Tiki – Lazada: Fast delivery racer, “showbiz chemistry” enthusiast

To attract customers, Tiki and Lazada not only use “quick promotions” and constant discounts, but they launch their own “tricks”.

Occupying the entire 3rd floor at a Grade A office building in District 10 (HCMC), Tiki’s headquarters was full. Although having just moved an office since the beginning of this year, Mr. Tran Ngoc Thai Son – Founder and Chairman of the Board of Directors Tiki said that it might be necessary to rent another floor.

However, the office block is only a small part of the expansion of infrastructure, especially the capacity of the domestic startup’s fulfillment centers.

“In the past, every time I opened the newspaper, I saw a discussion about how money was invested in Tiki, why so much losses, so here, our capital to invest in infrastructure, operating systems, warehouses. “Mr. Son explained that the company has more than 30,000 meters2 warehouse and expect 6-8 months to have 100,000 m2, after a handshake with Unidepot.

Inside a Tiki order fulfillment center.

In Vietnam’s e-commerce market, Tiki is the one who started the battle of delivery speed, with “Tiki Now”. With the expansion of warehouse capacity platform, the speed still seems to be “ace” to entice shoppers of this page.

“Part of our long-term strategy is faster and more”Mr. Son confirmed. Currently, Tiki has more than 100,000 products delivered in 2 hours and is expanding the service to 3 hours, day to day delivery to increase the number of products from several hundred thousand to millions of products.

Tiki 2 hours in turn entails services such as “Shopee receive 4 hours”, “Sendo 3 hours delivery” or even Lotte.vn launched “Fast delivery” in 1 hour, 3 hours and 24 hours. “Today I placed a book in Shopee’s 4-hour delivery list at 9:40 am but 10:40 pm received the goods, earlier than expected.”Ms. Han Le received the goods in District 1.

However, Tiki’s list of fast-delivery products is still the largest in e-commerce sites, because of the characteristics of the “Managed Marketplace” model, which means all goods must go to Tiki’s warehouse before being delivered. space. That is also the reason why the company needs to pour more money into the warehouse.

Meanwhile, in some other floors, the “marketplace” model usually allows sellers to actively deliver goods, so it is difficult to guarantee time. The products that are included in the fast delivery list are mostly just groceries or books. That is why they find other ways to entice customers.

Tiki and Lazada are among the top 3 most visited e-commerce platforms in the first quarter of 2019. Source: iPrice

For example, Lazada, a foreign veteran on the market, recently “transformed” towards “showbizization”. By the end of June 2019, Lazada changed its brand identity to a heart shape. Regional leader Lazada said this was part of a strategy to implement shoppertainment.

“We are capturing the” pulse “of the region by observing the behavior, approaches and how consumers use our shopping platform. At the same time, pioneering e-commerce in redefine the experience of both buyers and sellers through new features and creative tools “, Said Mary Zhou, Marketing Director of Lazada Group.

Since last year, Lazada has caught the eye very quickly when the trend of sales through “livestream” headlining appeared on Facebook. This e-commerce platform also rushed to hire artists, celebrities, influencers on social networks to organize “livestream” to evaluate products, sell, play games with viewers … Up to now, this site is still working hard to organize such events.

New Lazada logo.

At the end of March 2019, the concept of “shoppertainment” was pushed to the climax with a birthday party featuring superstar Dua Lipa, performing in Indonesia. Lazada Vietnam hired a group of young artists to come live to stream, attracting viewers’ attention. That event attracted 12 million views across Southeast Asia. Lazada’s regional sales for 24 hours on March 27 increased 15 times compared to the average sales.

In addition to increasing entertainment, To solve the problem of consumer confidence, which is easily shaken by poor quality shops on the floor, Lazada Vietnam also launched the JBP (Joint Business Plan) strategy to distribute genuine goods of big brands.

That is the reason that only from May 2019 until now, this floor has continuously announced strategic cooperation with a number of brands such as Realme, Lock & Lock, Bosch or FrieslandCampina Vietnam … to open the main stores. Estée Lauder label or Sulwhasoo …

In a recent comment on Tech In Asia on how to attract users in Southeast Asia, Mr. Nguyen Quang Thuat – Director of Sen Do Order Processing Center pointed out three core elements: understanding Mobile is the “king”, understands the complexity of logistics and offers flexible payment options. In today’s e-commerce game, the action must be “big game”.

“Play big to seize the opportunity. There is no more” wait and see “type, experiment type or small bets. It is important to think bigger about the digital ecosystem to seize the opportunity and not is left behind “he said.

* Source: VnExpress


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