According to Indonesia’s Ministry of Communication and Informatics, 2018 will see 100 million active mobile phone users. With these numbers, Indonesia will have the fourth biggest population of mobile phone users after China, India, and the US.
In 2017, we will see more aggressive movements from ecommerce companies to crack this issue and grab more customers. On January 18, J&T, a logistics service, announced that they were collaborating with Tokopedia to offer free package pickups from users’ homes. We have also seen a lot of rising app-based logistics services, such as Deliveree and Etobee, that offer more delivery options for Indonesian customers. PopBox, a startup that produces automated parcel lockers, can also be used by other ecommerce players.
Top 10 e-commerce websites in the Indonesia
Indonesia eCommerce Insights, Indonesian eCommerce to Generate 14.5 Billion USD by 2021. Total eCommerce revenue across all product categories is 6.96 billion USD, expected to reach 14.5 billion USD by 2021. Fashion is currently the leading product category, accounting for 2.5 billion USD market share. Toys, Hobby & DIY is second, accounting for 1.4 billion USD. By 2021, fashion will still lead the charge, valued at 5.3 billion USD. Toys, Hobby & DIY will also grow, reaching 3.3 billion USD.
Tokopedia is considered the largest marketplace in Indonesia. It is a platform for individuals and small businesses to create online shops via. It was founded by two ambitious young men, William Tanuwijaya and Leontinus Alpha Edison, on February 6, 2009 but then launched publicly exactly on the date of Indonesian Independence Day, 17th August 2009. Tokopedia’s tagline is: “Marketplace is a Business Model Most Beautiful in the World”. As seen from its tagline, Tokopedia aims to reach success in the business marketplace which can only be achieved by making individuals and their businesses successful. The Tokopedia service claims that its service enables thousands of small and medium enterprises in Indonesia sends millions of products per month to its customers across Indonesia which, also creates more jobs across the nation.
Place of selling / buying the most comfortable & safe online with Payment System which ensures buyers and sellers 100% risk free online scams. Bukalapak.com, Sell Buy Easy & Reliable. Achmad Zaky is a serial entrepreneur. In 2009, he graduated in computer science from one of Indonesia’s best universities, Institut Teknologi Bandung. Soon after graduation, Achmad Zaky started a services business and made enough money to support his tech startup, which he had launched in 2011. With his own initial investment, he started Bukalapak, Indonesia’s C2C marketplace, and raised capital from Takeshi Ebihara, a well-known investor in Indonesian circles. Today, Zaky is busy scaling up Bukalapak, having already signed up 60,000 merchants onto the platform. Let us delve a little deeper into the mindset of this young and hungry entrepreneur.
The Indonesian e-commerce battle recently has a new combatant: Blibli.com, which is owned by PT Global Digital Niaga, a subsidiary of Djarum Group. The ownership of Blibli.com is also shared with BCA, one of the largest banks in Indonesia. Blibli has a gorgeous user interface that makes the online shopping experience more enjoyable. There are some well-known merchants selling their wares on BliBli already, such as Harley-Davidson, Philips, and Dell Stores. In total there are 56 merchants which have signed merchandising agreements with Blibli.com. The second is Blibli’s Expert team that provides useful shopping information for consumers. Currently the Experts team consists of five characters that represent a certain category of shoppers: Mr. Gentleman, Miss Stylish, Miss Belle, Mr. Gadget and Mrs. Happymom. Three more will be coming soon.
Besides writing articles on the Blibli.com website, they would also publish some meaningful information tidbits on their Twitter accounts. As far as I can see, this could be a good marketing strategy since each character provides unique information based on their profiles and taste. For payment, Blibli supports KlikBCA and Internet Banking Mandiri, which are two popular Internet banking services in Indonesia. It also supports payment via credit card and virtual account.
Lazada is a privately owned company that operates in the Asia pacific region with headquarters based in Singapore. It is a premier online marketplace and a pioneer of ecommerce. The company was founded in 2011 by Rocket Internet, a multinational German internet company. Lazada has grown to become the leading online shopping site and selling destination in the region since its launch in 2012. The company’s vision is quite practical and emphasizes on performance. Its goal is to capture the largest possible share of consumers online. Its business model involves selling of inventory to customers from its own warehouses. It also has an additional marketplace model which allows third-party retailers to sell their products through the company’s website. This adds to its revenue through the commissions deducted from the third party sales on the site.
Lippo Group representative John Riady was notably missing from the invite-only Macquarie Indonesia Telecoms and Ecommerce Conference in Jakarta yesterday, attended by the who’s who of Indonesia’s tech players including the nation’s largest telcos and the government’s tech minister Rudiantara. Riady, who is heading up Indonesia’s latest ecommerce venture MatahariMall, would rather focus on getting the online store off the ground.
As the grandson of Lippo Group’s founder Mochtar Riady, John Riady is a high-profile figure in Indonesia’s business and media scene. He was a teenager during the fall of Suharto, the former dictator who presided over three decades of a corrupt and brutal regime. With an early interest in politics, Riady attended Georgetown University in the US, where he studied political philosophy and economics before returning to Indonesia to build the local English language media outlets GlobeAsia magazine and The Jakarta Globe newspaper. He later purchased Investor Daily Indonesia. But according to Riady, there is “no money to be made in media” these days, which is why he’s now shifting his focus toward ecommerce.
