International Finance Corporation (IFC), a member of the World Bank Group, is providing a loan package of USD 275 million to PT Trans Corpora (Trans Corp), a wholly owned subsidiary of CT Corp. CT Corp is a diversified Indonesian-based holding company, active in the financial services, media, lifestyle & entertainment and natural resources industry. The aim of the financing is to support the growth of its retail, tourism and property operations across the country.
IFC’s investment will help Trans Corp to add new retail stores across 25 cities by 2025 which is expected to create over 30,000 new jobs in Indonesia. Furthermore, they are also working with over 6,000 suppliers in Indonesia, of which 70% are Small and Medium Enterprises (SMEs), and create approximately 23,000 jobs in areas such as farming and distribution.
In terms of tourism, IFC’s investment will assist Trans Corp to expand its tourism operations. Trans Corp has an agreement with Accor, a global hospitality company, to develop 30 new hotels, creating another 6,000 rooms across Indonesia.
The loan would also help address Indonesia's housing deficit, as Trans Corp property operations as the company is developing more than 10,000 affordable apartments across multiple locations. The company is also committed to promote resource efficient building to meet IFC EDGE (Excellence in Design for Greater Efficiencies) Green Building Standard. The building sector is Indonesia’s third-largest energy consumer and made up as much as 27% of Indonesia’s total final energy consumption.
(Source: International Finance Corporation; Antara News)
Indonesia is on the road to make halal labeling compulsory for consumer products and services. The draft on mandatory halal rule is currently awaiting the president’s approval. Once approved, the regulation will require all goods and services, pertaining to food, beverage, drugs, cosmetics, chemical, biological and genetically engineered products and consumer goods to be certified. The deadline for implementation is October this year. The labelling requirement will be implemented over time and will take three to five years before most food and beverage products are covered. It will take longer for health products, with estimation of five to seven years.
It is estimated this new regulation will net the government around USD 1.6 Billion in annual revenue. The country’s Shariah economy is set to grow to USD 427 billion by 2022, with food contributing around 50%, according to estimates from Bank Indonesia.
The Halal Product Guarantee Agency, also known as BPJPH, which was established in October 2017, will be responsible for managing halal certification requests in partnership with the Indonesian Ulema Council. Previously, the Majelis Ulama Indonesia (MUI or Indonesian Ulema Council) was the governing body issuing the Halal Certification for food and drink products. BPJPH is supposed to work together withh MUI for handling halal certification. The process of verifying whether or not a product is halal will be carried out by the Halal Inspection Institution (Lembaga Pemeriksa Halal or LPH), who will check and verify if the raw materials and manufacturing process are halal.LPH may be established by the government and public institutions such as universities and they must be accredited by BPJPH, employ at least 3 inspectors, and have its own laboratory or cooperate with another party that has a laboratory.
The government is targeting a steady stream of revenue from halal labelling mandate, starting from certifying unpackaged products and slaughterhouses, to providing training services and sponsorship. It is looking to issue at least 100,000 certificates next year and increase the number of auditors to 5,000 by 2020.
Meanwhile, Indonesia’s National Committee for Islamic Finance (KNKS), formed by the government in 2017, will launch an Islamic economy masterplan in March to boost development of the country’s real economy and halal industries.
(Source: Bloomberg; Salaam Gateway)
Japanese retail group, Aeon, has partnered with Indonesian ride-hailing startup, Go-Jek, on digital payment and home delivery services. Started in mid-December, the partnership aims to accelerate Aeon’s overseas expansion. Under the new strategy, Aeon will utilize Go-Jek’s Go-Pay cashless payments and provide home deliveries with Go-Jek drivers.
Currently, Aeon has two large shopping centers in Indonesia and three new outlets are planned to be opened after the 2019 business year. Aeon is combining its brics-and-mortar stores and technology-driven services to keep up with changing customers’ attitudes. Go-Jek provides flexibility using motorbikes delivery, without Aeon having to build out their own logistics network.
