Tiki
Tiki
Tiki
Introduction
About Tiki.vn
Tiki is a young commercial company, which was established in March 2010 by Mr. Tran Ngoc
Thai Son. The first office of Tiki.vn is Son’s garage with the capital about $5000 from Son’s
money. (Newman, 2011).
Over the period of 6 years, Tiki.vn has become one of the most famous e-commerce companies in
Vietnam. Beginning with selling books, Tiki expands to 9 sectors as books, fashions, consumer
goods, stationary, electronic goods and accessories, mother and baby products and technical
equipment. (Tiki.vn, n.d.)
Tiki.vn has served more than 800,000 customer with the number of product up to 120,000.
In 2013, Tiki was invested by Sumitomo Corporation from Japan after invested by another Japan
party, CyberAgent Ventures Fund, in 2012. According to a report in 2013, Sumitomo Corporation
holds 30% share of Tiki.vn and CyberAgent Ventures Fund holds 15%. (Lê, 2013). Tiki.vn is
called “Vietnam Amazon”; Tiki.vn also mainly focus on the B2C customers as Amazon does.
Shopee, a major rival of tiki also launched a campaign called Super Sale to the
edge competition program of tiki shopping revolution. According to the report
that the Sea, the parent company of Shopee, given, in the first three months of
this year, an average day, 30,000 orders Shopee in Vietnam .
2.3 SWOT
2.3.1 Strengths
- Has a long history of formation
Tiki is a business in e-commerce industry established in 2010, with a long history of
business operations, Tiki has created trust for customers and is one of the first
choices among commercial exchanges. electronic.
From May to October, the company has invested a lot of resources in opening 6 more
warehouses, bringing the total number of warehouses nationwide to 8 warehouses,
including Ho Chi Minh City. HCM with 3 warehouses; Hanoi, Hai Phong, Da Nang,
Nha Trang and Can Tho with 1 warehouse in each city. After much effort and serious
investment, on October 20, 2018, all 8 Tiki warehouses were put into operation at
the same time.
2.3.2 Weakness
- Heavy losses, losses for the increasing trend over the years
According to the financial report of Tiki Joint Stock Company, this enterprise
recorded an accumulated loss of nearly 308 billion dong at the end of 2016. If
calculating the loss of 282 billion dong in VNG's 2017 annual report, the
accumulated loss of This e-commerce site has reached nearly VND 600 billion after
7 years of operation.
- The policy of combining plastic books with combos brings mixed opinions
Tiki has a plastic wrap policy, using 99k packs of 40 books or 199k packs of 100
books. This has encouraged customers' demand for book protection. However, not
everyone needs to buy so much, so it creates discomfort and needs to adjust this
policy by unit.
- Delivery time depends too much on the geographical location between regions.
- Products are limited, not really diverse (compared to Lazada, Sendo ...)
- Processing time, post long
Posting time up to 48 hours, takes a lot of time when reviewing and editing image
content.
2.3.3 Opportunities
- Marketplace brings great potential to Tiki
Businesses, when brought here, can actively coordinate with Tiki to make
marketing and boost sales, but the quality must still be controlled by Tiki's
supply chain system. In this way, Tiki can control the quality of input, and
possibly through businesses to resonate for their e-commerce platform.
- Working with large companies has brought more experience and empowered
Tiki brand.
- Among the top industries encouraged by the government and prioritized for
development
2.3.4 Threats
- Strong competitors
For the booming development of e-commerce market, Tiki has many
competitors worth worrying like Lazada, Shopee, Sendo ...
- Marketplace policy
The Marketplace offers a great opportunity for Tiki's new development, but
this is also a big challenge for the quality of product inputs, traceability and
building trust with customers when implementing the marketplace model.
S W
+ Tiki has a long history of formation. + Heavy losses, losses for the
+ Brand identity. increasing trend over the years
+ High market share in e-commerce + Launching virtual book price
market. + The policy of combining plastic
+ Having large and strong financial books with combos brings mixed
sources, constantly pouring capital. opinions
+ Large, fast distribution network.
O T
+ Marketplace brings great potential +Strong competitors
to Tiki +Marketplace policy
+Internet use time of Vietnamese +High selling cost
people is high
+The trend of online shopping is on
the rise
+Among the top industries
encouraged by the government and
prioritized for development
Customers can find available on stock condition of any product. If a product is not
available at this time, Tiki.vn will offer a button which notify customer when
this product is available. The customer demand of buying product just appear in
some moments, it can be forgotten easily if this demand is not satisfied. Tiki.vn will
remind customer by sending notification when the product is on stock, this notification
will raise the customer demand again. It might help Tiki.vn sell this product.
2.4.2 Price
Tiki.vn is an e-commerce shop with variety of product so that they have a wide range
of price as well. Customers can choose range of price that they want easily in any
kinds of product customers looking for. The most important aspect that influence
customer buying is that Tiki.vn always has reduction in any products they have. This
sale promotion has positive effect on customer who want to purchase product in the
cheapest price.
Customers have change to buy product in high price without purchase a large amount
of money at once. Tiki.vn corporate with HSBC, ANZ, Sacombank, Shinhanbank,
Citibank, VPBank, Eximbank, SeABank (Tiki.vn, 2015) bring out program “0% interest
in installment purchase” for customer using credit card of these banks. Otherwise,
Tiki.vn has COD (Cash On Delivery) buying method, it very convenient for
customer when buying product from Tiki.vn. Customer just pay money when
they receive product. In addition, Tiki.vn always give a customer a small gift
when they buy books in Tiki.vn, it usually a bookmark, a small and useful
gift for book reader.
