TikTok vs. Shopee: Gen Z and Millennial e-commerce showdown

Richard Burrage
Aug 08, 2025

TikTok vs. Shopee: Gen Z and Millennial e-commerce showdown plays out in Vietnam’s US$8.5 billion online shopping surge in 1st half of 2025 races ahead.  According to YouNet ECI’s latest Vietnam E-commerce Intelligence H1 2025 report, the market is projected to grow at a compound annual growth rate (CAGR) of up to 35% from 2024 to 2028 — the most bullish outlook. This growth reflects a fundamental shift in Vietnamese consumer behaviour, competitive platform dynamics, and technology-enabled selling.

Powered by YouNet ECI’s proprietary EcomHeat platform, this report offers the most comprehensive, cleaned, and AI-refined dataset in Vietnam’s e-commerce landscape. It covers over 2.9 million stores and platforms, including Shopee, TikTok Shop, Lazada, and Tiki and tracks GMV, pricing, category trends, and social commerce performance.

The data spans 1 January to 30 June 2025, and includes nationwide performance across all e-commerce platforms. The key consumer segments are Gen Z (under 27) and Millennials (28–44), accounting for over 72.5% of online shoppers in Vietnam. These groups differ in behaviour: Gen Z prefers entertainment-led, trend-sensitive platforms like TikTok Shop, while Millennials lean towards reliable, time-saving platforms such as Shopee.

Vietnam online shopping top trends

1. E-commerce GMV hits $8.49 billion in H1 2025

Vietnam’s e-commerce platforms generated Gross Merchandise Value (GMV) of VND 222.1 trillion (US$8.49B) in the first half of 2025 — a +23.1% YoY growth, signalling sustained acceleration in digital retail. Shopee and TikTok control a combined 97% market share. Tiki and Lazada saw sharp declines in both GMV and seller activity.

  • Shopee’s GMV: US$4.47B (-6% YoY)
  • TikTok Shop’s GMV: US$3.57B (+148% YoY)
  • The number of revenue-generating sellers down -1.3% YoY overall, but +96% on TikTok.

2. TikTok shop surges by 148% YoY

TikTok Shop now commands 42% of total GMV, growing at +148% YoY, becoming a formidable competitor to Shopee, which holds a 55% share but grew only marginally.

3. Shopee Still #1, but losing momentum

While Shopee remains Vietnam’s largest platform by GMV, TikTok’s exponential growth and superior user engagement erode its lead.

4. Active sellers increase on TikTok,  but decline elsewhere

TikTok’s active seller base surged +95.9%, surpassing Shopee for the first time. Conversely, Shopee, Lazada, and Tiki saw double-digit declines in active sellers.

5. TikTok vs. Shopee: Gen Z and Millennial e-commerce showdown

A clear showdown between generational shopping intent is apparent.

  • Gen Z (under 27) seeks entertainment, unboxing videos, and viral trends. TikTok wins on low prices, discovery, and content. TikTok excels in low-to-mid-priced products. Emerging brands thrive on TikTok, and new and niche brands find quicker traction on TikTok Shop due to Gen Z’s low brand loyalty and trend sensitivity.
  • Millennials (28–44) seek efficiency, product reliability, and professional service.  Shopee wins on policy, reputation, and trust. Shopee dominates higher-priced and branded categories.

6. Gen Z (under 27) is driving Shoppertainment

Gen Z shoppers favour livestreaming, influencer recommendations, and discounts of over 30%, making TikTok Shop the most aligned platform with their needs.

7. Millennials (28–44) need trust, time-saving, and convenience

Shopee’s edge lies in professionalism, payment flexibility, and post-sale support, making it the preferred platform for Millennials seeking hassle-free transactions.

8. Fashion, beauty, and FMCG lead all categories in Vietnam

The top 3 categories remain:

  1. Fashion & Accessories GMV: US$2.4B
  2. Beauty GMV: US$1.4B
  3. Home & Living GMV: US$1.1B
  4. Consumer Electronics GMV: US$584M
  5. Food & Beverage GMV: US$557M
  6. Mom & Baby GMV: US$454M

Fashion and beauty categories dominate TikTok; Shopee leads in healthcare, FMCG, and tech.

9. Product prices show an inflationary uptick

The average item price was VND 186,241 (+5.4%), which rose 5.4% YoY, reflecting inflationary pressures and increased consumer willingness to pay online.

Building online retail sales in Vietnam

1. Be on both Shopee and TikTok Shop

TikTok Shop should be prioritised in your channel mix if your brand targets Gen Z (under 27). Invest in influencer collaborations, livestreams, and “shoppertainment” strategies.

2. Segment strategy by generation

Use a dual-platform approach: Target Millennials (28–44) on Shopee with reliability, while targeting Gen Z  (under 27) on TikTok with discovery and trends.

3. Monitor GMV-per-store metrics

Use performance benchmarks like GMV/store to optimise your store network. TikTok and Shopee show the highest GMV/store averages, indicating more substantial ROI.

4. Don’t ignore pricing strategy

Across all platforms, price tiers are shifting. Match pricing to each platform’s shopper profile — lower on TikTok, premium on Shopee.

5. Activate emerging SKUs on TikTok first

New products and brands gain faster traction on TikTok. You can use it as a testbed before expanding to Shopee.

6. Run platform-specific promotions

TikTok deals work best at above 30% discount. Shopee performs well with more moderate (10–20%) discounts and loyalty perks.

7. Invest in product portfolio optimisation

It would be best to track which SKUs drive GMV growth and where your product is positioned relative to competitors. Portfolio tuning is a high-impact lever.

8. Track sellers, not just platforms

Evaluate top-performing third-party sellers. Collaborating with high-GMV sellers on Shopee and TikTok can boost your reach and trust.

Thank you to YouNet.

This article’s insights are drawn from their Vietnam E-commerce Intelligence H1 2025 report, which you can download in Vietnamese.

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