Go-Jek hopes its partnership with Aeon will drive its presence in South East Asia, as it is expanding to Vietnam and later to Thailand and the Philippines. Both Aeon and Go-Jek plan to cooperate in other markets besides Indonesia.
(Source: Nikkei Asian Review)
China’s largest dairy enterprise, state-owned Yili Group, announced its entrance into Indonesia. The decision was made based on Indonesia’s huge market potential.
In Indonesia, Yili Group has a wholly owned subsidiary, Green Asian Food Indonesia Co., Ltd and has launched 11 ice cream products under the brand Joyday. By the end of 2018, Yili targets its products to reach more than 20 cities in Indonesia, and then will it gradually expand to other Southeast Asian countries.
Yili Group is the earliest public listed company in the Chinese dairy industry. Its market capitalization at 2017 stood at around 30 billion US dollars. Currently, it has established branches in the United States, Europe and Oceania. It has also developed a presence in New Zealand through the establishment of Oceania Diary Co., Ltd.
(Source: PR Newswire)
Lotte Duty Free Indonesia has signed a contract with AirAsia's inflight e-marketplace, Ourshop. The agreement will represent Ourshop’s second headline travel retailer signing this year, after Plaza Bali Duty & Tax Free became the airline’s first official airport partner in July 2018. Having Lotte Duty Free onboard will substantially expand Ourshop’s inventory, especially in the fashion, perfumes, cosmetics and leather goods sections.
Launched in 2018, Ourshop is AirAsia’s e-commerce venture, positioned to become travelers' first point of reference for retail, targeting an estimated 80 million passenger base, across multiple travel touchpoints from pre-flight, to ticket purchase, at check-in and boarding gate, upon arrival and inflight using AirAsia's onboard Rokki Wifi. Retailers will have multiple opportunities to engage consumers and have better insights into customers' purchasing behavior. Consumers, on the other hand, can benefit from purchasing items directly from official stores and using their AirAsia’s Big Loyalty points as payment options, which are transferrable across Ourshop and AirAsia platforms. Purchased items can be delivered in-store at the airport (departure or arrival) or pre-booked for delivery onboard. Downtown in-store collection and home delivery will be finalized by the end of the year.
(Source: TR Business)
Australia recently completed negotiations with Indoensia for an extended economic partnership between the two countries. The Indonesia -Australia Comprehensive Economic Partnership Agreement (IA-CEPA) builds on commitments under existing free trade agreement, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) across goods, services and investment. Over 99% of Australian goods exports by value to Indonesia will enter duty free or with significantly improved preferential arrangements. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will come into effect by 2020.
This will benefit Australian exporters greatly, particularly the Australian farmers. Indonesia will guarantee automatic issue of import permits for key products such as live cattle, frozen beef, sheep meat, feed grains, rolled steel coil, citrus products, carrots and potatoes. Import licences are a major barrier for many Australian exporters into Indonesia.
Australian farmers will be able to export 500,000 tonnes of feed grains such as wheat into Indonesia tariff free and this will increase by 5% annually in volume. Tariff on frozen beef has been cut to 2.5% (from 5%) and there will be access for unlimited volume. The tariff will be eliminated after 5 years. 575,000 live cattles can be imported duty free in the first year, compared to the current 5% tariff. This will undergo 4% annual growth in volume reaching 700,000 by year 6. There will be a review for subsequent increases. Tariffs across a number of dairy lines have been reduced or eliminated and the remaining tariffs will be gradually removed.
Apart from the food sector, the partnership will also elevate Australian industrial producers covering sectors such as steel, copper and plastics. The service industries including health, mining, telecommunications, tourism and education will be boosted through a guaranteed levels of Australian ownership.
As for Indonesia, IA-CEPA will immediately eliminate all remaining tariffs on Indonesian imports into Australia. The Australian government has also agreed upon a reciprocal Skills Exchange and encouraged further investment from Indonesia.
