Deputy General Director of Tiki: If you only use money and rely on money to take over the market, it is very ‘addictive’!

9 min read

About 10 years ago, e-commerce to Vietnamese seemed to be a vague and distant concept, only a few people who liked the technology hesitantly learned and used it. At present, online shopping is an almost regular activity of many generations of 8x and 9x in big cities such as Ho Chi Minh City, Hanoi, and Da Nang and is expanding nationwide.

Despite rapid progress, in the opinion of Mr. Ngo Hoang Gia Khanh – Deputy General Director of Tiki, Vietnam’s e-commerce industry has only gone half the way and there are still many challenges to overcome such as The problem of counterfeit goods – counterfeit goods, logistics infrastructure is not favorable, technology and capital resources are still limited compared to the world.

We had a talk with Mr. Ngo Hoang Gia Khanh – Deputy General Director of Corporate Development at Tiki to have a more comprehensive view of this field!

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 1.

– In your opinion, the e-commerce market in general has some development stages?

– Vietnam’s e-commerce market has 3 stages of development. The first phase is a nascent stage, customers will be interested in promotions, discounts and refunds. But in the second stage, customers are more interested in the shopping experience: they want genuine goods, fast delivery, good after-sales, and excellent customer service.

The third stage is the maturity stage, when customers navigate to experience platforms with many different modes, not only in the shopping experience but also to bring joy to them.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 2.

– What stage is Vietnam in the e-commerce market?

– In my opinion, the Vietnamese market is probably in phase 1.5, in the process of going from stage 1 to stage 2. Because customers still care about cheap and free shipping. However, besides that, many customers have gradually paid attention to the shopping experience as genuine goods and good customer care.

So Tiki has always followed this trend closely. Typically we have 2 hour delivery or timed delivery with the new TikiPRO service, to provide the best possible buying experience.

– What are the three biggest changes in Vietnamese consumer behavior when buying online in the past 10 years?

– There are many changes, but in the end there are 3 most obvious ones. First, customers are ready to buy high-value products on e-commerce floors, not only books but also TVs, beds, wardrobes, air conditioners They accept high value purchases by gaining trust.

Second, customers have increasingly high demand for e-commerce services’ services. In the past, when Tiki launched a 24-hour delivery service, was considered the fastest speed in the market at the time; But now, we have 2 hours of TikiNOW delivery. Finding ways to shorten delivery times is the next step to serving the second stage of the market, as well as increasing demand and variety of customers.

Thirdly, unlike before, now customers go to e-commerce floors. In addition to shopping needs, they want to have fun. Therefore, now e-commerce floors must integrate more entertainment experiences to truly bring true shopping joy to customers.

– In the past 10 years, according to your observations, how has the e-commerce market in Vietnam changed?

In the past 10 years, Vietnam’s e-commerce market has changed a lot. From 10 years ago, it is possible that users also go to the store and buy goods, but only during office hours. Now hearing that, we feel very… strange, but it was before. But now, exchanges are open 24/7.

Previously, customers only bought low-value products; now they are willing to buy items of higher value. In particular, Tiki also sells motorcycles and cars on its platform and is very interested in customers.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 4.

– How has Tiki solved the problem of counterfeit and poor quality products in the e-commerce market in recent years?

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 5.

– Every e-commerce business needs to contribute to fight this bad point of the market. This problem, in my opinion, is extremely unfavorable for the whole e-commerce industry. Just buy fake goods – fake goods once, consumers will lose confidence in online shopping.

Therefore, we have applied all scientific and technical technologies to help customers choose the best products, detect and remove counterfeits – counterfeit goods from Tiki floor. Here’s a way to demonstrate Tiki’s commitment and affirmation: never sell fake goods – fake goods on your floor.

In addition, we also work very closely with ministries – departments – branches, authorities, to have sanctions against any sellers on the floor that are found to trade in counterfeit products. Tiki floor.

– It seems that e-commerce sites are racing to open genuine stores of brands. So where are the benefits of these stores for brands, exchanges and consumers?

– The trend of brands opening their official stores on e-commerce sites has also started in the past few years. However, Covid-19 has accelerated the process of opening online stores of major brands – brands.

This is a very good sales channel for brands. Increasingly, we realize that the budget that brands invest in the online sales channel is increasing. I expect this trend to last for a very long time to come. In addition, users are also guaranteed to buy genuine products, not afraid to buy counterfeit products.

– What is the biggest challenge of Vietnam’s e-commerce market at the moment? Is that the logistics problem?

Logistics is only one of the three most concerned issues for the e-commerce industry in Vietnam, the other two are technology – science and technology with capital.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 6.

Logistics is the backbone of the e-commerce industry, if the infrastructure of a country is not yet developed, it is difficult for e-commerce businesses in that country to provide customers with the best shopping experience possible. Therefore, Tiki has invested heavily in logistics to be able to deliver fast delivery within 2 hours, time delivery and weekend delivery.

In terms of technology – people, Vietnam we need more time to catch up with the world. So we also invest a lot in technology – people, especially engineers, in order to provide customers with the best shopping experience.

Third, when building an e-commerce platform, which requires a very long-term capital and must accept the first few years, the capital will be used to focus on expanding markets and attracting customers. Therefore, e-commerce businesses need a capital that is large enough, long enough, and visionary enough to accompany them.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 7.

