JD.com didn't disclose the size of the investment but said that it would become one of the largest shareholders in Tiki after this deal, according to its statement released on January 16.As part of the deal, JD will partner with Tiki in a range of areas, including merchandising, cross-border trade, logistics and fulfillment, technology, financing, and operational capabilities, it said.
|
Son Tran, Tiki’s Founder and CEO said JD and Tiki shared the same business philosophy: to win market share by winning consumers’ heart. Since inception, Tiki has always focused on best-in-class, authentic shopping experience and amazingly fast delivery.
JD.com will tap Tiki.vn’s warehousing and delivery system, as well as its technology and payments capabilities.
JD.com co-led the financing with Vietnamese entertainment and social media firm VNG Corp, which is an existing investor.
Besides VNG, Tiki.vn’s previous investors include Seedcom, Sumitomo Corp and CyberAgent Ventures.
JD.com already has an established e-commerce platform in Indonesia, and recently partnered with Thai conglomerate Central Group to enter Thailand. With its investment in Tiki, JD.com adds Vietnam to its growing Southeast Asia presence.
Vietnam is one of the world’s fastest growing e-commerce countries, said Lai Viet Anh, deputy director of Vietnam E-commerce and Information Technology Agency (Vecita) under the Ministry of Industry and Trade, adding that the country’s e-commerce market is growing 35 per cent per year, 2.5 times faster than Japan.
Vietnamese businesses capable of taking advantage of the internet and technology grow 2.1 times faster than others. Small and medium enterprises that spend more than 30 per cent of their budget on technological innovation grow nine times faster than those spending less than 10 per cent.
According to Anh, Vietnam’s e-commerce retail sales growth in 2016-2020 is estimated at 20 per cent per year and the country’s total retail e-commerce sales would reach US$10 billion by 2020.
In 2017, e-commerce retail sales have expanded by 25 per cent and will become an important part of Vietnam’s e-commerce sector. E-commerce is widely considered the buying and selling of products over the internet. E-commerce is subdivided into three categories: business to business (B2B), business to consumer (B2C) and consumer to consumer (C2C) also called electronic commerce.
