12 Years of Operation, How's Dinomarket?

Natural selection in the e-commerce industry is very complicated and fierce, because the choice is only life or death. Of the many, some are closed, just starting to try, some are increasingly dominating the market. Tokopedia and Bukalapak were among the e-commerce companies in the 2010s, after Bhinneka and the Kaskus Buying and Selling Forum in the early 2000s and earlier.

One player who rarely “appears” to the public is Dinomarket. The company has been led by Victor Wiguna since the beginning of its operations in 2008. At its launch, Dinomarket positioned itself as a website E-commerce which provides premium services to consumers, including product authenticity, customer service, and risk-free.

The products presented from the start have included gadgets and electronics that have become Dinomarket's strengths until now, in addition to household appliances, baby needs, to personal care. Gadgets and electronics are the mainstay categories in most services E-commerce for having basketball size which is great for per transaction.

Brand Dinomarket is not as strong as its peers, both past and present. This is reflected in the data similar web, total traffic Dinomarket from March-August 2021 was stable at 115 thousand visits. Compared to Bhinneka, total visits were much higher at around 4,67 million visits in the same period. Here's the graph:

DailySocial also tried to find out the general perspective of the Dinomarket brand in the ears of some people through a mini survey from Polling Twitter which was attended by 112 respondents. Even though it cannot be used as a reference, we can see a small picture that as many as 70,5% of respondents said they did not know Dinomarket. The remaining 29,5% answered that they knew what Dinomarket was and had tried its services.

Dinomarket CEO Victor Wiguna admits that there are not as many consumers as players E-commerce others, but it is claimed the number continues to grow organically. So, even though growth is slow, there are more customers sticky regarding Dinomarket services. It is not stated in the figures how many Dinomarket users there are.

He only revealed that Dinomarket's biggest consumers are buyers of gadgets and electronic goods basketball size around IDR 2 million per transaction.

“With a guarantee of satisfactory service and guarantees of original products with official guarantees. Draft online retail allows us to control and guarantee product quality. "This is also what makes Dinomarket a place of trust for large banks to serve their customers," he said DailySocial.

Therefore, continued Victor, brand awareness What is most attached to Dinomarket is trust which has always been emphasized since the start of the company's operations. “Dinomarket is known as E-commerce risk-free online shopping. We guarantee 100% shopping satisfaction in terms of service and quality of goods. Guaranteeing original and guaranteed products is our important commitment.”

Thanks to this foundation, Dinomarket is trusted by many banks to serve its customers through the Dinopoin loyalty program. Dinomarket's target consumers are precisely strong in B2B to support half of its business income, not only B2C.

A number of banks that have partnered are Bank Mandiri, CIMB Niaga, Bank BNI, Panin Bank, Maybank, Bank BTN, OCBC NISP, and Telkomsel. Dinopoints is a point exchange partner that bank customers have managed to collect with various offers. Starting from gold, gadgets and accessories, electronics, and beauty products.

"50% of the Dinomarket business serves loyalty programs for tens of millions of customers from various large banks through Dinopoin."

According to him, this B2B business is able to make Dinomarket survive, become a unique company, and able to build healthy growth from the start. In fact, it is also claimed that the company's position is already profitable and scalable, able to innovate.

For him, startup resilience — healthy growth and sustainable, is a major challenge for a person founder. Therefore, startups are required to focus on products and innovation in order to become successful companies scalable and independent, whether you don't have or already have investors.

“But pursuing significant growth is certainly not easy without large amounts of new capital. We believe we are at the right point, ie profitable and scalable. We always welcome for investors who still have the belief that Indonesia's 270 million people are still in need E-commerce who are able to compete in the future.”

Dinomarket is also closed about the external funding that the company has obtained. The only funding announced is an acquisition grant Series A of $6 million from Tiger Global Management, a VC from the United States with a portfolio of Alibaba, Apple and Amazon, in 2011.

Witness the development of the e-commerce industry

In the midst of fierce competition, all companies are required to always innovate to remain relevant to consumers. As a witness to growth e-commerce sSince its infancy, Victor said that Dinomarket has witnessed rapid development over the last 10 years, both in terms of the number of platforms available and the number of users.

