technomeetup 2 : get your dream from startup
TRANSCRIPT
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 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) -
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Why StartUp is so cool? 7
1. Technology = future
3. Skill oriented
2. Less bureaucracy
4. No tie
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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
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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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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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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