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Category: E-Tailing

Retail News Asia is committed to providing both local and global retailers with the latest E-Commerce & Etail news throughout the Asian market. This on a daily base.

  • Louis Vuitton snaps up Singapore start-up

    Louis Vuitton snaps up Singapore start-up

    Louis Vuitton has bought Singapore online cosmetics retailer Luxola and LVMH’s subsidiary Sephora has made a further investment in the business.

    Few details of the transactions have been revealed, including the size of the investments, howeverCrunchbase reports Luxola raised US$15.6 million in four earlier rounds of venture funding.

    Luxola was launched in 2011 by Alexis Horowitz-Burdick, has a staff of 120 and sells a wide variety of beauty products and accessories under 250 brands in 11 markets.

    Horowitz-Burdick, now Luxola CEO, said Sephora’s investment would allow the founders to take the company’s vision further.

    “With greater market reach and brand depth, we will offer an unparalleled customer experience.”

    Sephora Asia president Anne-Veronique Bruel said investing in Luxola gave her brand the opportunity to accelerate Sephora’s growth in Asia and penetrate the growing online beauty market.

    “We are thrilled to welcome Luxola to the Sephora family.”

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  • China dominates global online grocery markets

    China dominates global online grocery markets

    The Chinese online grocery market is set to be worth almost $180 billion by 2020 – nearly five times its current value of $40 billion, according to IGD’s Top 10 Online Grocery Markets report. In other leading markets, online growth is expected to continue at double-digit rates. This makes investment in the channel essential for companies wishing to meet the needs of the rapidly evolving multichannel shopper.

    China’s rapid pace

    Online grocery sales in China are soaring as shopper habits gravitate towards the channel, which is maturing at a much faster rate than we have seen in other markets. Mobile is a key driver of this growth. Most online sales are via digital marketplaces such as Tmall (owned by Alibaba) and JD.com. The scale of these pure-play sites means they can offer an increasingly broad product selection.

    Busy shoppers are increasingly using China’s online marketplaces to seek out imported goods including food, which is seen as an affordable luxury. As more shoppers come online and China’s population increases, we expect this growth to continue.

    New opportunities in leading markets

    Meanwhile, in more mature markets such as the UK (the world’s second-largest online market for grocery), we continue to see strong growth and innovation. The click & collect sub-channel is giving retailers new ways to drive loyalty and reach potential customers on-the-go at remote locations. Last week, Asda opened its first fully automated 24-hour online grocery collection point at Haydock, a concept that is likely to be seen shortly in Walmart’s other markets too.

    Remote collection is also being trialled in Belgium, where Carrefour has introduced an after-work pick-up point for shoppers at an office car park, and Australia, where lockers and drive-thru’ solutions have been introduced by the two major retailers.

    In the UK, 27% of shoppers now shop online on a monthly basis, with 11% citing it as their main way to shop. Loyalty schemes such as delivery passes are helping to drive frequency and overall multichannel spend.

    Maximising opportunities in larger markets

    There are also some exciting developments in larger markets, particularly the US, where Walmart is adding scale to boost online grocery, estimating that online and digital in-store purchases could reach up to 6% of revenue by 2017. Innovation and rapid delivery is a big theme in this market, driving shopper expectations. Here Amazon is particularly active, combining key global growth trends of convenience, mobile and loyalty with new services such as Amazon Prime Now’s one-hour delivery. This is available exclusively on mobile devices to Amazon Prime members in 14 US cities and launched internationally for the first time in London this week. Disruptors such as Instacart and Uber – companies and services innovating across the supply chain or tapping into opportunities created by the increase in the use of technology – are also driving the channel and bridging the gap where retailers are not yet present.

    Meanwhile in Germany, recent research indicates that shoppers are becoming more willing to shop for groceries online and established online retailers such as Rewe are boosting investment in the channel. Discounters Aldi and Lidl are beginning to invest online in specialist areas such as wine and pet food. Together with Amazon, these retailers have the potential to change the German market significantly with their increased investment.

    Where should retailers and suppliers focus their efforts?

    For FMCG retailers and suppliers, the online channel presents many opportunities. In leading markets, retailers are likely to see the majority of growth occurring online over the next five years, so a focus on this fast-moving channel is essential. We can expect new online entries by retailers across the majority of markets, so flexibility will be essential. Understanding sub-channel growth, such as remote click & collect, as well as mobile and wearable technology, will also be key to unlocking new potential.

    Key considerations for retailers and suppliers:

    • What is changing and how will it impact my market/category/shoppers?
    • Do I have the right resource in place?
    • How can I partner with customers on new initiatives / market entries / sub-channel expansion / convenience and personalisation?
    • Which customers / markets present the biggest opportunities for my brand?
    • Is my company adopting a multichannel approach? Does this include mobile?
  • Marina Bay Sands launches exclusive digital offer

    Marina Bay Sands launches exclusive digital offer

    The Shoppes at Marina Bay Sands has launched a digital platform allowing shoppers to browse and reserve online exclusive lines not available in stores outside its mall.

