Leading Vietnam food firm Kido joins hands with Tiktok

Vietnam's leading food producer Kido on Saturday launched its first E2E (entertainment and e-commerce) channel on the Tiktok Shop platform.

Kido vice chairman and CEO Tran Le Nguyen said that with the explosion of social marketing, the strong development of e-commerce platforms, technology trends and the digital transformation, along with the shift in consumption trends after the pandemic, live shopping and livestreaming, and entertainment commerce have been growing in many countries, including Vietnam.

Meanwhile, Tiktok Shop is gradually growing, bringing many opportunities for KOLs/KOCs (Key Opinion Leader/Key Opinion Consumer) as well as brands to promote their image. According to local e-commerce analyst Metric.vn, Tiktok Shop's market share increased from 15.5% in the first quarter of 2023 to 20% in the second quarter.

“Kido expects the E2E project to become an online channel for shopping, trade promotion and entertainment, helping businesses reach a large number of customers and users have good experiences in terms of emotions and product services,” he noted.

Nguyen said the channel will post videos reviewing fashion and cuisine products, as well as product experiences by influencers aside from entertainment performances and exclusive videos through local and foreign media and entertainment companies.

“Businesses can conduct livestream sales on the platform at a low cost, taking advantage of the platform to shorten the process of bringing products to consumers,” he added.

Kido's ambitions in the retail sector previously included promoting the Chuk Chuk milk tea store chain with the goal of having about 1,000 stores with revenue of over VND7.8 trillion ($328.8 million) by 2025.

However, in late 2022, the group announced its divestment from TTV Investment-Trading JSC, operator of Chuk Chuk.

In the first nine months of 2023, Kido recorded VND6.67 trillion ($274.2 million) in revenue, down 30.2% year-on-year. However, thanks to financial revenue skyrocketing more than 12 times to VND1.27 trillion ($52.2 million), its net profit was VND673 billion ($27.7 million), double the same period last year.

The soaring financial revenue came from the transfers of 17.8 million shares of Kido Frozen Foods Co., Ltd and a 24% stake at Calofic Corporation, a subsidiary of Singapore’s Wilmar International Group, Singapore, for respective profits of VND1.05 trillion ($43.17 million) and VND76 billion ($3.12 million) in the first half of this year.

The group has targeted consolidated revenue of VND15 trillion ($638.4 million) and pre-tax profit of VND900 billion ($38.3 million) this year, up 20% and up 76% year-on-year, respectively.

If the targets are met, they would mark the company's highest revenue and profit in seven years, excluding the profit made in 2015-2016 from the sale of its confectionery business.

Kido, listed on the Ho Chi Minh City (HoSE) as KDC, closed Friday at VND63,300 ($2.62) per share.