(Source: Australian Minister of Trade, Tourism and Investment; Australian Government Department of Foreign Affairs and Trade)
Trans Retail Indonesia, part of CT Corp group, has partnered with the National Mosque Council (Dewan Masjid Indonesia, DMI) to open mini outlets in 300 mosque districts. Both parties are selecting areas for the new stores in cities such as Jakarta, Sukabumi, Bandung, Bekasi and Depok, as well as other provinces outside Java Island including Riau, Padang, Lombok and Makassar. The mini supermarkets will range in space between 10sqm and 250sqm. Profits will be equally shared.
Trans Retail will supply products and provide retail expertise in terms of purchasing, merchandising, distribution, safety and hygiene. DMI will provide retail infrastructure and handle store operations. The newly opened outlets will be in competition with Alfamart convenience stores.
Trans Retail operates over 100 Carrefour hypermarkets and supermarkets across Indonesia under four brands, namely Carrefour, Transmart Carrefour, Transmart, and Groserindo Carrefour. Trans Retail is owned by CT Corp which acquired a 100% stake in Carrefour Indonesia from Carrefour France in November 2012.
(Sources: Retail News Asia; Salaam Gateway)
Anchanto, a Singapore-based pan-Asia SaaS technology company, has raised USD 4 million in the first round of its ongoing Series C investment, led by Telkom Indonesia’s corporate venture capital arm, MDI Ventures. The new investment follows a Series B round where Anchando received funding from Transcosmos Japan and Luxasia Group in May 2017. The proceeds of the investment fund will be used to expand the company’s market outreach and to build a stronger presence in South East Asia. Collaboration with Telkom Indonesia and MDI’s investment is said to form the foundation of Anchanto’s Indonesia market strategy.
Anchanto’s platforms connect e-commerce sellers, brands, retailers, and warehousing and fulfilment service providers to over 70 e-commerce sales channels. Using its platforms, enterprise businesses and SMEs manage their core e-commerce business operations, such as warehousing services, cataloguing, pricing, multi-channel selling, logistics, and local & cross-border shipping.
Over the last 12 months, sellers in the region have processed over 12 million orders totalling over USD 258 million in gross merchandise volume through both Anchanto’s SelluSeller.com and eCommerce SaaS Warehouse Management System solutions.
(Source: E27; The Straits Times; Indian CEO)
Kanmo Group, a leading retailer in Indonesia operating nearly 200 stores, is rolling out omnichannel solutions to its distribution system to improve customer service, through a deal with Homegrown company Genie Technologies Inc. (GenieTech). The project is aimed at accelerating Kanmo Group’s productivity by upgrading its current platform through integration of retail tools and applications using Retail Pro Prism – a tool that gives control and flexibility in tailor-fitting the product to the business needs, processes and brand.
The Kanmo Group is integrating all of their systems in a single platform, Retail Pro Prism. Working together with Retail Pro Professional Services team and other technology partners, GenieTech, its Retail Pro Business Partner, has succeeded in building the right technology foundation for Kanmo’s omnichannel customer experience, according to Bhavin Patel, Omnichannel Director of Kanmo Group.
Retail Pro Prism is expected to empower Kanmo Group’s store employees to respond instantly to their changing business needs and customer orders. The real-time interface will also enable immediate access to precise data across the enterprise, which is critical for improving decision-making.
The company wants to enable its customers to walk in stores where they can collect and check out the basket they created by communicating with either a salesperson or through a POS (point-of-sale) system that runs in real-time. Currently, the new system is undergoing system stabilisation before the final rollout of the service.
(Source: Business Mirror; Business Insider)
According to a survey conducted by Indonesia's central bank, Bank Indonesia, retail sales during March 2018 grew by 2.5% y-o-y, on the back of higher sales of vehicle spare parts and accessories, as well as food, beverages as well and tobacco. Sales in these two categories increased by 11.05 and 6.8% respectively.
