Assessing Shopee Indonesia readiness for 9.9 and how smaller e-tailers are taking on the giants

As Shopee gets ready for 9.9, how has it performed YTD on its key initiatives in Indonesia?

Published on: Aug 2019

• Shopee Indonesia has performed strongly in scaling up B2C retail and Cash on delivery initiatives in 2019, both of which will play a crucial role in driving growth in 9.9 and other events
• Shopee Express has also scaled but remains much smaller than 3P logistics partners

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Vertical e-tailers in Indonesia using omnichannel to compete vs horizontals and also expand online penetration

• A slew of e-tailers in beauty and fashion has been taking the omnichannel route by launching offline stores
• Likely to create a dent in expanding the low online penetration and also expanding the currently low share of verticals in this category

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A case study from India shows that Omni models were heavily adapted and scaled by e-tailers in the past year to crack the online pie

• India e-tailers experimented heavily with omnichannel models in 2019 in their quest to bring onboard next wave of consumers
• Omni expansion was crucial in helping verticals like Nykaa (beauty) attain leadership in their respective categories and compete effectively vs well-funded horizontals

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Verticals can also compete vs horizontals by leveraging private labels- which are a clear need in the Indo e-tail market

• RedSeer consumer research shows that there is a gap in the market in terms of price/selection/quality mix of products sold online- with this being a key pain area for online shoppers
• Private labels can help verticals (and even horizontals) bridge this consumer experience gap and drive adoption and repeat purchases