How Vietnamese-Commerce Companies Use Social Media to Increase Brand Awareness and Consumer Loyalty

Electronic commerce is considered one of the most dynamic and lucrative industries in the modern world. Whilst e-commerce in developed countries has grown vigorously, e-commerce in Vietnam is an untapped market waiting to be exploited. Foreign investors are starting to invest in Vietnamese e-commerce market as they see huge potential growth in this sector. Foreign investments bring a new vitality to the e-commerce market, but at the same time create enormous pressure on Vietnamese e-commerce companies. Facing financial pressures and fierce competition forces local companies to find out affordable and effective tools to reach to potential consumers and expand market share. Meanwhile, social media with its rapid growth has created new trends in grasping consumer attention and improving business performance. With a large amount of users, advanced advertising features, and cost-effectiveness, social media can be a feasible solution for local e-commerce companies in Vietnam.The present study aims to explore the potential of social media in increasing brand awareness and consumer loyalty among Vietnamese e-commerce companies. Semi-structure interviews with ten consumers and five managers of local e-commerce companies are conducted to help identify pros and cons of social media adoption. The findings suggest that social media, particularly Facebook, is effective tool in improving brands\u92 online presence. Word-of-mouth effect is the most trustworthy advertising on social media platforms. Information overload and lack of business strategy and social media marketing alliance are potential challenges in adopting social media among e-commerce brands. Recommendations for local e-commerce companies include improving content marketing and integrating social media into business strategies