Matahari.com Synergizes MatahariMall and Matahari Department Store in an O2O Model

After doing update Last May 2018, with a focus on the fashion and lifestyle lines, MatahariMall is now exploring a strategic partnership with Matahari Department Store (MDS) to present a business model online-to-offline (O2O) or service omni-channel. There were no special actions in the form of business mergers, nor were there any changes to the managerial structure of the two companies.

An internal source said that according to data from MatahariMall in the last year, the fashion sector has increasingly dominated business transactions. This decided the company to deepen its involvement -- in the fashion field, the market share was not only competing with niche platforms, but horizontal platform (almost all E-commerce providing fashion products).

With the distribution of MDS in various cities plus the online user base of MatahariMall, both claim to be services omni-channel biggest in fashion.

However, if you look at visit statistics - for example from SimilarWeb - compared to similar services such as Zalora Indonesia and SaleStock, Mataharimall's ranking is still below it. At the time of writing, Zalora.co.id is ranked 241 in Indonesia, Sale Stock is ranked 391, while Mataharimall.com is ranked 552.

Previously in 2016 MatahariMall also managed MatahariStore as an MDS online venture. After this collaboration, all pages (Mataharimall.com and Mataharistore.com) will be integrated into Matahari.com.

"This is a strategic development to maximize the experience omni-channel consumers with support from Matahari Department Store with one brand, Matahari.com. Now Indonesian consumers have more choices to shop for fashion items without any restrictions, both online and offline," said MatahariMall CEO Hadi Wenas to DailySocial.

Wenas also emphasized that this collaboration combines MatahariMall's expertise with its technology and MDS' experience with offline fashion retail expertise. With brand new, Matahari.com will open opportunities for merchant to register to join the ecosystem omni-channel developed.

On the other hand, the O2O model appears to be a new chapter in the retail industry in Indonesia. Some time ago retailer Metroxgroup also started the same strategy, they gave birth to Onmezzo as their online platform. The O2O scheme will be carried out with Mezzo retail outlets which are already spread across many shopping centers. The same thing was also done by Adi Mighty Partner (MAP) with the birth of MAP EMALL.

Previously existing online retail such as Zalora, Berrybenka, to HijUp also maximize the potential of O2O. Having previously been present on online platforms, they began to expand their network by presenting offline stores in strategic cities.