In the context of weak purchasing power and near the end of the year, KIDO Group Joint Stock Company suddenly announced that it would cooperate with TikTok to establish an Entertainment & E-commerce (E2E) project.
Attraction from shoppertainment
According to Mr. Tran Le Nguyen, CEO of KIDO, the Company wants to make E2E a commercial channel for entertainment, food and fashion reviews, etc., while promoting the first trade promotion activities on social platforms. With this statement, E2E is not a form of distribution expansion but marks KIDO’s official entry into a completely new field of shoppertainment.
This is a popular trend of online shopping combined with entertainment. Among them, livestream, video, and gamification are popular forms. According to Nielsen research, 83% of users prefer watching ads in video format over GIFs or text. According to Bazaarvoice, 70% of users want game elements to be integrated into the online shopping experience.
The effectiveness of this form created a record of only 2 livestream sales on Black Friday of TaobaoLive (Alibaba), for one brand, Welden leather bags, this company earned a huge figure of more than 350,000 USD, or more 8.2 billion VND. In Vietnam, a representative of Tiki said that the number of natural (organic) livestream viewers on the Tiki app in the last month has increased 5 times compared to the previous time and is not inferior to Facebook.
In the general picture, reports from Boston and TikTok indicate that shoppertainment revenue in 2022 is 1.8 billion USD and can reach 8 billion USD by 2026. “Consumers’ buying habits are changing. Consumers will say no to offers, but they will say yes to entertainment experiences,” said Mr. Sameer Singh, Director of Global Business Solutions, Asia-Pacific of TikTok. conclude.
Mr. Nguyen Manh Tan, Marketing Director of Haravan, also acknowledged that livestreams and short videos will be business trends at the end of the year and throughout 2024. In the Vietnamese market, many big brands such as Xiaomi, Ohui and L’Oreal , P&G, Logitech… all recorded better sales thanks to livestream sales. P&G even had a 10-fold increase in orders after cooperating with Shopee. E-commerce companies are also racing aggressively. Lazada has just built the LazTalent platform with the goal of creating a space for young people to livestream sales, create content, and introduce goods.
It is known that the E2E channel is built on the TikTok platform. In particular, KIDO is the project investor, while TikTok is the unit that supports generating views, finding KOLs (experts, influential celebrities), and KOCs (influential consumers). Consulting businesses on how to livestream sales. E2E will also cooperate with other domestic and foreign media and entertainment companies to post videos reviewing fashion, cuisine, product experiences and regularly hold professional entertainment performances together. Exclusive entertainment videos.
In the immediate future, CEO KIDO shared, E2E aims to achieve traffic of up to millions of viewers. The E2E channel also targets daily sales from several tens of billions of dong to several hundred billion dong. E2E also sets the task of creating good output for partner businesses, not only in the domestic market but also internationally.
But according to Mr. Nguyen Lam Thanh, representative of TikTok Vietnam, the condition for businesses to participate in E2E is to have full certification and origin. Mr. Tran Le Nguyen affirmed that, in addition to providing free entertainment from famous people, E2E wants to help customers easily shop for genuine products at good prices at the “commerce center” on the TikTok platform.
It can be seen that the “commerce center model” (E2E) on the social network platform is the first model to appear in Vietnam. Before now, e-commerce sites like Shopee, Lazada, TikTok… only created a playground. Now, at E2E, KIDO stands out to connect parties so that they can easily meet each other and follow their needs better or promote online trade on a large scale. This is what businesses are looking for to expand business opportunities, reduce costs, and shorten processes.
In fact, despite growing day by day, Lazada, Shopee, Tiki or the social platforms Facebook, TikTok… still cannot achieve complete data, with appropriate relationships, detailed understanding of the industry. profession to connect more successfully for all parties. KIDO, on the other hand, stands out in these aspects in its core segment with nearly 30 years of leadership in the confectionery industry. The founders of KIDO themselves are all typical faces of the first generation of entrepreneurs after the Doi Moi era. They have gone through many ups and downs in business, understand local culture, business characteristics, market psychology, and customer psychology. In addition, Mr. Tran Kim Thanh’s brothers are also the most active members of the Chinese business community in Vietnam. This is a community with many elite businessmen such as Vuu Khai Thanh (Biti’s), Ly Ngoc Minh (Minh Long Ceramics), Co Gia Tho (Thien Long), Dang Van Thanh (Thanh Thanh Cong), Kao Sieu Luc (Thanh Thanh Cong). ABC Bakery)…
Right at the launch of E2E, in addition to signing with TikTok, E2E also signed with the Vietnam Young Entrepreneurs Association, Ho Chi Minh City Young Entrepreneurs Association… showing the platform’s unique ability to attract. However, cooperating with TikTok is not without risks. Mr. Pham Minh Toan, founder and CEO of Time Universal Communications, once paid attention to cost, proactiveness and security in choosing outsourcing partners. Not to mention, although TikTok Shop has reached 20% of Vietnam’s e-commerce revenue market share, according to Metric, sellers are complaining about high fees. And despite regulations and supervision, fake, counterfeit, and low-quality goods are still sold on TikTok Shop as well as other e-commerce sites.
Therefore, as an outsider in the industry, KIDO will have to have strict methods if they want to ensure success.