    The new O2O initiative not only helps the mall promote its exclusivity and premium luxury positioning, it drives foot traffic offline into the mall.

    Shoppers can reserve the Shoppes-exclusive items – like the Kwanpen Men’s Boutique Crocodile leather briefcase pictured above – for 48 hours before heading to the physical boutiques to purchase the goods.

    The Shoppes team says the online service is another initiative to showcase the mall’s unmatched collection of luxury offerings. Shoppers who use the free service are also in for treats and seasonal privileges upon purchasing in-store, including attractive shopping rewards, complimentary day parking, as well as be the first ones to receive firsthand updates on the newest limited edition products debuting at The Shoppes.

    John Postle, VP of retail with Marina Bay Sands, said: “We are always looking for ways to engage our shoppers while leveraging existing digital platforms to showcase product offerings that set us apart. Through this service, we want to bring convenience to our customers and make them feel special when they arrive at their destination, knowing that their item is waiting for them.”

    For its launch, the website will feature a selection of luxury bags from international brands including Bally, Brioni, Kwanpen Men’s Boutique, Roberto Cavalli, Salon by Surrender, Salvatore Ferragamo and Zilli.

    To celebrate the launch of the service, shoppers will receive a S$100 shopping voucher on top of complimentary parking, upon purchase of their reserved item from now until August 31.

  • Taxi services with apps springing up like mushrooms

    Taxi services with apps springing up like mushrooms

    Taxi services equipped with booking applications are springing up like mushrooms in Indonesia as people are seeking more reliable means of transportation amid the country’s poor public transportation facilities.

    GrabTaxi, Uber or even the newly established ojek (motorcycle taxi) app Go-Jek are rapidly spreading in the country’s major cities.

    Nadiem Makarim, founder and CEO of the Go-Jek app, said that he came up with the idea to establish Go-Jek in 2011 out of his own need for fast and reliable transportation and also courier services in the capital city.

    The company, which was first established to serve Jakarta commuters, has quickly expanded its services and is now also available in Bandung, West Java; Denpasar, Bali; and Surabaya, East Java.

    “The expansion is based on the city’s traffic jam level, the supply of ojek drivers and the city’s economic level since our users are from the middle and upper-middle class,” he told The Jakarta Post. “We are planning to further expand our presence in other cities across the country, but we cannot mention the names of the cities just yet,” he continued.

    Since Go-Jek launched its mobile app in January this year, its number of ojek partners increased from 1,000 to 10,000 amid rising demand. The app itself has been downloaded 650,000 times since it was launched, Nadiem said.

    The marketing head of Malaysian company GrabTaxi’s Indonesian representative office, Kiki Rizki, similarly said that the company’s presence in Indonesia was aimed at tapping the rising demand for safe and reliable transportation in the country’s main cities.

    “We see a similar transportation problem in big cities across Southeast Asia. Residents basically need public transportation that can offer security, convenience and speed, which is what we offer at GrabTaxi,” Kiki told the Post.

    She said that the GrabTaxi service — which incorporates thousands of selected drivers from five leading taxi fleets in the country and assigns available taxis to nearby commuters using mapping and location-sharing technology — was now available not only in Jakarta but also in Surabaya and Padang in West Sumatra.

    The application displays the identity of the driver, the license plate of the taxi that will pick up the passenger and its estimated arrival time.

    “By using this application, customers don’t have to worry about being ripped off by taxi drivers, as they can monitor their journey and be informed of the driver’s identity,” she said.

    The company also decided to launch GrabBike, which is similar to the Go-Jek service, last month, and had since accommodated more than 1,000 ojek drivers, Kiki said.

    Similarly, one of its global competitors, Uber, also does not operate its own fleet. While GrabTaxi partners with official taxi drivers, Uber partners with licensed chauffeur-driven limousine or rental car companies. The operation has been, however, criticized by the city administration regarding its legality.

    According to the Castrol Stop-Start Index examining traffic conditions in 78 cities and regions around the globe, Jakarta ranked as the city with the highest number of stops and starts with an average of 33,240 per driver per year.

    East Java’s Surabaya was also included on the list, with the fourth-highest stop-start average, reaching 29,880 per year.

    Jakarta currently has one rail-based form of public transportation, a commuter train operated by PT KAI.

    While the government is currently constructing an MRT system in Jakarta and will soon start the construction of a tram system in Surabaya, little attention has been given to improving city bus management. Metromini and Kopaja minibuses in Jakarta, for instance, are currently owned and operated by private owners, without a united management system.

    Transportation Ministry spokesperson Julius Andravida Barata, however, said that the ministry would not legitimatize motorcycles as public transportation, saying that there were no safety requirements regulating motorcycles to serve as a means of public transportation.

