Tiki plagued by unpleasentness in first quarter
Tiki plagued by unpleasentness in first quarter
The early months of 2020 are not easy for Tiki as its 5,000sq.m warehouse was burnt, following claims in March about selling low-quality goods and offering poor customer service.
In the early morning of March 31, the fire reignited at the 5,000-sq.m warehouse of Tiki
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In the early morning of March 31, the 5,000sq.m warehouse of Tiki (Tan Binh district, Ho Chi Minh City) caught on fire. The scene is about 800m from Tan Son Nhat Airport.
As soon as detecting the fire, the fire departments of the districts of Tan Binh, Binh Thanh, and Tan Phu immediately mobilised 10 fire trucks and dozens of firefighters.
However, as the warehouse held a large volume of flammable consumer goods, garments, and clothes, it was not until 7.30am that the fire could be brought under control.
Le Hoang Ha, Tan Binh district Party Committee Secretary, said the fire departments saved 4,400 of the 5,200 square metres of storage place and prevent the fire from spreading to nearby areas.
Indeed, this is not the first time Tiki gets bad news in 2020. Previously, a customer named Kim Anh upload an article on Vietnam Business Insider about her disappointing experience shopping on Tiki. She wrote that what the e-commerce platform did was contrary to its commitment to only trade in authenticated goods. Moreover, its customer service was also not as good as advertised.
For now, Tiki has issued no comment on the problem. In contrast to Shopee and other platforms known to be inundated by low-quality and fake goods, Tiki has built up trust with customers during the past 10 years by ensuring that only authenticated items are traded on its platform – a promise that has become the keystone in the brand's identity and is now being torpedoed.
Tiki is one of the Big 4 in the local e-commerce market with the value assessed at VND1 trillion ($43.48 million). The firm also raised capital in June and December last year. The two main shareholders are VNG with 24.6 per cent and JD.com with 21 per cent of the shares. Others include Ubiquitous Traders Pte., Ltd. (nearly 9 per cent), CyberAgent, STIC, and Sumitomo.
Despite receiving huge investments, in recent times, Tiki’s position has been constantly downgraded, according to iPrice Group, a privately-owned online shopping aggregator based in Kuala Lumpur, Malaysia. In the fourth quarter of 2019, Tiki slipped to the fourth position among Vietnamese e-commerce platforms, behind Lazada, Sendo, and Shopee from the second place in 2018.