Regionally, retailers in Surabaya and Semarang reported the strongest growth, increasing respectively from 33% and 10% y-o-y in Feburary 2018 to 44.4% and 13.2%. The retailers in the survey predicted stronger retail sales during the next 3 months driven by a rise in consumption during Ramadan and Eid-ul-Fitr. However, sales were predicted to decline in the next 6 months.
Relatively slow growth in consumption has constrained Indonesia’s growth rate, with GDP growth during the first quarter at 5.06% year on year, compared to 5.19% during the last quarter of 2017.
(Sources: Bank Indonesia, Reuters)
In April 2018, ecommerceIQ released its findings about Indonesian shopping behaviour during Ramadan, the month of fasting and commemoration of Islamic beliefs, which is observed by approximately 2 billion Muslims worldwide every year. This year, Ramadan will start on May 16 and will end on June 14, 2018. According to ecommerceIQ, the month is also one of the largest shopping events in the retail calendar and it pays to pay attention to the Muslim buying power. The company released several key insights, which should help companies prepare for the Ramadan shopping period:
The top three reasons that would convince Indonesian consumers to shop online more often during Ramadan are (1) Special Ramadan promotions on products they need, i.e. food and fashion; (2) Payments option cash on delivery; and (3) Same day delivery with no additional fees. Sites that did not feature lower priced items suffered a hit in conversions last year. Indonesians are price conscious and even with disposable income from their bonus, thriftiness is a major factor in consumption behaviour.
Logistics and payment remain the toughest challenges in Indonesia's ecommerce market due to infrastructural immaturity and lack of financial knowledge. Most companies have been smart to outsource the two main pain points to improve their shopping experience efficiently. Ideally, fulfilment partners should have a strong local footprint across Indonesia through hubs/sorting facilities and offer multiple payment options to shorten delivery times and give customers flexibility.
(Source: E-Commerce IQ)
Sophie Paris, one of Indonesia's biggest names in fashion accessories and beauty products, has announced that it will switch to becoming a fully on-line enterprise before the end of this year. Since its commencement in 1995, Sophie Paris has been recognized as a pioneer in the direct-to-consumer marketing space in Indonesia. Instead of building up the brand with a brick-and-mortar shops, Sophie Paris started with an asset-light operation from its very inception. The company built up and mobilised a nationwide sales force of more than 250,000 individual distributors.
With Sophie Paris’s shift to an online platform only, users will have a more seamless experience. They can sign up and become members anywhere, anytime via mobile phone. Members can also view and buy all Sophie Paris products online. With the company’s digital platform, members can easily share referral links with one another, thus allowing new users to automatically become someone else’s community. For every sale through Sophie Paris, members can get a monetary bonus of up to 20%. Currently, Sophie Paris’ internet site generates 1.5 million monthly visits, making it the third most popular fashion web site in Indonesia in terms of site visitors.
PT. Quick Serve Indonesia, one of the newest franchisees to join quick-service chicken chain Texas Chicken, is entering the market in a big way with two openings for the company in just several weeks. The franchisee opened its first Texas Chicken in Surabaya, East Java in January, and a second signature location in East Java with a record 175-seat capacity in February in Kertajaya. With these two openings, and many more planned by PT Quick Serve, Texas Chicken is on the move to quickly expand the brand footprint substantially in Indonesia on top of the 60 existing units in the country currently operated by another franchise group in Indonesia, PT Cipta.
Established in 2017, PT. Quick Serve Indonesia is a sister company of PT. Lumbung Reksa Arta, one of Indonesia's most well-known companies specializing in the Food & Beverage space since 2014. In 2017, PT. Quick Serve Indonesia became the newest Texas Chicken franchisee in Indonesia, operating primarily in the Java & Bali regions. Based in Surabaya, PT. Quick Serve Indonesia currently employs approximately 50 people.