    “The ministry will not regulate ojek because motorcycles don’t meet the standards for proper public transportation, but we also can’t deny that these mobile applications are emerging based on demand from the public,” Julius said.

    “The ministry, in cooperation with the city administration, will try its best to improve city transportation so the public can have reliable public transportation that meets safety standards,” he continued, citing that the management of public transportation, however, was the responsibility of the city
    administration.

    From the total Rp 64 trillion allocated for the ministry in the revised 2015 state budget, the ministry allocated less than 10 percent or Rp 6.07 trillion for the directorate general of land transportation.

    Julius said that the ministry would provide 1,000 buses for Damri and state-run city bus companies (PPD) across the archipelago this year, which, according to him, was part of the government’s support for city transportation.

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  • Flipkart to use Singapore image search tech

    Flipkart to use Singapore image search tech

    Flipkart, India’s largest online marketplace, has started rolling out image searching on its mobile shopping app which it clams will revolutionise the shopping experience.

    Flipkart is using ViSenze technology developed in Singapore for visual search and image recognition.

    The image search system allows users to upload photos of fashion items and find similar products in terms of color, pattern or style inside the Flipkart merchandise database. This eliminates keywords guessing when searching for a product, thereby simplifying the search process.

    Additionally, users browsing Flipkart’s catalogue can find visually similar products with a single tap. This brings offline-like shopping experience to mobile, acting as a virtual “shop assistant” who would show products of same color or design when users see something they like.

    This simplified search experience comes handy on the online marketplace that lists over 30 million products and is accessed by 45 million registered users, 75 per cent of them via smartphones. These new features are currently in beta and are due to be released to all users in the upcoming days.

    “We are proud we have managed to offer a solution that is also capable to handle unique needs for the Indian market such as ethnic wear,” said Oliver Tan, CEO and co-founder of ViSenze.

    The tech company originates from an R&D spin-off from the National University of Singapore, and develops highly advanced visual search algorithms, combining state-of-the-art deep learning with the latest computer vision technology to solve search and recognition problems faced by businesses in the visual web space.

    The company provides its visual technology APIs through a Software-as-a-Service offering to online retailers, content owners, brands and advertisers, app developers and digital publishers, enabling their platforms to recognise products for retrieval purposes or instant purchases.

    “The partnership with Flipkart not only attests to the strength of our products, but also reinforces our mission to enable retailers to capitalise on smart innovations in visual technology to uplift conversions, while empowering shoppers with real-time ability to search without the hassle of keyword guessing. And we will continue to innovate in this area,” said Tan.

    Key clients using the company’s image search service include internet retailers and marketplaces like Caratlane, Zalora (a Rocket Internet company), Reebonz, and Rakuten Taiwan, as well as patent search engines like PatSnap.

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  • Alibaba’s chairman tells US businesses: ‘You can sell almost anything’ online in China

    Alibaba’s chairman tells US businesses: ‘You can sell almost anything’ online in China

    Jack Ma, chairman of China’s dominant e-commerce company, says Alibaba can help U.S. businesses sell to the more than 500 million consumers expected to make up China’s middle class by 2025.

    Alibaba Group doesn’t want to compete with Amazon.com Inc. for sales inside the United States—rather, the Chinese e-commerce giant wants to help small and medium-sized U.S. businesses sell online in China, Alibaba executive chairman Jack Ma said today in Chicago.

    “We are the e-commerce enabler,” Ma says. “We do not buy and sell like Amazon because we think that SMB’s already know how to sell easily and effectively. We help others do e-commerce, find customers, help with payment and help with logistics.”

    Ma is making a tour of the U.S., following a similar one to Europe last week, seeking to introduce a company that is mainly known in the West for its record-breaking $25 billion stock offering on the New York Stock Exchange in September.

    Ma spoke today with Kenneth Chenault, CEO of American Express, at the Chicago Millennium Knickerbocker Hotel today. No partnership between American Express and Alibaba was announced, although Ma did say “[Alibaba] should leverage and work with global companies like American Express.”

    Ma explained that Alibaba is already helping small U.S. businesses sell to China, and he emphasized the opportunity represented by China’s growing middle class, which he said will number more than 500 million by 2025, Ma said. In 2014, the value of purchases consumers and businesses made on Alibaba’s sites totaled $390 billion. And the 10 million mostly Chinese small and midsized business that sell on Alibaba’s marketplaces, particularly the Taobao and Tmall retail shopping portals, accounted for 95% of those transactions, Ma said. In the next five years, Ma predicts Alibaba’s transaction volume will reach $1 trillion. In 10 years, he hopes 40% of sales will come from businesses outside of China.

    “When you have 120 million people shopping on our site every day, you can sell almost anything,” he said.

