1. A Market in Structural Shift: The Unstoppable Rise of TikTok Shop and the Stagnation of the Market Leader.

This is the most urgent insight. Recent reports paint a picture of stark contrast:

  • Shopee: While still leading in total revenue ($5 billion), it is experiencing negative growth (-6%) year-over-year.
  • TikTok Shop: Closing the gap rapidly ($4 billion) with a phenomenal growth rate of +148%.

Strategic Implication: The market is no longer stable. The “leader” is showing signs of hitting a plateau, while the “challenger” is rising at an unprecedented pace. Treating TikTok Shop as a supplementary channel is an outdated approach. It is now the epicenter of the market’s growth momentum. Any strategy that does not place TikTok Shop at its core risks missing the most significant growth wave in the current landscape.

2. The Hidden Truth of Order Value: TikTok Shop Isn’t Just for Low-Priced Goods.

A common misconception is that TikTok Shop is a marketplace exclusively for cheap products. The data tells a different story:

  • The average value per product on TikTok Shop (129,337 VND) is actually higher than on Shopee (107,077 VND).

Strategic Implication: This suggests that while users on TikTok Shop may purchase affordable items, they tend to buy multiple products in a single transaction (e.g., buying several fashion items during a single livestream). This demonstrates the platform’s immense commercial power and its ability to drive spending. It debunks the notion that it’s only a channel for low-value items, highlighting its massive potential for effective cross-selling and upselling.

3. The Polarization of “Trust”: Millennials Trust “Policies,” Gen Z Trusts “People.”

The report reveals a fundamental difference in how these two generations build brand trust:

  • Millennials prioritize systemic and assurance-based factors: 68% are most concerned with Return/Warranty Policies.
  • Gen Z places their trust in personal and community-driven factors: 55% are influenced by Micro-influencers.

Strategic Implication: To succeed, our brand must build two types of trust in parallel.

  • On Shopee (for Millennials): Build “System-based Trust” through impeccable customer service, clear policies, and detailed product descriptions.
  • On TikTok Shop (for Gen Z): Build “Personal-based Trust” by collaborating with authentic content creators who have credibility within their communities. Neglecting either one means missing half the market.

4. New Brands Are Winning on TikTok Shop: Gen Z Is “Ready,” Millennials Are Not.

This is the most critical point for a new brand like ours. A case study in the shampoo category reveals a valuable truth:

  • In the top 10 shampoo brands on TikTok Shop, 5 are “new/trending” brands.
  • The top 10 list on Shopee is completely dominated by established, well-known brands.

Strategic Implication: TikTok Shop is the ideal launchpad for new brands. Gen Z users on this platform are not just open-minded; they actively seek out and experiment with new and novel products. Trying to launch a brand-new product on Shopee would be a much more difficult and costly battle, as we would be competing directly against “giants” that have already earned the trust of Millennials.

In summary, this analysis reveals a market undergoing a powerful transformation. A “one-size-fits-all” strategy will fail. Our success depends on the ability to build and execute a dual strategy that is flexible and acutely aware of these profound differences.