(Source: Texas Chicken)
Danish dairy company Arla Foods has entered into a joint venture with Indonesian food and beverage firm PT Indofood Sukses Makmur Tbk (ICBP) to expand its market presence in Indonesia. The joint venture will focus on sales, distribution and production of dairy products to the Indonesian market.
This agreement is part Arla’s strategy to strengthen its operations in South East Asia, which the company considers to be a growth region. In particular, Indonesia has a great potential as the nation is the fourth most populous country in the world. Around 50% of Indonesians are under the age of 30, therefore demand for dairy is increasing, as well as the trend for a healthy and balanced diet.
ICBP is one of Indonesia's leading fast-moving consumer goods maker, and is particularly well known as an instant noodle manufacturer. The company is engaged in diverse FMCG categories such as noodles, dairy, snack foods, food seasonings, nutrition and special foods and beverages. ICBP runs not only production, but also packaging, sales and distribution throughout Indonesia and in 60 countries abroad.
(Sources: Arla; Food Ingredients First; Reuters)
Online luxury shopping continues to grow in Asia, and shoppers in Indonesia are charting the biggest growth when it comes to buying high-end goods, based on the latest data from Reebonz. The Indonesian market for luxury goods sales grew by a staggering 84% between 2014 and 2015. To leverage on the growing demand, the Masari Group, Indonesia's largest luxury retail group, is taking the current Masari Group’s retail store to a new digital level, targeting Indonesian shoppers who are already familiar with the brands available at Masari's stores.
The company is creating an online platform that caters to a broader audience and creates a shopping experience that is easily accessible for its customers outside of Jakarta. The new online destination, called MASARISHOP, will be an extension of the company's retail stores and will provide curated products from Indonesia and around the world. It will feature more than 40 brands, such as Les Petits Joueurs, Loup Noir and Dorateymur for both men & women that are looking for premium products that are a challenge to find anywhere else in Indonesia. This platform is a collaboration between Masari and Acommerce.
(Sources: Acommerce Asia; Masarishop; Reebonz)
In response to Indonesia's thriving sports scene, French sports apparel retailer Decathlon has opened its first store in the country. The store stands on a 2,000 square meter land in the Alam Sutera Boulevard in Tangerang. According to the company, Indonesia is an attractive market as it hosts international-level sports events such as the 2018 Asian Games.
The company has been developing its network of local apparel manufacturers since 2016, and expects that 50% of the products featured in the store will be locally produced by 2027.
(Source: Jakarta Post)
Japanese retailer Aeon is leaving the traditional shopping model behind with its new mall in Indonesia, betting that consumers will still venture outside for entertainment even if they purchase more goods online. Aeon Mall in Jarkata Garden City, located about an hour east from the city center by car, is now open. It will be Aeon's second location in Indonesia after its first opened outside Jakarta in 2015.
What makes Jakarta Garden City different from other malls is that relatively little space is devoted to traditional retail like clothing. Rather, the mall is focusing on interactive facilities, and over half of its 165,000 sq. meters of space is devoted to food and drink. Out of 227 tenants, 52% are food-court stalls or restaurants. The mall will also house Indonesia's first skate rink to meet international standards, a large movie complex and Fanpekka, a Scandinavian-style educational center for kids. The roof will be equipped with one of the country's largest Ferris wheels.
Aeon is marketing the facility as Indonesia's largest entertainment mall where family and friends can enjoy a day out. The company hopes to unearth demand from middle- and upper-class urban residents looking for recreation.
(Source: Nikkei Asian Review)
In 2015, Indonesia’s Lippo Group, one of the archipelago’s largest and richest conglomerates, announced an investment of US$500 million into a massive e-commerce venture called MatahariMall - an online version of one of the nation's biggest mid-priced department store, Matahari Department Stores (MDS).