    Because China does not have the extensive bricks-and-mortar retail infrastructure of the United States, Chinese consumers rapidly moved to shopping online, Ma said. E-commerce is expected to make up 24.2% of Chinese total consumption by 2020, Alibaba says. As an example of the opportunities open to foreign companies, Ma pointed out that Chinese consumers bought 300,000 “German lake crabs” in one day last year on Alibaba’s site. Farmers from the Pacific Northwest sold 600 tons of cherries through Alibaba last year, after selling 180 tons in 2013, Ma wrote in a column published this week in the Wall Street Journal.

    Ma said that Chinese consumers love American products, and that imports represent a big part of the continued growth of not just Alibaba but also China. His trip to the U.S. follows a recent visit to Europe, in the hopes of enticing foreign companies to sell on Alibaba sites. Ma said his goal is to and turn Alibaba into the largest import platform in the world.

    “In the next 20 years, China will grow to be the largest importer country in the world,” Ma says. “But, Chinese resources like the water, soil and air could never support such a huge demand. I think if China keeps exporting we will never see the blue sky in China. We have to leverage global resources to serve the 1.3 billion people.”

    While Ma downplayed suggestions Alibaba intends to compete with U.S. e-retailers, it has been investing in the United States. That includes taking stakes in Snapchat, a mobile image sharing app; TangoMe Inc., a video call app maker; Quixey Inc., a mobile search provider; and ride-hailing service Lyft Inc.

    Last year, the company also launched 11Main.com, a shopping portal for boutique U.S. retailers.

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  • Alibaba chairman: No, seriously, we’re not competing in the US

    Alibaba chairman: No, seriously, we’re not competing in the US

    Ever since Wall Street’s interest in Chinese e-commerce giant Alibaba reached a fever pitch last year, investors and analysts have focused on one major question: When will the company expand into the US and take on Amazon and eBay?

    Jack Ma, Alibaba’s charismatic founder and executive chairman, visited New York this week to try to dispel that notion.

    “When are you going to come to invade America?” Ma joked, during a Tuesday speech before the historic Economic Club of New York at the Waldorf Astoria’s Grand Ballroom. Instead, he countered, “The strategy for us is helping small business in America go to China, sell their products to China.”

    While that pitch to help small businesses sounds positive and uncontroversial, US onlookers and competitors could be excused for not believing Ma. The US retail market remains the largest in the world — with China coming in second — so it’s not a stretch to think Alibaba’s long-term plans could eventually include coming to America. That means Amazon, eBay and others may someday be facing a major, new competitor on their shores and US consumers will get to know the name Alibaba.

    For now, the company has been positioning itself as a partner for US businesses, hoping it can act as a bridge for them to reach the Chinese market and become a more influential global retail player along the way. To do that, though, Alibaba needs to build trust with US retailers and not appear as a rival.

    “I think a lot of this is time frames,” said Scot Wingo, executive chairman of ChannelAdvisor, which provides research and other tools for online retailers. “I think right now [China is] definitely their priority. I think two years from now I’d be shocked if they didn’t have a more direct US presence.”

    Alibaba’s focus on small US businesses makes sense in the short-term, Wingo said, since many retailers using Alibaba’s websites have told his company they don’t have enough inventory of Western goods to meet the surging demand of their Chinese customers. ChannelAdvisor is a partner with Alibaba’s Tmall Global, which helps import products to China.

    Today, Alibaba makes nearly all its revenue in China and has little exposure to the US. The company opened online retail site 11 Main in the US last year and has a handful of investments in US businesses. While that’s not nearly enough to interest most US customers, Wall Street last year swooned for Alibaba — the largest e-commerce company in China — when the firm raised $25 billion on the New York Stock Exchange, pulling off the biggest initial public offering ever.

    Ma doesn’t plan to stop there, saying his goal is to make his company bigger than Walmart and eventually generate annual gross merchandise volume — the total value of goods sold on Alibaba’s websites — of $1 trillion. To get there, though, Ma and Alibaba will likely need more partners.

    “We did not come here to compete,” Ma said Tuesday. “We come here to bring the small business.”

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  • Singaporean retailers thrive on online market

    Singaporean retailers thrive on online market

    A study by eBay shows that Singapore’s tech savvy retail exporters, who use the company’s online market place, sell to an average 41 international markets.

    eBay defines retail exporters as those sellers on its site who garner US$10,000 in sales to global customers (that is buyers outside of Singapore).

    According to an eBay spokesman, Singaporean retail exporters have been experiencing solid growth on the back of a revitalised US dollar. In South-east Asia, Singapore is ranked second in terms of reach behind Thailand. Interestingly, Singapore’s ranking is five destinations higher than US retail exporters.

    Jason Lee, director, eBay South-east Asia, noted that the US is the top trade corridor for Singaporean retail exporters.

    “An exciting trend for Singapore businesses seeking new revenue streams is the speed in which entrepreneurs are able to become a retail exporter, with 22 per cent of Singaporean retail exporters on eBay hitting the US$10,000 sales mark in the past year alone,” he added.

