Digital Small Stores is the next race in Indonesia
We all see the big e-commerce players enabling stores to sell more online. But now the next step is going to the store level. We see this by players like Bukalapak, Hypermart & Nobu (Lippo) and TokoSmart (Sinarmas). Let’s have a closer look at them all.
Bukalapak is trying to replace the sales agent to supply stores in the traditional market. Trying to win the market the conventional online way, giving steep discounts from the beginning. Resulting in the quick grab of market share resulting in bleeding and taking a loss on sales, to educate the market.
I am not sure that is the way to go in this market because yes it will give them sales in the beginning but how sustainable is this in a very price sensitive market in the long run.
Agen Bukalapak offers a wide range of products and also enables the store owner to sell new digital products like phone credits and electricity tokens. Agen Bukalapak also offers commissions on product sold from Bukalapak which the store owner normally does not sell himself.
This initiative from Lippo Group founder Pak Mochtar Riady is to help the traditional store owners to tap in the digital market and the opportunities it offers. It is an objective let by Hypermart and Nobu bank and it was officially launched in Boyolali by the Ministry of Trade last year.
As this initiative was launched to fight poverty it is focussing on the T2 and T3 cities in Indonesia.
The get more coverage in Jakarta, Lippo has invested in Warung Pinter through OVO.
TokoSmart is giving stores owners a more flexible way to resupply their store. It is an initiative from Bizzy Distribution which is backed by the Sinarmas group.
Normally store owners had to wait for Sales agents to come by to reorder their products but now they are more flexible to order when the need is there. Also on the TokoSmart app they have visibility on all the products that are available to them.
TokoSmart will also add digital products to its features to give the store owner more products to sell.
At the moment TokoSmart is still in the roll-out phase as it was only launched early January 2019, but already they see very positive numbers.
The market is very new but seeing the interest of these players it seems to heat up quite fast. It is only waiting until other players will try to enter as well such as Tokopedia.
The growth in Indonesia for the e-commerce market is clearly in the traditional business in the T2 & T3 cities. The market is still untapped and most business in Indonesia is still traditional.