StartUp  In  Indonesia  

TechnoMeetUp  |  March  2015  

Singapore | Thailand | Indonesia | Philippines 2

I  got  2  things  to  share  2

The FUN journey

StartUp in Indonesia

Singapore | Thailand | Indonesia | Philippines 3

About  me  3

Computerized Accounting

Magister Science on Marketing

Online Marketing Analyst, BD, & B2B

BDM, COO

Business Development Manager

Singapore | Thailand | Indonesia | Philippines 4

aCommerce  Indonesia  (1  year  and  growing)  4

Singapore | Thailand | Indonesia | Philippines 5

I  got  2  things  to  share  5

The FUN journey

StartUp in Indonesia

Singapore | Thailand | Indonesia | Philippines 6

What  is  StartUp?  6

“A startup company or startup is a business in the form of a company, a partnership or temporary organization designed to search for a repeatable and scalable business model. These companies, generally newly created, are in a phase of development and research for markets. The term became popular internationally during the dot-com bubble when a great number of dot-com companies were founded.” - Blank, Steve and Dorf, Bob (2012) -

“A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed,” - Neil Blumenthal (2013) -

“Organizations seeking to produce products and looking for the right business model to evolve. In Indonesia usually refers to a company that uses information technology in its products. If not, then it is called SMEs.” - Lahandi Baskoro (2013) -

Singapore | Thailand | Indonesia | Philippines 7

Why  StartUp  is  so  cool?  7

1. Technology = future

3. Skill oriented

2. Less bureaucracy

4. No tie

Singapore | Thailand | Indonesia | Philippines 8

How  to  start  a  StartUp?  8

SOURCE: fundersandfounders.com

Singapore | Thailand | Indonesia | Philippines 9

StartUp  in  Indonesia  9

Type Industry Traffic Rank # Txns / Day

Store, Marketplace Multiple Category

Focus in electrtonic/gadget

21 9,000 – 12,000

Marketplace Multiple Category 120 3,000 - 5,000

Store, Marketplace Fashion 89 3,000 - 5,000

Marketplace Multiple Category 181 5,000 - 7,500

Store Daily Deals 159 5,000 - 7,500

Store Daily Deals 296 1,000 – 3,000

Store Fashion Ladies 413 1,000 - 2,500

Top 10 eCommerce in Indonesia is estimated to generate 40,000 transactions per day with yearly revenue of USD 500Mn

Singapore | Thailand | Indonesia | Philippines 10

Online  consumer  behavior  in  Indonesia  10

SOURCE: McKinsey Consumer Insights Indonesia 2013 1 Question asked to the 29% of the population that cited using internet via PC/laptop in past 12 mos.

Singapore | Thailand | Indonesia | Philippines 11 Source:: UBS Research, Nielsen, Comscore, PWC HK, ATKearny, researchandmarkets.com, Dailysocial, smu.edu.sg, E-commerce.org.sg

Unit ID SG PH VN TH MY China US

Population M 248 5.2 95 88 67.5 28.9 1350 315

# Online M 75 3.9 33 31 32 18 513 246

% Online % 30% 74% 34% 35% 46% 63% 38% 79%

# Social Media Users # 66 3.6 38 24 27 17 NA 167.8

# E-commerce Shoppers # 5.6 1.8 5.8 13.2 14.5 10.5 164 184

E-commerce Shoppers % 7.5% 46% 18% 42% 45% 58% 32% 75%

Retail Sales USD B 134 31 34 108 139 51 2,380 4,700

B2C E-commerce Market USD B 0.9 1.1 0.4 0.5 1.1 0.7 190 343

E-commerce % of Retail % 0.7% 3.5% 1.1% 0.5% 0.6% 1.4% 8% 9%

Spend Per Spender USD 252 917 172 42 365 68 726 1,864

10X IDR 10 Trillion

IDR 100 Trillion

Indonesian Market in the next few years

In  the  next  5  years,  online  shop  transacFons  in  Indonesia  is  expected  to  grow  at  least  10x  

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Singapore | Thailand | Indonesia | Philippines 12

Indonesia  growth  driven  by  purchase  outside  JKT  

Customers by location (%)

Jakarta  %  shrinks  from  41%  to  22%  in  6  months  

Jan Jul

Most  sales  now  already  come  from  outside  BIG  ciFes  

Jan Jul

Jakarta   Java  excl.  Jakarta  

Jan Jul

70+%

370%

Sumatra  Kalimantan   Others  

Jan Jul

370%

300%

Female  Male  

Customers by gender (%) Customers by age group (%)

Source: Internal Data and Analysis of Top Online Retailers in Indonesia

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Singapore | Thailand | Indonesia | Philippines 13

With  AFTA's  progress,  ready  or  not,  e-­‐commerce  will  accelerate  cross  border  transacFons  

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•  Uncertainty on Custom could benefit but also hurt us

•  Competition among Suppliers' countries to grab ASEAN market

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3  types  of  e-­‐Commerce  :  C2C,  B2C,  B2B2C  14

C2C B2C B2B2C

www.olx.co.id

www.kaskus.co.id

www.zalora.co.id

www.cottonink.co.id

www.tokopedia.com

www.lazada.co.id

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Different  types  have  different  offline  analogy  &  business  model  15

C2C B2C B2B2C

Business Model Business Model Business Model

Offline Analogy Offline Analogy Offline Analogy

•  Listing fee •  Transactions happen

offline

•  Gross margin between COGS vs selling price

•  Transactions happen online

•  Commission fee per transaction

•  Transactions happen online

•  Media owner selling spot to advertisers

•  Department store selling products to customers

•  Mall owner selling spaces to stores

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B2C  has  different  types  16

Department Store Category Store Brand Store

www.zalora.co.id www.cottonink.co.id www.saqina.com

www.apple.com www.electronic-city.com www.debenhams.com

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Here  are  what  it  takes  to  build  a  successful  e-­‐commerce  17

•  Online  ≠  Offline  •  Very  technical  •  Require  very  

specific  skill  

•  Online  ≠  Offline  •  Warehouse  setup  

is  different  •  System  setup  is  

different  

•  Online  ≈  Offline  •  You  cannot  

outsource  •  You  know  your  

product  best  

Singapore | Thailand | Indonesia | Philippines 18

So...  18

Rizkie  Maulana  Putra  E:    rizkie.putra  @acommerce.asia