    The top three categories that Singaporean retail exporters sell on eBay are jewellery and watches, cell phones and accessories and clothes, shoes and accessories.

     

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  • Sportsdirect.com Malaysia expands

    Sportsdirect.com Malaysia expands

    Sportsdirect.com, the leading UK sporting goods retailer, opened its 13th Malaysian store this week.

    The new outlet is in the Oceanus Waterfront Mall in Kota Kinabalu.

    Sportsdirect.com Malaysia plans a further four new stores by November. The foray marks UK-headquartered Sportsdirect.com’s first direct retail investment in Asia, a partnership with Malaysian-owned MST Golf Group of companies, an established regional golf retailer.

    “We are delighted to be opening our next superstore at the Oceanus and to bring a variety of authentic sports brands and categories to Sabah consumers at unbeatable value,” said Sportsdirect.com Malaysia MD Paul Gibbons in a statement.

    At 10,000 sqft, the new store is the largest sports store in Sabah. Sportsdirect.com is a well-known sports shopping destination in UK and Europe with over 900 stores and annual sales revenue of RM15 billion.

    Sportsdirect.com offers a wide selection of global brands in sportswear, footwear and sports equipment, including leading brands such as Nike, Adidas, Puma, Yonex, Li-Ning, Speedo and Arena, alongside its exclusive portfolio of 28 internationally recognised sport, fashion and lifestyle brands including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.

    Malaysia customers experience the same look, feel and flow of the most modern UK stores, providing the widest and most in-depth range of equipment by brand, technical innovation and value.

    The stores are zoned by key sports categories: the Boot Room for football; Sheruns Heruns for running; Fitness Zone for fitness, cross training, gym equipment, weights, boxing, martial arts and yoga; Racket Centre for badminton, squash and tennis; Swim Shop for pool, beach, water sports and activities; Field & Trek for outdoor and winter, hiking, tracking and camping; the Games Room for table games, darts, table tennis; Big Action for bikes and skates; Men Sports Lifestyle; Women Sports Lifestyle and Kids Sports Lifestyle.

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  • New leadership for Foodpanda Malaysia

    New leadership for Foodpanda Malaysia

    Foodpanda, the global mobile food delivery marketplace has appointed new executives to lead the company’s Malaysian subsidiary.

    Joon Chan and Uffe Jordan have been appointed MDs of Foodpanda Malaysia.

    Chan is described as “a seasoned entrepreneur and executor” who after working in the venture capital industry, founded two regional startups and consulted for many across Southeast Asia for Foodpanda’s parent Rocket Internet.

    With Foodpanda having a virtual monopoly on home delivery food services in Malaysia, Chan says he is focused on improving the overall delivery experience of customers.

    “Our main goal is to be the best food delivery service in Malaysia and we will only strive to be the best”, he said.

    Uffe Jordan holds a Master of Science in Finance and Accounting from Copenhagen Business School. He worked more than five years for a Danish private equity firm before joining Foodpanda Malaysia.

    Uffe believes that there is still room for Foodpanda Malaysia to grow and says he will be expanding “the melting pot of restaurants” on Foodpanda, especially Malaysian favorites, with an emphasis of quality over quantity.

    Including the last funding round of US$100 million, Foodpanda globally has now raised over US$310 million since its launch in 2012. After acquiring key competitors in India, Mexico, Russia, Brazil, Eastern Europe and Southeast Asia, the company will use the recent investment to further expand its own delivery activities and improve overall customer experience across its 40 markets.

    Last-mile delivery has been part of Foodpanda’s operations since the beginning, and it says it will now accelerate its efforts to drive customer satisfaction, aiming to offer the most convenient way of ordering food – from the mobile app and online.

  • Generation Z to make big retail impact

    Generation Z to make big retail impact

    New challenges lie ahead for retailers in Asia as Generation Zers embrace technology and earn more.

    In its newly released report How We Like to Shop Online, CBRE says Generation Z is expected to have significant influence over the retail market in the coming years as their income levels are set to increase rapidly upon joining the job market.

    Generation Z refers to people born after the Millennial Generation, loosely defined as from around 2000.

    “Having spent most of their lives using the internet and other related technology, Generation Z’s demographic of consumers has distinct shopping behaviors in comparison to other demographic segments,” says Jonathan Hsu, head of occupier markets research, CBRE Asia Pacific.

    “Key aspects of their online shopping habits include stronger trust in online information; more activity on social media; and needing a sense of differentiation. These factors demonstrate the increasingly important role of technology in shaping the decision-making process of consumers,” said Hsu.

    In order to remain competitive in the digital age, retailers and landlords need to be proactive in reaching out and engaging with their consumers. Mobile shopping is most prevalent in emerging markets, and in many places, smartphones are the first – and sometimes only – point of internet access for many consumers, therefore, are playing a key role in driving the growth of online retail.

