Heavy competition weighs on Tiki’s 2023 top line

Tiki was once called the “Amazon of Vietnam.”

Founded in 2010, it was a first mover in the country’s ecommerce space. But over the past couple of years, the homegrown giant has fallen from favor, as regional platforms like Shopee and Lazada have come to dominate the Vietnamese market.

This is especially true in livestream shopping, where players like TikTok Shop already have a lead.

To find proof of Tiki’s slowdown, we need not look any further than its financial numbers.

Photo credit: Tiki

The company’s 2023 revenue fell year on year (YoY) by around 36% to US$127.3 million, according to its audited financial statements. This was mostly due to a 39% drop in sales of merchandise products, which contributed US$106 million to the company’s total revenue in 2023.

Operating losses, however, did halve to US$46.3 million.

Tech in Asia reached out to Tiki for a statement, but had not heard back at the time of publishing.

Like Amazon, Tiki started as an online bookseller before growing into a full-fledged marketplace, offering everything from electronics to clothing.

But unlike the US giant, whose sales are still growing three decades since its launch, Tiki has hit a slump.

This slowdown has persisted in 2024, with sales on the platform decreasing YoY by 32.1% in Q3 this year, according to a report by market research firm Metric.

While this figure grew quarter on quarter, according to the same report, Tiki still falls well behind Shopee, TikTok Shop, and Lazada in sales.

See also: Tracking Vietnam’s $22b ecommerce power struggle

Most of Tiki’s other revenue sources, including logistics services, advertising, and marketplace commission, have also declined since 2022.