MDS, which is also part of the Lippo Group, is one of the major retailers in Indonesia, with 156 stores spread across 71 cities in Indonesia. This month, MDS increased its stake in its sister company, MatahariMall.com, to 16%. MDS has its own dedicated segment on MatahariMall.com, called MatahariStore.com, where it sells its own brands. Since its launch in November 2016, the portal has already seen 67,000 transactions in the first quarter of 2017 and 130,000 transactions in the second quarter of 2017. The marketplace focuses on food, fashion and accessories.
MatahariMall's rivals in Indonesia are Tokopedia and Lazada, both backed by e-commerce giant Alibaba. It also expects to compete with The predicted entry of large cash rich players like Amazon, JD.com and Salim group . Some other mid-sized players in the region include Zalora Indonesia, Bhinneka.com, OLX, Blibli, and Elevenia.
(Sources: Deal Street Asia; TechinAsia)
Tokopedia, a leading Indonesian e-commerce company, has received investment from China's Alibaba Group Holding as the lead investor in a $1.1 billion funding round. Founded in 2009, Tokopedia's marketplace model is similar to Alibaba's Taobao platform. Its mobile app has been downloaded at least 10 million times. This is Alibaba's first direct investment in an Indonesian company, in April 2017, its affiliate Ant Financial announced a payment joint venture with a local media conglomerate. Alibaba is also the majority owner of Lazada, an e-commerce company with its largest South East Asia presence in Indonesia.
The partnership between Tokopedia and Alibaba will enhance the scale and quality of Tokopedia's offerings to its customers, and make it easier for merchants and partners to do business across the archipelago and beyond. The company intends to invest in a new research center, hire top talent to better support the 2 million merchants on its platform.
(Source: Nikkei Asian Review)
Unilever Indonesia, one of the largest consumer goods producers in Indonesia, will continue to focus on the strengthening of its production lines. The company plans to invest up to USD 500 million over the next five years. Sancoyo Antarikso, External Relations Director & Corporate Secretary at Unilever Indonesia, said the funds will be used to expand production capacity of the company’s nine factories across Indonesia.
The USD $500 million that is planned to be invested by Unilever Indonesia over the next five years will primarily be spent on the production capacity expansion programs of the company’s two main business segments: (1) home and personal care, and (2) food and refreshment.
Last year, in 2016, Unilever Indonesia opened a palm oil processing plant in the special economic zone of Sei Mangkei in North Sumatra, a project that required IDR 2 trillion (approx. USD 150 million) worth of investment. This plant, operated by subsidiary Unilever Oleochemical Indonesia, can process 200,000 tons crude palm kernel oil per year (turning it into fatty acid, glycerine, and soap noodle). This plant is a key milestone for the company because it is eager to make sure that all palm oil-related raw materials originate from certified palm oil.
(Source: UK ASEAN Business Council)
Lazada Indonesia, Indonesia’s largest online retail mall, has strengthened its offerings by partnering with Unilever and Samsung. Since March 2017, Unilever has a flagship store that oversees various brands by providing more than 600 types of products on Lazada. Unilever has appointed Lazada to be its first e-commerce end-to-end partner covering South East Asia. The end-to-end e-commerce simply means that Lazada will provide total solutions for Unilever, starting from setting up a storefront, product fulfillment, returns management, financial management services, online business management, to customer service.
Lazada’s partnership with Samsung means that all Samsung’s products are now available on Lazada, including mobile phones, TVs, and electronic home appliances. Samsung has seen its sales in Indonesia increase significantly since the launch of its partnership with Lazada.
(Sources: Antaranews, Republika )
By 2018, 5 new wholesale Indogrosir stores will be established in four cities outside Java: Makassar (South Sulawesi), Ambon (Makulu), Kendari (South East Sulawesi), and Jambi City (Jambi). Indogrosir stores supplies goods to small and medium retailers, and are operated by PT Inti Cakrawala Citra, a subsidiary of the Salim Group, Indonesia’s biggest conglomerate. With these stores, the group will operate a total of 21 Indogrosir stores in 2018.