Since the beginning, he continued, there has been growth in solutions E-commerce but has not been able to advance significantly to one point. Where supporting facilities, such as payment systems and logistics, enter simultaneously and become crucial factors for industrial growth E-commerce can shoot up like a rocket.

“As a pioneer, Dinomarket can be said to have experienced all phases. In the early days, educating the public about E-commerce and invite you to make a transaction. At that time there was only bank transfer for payment and only JNE for delivery. Everything is limited, but we still get results, namely customers who started trying to shop online. "

A few years later, players began to appear E-commerce other. Many investors from abroad are starting to explore, invest and create businesses E-commerce increasingly passionate. Ecosystem momentum E-commerce to grow even faster until now.

According to estimates e-Conomy SEA 2020, pass E-commerce rose 54% to $32 billion in 2020, from $21 billion in 2019. This industry will continue to be a major force in the digital economy in Indonesia. The growth in e-commerce momentum in 2020 is also reflected in a fivefold increase in the number of local suppliers trying to sell online because of the pandemic.

Not much is known about what kind of innovations Dinomarket has carried out since its 12 years of operation. However, the company also made many business adjustments as the supporting ecosystem grew E-commerce. One of them is utilizing existing logistics services to make them more efficient.

“In the beginning, we built our own logistics system and delivered. However, since the offer of logistics services has been offered, we have chosen to work together to be more efficient."

Dinomarket has just expanded second hand marketplace that named SEKO. In the big plan, SEKO will appear on the Dinomarket page as a circulation center for gadgets and electronic goods. Additionally, there are features trade-in (exchange) gadgets and electronics collaboration between SEKO, Dinomarket, principal brands and banks.

“Dinomarket's role here [for SEKO] is as supporter technical cultivation side [service] E-commerce and of course support funds, "he explained.

This solution is not new. Previously, Jagofon and Laku6 had emerged as e-commerce players specifically selling used gadgets. Together with Tokopedia, Laku6 provides a Trade-In feature that consumers can choose when they want to trade-in with gadgets sold on Tokopedia.

There are no dominant players from the 2000s

You could say there isn't any e-commerce players in the 2000s which is the dominant player in the market, especially in B2C. The only player that is often associated with other electronic products is Bhinneka.com. However, their main target is B2B and B2G.

According to Amvesindo Treasurer Edward Chamdani, the strategy to dominate the market must be fully supported by mindset from the founder himself. If mindset and strategy growth hacking is not strong enough, plus there are already players who dominate the market, it will be difficult to change a company's position in that market.

He gave the most obvious example is the presence of Shopee. This company was present at a time when Tokopedia and Bukalapak dominated the market. However, with the right team and execution growth hacking What's neat is that now they can win in a slightly different segment to Tokopedia. In fact, both Shopee and Tokopedia are now often compared to each other because of their incessant strategy growth hacking carried out by each team.

"Mindset it plays a very important role. Strategy growth hacking "It must also be led by people who support it," he explained.

Edward, who is also Managing Partner of Ideosource, one of Bhinneka's initial investors since 2015, added that a strong leadership figure also influences whether a company can compete or not in the industry. Because this can be the starting gate for founder in realizing its vision and mission it can be more targeted than competitors.

He again gave an example of conditions in the field, this time looking at the leadership style of Tokopedia Co-Founder and CEO William Tanuwijaya. From the start, Wiliam has been consistent with his mission of creating economic equality digitally and continuously conveying it in the field. This mission has been successfully translated into various features released by Tokopedia for its users.

“They create features that make the ecosystem easier, merchant spoiled with features, not just consumers. So marketing budget they are used appropriately and address ecosystem needs.”

Edward continued, “There is a big possibility that on the surface, the consistent translation of the founder's vision on the ground is a winner. Competitors may be doing the same thing, but we as consumers don't see the obvious features. So when they campaign on the field, we can't see that consistency.”

Specialized in Bhinneka own, translation company as E-commerce specifically IT and electronic products for B2B have become successful top of mind and Branding which is strong among all Indonesian people. This backfired on Bhinneka itself, if they wanted to compete in B2C it would be difficult to compete with dominant platforms in the same pool.

“B2B consumers already know that they can rely on it aftersales in Bhinneka if there are complaints. "But for B2C consumers, that's not necessarily true, even though the SKU is the same, from a consumer perspective there are many players who are more competitive in terms of price than Bhinneka," he concluded.