Marketing Random

Lessons from JD’s market coverage strategy

The dominant investment in Tiki – Vietnam’s leading B2C e-commerce platform, said it was a step to change its position in the e-commerce market in Southeast Asia.

VNG’s 2017 financial report just released shows a loss of more than 125 billion dong from investing in the Tiki e-commerce network – where VNG has owned 38% of its shares since 2016. Investment value VNG’s Tiki by the end of 2017 showed that there was nearly 166 billion dong, down 218 billion dong compared to the initial investment.

However, losses are also an important part of the “risky” investment strategy to dominate the Vietnamese e-commerce market at the current stage.

VNG’s financial figures in 2017 actually did not fully reflect the investment aspect and strategic steps in Tiki as well as the online business market in general, when in early 2018, – the retailer China’s largest online B2C – announced to invest in Tiki to become the dominant investor in this B2C exchange. released a statement: “JD’s professionalism in promoting social media for e-commerce, Tiki’s partnership with VNG in social networking and mobile payments. The dynamic is consistent with JD as they service oriented to suppliers and consumers in Vietnam “.

So social networks (Zalo) and mobile payments (Zalopay) owned by VNG are an important part of JD’s investment vision in Tiki. After becoming a member of the VNG network since 2016, Tiki has inherited the symbiotic services VNG brings and created significant added value in the market.

While VNG’s ambitions in the e-commerce market have failed many times, choosing a method of financial investment in Tiki is a new step in the market, prompting Tiki to increase competitiveness under the pressure of Strong competitors in the market such as Lazada (acquired by Alibaba USD 1 billion from Rockect Internet in 2015), or Adayroi of Vingroup …

JD’s investment in Tiki is estimated at more than 54 million USD, although the ownership value is not officially announced, but said that once completed, it will become one of the largest shareholders of Tiki.

VNG’s ownership value after the deal has not been officially announced, but under the agreement, Tiki will cooperate with in a variety of fields, from e-commerce, transportation, logistics, technology, Finance … capital are the areas that VNG contributes to bring advantages after investing in

“We continue to expand Southeast Asia with Tiki – a company that understands the Vietnamese market and has a reputation for customer service,” said Winston Cheng – President of international markets at .

Investing in Tiki is part of’s Southeast Asian market expansion strategy, which is also the step of Chinese e-commerce companies in recent years like Alibaba or Tencent with continuous expansion through Lazada. or Shopee. Along with e-commerce is the investment to acquire many domestic startups that own other related online services.

In Southeast Asia, prior to its presence through Tiki, JD established an e-commerce platform in Indonesia, cooperating with Central Group Thailand – which owns (formerly Zalora Vietnam) .. Recent JD investments also show that they are not just targeting Southeast Asian markets but expanding globally – how Amazon and Alibaba are expanding.

As a Fortune Global 500 company and a member of NASDAQ100, far ahead of its peers in Southeast Asia, JD’s counterweight is also companies from China that are constantly expanding the global market that Southeast Asia is an important market with more than 600 million people and Vietnam accounts for 1/6 of the population in that region.

The new financial report released by JD on March 2 shows that their 2017 net sales reached $ 55.7 billion, up 40.3% from 2016 and 2017’s gross profit was 7.8 billion. USD, up to 43.7% compared to 2016. For many years, the battle for market share between Alibaba and has been fierce in the Chinese market.’s presence at Tiki makes competition in the Vietnamese e-commerce market more and more intense. It is also a springboard to cover the business ecosystem from logistics, forwarding, logistics, to financial technology supply chains, payment solutions …

Snow Enough
* Source: Saigon Businessman


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