A spokesperson from PT Inti Cakrawala Citra explained that the company sees a potential opportunity in establishing the stores outside of Java. As the Indonesian maritime sector is being developed, distribution cost to the eastern part of Indonesia are expected to fall. Therefore, customers living in eastern part of the country will be able to get neccessities more easily and at lower prices, unlike the current situation. PT Inti Cakrawala Citra hopes to take advantage of this opportunity.
Data from the Indonesian Retailers Association show that there are only two big wholesalers operating at present, Indogrosir and South Korea’s Lotte. Concerns about the fate of small mom-and-pop stores across the country have led the government to consider revising the 2007 Presidential Regulation on management and development of traditional markets, shopping centers and modern shops, to push wholesalers to provide more asistance to their small counterparts.
(Sources: The Jakarta Post, The Nation)
Aeropostale Inc. has announced it has signed a licensing agreement that will allow the company to open stores throughout India and Indonesia. Its licensing agreement in Indonesia is with PT Mitra Adiperkasa TBK, a leading lifestyle retailer in Indonesia with over 1,800 retail stores and a diversified portfolio that includes sports, fashion, department stores, kids, food & beverage and lifestyle products. As a result of the agreement, the retailer has opened its first standalone store in Jakarta, Indonesia this month, in Plaza Indonesia in Central Jakarta, amid much fanfare. It expects to open 10 to 12 standalone stores in Indonesia over the next five years.
According to market research firm Euromonitor International, the colour cosmetics sector in Indonesia recorded positive growth in 2016 and the rise of beauty online retailers such as Sociolla and Sephora.co.id has boosted the sales of colour cosmetics in Indonesia.
(Sources: Aeropostale Inc., Euromonitor International)
Indonesian augmented reality (AR) company Slingshot, which introduced a virtual store network called Mindstores targeting local women and housewives, has announced that it has opened more than 7,000 virtual stores in the country in under a year. Mindstore estimates that they will have more than 150,000 active stores by the second quarter of 2017, with the potential to open more than 4 million new stores in the country over the next two years.
Its success in Indonesia is largely due to its target group and the minimum investment needed to open a store: Women are able to own or become a franchisee of trusted retailer brands with very minimum invesment of about USD100. Mindstore equips store owners with their own unique partner cards which customers use to access the stores virtually. A store owner shows a customer their partner card. Using a dedicated app on their own smartphone, the customer scans the card to see a 3D retail store appear on their screen. From there, the customer enters that partner's virtual store and can browse and purchase merchandise that is shipped to him. The store owner then gets a cut of the sale.
(Sources: Digital News Asia, Augmented Reality News)
Unilever Indonesia will launch its first official shop through Shopee platform marketplace, namely Unilever Beauty Official Shop and Zwitsal Official Shop. Shopee is a remarkable online marketplace in South East Asia and Taiwan. Both online shops are designed specifically to sell health and beauty care, toys, kids and baby products. Unilever brands included in this shop are famous brands from Unilever, including Pond’s, Vaseline, TRESeme, Dove, Clear, Sunsilk, Rinso, Molto, Rexona, and Zwitsal.
Furthermore, Unilever and Shopee offer discounts up to 50% and an exclusive package promotion in the Grand Launch Unilever Indonesia February 22nd-24th 2017. Apart from the promotion, Shopee also offers free delivery cost for all of its customers, which will no doubt help to maintain its position as one of the largest mobile marketplace in South East Asia and Taiwan.
Despite the booming online retail industry, 23 retail malls are planned to be built in Jabodetabek (Jakarta, Bogor, Depok, Tangerang, and Bekasi) by 2019. This is due to the increasing demand for retail stores in these locations. Senior Associate Director of Colliers International Indonesia, Ferry Salanto said that 10 of the malls will be located in Jakarta, while the other 13 to be placed around urban cities near Jakarta. The total retail area that will be added is around 926,685m2. As a start two malls will be opened in 2017 with total area of around 68,000m2.
