When Tokopedia and Shopee, which are aimed at individual consumers, compete fiercely for the position of Indonesian e-commerce giant, B2B is another lively scene.
Compared with the 2C market, Indonesia's B2B e-commerce market is still small.According to the analysis of investment bank North Ridge PartnersB2B in Indonesia accounts for less than 50% of the total e-commerce sales, while similar markets such as Thailand account for about 70%.
However, 50% of the demand side of Indonesia's B2B e-commerce market is occupied by dealers such as Warung. In Indonesia, traditional retail mom and pop stores, called Warung, are nerve endings of the Indonesian retail market.According to the data reported by management consulting company RedseerThe retail market in Indonesia is about 377 billion US dollars, of which 77% are still unorganized, that is, sold through small stalls. Indonesia has at least 3 million fixed Warung distributed all over the country, and most of the commodities sold are FMCG. Aiming at this market, technology companies such as Warung Pintar and BukuWarung appeared in Indonesia, trying to help Warung embark on the road of computerization. As offline stores become digital, the 2B e-commerce market also has huge growth potential. The report of Redseer also believes that the post epidemic Warung faces multiple challenges, and B2B e-commerce platforms can help Warung in store experience, tally, product supply and credit.
Grosiraja operated by WholeSelect is a B2B e-commerce platform for Indonesian small wholesalers and e-commerce sellers. Founded in 2020, and headquartered in Singapore, WholeSelect provides electronic products, home furnishing and beauty products to merchants relying on Chinese supply chain factory resources and Indonesian local warehousing. According to the team, the Grosiraja platform currently has nearly 100000 users, and the buyers are mainly Warung, housewives engaged in community group buying, one piece distributors and small e-commerce, with a total monthly transaction of nearly one million dollars.
The founding team of WholeSelect has many years of work and entrepreneurship experience in Indonesia, is familiar with the local environment in Indonesia, and also takes localization as one of the development priorities. Since its establishment, it has received customers from both online and offline channels, and has brought new customers online through Facebook and other platforms. At the same time, a special team has gone offline and established a cooperative relationship with the local wholesale market.
Indonesia's B2B e-commerce market has attracted many entrants. In addition to the B2B platforms such as Gotoko launched by Ralali, Ula, Mbiz, GudangAda, and "Didi Indonesia" Gojek, e-commerce giants have also launched applications for small businesses. For example, Tokopedia launched Mitra Tokopedia, and Bukalapak, Indonesia's third ranked e-commerce platform, launched Mitra Bukalapak (Mitra means partner in Indonesian) to provide purchase channels for small retailers such as Warung.
In the face of competition, WholeSelect said that the focus should be on improving the service ability for small businesses, helping them grow and gain their loyalty, improving the platform's ability to select products, and improving the platform's brand image through advertising and other means. Fast moving consumer goods in the Indonesian market mainly rely on brands and low prices to compete. In line with the consumer demand of Indonesian young people for cost-effective products, WholeSelect's dominant category is household products. Recently, it is also developing 3C categories.
In the next stage, WholeSelect plans to continue to expand small B users and promote the growth of transaction scale. In terms of profitability, WholeSelect currently relies mainly on sales profits, and has opened its overseas warehouse and other infrastructure for some third-party suppliers to settle in and distribute goods.
Previously, WholeSelect had completed tens of millions of RMB angel round financing, led by Southeast Asia Wu Shinong Family Fund and Magic Chopsticks Technology, followed by the sole capital, Uphonest Capital, etc., and Yunmu Capital acted as the exclusive financial adviser for this round of financing.
LET'S CHUHAI CLUB Sailing to Southeast Asia Salon - Beijing Station
On December 16, the fourth stop of "LET'S CHUHAI CLUB Sailing to Southeast Asia Series Salon" jointly sponsored by Singapore Economic Development Council and 36 Krypton Sailing to the Sea will arrive in Beijing. This activity will focus on the hot topics such as enterprise service companies' market strategies in Southeast Asia, how multinational enterprises break through cultural barriers, and discuss business opportunities and challenges for enterprises to go to Southeast Asia, so as to create a next-generation global enterprise.
welcomeClick the article to fill in the form, sign up for the event.
Article | Shi Yi
Editor | Zhao Xiaochun
Fig. | Unsplash