– How important is e-wallet role in the e-commerce market? Is e-wallet a trend or a temporary trend in the e-commerce industry?

– E-wallets play an extremely important role in the development of the e-commerce industry. Simply put, when customers shop online, the form of payment should also be online payment! This is an integrated experience.

E-wallet associated with e-commerce is a perfect pair to promote cashless payments in Vietnam, as well as follow the direction of the Government.

E-wallets are not a trend, but also not an end goal; but it resonates with the e-commerce industry to create an ecosystem. Therefore, the cooperation between e-commerce exchanges and big wallets is inevitable

– So, according to you, what percentage of Vietnamese users make online payments via e-wallets?

– Currently the rate of payment online, through e-wallets is still not high – below 10%. But we have noticed that the trend of payment via e-wallet has grown very strongly recently, especially after the Covid-19 outbreak. I think in the future, this rate will increase even faster.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 8.

– Is the rural area going to be the new ‘battleground’ for e-commerce in the next few years?

– Rural really is ‘battlefield’ coming, but not in the next 3 years. Because in the next 3 years, in our opinion, the difference in the development of the e-commerce industry between urban and rural areas is still quite large. Rural Vietnam has not yet met the infrastructure – infrastructure for e-commerce booming. But after the next 3 years, I think the rural area will be a potential market for any industry, including the e-commerce industry.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 9.

– What is Tiki’s opinion about ‘burning money’?

– I would like to correct a little bit, in the e-commerce industry, we should not use the word “burn money” but should be “invest”. When we invest, we will sacrifice short-term benefits to achieve greater goals in the future. E-commerce is a long battle! In addition, we need investors and partners with the same vision and patience with Tiki to continuously increase users, increase market share, so that we can bring greater results in the future.

– In your opinion, if you have money but do not know where to invest and do not have money to invest, which one is more scary?

– Both are scary. If we don’t have the money to invest, we have nothing to say anymore! And when we have money and how to use it to build a sustainable company, it is not easy. If you only use money and rely on money to dominate the market, it is very “addictive”! So we need to be alert in using capital, to create long-term value for customers.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 10.

– So what are the necessary and sufficient conditions for e-commerce sites to reach breakeven and make profits?

– A business needs to be alert in using its capital to build long-term values, instead of just using money for promotions and promotions. We need to use money to invest in logistics infrastructure, invest in people, technology that’s the right and long-term direction.

We need to avoid ‘addictive’ in the short term, like just relying on promotions to attract users in the short term. Instead, we should build the values that are enduring and tailored to the needs of our users.

– If you can’t raise capital, how long will Tiki survive?

– Maybe Tiki is not too worried about this issue, because we have many options to run the business. If we have ample capital, we are willing to be more aggressive in expanding the market, but when the capital is tight, we will focus on profitability in the business.

This is a trade-off problem when there are many resources to focus on capturing market share; when resources are limited, will go in the direction of preserving the front yard.

– What factors for an enterprise to dominate Vietnam’s e-commerce market?

– In Vietnam, for a business to take over the e-commerce market is very difficult. In Vietnam today, people’s awareness of e-commerce and the penetration of the e-commerce industry is not high, so an enterprise that wants to be the final winner needs an extremely long-term mindset and really focuses on the prices.

Accordingly, only when businesses can bring users values that do not rely on temporary promotions will it be a sustainable business that can develop for a very long time.

– What will be the development trend of e-commerce floors in the coming time?

– As I have said many times above, in the coming time, the e-commerce floors not only focus on the shopping factor, but also bring a lot of joy to customers. Tiki’s slogan is “fun shopping”. The “shopping” factor has been focused on for 10 years by Tiki, and in the near future we will focus more on the element of “fun”.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 11.

Now, when customers come to Tiki floor, they not only do their shopping but also entertain themselves.

Phó TGĐ Tiki: Nếu chỉ dùng tiền và dựa vào tiền để đánh chiếm thị trường, điều đó rất dễ ‘gây nghiện’! - Ảnh 12.

– What opportunities for startups in e-commerce industry, sir?

In fact, the e-commerce market always has opportunities for startups. Opportunities for new startups will come from the “blue ocean”, aspects that remain open when large businesses have not yet been exploited or concentrated, or the needs of their customers have not been met.

If it’s a new startup and focuses on crowded and fiercely competitive “fronts”, there really won’t be many opportunities!

– Can you specify which fields or niches like ‘blue ocean’ in e-commerce industry?

– When looking at the overall picture, determine whether your business wants to be a gold digger or a shovel supplier to gold diggers. Gold miners are businesses that use a lot of resources to capture a large market. But as the gold digging becomes more drastic, the units that provide the “pickers and shovels”, the tools to support the gold diggers will have huge growth potential.

Currently, we are seeing a lot of startups in the e-commerce industry, commonly known as “e-commerce enablers” – who will support brands operating on e-commerce sites in the most effective way, but No need to invest too much in people and technology.

Or there are startups that deal with the pain-points of e-commerce platforms, such as how to reach users at a lower cost, how to bring products to customers faster and more efficiently without building a giant foundation.

Source: – Translated by