    Smartphone apps and social media can provide valuable information and insights into consumer behavior, for example, push notifications for smartphone apps or social media platforms based on consumers’ shopping history, location and preferences can help personalise their shopping experience.

    “Landlords and retailers need to be more digital-savvy, keeping pace with the latest trends in smartphone applications and social media so they can build a stronger relationship with consumers especially those from Generation Z,” said Joel Stephen, senior director, head of retailer representation, CBRE Asia.

    “These digital platforms are two essential mediums of online retailing, which should be integrated into retailers’ omni-channel strategies in order to capture Online-to-Offline (O2O) business opportunities.”

    With around 70 per cent of consumers in Asia Pacific collecting their online orders in-store – and 90 per cent of them purchasing additional items when picking up their online order – click-and- collect services are also an effective way to drive in-store sales, creating a synergy between both online and offline platforms.

    CBRE says landlords should thus collaborate with tenants to help merge their online and offline offering by providing the necessary facilities and regular renovations.

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  • India’s GirnarSoft set to fight Rocket and iCarAsia for Indonesia’s auto classifieds space

    India’s GirnarSoft set to fight Rocket and iCarAsia for Indonesia’s auto classifieds space

    A combination of low interest rates, a growing middle class, and the absence of strict regulations on car ownership has led tech companies to take a keen interest in the Indonesian market. Rocket Internet’s car classifieds site Carmudi has been operating in Jakarta for nearly one year now, although it’s currenly only seeing around 300,000 visits per month. iCarAsia’s Indonesian portal Mobil123 is doing a little better with around740,000 monthly visits, as per SimilarWeb.

    According to the Indonesian Automotive Manufacturers Association, there were 1,208,019 new car sales last year in the archipelago. This is a slight dip from the year before, which saw 1,229,916. Local financial portal Indonesia-Investments credits the drop to a weakening Rupiah against the US dollar, coupled with inflation, and an economy that may be losing steam. For consumer-to-consumer car classifieds sites, however, the drop in new car sales may actually be a negligible factor. If fewer people are strolling into Astra Motor dealerships on the weekends to pick up new coups, odds are they’re looking into used vehicle alternatives.

    Regardless of what caused the dip, India’s GirnarSoft, which ownsCarDekho, still sees Indonesia as a green opportunity, having recently launched CarBay in Jakarta.

    GirnarSoft was valued at US$300 million when it raised series B fundingthis past January. The company is backed by investors like Sequoia Capital, Hong Kong-based Hillhouse Capital, and Tybourne Capital. CarDekho is GirnarSoft’s largest venture, and claims to be the number one auto portal in India with around 3 million monthly visits.

    carbay id

    Testing the waters without classifieds

    Indonesia’s CarBay is not a classifieds site yet. Instead, it’s just a content provider and resource for folks who are interested in making a purchase but still doing their homework. On the site, users can hunt for vehicles they want to know more about, filtering via price, brand, fuel efficiency, model, number of passengers, and more. Essentially, CarBay acts as a decision-making aid, and lets users easily find various dealers in Indonesia.

    CarBay also lets users do instant side-by-side comparisons of up to four different vehicles at a time. The comparisons are quite thorough, and include everything from engine stats and safety features to luxury options and performance specs.

    At the moment, it’s unclear how CarBay plans to monetize outside of charging its partner dealerships for content on its portal. It’s likely that the firm is simply trying to test local waters by building up its user base before plowing full-steam ahead with a classifieds play. If CarDekho’s business model is any indicator, CarBay will probably go head-to-head with the likes of Rocket Internet’s Carmudi and iCarAsia’s Mobile123.

    A slowing but still favorable car market

    CarBay claims vehicle sales in Indonesia have been rising at a steady 11 percent compound annual growth rate. This figure is probably referring to new and used cars alike. The company cites the nation’s annual GDP growth as one of its most encouraging stats.

    Indeed, the archipelago has been experiencing economic growth of roughly six percent annually. However, the economy only advanced by 4.71 percent this past year, which was the slowest expansion since the third quarter of 2009. Car sales are one of the key indicators by which to measure local consumers’ purchasing power as well as the general state of the economy. As of May, only 443,328 new cars had been sold in the archipelago thus far in 2015.

    “Indonesia is at a good stage of economic development and online products like CarBay will set new benchmarks for organized car buying and selling in the country,” Amit Jain, CEO and co-founder of GirnarSoft said in a release. “Our rapid growth has been due a great web and mobile product, which we feel will do well in Indonesia too.”

    carbay id 1

    From what can be seen on the site, it looks like CarBay has no intention of getting into motorcycles, a segment which dominates the nation’s personal vehicle market.GirnarSoft is one of several Indian firms to have recently come to Jakarta looking for greenfield tech startup opportunities. Earlier this week, Tech in Asia spoke with a venture capital firm called Aavishkaar, which recently locked in US$45 million to invest in Indonesia and other emerging markets. Indian tech companies setting sail for Jakarta could be an interesting trend to keep an eye on for Q3.