In addition, Trans Retail Indonesia, which currently owns 94 retail stores in Indonesia, is also building 30 Transmart Carrefour retail outlets that are to start operation in 2017. Transmart Carrefour Corporate Communications General Manager, Satria Hamid, further said that to compete with growing online retail sales, they will propose for more creative offerings by way of promotional activities, intensive marketing and sales of fresh products to attract customers to its stores.
(Sources: Kompas, The Jakarta Post)
QBig BSD City, Indonesia’s biggest retail mall with a size of 175,000m2, has officially started operations this month. QBig BSD City is built with the concept of being an urban retail complex, and consists of multiple buildings connected together with cafes and restaurants. Currently there are 11 anchor tenants in the complex, namely ACE Hardware, Ashley, Informa, Mitra 10, Toys Kingdom, Lulu Hypermarket, Artland, Fashionable Moslem Gallery, Truly Premium Outlet, The Sport Warehouse, as well as Playland Fun and Fit. Indonesian Minister of Trade, Enggartiasto Lukita, said that the launching of QBig BSD City will not only cater for big retailers, but will also encourage small-middle enterprises to engage in this retail area. The complex is expected to generate monthly retail transactions of up to IDR 300 million.
After hosting a series of pop-up store events in different Indonesian cities throughout the year, fashion e-commerce startup Berrybenka announced plans to set up a permanent brick-and-mortar store in early 2017. The startup has been including pop-up store as part of its online-to-offline (O2O) strategy in 2016. The startup has hosted eight events in Medan, Tangerang, Makassar, Bekasi, Semarang, Bandung, and Cibubur, with Jakarta being latest addition. According to the company, it receives many new customers when it hosts a pop-up store event, and many customers often go straight into checking its website though its app. It plans to continue on hosting its pop-up store events in 2017, claiming that the event helped to boost sales growth up to 300% in each city. In Indonesia, O2O seems to be a crucial marketing strategy for many e-commerce startups.
During the 6th EU-Indonesia Business Dialogue the EU Commissioner of Agriculture and Rural Development, Phil Hogan, said that many European companies are eyeing the Indonesian food & beverage (F&B) market, as well as its agriculture business due to a growing consumer population. However they are waiting for an improvement in market access, requiring Indonesia to ease its trade barriers in the F&B sector for companies from Europe to export their products into the country.
While there are EU companies currently interested in the Indonesian agri-food markets, Logan said that there are still some obstacles in the market access, including the halal certification process. In his speech he suggested that the mandatory labeling of halal and non-halal products should be made optional so that the producers who have not yet obtained the certification would still be able to export into Indonesia.
(Source: The Jakarta Post)
Based on the Investment Coordinating Board (BKPM) data, the food & beverage (F&B) industry gained USD 988.63 million in FDI in the first half of the year and was listed as the fifth most preferred sector by foreign investors. F&B sales are expected to increase further as the number of middle-income people and affluent consumers is set to increase to 141 million people by 2020, based on a survey by the Boston Consulting Group (BCG).
The Ministry of Trade said that the increase of F&B sales is also driven by the growing lifestyle to consume healthy and hygienic products among the upper to middle-income people. To ensure good practices in the growing sector, the Ministry of Trade encourages producers to implement Standar Nasional Indonesia (SNI/Indonesian Standard), Good Manufacturing Practices, and Hazard Analysis and Critical Control Point (HACCP), Food Hygiene - Safety – Sanitation (CODEX Alimentarius).
The Industry Ministry of Indonesia expects the food and beverage industry in 2016 to grow between 7.5 - 7.8% in 2016.
(Sources: Kompas, The Jakarta Post, BCG)