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Online groceries shopping booms as HCMC practices social distancing

By Sarah ChenVietnam
2 min read
groceries market
groceries market
In this article (4)

Many HCMC residents have turned to online shopping for essential goods following a two-week social distancing order across the city, and e-commerce platforms are reporting a boom.

Data from e-commerce platform Tiki shows sales grow by 30 percent last weekend, just before social distancing was implemented in Ho Chi Minh City on Monday, with a rise in the number of searches for fast-moving consumer goods, fresh food, mom and baby products.

E-commerce platform Lazada’s sales of fast-moving consumer goods in the past few days were three times higher than during social distancing period in April last year. Sales of fresh food and frozen products have increased tenfold.

Tran Tuan Anh, CEO of e-commerce platform Shopee, confirmed that there has been high demand for essential goods, especially fast-moving consumer goods, healthcare products and house appliances.

A Tiki representative who did not want to be named said that they have been working with suppliers to increase the supply of essential goods, fresh food as well as tech products that serve work and entertainment at home by up to 50 percent, while supply of hand sanitizers will increase 25 times.

Shopee said it has been selling essential goods at reasonable prices and providing free shipping for customers. It is also implementing free advertising programs for its sellers.

Lazada has affirmed it will continue expanding goods supply, besides implementing discount programs, no-contact delivery and boosting cashless payments.

Latest data from Malaysia-based market research firm iPrice shows consumers have grown accustomed to buying essential goods online, with the groceries segment the only one to see a 13 percent year-on-year increase in the number of web visits in Q1.

Meanwhile, web visits related to non-essential goods like mobile phones and electronics appliances dropped 9 percent and 6 percent, respectively.

Covid-19 has served as a catalyst for e-commerce, boosting online shopping demand for essential goods, iPrice stated.

Questions & Answers

Q.

Which online retail categories have seen a decline in web visits despite the overall boom in e-commerce?

A.

Data from iPrice indicates that web visits for non-essential goods like mobile phones and electronics appliances have dropped. Mobile phones saw a 9 percent decrease, and electronics appliances fell by 6 percent, in contrast to the groceries segment's growth.

Q.

What measures are e-commerce platforms taking to meet the increased demand for essential goods?

A.

Tiki is working with suppliers to increase essential goods supply by up to 50 percent and hand sanitizers by 25 times. Shopee offers essential goods at reasonable prices and free shipping, while Lazada is expanding supply, running discounts, and promoting cashless payments.

Q.

How do recent sales figures compare to previous social distancing periods for platforms like Lazada?

A.

Lazada's sales of fast-moving consumer goods in the past few days were three times higher than during the social distancing period in April last year. Sales of fresh food and frozen products on their platform increased tenfold.

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