2.4.3 Place
As mentioned above, Tiki.vn has variety of products which suit for most of
customers’ demands so Tiki.vn does not have segmented channel. Tiki 24h Delivery
Service and COD service which mentioned are the good features of Tiki.vn
which is mainly focus on B2C business.
Another justification should be added into account is that Tiki support team will
help customer to install products as TV, refrigerator … when they deliver them to
customer.
2.4.4 Promotion
Tiki.vn is so famous for book, they join in annual book fair in Ho Chi Minh City to
reach their customers, particularly the young. Tiki.vn also invites famous authors
as Anh Khang, Hamlet Trương, Iris Cao, Tuệ Nghi,.. ,who are influencers to their
target customers, to autograph copies to customers. In Tiki.vn’s area in book fair,
they hold many mini games to attract customers.
Exchanges and autograph show in Ho Chi Minh City Book Fair 2016.
(Tiki.vn, 2016)
Because of a B2C business, Tiki.vn do not put direct marketing as their main
marketing programs. Customer can see Tiki.vn in most famous electronic
newspapers as a sponsor in many kinds of event. Brand Tiki.vn is the “hot” key
words in Vietnam whenever a young want to buy a book online.
2.5 Action Program
Since May of1919, Tiki with the marketing strategy "Tiki with Vietnamese
stars" has become the first e-commerce startup in Vietnam to announce a long-
term cooperation with Vietnamese artists. Tiki has sponsored the release of art
products in many fields, notably music and has brought a very different effect.
Tiki's representative, Mr. Bui Ngoc Hien, Director of Tiki Brand and
Communications, said: “Up to now, Tiki's brand awareness index nationwide
has reached 94%, of which in the two major cities are Ho Chi Minh City and
Hanoi respectively 94% and 95%, other cities also reached 90%. In May of1919,
the project "Tiki with Vietnamese stars" also entered the top 10 prominent social
networks from Buzzmetrics.
The project started with a music video on YouTube called “lửng lơ” by two
famous underground vocalists, Masew and BRay. Then there are a series of
products: August Light procession (Ho Hoai Anh - Luu Huong Giang; The
Voice Kids; R.Tee), Bac Destiny (K-ICM and Jack), Don't Fall In Love, I'm
Tired (Min ), Can You Stay (Chi Pu), Love It (Duc Phuc), Bright Eyes (Truc
Nhan), Waves (K-ICM and Jack) ...
MV has long been one of the fastest channels to reach audiences. But to
participate in this race, the singer must spend a lot of money, even billions.
Therefore, with the sponsorship of Tiki, many singers and artists have saved a
considerable amount of money, and at the same time, took advantage of more
promotional channels during the Tiki brand campaign.
The common point of these music videos is that the delivery staff plays the Tiki
logo, the end of the song is brand information. Thereby, Tiki focuses on
promoting the brand into the music videos of artists with a large number of
young fans who have just started to own finance and are interested in spending
and shopping.
Tiki representative confirmed the project sponsors for 100 music products in the
near future. In fact, the sponsorship of the music video is not new in Vietnam in
recent years, especially after the success of Biti's with sports shoes in the song
in the context of Lac Troi ancient history of Son Tung M-TP. .
Also according to data from iPrice, in the second quarter of 2019, Tiki became
the e-commerce startup with the most impressive growth in Vietnam. Average
access to the website tiki.vn reached over 33 million, ranking the second in the
whole country. Traffic to Tiki is higher than Lazada and only about 5 million
visits from Shopee. Even in the first quarter of 2019, Tiki has achieved an
average growth of 23% in traffic each quarter since the second quarter of 2018.
2.6 Budget
-The cost of investing in a MV for Vietnamese singers for content marketing:
225 billion
-Backup budget: 25 billion
-Count: 250 billion
-Profits received from this marketing
2.7 Controls
Continue to invest in Vietnamese artists' music videos to accomplish the 100 MV goal
in 2019. “However, not every MV has achieved the success that artists and Tiki want
but I have to accept what there. Just like you develop a project, there is success, there
are failures but not because of that without investment, must have faith that it succeeds
”, Mr. Tran Ngoc Thai Son, Founder and President Son's Board of Directors shared
Before wondering about the effectiveness of investing in music and whether it is
expensive, Mr. Son said, according to the data and results given, it is very effective
and the management has great faith in the strategy. This will succeed. "I don't think it
is costly and ineffective," Son said.
With a narrower financial resource than the two foreign e-commerce sites, Tiki's loss
is also much "modest" with 760 billion dong. However, this loss is 2.5 times higher
than in 2017.
Tiki has many domestic and foreign shareholders such as VNG, JD.com, Sumitomo
...
With no abundant financial resources, Tiki always has to make new calls to
supplement capital. In 2018, Tiki raised another 920 billion dong but also spent almost
due to the large loss in the year. To continue racing in 2019, the company must call
for additional capital is a mandatory requirement. In the future, it is possible to
continue investing in 200 to 300 mv, rather than stopping at 100mv
Ranking of leading e-commerce businesses in Vietnam