Zalora was also established in 2012 by Rocket Internet. The company headquarters is based in Singapore and has several branches across Southeast Asia. Today, it is a leading online fashion portal that serves the Asia pacific region. The company has emulated Lazada in accepting the set-up of third-party merchant shops on its sites, and takes commission on the sales. It offers collections of top international and local brands and products ranging from beauty products, shoes and accessories for both men and women. The company has embraced technological and innovative techniques through which enable them to deliver the best online services.
COMPARISON WITH LAZADA
Lazada has over 5.7 million customers. It provides them with limitless shopping experiences through their website. It also allows third party online retailers a simple and direct access to their large customer base. The customer service hotline is usually open on a regular basis during the business hours from Monday to Friday. The customer service is in-house and works directly for the company to provide high levels of service. Zalora has also acquired large customer base since its launch at reasonable customer acquisition costs and thus increased its market. Its membership to the Global Fashion Group has helped increase its marketing strategy and customer base. The company, through the GFG network, has been able to meet the fashion requirements of over 2.5 billion customers. They also offer quality customer care services through customer service consultants. Both Lazada and Zalora collect their consumer’s personal Information, access and update them and ensure their security. They maintain technology product protocols that prevent unauthorized access to customer personal information. They also destroy information which are no longer required for their record retention purposes. Both companies also offer vouchers to their newly registered customers, with Zalora giving more amounts of money on their vouchers compared to Lazada.
Kaskus is the biggest online forum for discussion and selling in Indonesia. On Kaskus, you can find everything you need since it has million users who eagerly exchange information and knowledge, creating community and also buying/selling goods or services at the very best prices.
Kaskus mainly has two features, forum and Forum Jual Beli (FJB) which is the selling-buying forum. Forum is the platform for users to discuss every issue ranging from social, pop culture, politics, economy, etc,. Most conversations discussed in Kaskus are mainly issues that are not covered in news or are sometime sensitive issues. A user can start a discussion topic in a community group to attract users giving opinion in the posted topic. FJB mainly focuses on selling and buying goods and services at affordable price. Often, the prices of goods and services are below market price which strongly attracted people to do transactions within Kaskus forums.
OLX is the world’s leading classifieds platform which provides local communities in high-growth markets with vibrant online marketplaces: OLX connects local people to buy, sell or exchange used goods and services by making it fast and easy for anyone to post a listing through their mobile phone or on the web.
Every month, hundreds of millions of people in local markets around the world are already using OLX’s online marketplace to find and sell a wide range of products, including computers, cell phones, furniture, sporting goods, services, cars, real estate, and many more. They ultimate purpose at OLX Indonesia (formerly Tokobagus) is to give people the power to upgrade their lives through smart person-to-person trade. OLX.co.id is Indonesia’s largest e-commerce platform and Indonesia’s 3rd largest local website (according to SimilarWeb).
OLX Indonesia is part of a global portfolio of classifieds sites, and you will be colleagues with experts worldwide who you can both teach and learn from. You will be part of a dynamic local team in Jakarta comprised of mostly local Indonesians with a couple of foreign expats.
Traveloka.com is an Indonesian flight booking website with a mission to make travel simpler and more compelling. The Jakarta-based online flight booking was founded by Indonesian engineers with years of experience working for reputable tech companies in Silicon Valley, US. Traveloka.com previously raised its series A investment from Global Founders Capital and early stage investment from East Ventures.
Entrepreneurs in Indonesia don’t just copy the model from the US. They know what their customers need and are quite flexible in changing business models to meet local demands. Tiket.com, one of the leading OTAs in Indonesia, was initially an online train ticket booking platform – similar to what redBus is to buses in India, ThaiTicketMajor is to movie/event ticket in Thailand, VeXeRe.com is to buses in Vietnam.
Now, it has already expanded its service to offer hotels, flights and events online. Recently, the travel metasearch space has been hotting up with Skyscanner valued at $800 million after a funding round from the top notch VC Sequoia in Silicon Valley. Wego, a leading metasearch site in Asia also received funding of $17 million in Series C. But, Traveloka, one of the two leading travel metasearch sites in Indonesia has been switching its model to become an OTA. This move surprised me and I wanted to dig deep to know the reason behind it.
The original idea was along similar lines as Qunar. Since they are engineers, they just wanted to focus on technology. Actually, they got good traction and visits to Traveloka site. They were working with OTAs and other travel providers. The margins were very low, because, as a metasearch they earn commission on the commission earned by OTAs. Besides that, it is also natural for customers to search and book in the same website. So, they decided to build a platform where users can book with them, this way they will have much better commission, conversion and even user experience.
Shopee wants to create a more holistic and safer e-commerce experience. It wants to create a healthy e-commerce ecosystem with its management and logistics tools, targetted branding, and carefully designed UI. From Lazada, Reebonz, Qoo10, Zalora, Ebay to Carousell, it seems sellers and buyers alike have no lack of options to choose from. So how can new e-commerce players hope to crack this market? One way is to focus on niche products. But that can be very risky. Lykestore, an e-commerce site carrying curated lifestyle products failed to take off because of the low demand in Singapore’s already tiny population.
The best bet, sometimes, is to face the competition on the same playing field, and win over consumers by offering a superior platform, or at least, one that can tackle existing pain points in the ecosystem . The CEO of Singapore-based C2C platform Shopee, Chris Feng, believes he has identified these gaps and that Shopee is well positioned to fill them. At first glance, one might not be convinced about Shopee’s unique value proposition. In fact, the app does bear striking similarities to Carousell, another Singapore-based C2C marketplace platform, with the items and user features arranged and displayed in an identical format.