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  • Who will dominate Korea’s mobile payment market?

    Who will dominate Korea’s mobile payment market?

    South Korean heavyweights ranging from Internet to retail to tech companies are all paying keen attention to preoccupy the mobile payment system market, which hasn’t yet taken off.

    Since Daum Kakao first ignited the competition by rolling out its mobile payment Kakao Pay last year with its 4 million subscribers. Korea’s largest portal operator Naver unveiled Naver Pay this July, by joining hands with 50,000 partner stores.

    Retail giants are also following suit. Lotte and Shinsegae are currently developing L Pay and SSG Pay respectively in order for consumers to more conveniently buy goods with retail technologies. They plan to let customers to save all the information of credit cards, gift cards, cash and coupons on smartphones to easily pay for things. Membership points will be accumulated on smartphone apps.

    Smartphone conglomerates are no exceptions here. Korea’s largest smartphone maker Samsung Electronics is set to unveil its new mobile payment system Samsung Pay in September. It is expected to be embedded in its latest smartphones like Galaxy S6 and Galaxy S6 Edge. As the tech giant recently acquired Boston startup LoopPay, which has magnetic secure technology, Samsung Pay will be compatible with existing magnetic card readers. This way, stores do not have to change their readers separately to use the service.

    In the smartphone market, Samsung has to compete with its global rivals Apple and Google. American search giant Google unveiled Android Pay at its I/O Conference 2015 late in April at San Francisco. Samsung’s arch rival Apple unveiled Apple Pay last October, and is now in discussion with China’s biggest e-commerce company Alibaba in a bid to make forays into the China’s market.

    Market watchers say the mobile payment system, which heralds the opening of the Fintech market – a combination of finance and technology – will have a great impact on the local financial market. Commercial banks have so far been in charge of small sum transaction but it is likely to be shifted to non-financial institutions if the mobile payment service takes off.

    Daum Kakao’s Kakao Pay, which is the first mobile payment service in Korea, already saw more than 4 million subscribers last month. Though it still does not have a great impact on the market with a limited number of partner stores, analysts say they have secured a meaningful number of clients.

    Korea’s financial watchdog said when the number of Kakao Pay’s subscribers reach 2 million, it will have a significant meaning as a financial transaction tool. Currently, no official figure of daily transaction has been unveiled.

    The local mobile payment market is expected to continue to grow, according to market observers. In a nation dubbed as IT powerhouse, many users still find it difficult to buy goods online as they have to install various programs such as Active X and keyboard security programs. Also, they have to type in their credit card information or personal information every time they pay.

    However, the emergence of the mobile payment system is removing all the hassles and only requires simple authentications such as smartphone numbers or password.

    According to research firm Gartner, the local mobile payment service market came to around 3.8 trillion won in the fourth quarter of last year, up 65 percent during the same period of the previous year. The global mobile payment service market also continued to grow around 30 to 40 percent annually for the past years. It would reach around 721 trillion won by 2017.

    “There is not yet a dominant player in the local mobile payment service market. Thus, fierce competition among tech firms hoping to preoccupy the market is expected in the second half of this year,” according to a market observer.

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  • B2B Marketplace Bizzy.co.id Launches in Indonesia With $2.5 Million Investment

    B2B Marketplace Bizzy.co.id Launches in Indonesia With $2.5 Million Investment

    Ardent Capital today announced the launch of one of Indonesia’s first B2B ecommerce marketplaces with a $2.5 million commitment to Bizzy.co.id, amidst a growing investor gold rush to ecommerce ventures in the country.

    Bizzy will solve a pain point with procuring inventory, supplies and services from other businesses. The platform carries thousands of products from hundreds of merchants in business supplies, electronics, cleaning, pantry and services.

    “Globally B2B ecommerce has gained massive traction. In Korea we’re talking 91 percent penetration, while in Indonesia this type of ecommerce is in its infancy so the opportunity is huge. Just 11 percent of all startup endeavours in Indonesia are dedicated to B2B,” said Adrian Vanzyl, CEO of investor Ardent Capital.

    Disrupting the Traditional B2B Climate

    Bizzy CEO and co-founder Peter Goldsworthy spent the past eight years building businesses in Indonesia and saw a lack of innovation in business supplies and services.

    “I was constantly frustrated with ordering supplies and services. In particular I felt the entire process of sourcing, approval and shipping could easily be improved upon,” Peter said.

    Through market research Bizzy discovered that many distributors and principal brands were having difficulties reaching and servicing their direct B2B customers.

    “Merchants were struggling to meet the needs of businesses. What we were seeing was that the way businesses shop was much more complex than how an individual would and this was causing problems at both ends of the transaction,” Peter explained.

