VietNamNet Bridge - In a new business field like e-commerce, the competition in quality is important as it brings benefits to Vietnamese users.


{keywords}

Tiki.vn has reported a loss of VND157 billion since the day it received investment from VNG eight months ago. But it is normal to take a loss in the first years of operation.

The loss is equal to the amount of money Lingo.vn incurred which forced it to shut down. 

However, Tiki is different from Lingo, because the financial capability of the startup is stronger, especially after it received VND384 billion worth of capital from VNG.

Tiki now needs to focus on expanding the network.

Tran Ngoc Thai Son, Tiki’s CEO, said Tiki spends its money on three things. 

In a new business field like e-commerce, the competition in quality is important as it brings benefits to Vietnamese users.

First, the scale of the e-commerce website has grown. The number of orders successfully delivered to customers increased by 3-4 times in the last year. 

Second, the delivery time has been improved. According to Son, the average delivery time is 2.8 days.

Third, it has customer loyalty. The rate of rejected products and demand for exchange  accounts for only 1 percent of total sales, an ideal figure for any online or offline retailer.

Tiki’s NPS (net promoter score) is very encouraging at 81-83, which is equal to that of  US retail chain Costco with NPS of 82.

The satisfactory indexes announced by Tiki, as analysts commented, make its rivals, including Lazada and Sendo, understand they need to develop good retail chains to compete with Tiki. 

Truong Gia Binh, CEO of FPT, on Bloomberg recently, said the total trading value on FPT’s Sendo would reach $1 billion by 2020. In order to obtain that goal, FPT will have to prepare for the costly investment plan. 

Lazada, before falling into Alibaba’s hands, once poured big money into the Vietnamese market. However, it must inject more money to cement its position in the market.

It is a surprise that unprofitable e-commerce startups still interest investors. Tiki and Momo are two examples.

Eight months ago, VNG accepted to pay VND103,000 per share, a very high price level to buy 3.7 million Tiki shares though Tiki reported a loss of VND20 billion in the first quarter.

Meanwhile, MoMo e-wallet reported a loss of VND42 billion in 2014 and accumulative loss of VND90 billion by the end of that year.


related news

Mai Thanh