The emergence of TikTok, together with the rise of shoppertainment in 2023, has fundamentally reshaped consumers’ purchasing habits and spending power on E-commerce. YouNet ECI – a leading E-commerce growth consulting firm for brands in SEA, and YouNet Media’s data intelligence forecasts that in the best case scenario, the Vietnam E-commerce market will grow at a 35% CAGR, reaching approximately $49.9 billion by 2028.
However, the rapid growth does not guarantee any easy wins for every brand. The market landscape is rich with opportunities, yet not for brand thinking success just comes from simply having a presence on E-commerce platforms. Sustainable growth in E-commerce today depends on a deep understanding of consumer behaviours. Therefore, this article analyzes Gen Z and Millennials’ online buying behaviours to offer directions for brands’ long-term 5 year strategies.
2 out of 3 digital consumers make online purchases every week
According to a YouNet Media survey of 700 customers across big cities in Vietnam, 62.8% of digital consumers currently place orders on E-commerce platforms at least once a week.
There exists a clear positive correlation between income level, online shopping frequency, and basket size. For consumers with an income of VND 30 million or more per month, online shopping is almost independent of platform promotions and happens whenever the need arises.
In terms of aging, Gen Z (53.4%) and Millennials (46.6%) lead online shopping adoption. While their spending levels and preferred product categories differ, both groups show strong potential for higher purchase frequency and higher basket value when engaged with the right approach.
“E-commerce growth over the past year has reshaped consumer needs and expectations. By identifying and fulfilling these drivers, brands can unlock a new level of consumer spending and loyalty” – said Ms. Mai Cam Linh – Business Director at YouNet Media.
51% of Gen Z are influenced by social media trends when shopping for new products
As the generation of the new digital era, Gen Z leads both the creation and adoption of new trends. According to the YouNet Media survey, their most frequently purchased categories on E-commerce are fashion, beauty and personal care, reflecting a big focus on self-care and a preference for products that represent their modern lifestyle.
Market Potential of Gen Z
- Higher basket value: The average basket value for fashion, beauty and personal care categories is projected by YouNet ECI to grow 2.3X from 2023 to 2028, reaching $28.8 per basket.
- Increased spending level: Gen Z’s online spending is estimated to uplift from $4.5 billion (2023) to $20.3 billion (2028), if brands can meet Gen Z’s needs through shoppertainment-driven experiences.
Distinctive consumer behaviours
- Micro-influencers lead shopping decisions: 55% of Gen Z refer to reviews and ratings from micro-influencers (10.000 – 100.000 followers) before purchasing, especially in fashion and beauty categories.
- Shoppertainment-driven shopping: 51% of Gen Z buy new products on E-commerce based on viral social media trends, while 35% are triggered by discounts, and promotions.
Strategies for brands
- Partner with the right influencers: Collaborate with micro-influencers whose style and content align with the target customers to create authentic content such as product reviews, unboxings, and interactive livestreams.
- Personalize the experience: Focus on exclusive offers, limited product editions, and entertainment-driven content to increase engagement and retention.
- Leverage social platforms: Stay on top of emerging trends to quickly bring products to the right Gen Z audience at the right moment.
Gen Millennials – High value purchases and high expectations for after-sales service
The YouNet Media survey shows that Millennials (born between 1981 and 1995), shop online more frequently than Gen Z, around 1-3 times a week. Their basket value can rise up to USD 125, far higher than that of Gen Z. On top of fashion, beauty and personal care, Millennials also spend heavily on home appliances and consumer electronics.
Market Potential of Gen Millennials
- Strong spending growth: YouNet ECI forecasts Millennials’online spending will increase from $6.9 billion (2023) to $29.7 billion (2028), provided brands can fulfill their expectations.
- Balanced lifestyle: 82% of Millennials prioritize a work-life balance. This provides growth opportunities for sports brands, premium entertainment technology, and home-amenities solutions.
Distinctive consumer behaviours
- High expectations of brand service: According to the survey of YouNet Media, Top 3 core factors influencing Millennials’shopping decisions are:
- Clear return and warranty policies
- Convenient payment options within a single platform
- Flexible delivery scheduling
- Price is not the key driver: While Gen Z is highly influenced by promotions, price and voucher rank only 5th among Millennials’ Top 10 priorities.
Strategies for brands
- Invest in service quality: Design clear after-sales service policies, seamless payment experience, and flexible delivery options to drive long-term trust.
- Build online community: Sponsor for events, tournaments or interest-based groups to strengthen engagement with this segment.
- Focus on home-based technology: Meet the demand of Millennials’ convenience amenities to encourage them to invest more on modern equipment via online channels.
In conclusion, competing on E-commerce platforms is more challenging than ever. Customer journeys are no longer linear, and shopping behaviours vary differently across generations. This shift requires marketers to rethink their target customer personas and quickly adapt to how and where they shop online.
Read the full report by YouNet Media & YouNet ECI here for more insights: https://drive.google.com/file/d/11tmyrYT2jQGzBpo78mJ0eT_9kTrPPxY9/view?usp=sharing