    Bizzy helps merchants make the shift to online and meet the logistical demands of B2B business customers, by integrating multiple shipments from multiple vendors, known as ‘crossdocking’, through the fulfilment center of partner aCommerce.

    Enticing Millennials

    The demographics of those making B2B purchasing decisions has shifted rapidly. In a Google- and Millward Brown Digital-partnered B2B marketplace report this year, data showed that between 2012 and 2014 the age of those doing B2B research increased 70 percent in the 18- to 34-year-old age group. The data also showed that by 2014 this millennial age group was also accounting for 46 percent of B2B purchasing decisions.

    “Millennials are now the key decision-makers for company sourcing. This changing of the guard means they expect the same information available for personal purchases when they search for business solutions. Bizzy addresses that need,” Peter added.

    Bizzy will actively support not just tech startups but charities, hospitals and universities by offering wholesale pricing through a complimentary year of ‘Bizzy Wholesale’ membership, entitling them to wholesale purchase rates irrespective of purchase quantity.

    With customers like Tiket.com, Traveloka, Halomoney and Grabtaxi already onboard, Bizzy is generating the buzz to make 2015 the year of B2B.

    Snapshot: Penetration of B2B Ecommerce in Asia

    In the US, B2B ecommerce represents a $1 trillion opportunity, while in mature Asian markets B2B ecommerce already accounts for a large and growing share of total online transactions:

    • In China B2B ecommerce is estimated to have a potential value of $2.1 trillion by 2020
    • In South Korea 91 percent of online transactions are B2B
    • In Thailand B2B represents more than 50 percent of all online transaction value, yet by startup founder type, captures less than 20 percent of all founders who launch businesses
    • In Indonesia the current split between B2B and B2C revenue is just 11 percent
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  • Singapore on-line trend retailer groups up with Qlik to launch in-store digital buying answer

    Singapore on-line trend retailer groups up with Qlik to launch in-store digital buying answer

    Visible analytics answer supplier Qlik stated on Wednesday that it has teamed up with Singapore on-line trend retailer Inverted Edge and Deloitte Digital, a design and improvement company to launch an in-store digital buying answer which supplies clients with a customized interactive digital purchasing expertise in retailer.

    Aside from housing high quality modern luxurious attire, the in-store answer features a regularly altering showcase of photographs and tales from clients, shared on social media, concerning the garments they put on and their associated tales. As a wearer provides a brand new garment or story, it’ll seem on the visible show, inspiring others and including to the thrill of discovering and sharing new seems to be, bridging trend and on a regular basis life from posts shared throughout social media platforms.

    At Inverted Edge we are proponents of ‘fashion that matters,’ or sometimes we call it ‘Slow Fashion’,” said Inverted Edge chief executive officer Debra Langley. “We believe that when you buy something you love, you should wear it and wear it in multiple places and in different ways and across multiple seasons. It’s not disposable, it doesn’t get thrown out after two months; it becomes something that has meaning. “As a garment is worn as part of a lifestyle, it takes on a life and emotional quotient all of its own, developing a story between the wearer and the items purchased. “We want to develop something that captures these relationships, and from a business standpoint, understand what fuels our shoppers’ purchasing decisions,” she added.

    Inverted Edge needed to create a significant expertise throughout a number of channels, notably in retailer, which displays this perspective, to vary the best way individuals store. They needed to seize tales which might be naturally created when individuals purchase trend gadgets that aren’t throw away quick items.

    Constructed on Qlik Sense and HTML5 mashups, Inverted Edge’s in-store digital answer faucets visualization and storytelling options in addition to easy, net commonplace APIs to ship an interactive and personalised digital expertise for patrons. With the uniquely responsive design, it scales merely and naturally from giant in-store touchscreen shows, to non-public units corresponding to telephones and tablets.

    The framework permits Inverted Edge to simply handle and research buying knowledge to determine key elements that drive clients’ selections to buy top quality gadgets which are designed to be worn for greater than a few seasons. This permits the corporate to find what it’s their clients are searching for and tailor their providers to buyer wants.

    “By reworking dry materials comparable to buying knowledge and buyer analytics into partaking, informative digital tales and conversations, Qlik is offering Inverted Edge with the power to deal with actual and vital issues that style retailers face in model new methods. Particularly, we’re enabling them to design recent technique of partaking with the tales we inform about ourselves, and the garments we put on and aspire to personal. It is a captivating strategy, and an ideal partnership for Qlik,” stated Donald Farmer, Qlik’s US-based Vice President of Innovation and Design.

    The digital expertise will later be replicated at Manifesto, Inverted Edge e-commerce associate’s new idea retailer carrying worldwide modern manufacturers in Singapore’s Capitol Piazza improvement. Specializing in integrating each on-line and offline initiatives, the 2 retailers are aligned on their want to create a brand new and totally different retail shopper expertise over the subsequent six months.