shopping companies enter the Vietnamese market, they are likely to leverage their existing broadcast-based sales experience to adapt more quickly and achieve success.
The Perks of Entering Vietnam’s Market for Home Shopping Companies
Market Size
- Valued at approximately USD 24 billion by 2023, the Vietnamese e-commerce market continues to record remarkable annual growth.
Mobile Shopping Dominance
- Over 90% of online shoppers make purchases via mobile devices, driven by Gen Z’s strong preference for mobile-first experiences.
Rise of SNS and Live Commerce
- Explosive growth in social media and live commerce platforms such as TikTok Shop and Shopee Live is reshaping online consumer behavior.
Trust in Korean Brands
- Vietnamese consumers show high trust and strong preference for K-beauty, K-food, and K-fashion products.
Korean home shopping companies can leverage their existing broadcast shopping expertise to gain a strong competitive edge in Vietnam’s live commerce market.
Actual Cases of Korean Home Shopping Companies Entering Vietnam
Case 1: K-Beauty Home Shopping Brand Hits Big on Shopee Live
A Korean home shopping company brought a successful K-beauty brand from Korea to Vietnam’s Shopee Live. They adopted the same live broadcasting method employed by professional hosts used in traditional home shopping and quickly increased sales through real-time communication and instant discount events during the broadcast.
- Shopee Live’s first broadcast sales surpassed 100 million VND (approximately 6 million KRW).
- Increased customer reviews after product sales lead to an increase in brand awareness.
- Similar to existing home shopping operation methods, so you can adapt quickly.
Case 2: K-Food Company Successfully Enters the Market Through TikTok Shop
A popular Korean K-food home shopping company has established a Vietnamese subsidiary and begun selling directly through TikTok Shop. Vietnamese consumers are highly interested in Korean food, with instant food and healthy functional foods being particularly popular.
- TikTok Shop sells an average of 3,000 items per day.
- Build trust with real-time tasting reviews during live broadcasts.
- Introducing a local payment system after establishing a corporation in order to optimize the sales process.
Home shopping companies can leverage their existing video content production experience to quickly achieve success in Vietnam’s live commerce market.
Closing Points
- Home shopping-based companies are highly likely to succeed in Vietnam by leveraging live commerce.
- Real-time sales are becoming a trend on major platforms like Shopee, Lazada, and TikTok Shop.
- Establishing a Vietnamese corporation allows you to take advantage of tax benefits and payment systems, which, in turn, increases business stability.
- A direct sales model utilizing SNS and live commerce is the optimal strategy for home shopping companies.
If your business has grown based on home shopping, you may find new opportunities in the Vietnamese market. Now is the time to consider incorporating.
Premia TNC Vietnam Team
Author
Premia TNC Vietnam is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Vietnam and across the region. Premia TNC Vietnam specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
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